#vat digital services philippines

The House of Representatives has approved a bill that imposes value added tax (VAT) on foreign or non-resident digital service providers. Albay Representative Joey Salceda, the panel's chairperson, said that foreign digital service providers are earning income in the Philippines and are paying taxes in their home countries, and the government wants a share of that. "Otherwise, it would be disadvantageous to our local digital service providers which pay VAT," he said. Salceda said that VAT on foreign digital services is expected to raise PHP 9 billion in government revenues. Gabriela party-list Representative Arlene Brosas, however, pointed out that imposing VAT will mean additional expenses to consumers and prefers to tax corporations rather than consumption-based services. 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. Western Digital Philippines is also a sponsor in our recent WD TV Live Christmas Giveaway. Read more in our articles including "House approves bill that imposes VAT on foreign digital service providers" and "EU says Meta's infinite scroll and autoplay may violate Digital Services Act".