Philippines: Introduction of House Bill 7425 introducing indirect taxation on digital service providers
Description
Introduction of House Bill 7425 introducing indirect taxation on digital service providers
House Bill 7425 is introduced in the House of Representatives for discussion. The Bill imposes a 12 per cent value-added tax (VAT) on digital transactions. The "digital service providers" definition includes third party sellers, e-commerce and auction intermediaries, ad sellers and suppliers of digital services in exchange for a fee. There are exceptions for small online sellers.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Indirect taxes
Regulated Economic Activity
cross-cutting
Implementation Level
national
Government Branch
legislature
Government Body
parliament
Complete timeline of this policy change
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
cross-cutting
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
advertisement (any targeting): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
own content: any format: sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
own content: any format: streaming
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
cloud infrastructure: sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
service (digitally delivered): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
listing (any form): marketing (any form)
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
software (any type): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1
digital good (any form): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Determined by existing law or regulation
Regulated subjects
1