The Philippines Proposes Law Imposing VAT on Non Resident Digital Service Providers


On the 21st September 2021 The Philippine House of Representatives approved a bill  imposing a 12% value added tax (VAT) on non resident digital service providers engaged in the sale, barter, exchange and lease of goods or properties and services using digital or electronic platforms.

Non resident digital service providers with annual gross sales/receipts exceeding PHP3 million (approximately US$60,000) will be required to register for VAT purposes. The bill was transmitted to the Philippine Senate on 22 September 2021 for further legislative review.