02/06/2025
Digital Services Law!
Starting June 02, 2025 - Digital Services Law (RA 12023) is in effect!
The law imposes a 12% VAT on digital services provided by nonresident digital service providers (DSPs) to consumers in the Philippines.
This includes services such:
✅Online media and advertising (e.g., Facebook Advertisement)
✅Streaming platforms (e.g., Netflix, Disney+)
✅E-commerce marketplaces (e.g., Amazon, Lazada)
✅Digital content (e.g., music, video games)
✅Cloud-based applications.
President Ferdinand 'Bongbong' Marcos Jr. signs into law Republic Act (RA) No. 12023 or the Value Added Tax (VAT) on Digital Services Law, which imposes a 12-percent VAT on digital service providers, in Malacañan on Oct. 2, 2024
The Law encompasses various services such as online search engines, online marketplaces, cloud services, online media and advertising, online platforms, and digital goods.
"We are not imposing new taxes, we are simply strengthening the authority and streamlining the process of the BIR to collect value-added tax on digital services. This includes digital media, digital music, digital video on demand, and digital advertising," Marcos said.
President Marcos has signed into law Republic Act (RA) No. 12023 or the Value Added Tax (VAT) on Digital Services Law which imposes a 12-percent VAT on digital...