PH"Republic Act 112023 imposes a 12% value-added tax (VAT) on digital services provided by both resident and non-resident digital service providers, regardless of whether they have a physical presence in the Philippines.
■ What the law changes.
The law adds a provision in the Tax Code which states that digital services delivered by foreign digital service providers are considered performed or rendered in the Philippines if the digital services are consumed in the Philippines.
■ What will be taxed?
RA 112023 covers all foreign digital services, which refer to those delivered via the internet or electronic networks using information technology, where the process is largely automated.
Examples include online search engines, e-marketplaces, cloud services, online media, advertising, digital platforms, and digital goods.
This means popular platforms like Netflix, Disney+, Shein, Temu and Amazon will now be required to pay VAT on the digital services they provide to consumers in the Philippines even if they are based overseas."
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■ What the law changes.
The law adds a provision in the Tax Code which states that digital services delivered by foreign digital service providers are considered performed or rendered in the Philippines if the digital services are consumed in the Philippines.
■ What will be taxed?
RA 112023 covers all foreign digital services, which refer to those delivered via the internet or electronic networks using information technology, where the process is largely automated.
Examples include online search engines, e-marketplaces, cloud services, online media, advertising, digital platforms, and digital goods.
This means popular platforms like Netflix, Disney+, Shein, Temu and Amazon will now be required to pay VAT on the digital services they provide to consumers in the Philippines even if they are based overseas."
You do not have permission to view the full content of this post. Log in or register now.
