Menu
  • Locations
  • About Us
  • Services
  • Experts
  • News
  • Knowledge
  • Culture & Career
  • Locations
  • Search
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Seychelles
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
  • Latest News
  • Pillar Two - Global Minimum Tax
  • Brochures
  • Newsletters
  • Surveys & Studies
  • The Digital Tax Law Center (DTLC)
  • The European Tax Law Center (ETLC)
  • Climate Protection, Green Tax & Energy
  • Tax Loss Carryback
  • Real Estate Guide
  • Assignments to Europe 2021
  • Tax and Investment Facts CEE
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
  • Press
  • Events & Webinars
  • Contact
  • CI Guide
WTS worldwide
  • Albania
  • Angola
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Bangladesh
  • Belarus
  • Belgium
  • Benin
  • Bolivia
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Chile
  • China
  • Colombia
  • Costa Rica
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Guatemala
  • Guinea
  • Honduras
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iran
  • Iraq
  • Ireland
  • Israel
  • Italy
  • Ivory Coast
  • Japan
  • Kazakhstan
  • Kenya
  • Korea
  • Kyrgyzstan
  • Laos
  • Latvia
  • Lithuania
  • Luxembourg
  • Macao
  • Macedonia
  • Madagascar
  • Malaysia
  • Mali
  • Malta
  • Mauritius
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Mozambique
  • Myanmar
  • Nepal
  • Netherlands
  • New Zealand
  • Niger
  • Nigeria
  • Norway
  • Pakistan
  • Panama
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Romania
  • Russia
  • Rwanda
  • Saudi Arabia
  • Senegal
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sri Lanka
  • Sweden
  • Switzerland
  • Taiwan
  • Tanzania
  • Thailand
  • Togo
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA
  • Uzbekistan
  • Venezuela
  • Vietnam
  • Zambia
  • About Us
    About Us

    Here you will find more information on our organization’s structure, experts and global reach.

    Read more
    About Us Our CEO Our Board Our Global Executive Team Quality, Process & Risk Management
  • Services
    Services
    Read more
    Corporate Tax Customs Financial Services Global Mobility Indirect Tax
    International Corporate Tax Mergers & Acquisitions (M&A) Private Clients & Family Office Services Real Estate Services Tax Controversy
    Tax Technology Transfer Pricing & Valuation Services
  • Experts
    Experts

    With a representation in over 100 countries, our team offers local expertise on a global scale. Learn more about our experts.

    Read more
  • News
    News

    Find here the latest tax news for our locations worldwide.

    Read more
    Latest News
  • Knowledge
    Knowledge

    Our quick overview with downloads: newsletters, publications, surveys. 

    Read more
    Pillar Two - Global Minimum Tax Brochures Newsletters Surveys & Studies The Digital Tax Law Center (DTLC)
    The European Tax Law Center (ETLC) Climate Protection, Green Tax & Energy Tax Loss Carryback Real Estate Guide Assignments to Europe 2021
    Tax and Investment Facts CEE
  • Culture & Career
    Culture & Career

    The WTS Global Academy - Bringing value to the whole

    Read more
    Culture and Leadership Diversity WTS Global Academy Career Your Development
    Jobs
  • Locations
    Locations

    Our locations worldwide

    Read more
  • Search
15.09.2020

Philippines' Digital Services Tax

Update for the Digital Economy

Key Facts
In July 2020 the House of Representatives Committee on Ways and Means approved House Bill No. 7425 on Imposition of VAT on Digital Transactions, in Substitution of House Bill Nos. 4531, 6765, 6944, and House Resolution No. 685.

Definition

1. Digital Service Provider (DSP) – a service provider of digital service or goods to buyers through operating an online platform or by making transactions for provision of digital services on behalf of any person. It may be a:

  • Third party seller of goods and services who, through information-based technology or the internet, sells multiple products for its own account, or who acts as an intermediary between a supplier and buyer of goods and services collecting or receiving payment from a buyer in behalf of the supplier and receives a commission thereon;
  • Platform provider for promotion using the internet to deliver marketing messages;
  • Host of online auctions through the internet;
  • Supplier of digital services for a regular subscription fee; and
  • Supplier of electronic and online services delivered through an information technology (IT) infrastructure, such as the internet.

2. Buyer – any person residing in the Philippines and acquires taxable digital services in the Philippines from a DSP for personal consumption or for trade or business.

3. Digital Service – any service delivered or subscribed over the internet or other electronic network and can’t be obtained without use of IT. It shall include:

  • Online licensing of software, updates, and add-ons, website filters and firewalls;
  • Mobile applications, video games, and online games;
  • Webcast and webinars;
  • Provision of digital content such as music, files, images, text and information;
  • Advertisement platform;
  • Online platform such as electronic marketplaces or networks for the sale, display, and comparison of prices of trade products/services;
  • Search engine services;
  • Social networks;
  • Database and hosting such as website hosting, online data warehousing, file sharing and cloud storage services;
  • Internet-based telecommunication;
  • Online training such as provision of distance teaching, e-learning and online courses and webinars;
  • Online newspapers and journal subscription; and
  • Payment processing services.

Coverage

Twelve percent (12%) VAT imposed on sale of:

1. Goods or properties including those digital or electronic in nature

2. Services including those rendered electronically ‘Sale or exchange of services’ means the performance of all kinds of services in the Philippines, whether rendered electronically or otherwise, including:

  • Supply by resident or non-resident of digital services such as online advertisement services
  • Supply by resident or non-resident of subscription- based services
  • Supply of electronic and online services delivered through IT infrastructure (internet).

VAT Exemption

Electronic or online sale / importation / publication of books / newspaper / magazine / review or bulletin appearing at regular intervals with fixed prices or subscription and sale not devoted principally to the publication of paid advertisements.

Input Tax Credits
And Invoing Requirements

  • No creditable input tax shall be claimed by non-resident digital service providers
  • VAT-registered DSP may issue electronic invoice or receipt subject to the rules to be prescribed
Download the full document as PDF
PDF
Digital Economies Editorial Team
View
Articles you might be interested in

Italy introduces Digital Service Tax. Read more details in the newsflash composed by our Digital Economies group.

Italian Digital Service Tax
read more

Taxation of Digital Economies - Update

Mexico introduces VAT on Digital Services
read more

An update on the proposed Spanish DST’s legislative progress and the preliminary steps you can start to take in preparation

Spanish Digital Services Tax - Update
read more

Get in contact

If you have any questions about WTS Global or our global services, please get in touch.
We will respond to you as soon as possible.

Contact
About Us
  • About Us
  • Our CEO
  • Our Board
  • Our Global Executive Team
  • Quality, Process & Risk Management
Services
  • Corporate Tax
  • Customs
  • Financial Services
  • Global Mobility
  • Indirect Tax
  • International Corporate Tax
  • Mergers & Acquisitions (M&A)
  • Private Clients & Family Office Services
  • Real Estate Services
  • Tax Controversy
  • Tax Technology
  • Transfer Pricing & Valuation Services
News
Knowledge
  • Brochures
  • Newsletters
  • Surveys & Studies
  • COVID-19 Global updates
  • The Digital Tax Law Center (DTLC)
  • VAT Update for the Digital Economy
  • The European Tax Law Center (ETLC)
  • Tax Loss Carryback
  • Real Estate Guide
Culture & Career
  • Culture and Leadership
  • Diversity
  • WTS Global Academy
  • Career
  • Your Development
  • Jobs
Exclusive Cooperation With
© 2022 WTS Company Information Data Protection Disclaimer