House panel OKs bill imposing VAT on foreign-based digital services

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A committee at the House of Representatives on Wednesday approved a proposed measure imposing value added tax (VAT) on non-resident digital service providers.

During a hearing, members of the House Committee on Ways and Means approved the motion for approval made by Nueva Ecija Representative Ria Vergara.

"These companies earn income here and are paying taxes in their home countries," he added. "I want to get our share of that. Otherwise, it would be disadvantageous to our local digital service providers which pay VAT." But for Gabriela party-list Representative Arlene Brosas, taxing such consumption-based services would also mean additional expenses to consumers.

 

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