#EU digital regulations

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. RA 12023 amends the National Internal Revenue Code of 1997 (Tax Code) to include digital service providers (DSPs) under the VAT regime. 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 law is not a new tax but a measure to close gaps in the tax system caused by the digital economy’s rapid growth. It ensures that foreign digital platforms contributing to the Philippine market pay their fair share of taxes, promoting fairness and competition. 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. Read more in our articles including "Digital Services Act of 2025 Explained" and "Western Digital Around the World Contest".