#digital services act

The European Union has warned TikTok that it must change what regulators describe as the app’s “addictive design” or risk fines of up to 6% of its global annual revenue under the Digital Services Act (DSA). signed into law the Digital Services Act (likewise known as Republic Act No. 12023 or the Value-Added Tax on Digital Services Law) which aims to expand the existing 12% VAT to digital service providers. The coverage includes all digital services consumed in the Philippines by digital service providers regardless of whether the service provider is local or foreign. The 12% VAT on digital services will finally be implemented starting June 1, 2025. The government also allocates 5% of the VAT collected from digital services over five years to support the local creative industry, and hopefully help Filipino digital creators. It aims to develop and digitalize creative sectors by granting access to digital services and training platforms, fostering innovation and economic growth within these industries. All digital services provided by local and international companies that are consumed in the Philippines will be meted with the additional 12% VAT. Read more in our articles including "EU orders TikTok to fix ‘addictive’ design or face massive fines" and "Digital Services Act of 2025 Explained".