- The Philippines issued RMC No. 059-2026 to clarify VAT rules for non-resident digital service providers under RR 003-2025.
- A 12% VAT applies to electronic services supplied by overseas businesses to Philippine residents, with limited exemptions; B2C sellers generally collect/remit VAT unless a VAT-registered platform handles the sale.
- B2B supplies use the reverse charge mechanism, and overseas suppliers must register if they exceed or expect to exceed PHP 3 million in turnover in 12 months.
- The circular confirms filing/remittance deadlines and says a Philippine tax representative is not required, while also covering cost-sharing and electronic marketplace rules.
- It also states that VAT obligations apply even if the provider has treaty benefits, since double tax agreements affect income tax only, not VAT.
Source: vitallaw.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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