Philippines: Adopted Bill Amending and Adding New Sections of the National Internal Revenue Code including registration requirement (SB No. 2528)

Description

Adopted Bill Amending and Adding New Sections of the National Internal Revenue Code including registration requirement (SB No. 2528)

On 30 July 2024, the Bill Amending and Adding New Sections of the National Internal Revenue Code, including registration requirements for digital services (SB No. 2528), was adopted by the House of Representatives of the Philippines. The Bill mandates non-resident 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. Non-resident DSPs would be required to charge and collect VAT for their services made to final consumers (B2C sales), while business customers would be required to self-assess and remit the applicable VAT for B2B sales. The DSP would be required to register for VAT if its gross sales exceed PHP 3 million in a 12-month period. The Bill also includes penalties for non-compliance, including blocking digital services for failure to register.

Original source

Scope

Policy Area
Authorisation, registration and licensing
Policy Instrument
Business registration requirement
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

Hide details
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, i…

2024-10-18
in grace period

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