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Philippines Introduces Legislation to Make Digital Services Subject to VAT

26 May 2020

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Proposed Changes

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Philippines

The chair of the Ways and Means Committee of the Philippine House of Representatives has introduced legislation that would impose VAT on digital services provided by multinational companies. On 19 May 2020, Rep. Joey Salceda introduced H.B. 6755, which he said would clarify that "digital advertising by internet giants such as Google and Facebook and subscription-based services such as those of Netflix and Spotify" are subject to the Philippines’ 12% VAT. The bill would, "once and for all, set a statutory clarification of a long-standing question of whether services rendered electronically can be subjected to VAT," Salceda said in the...