The Department of Finance (DOF) announced President Marcos would soon sign a law imposing a 12% value-added tax (VAT) on foreign digital service providers like Netflix.
Finance Secretary Ralph G. Recto revealed that the DOF and the Bureau of Internal Revenue (BIR) are finalizing the implementing rules and regulations for this law.
The legislation, approved by the bicameral conference committee on June 27, aims to level the playing field between online service providers and foreign brick-and-mortar stores.
The VAT will apply to foreign providers with annual gross revenues exceeding P3 million, with a projected revenue of P20 billion next year.
Additionally, a three percent consumption tax will be introduced for providers with revenues below this threshold, though initial rates may start at 0.5 percent.
Source : PhilNews24 | August 28, 2024
