- The Philippines expanded its VAT rules under Republic Act No. 12023 to expressly cover digital services supplied by resident and nonresident digital service providers.
- Digital services consumed in the Philippines are subject to 12% VAT, effective June 2, 2025; the IRR took effect Feb. 1, 2025.
- Covered digital services include online search engines, online marketplaces, cloud services, online media and advertising, online platforms, and digital goods.
- Resident and nonresident digital service providers with Philippine transactions were required to register with the BIR by July 1, 2025.
- For nonresident providers, B2B supplies are taxed under a reverse-charge mechanism with the Philippine customer remitting VAT, while B2C supplies make the nonresident provider directly liable for VAT.
Source: bworldonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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