House passes another tax on your simple pleasures

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The House of Representatives has approved on final reading a bill that imposes a 12-percent VAT on digital transactions in the Philippines, like streaming platforms Netflix and Spotify, or book vendors like Amazon. | NCorralesINQ

The proposed measure seeks “to level the playing field between traditional and digital businesses” by clarifying the imposition of VAT on digital service providers.

The bill imposes a 5-percent VAT on registered but nonresident DSPs providing services to the government, otherwise a 12-percent VAT is imposed. Gabriela Rep. Arlene Brosas, who opposed the bill, said the 12-percent VAT would be the highest digital tax in Southeast Asia, adding that the VAT would be passed on to the consumers.

 

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