Philippines Gazettes Law on VAT for Digital Services

The Philippine Official Gazette Oct. 3 published Republic Act No. 12023, concerning VAT on digital services. The law includes measures: 1) imposing a 12 percent VAT rate on all digital services consumed in the country, and a 5 percent VAT rate on registered nonresident digital service providers (DSPs) furnishing services to the government; 2) requiring VAT registration for nonresident DSPs with gross sales or receipts exceeding 3 million Philippine pesos (US$53,077) in the past year; 3) requiring nonresident DSPs to designate a resident corporation registered under Philippine law, for compliance with the Tax Code, or face temporary suspension; 4) exempting ...