12.22.22

Proposal of introducing VAT on e-services for non-resident companies

The Philippines House of Representatives is proposing to introduce VAT on non-resident companies’ supplies of electronic services in an effort to reduce unfair competition between non-resident and resident companies.

Currently, foreign businesses that provide digital services to consumers in the Philippines are not subject to VAT. The House of Representatives propose to apply VAT at 12% to a wide range of electronic services, including streaming games, music, apps, films, e-books, and e-journals.