Philippines: Introduced Bill Amending and Adding New Sections of the National Internal Revenue Code including 12% VAT on digital services (SB No. 2528)

Description

Introduced Bill Amending and Adding New Sections of the National Internal Revenue Code including 12% VAT on digital services (SB No. 2528)

On 30 January 2024, Bill Amending and Adding New Sections of the National Internal Revenue Code including 12% VAT on digital services (SB No. 2528), was introduced in the Philippines Senate. The Bill would mandate nonresident digital services providers (DSP) to register for and collect a 12% value-added tax (VAT) on digital services consumed in the country. The digital services include online search engines, marketplaces, cloud services, media and advertising, platforms, and digital goods. Under the Bill, certain services such as educational services, services to listed government institutions and recognised educational institutions, and services of banks and non-bank financial intermediaries would be exempted.

Original source

Scope

Policy Area
Taxation
Policy Instrument
Indirect taxes
Regulated Economic Activity
online advertising provider, digital payment provider (incl. cryptocurrencies), streaming service provider, platform intermediary: e-commerce, search service provider, infrastructure provider: cloud computing, storage and databases
Implementation Level
national
Government Branch
legislature
Government Body
parliament

Complete timeline of this policy change

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2024-01-30
under deliberation

On 30 January 2024, Bill Amending and Adding New Sections of the National Internal Revenue Code inc…

2024-07-30
adopted

On 30 July 2024, the Bill Amending and Adding New Sections of the National Internal Revenue Code in…

2024-10-18
in grace period

On 18 October 2024, the Bill Amending and Adding New Sections of the National Internal Revenue Code…