Philippines: 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.