#digital service tax

The House Ways and Means panel has recently approved the bill seeking to add 12% VAT on foreign and local companies offering goods and services on digital platforms. The substitute bill, which is still unnumbered, aims to amend the Section 105-A of the National Internal Revenue and add a provision that putting the responsibility on international digital service providers such as Netflix, Spotify, and Lazada to assess, collect, and remit 12% VAT on all their successful transactions. “Digital service providers from outside [the country] gain profit from our constituents but they don’t pay tax [to Philippine government]. This bill levels the playing field for local digital service providers,” Deputy Speaker Sharon Garin shared to GMA News. The European Commission has issued preliminary findings that Meta may have violated the Digital Services Act (DSA) over the allegedly addictive design of Facebook and Instagram. The investigation was formally launched in May 2024 and is part of the European Union's broader efforts to ensure that major online platforms comply with the Digital Services Act. Read more in our articles including "House panel approves tax bill on digital services" and "EU says Meta's infinite scroll and autoplay may violate Digital Services Act".