#vat 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. Salceda responded by saying that service providers are already passing it on when they pay VAT in other countries. The Philippines and the European Union (EU) are working together to improve digital connectivity, strengthen cybersecurity, and expand access to satellite data under a new initiative aimed at supporting economic growth and disaster resilience. One of the key parts of the initiative is access to data from the EU's Copernicus Earth observation system. Read more in our articles including "House approves bill that imposes VAT on foreign digital service providers" and "Pasig Mega Market gets Starlink internet for cashless payments".