On 2 October 2024, the Philippine Congress passed the Republic Act (R.A.) No. 12023. The law extends VAT obligations for digital service providers to include non-residential providers (without physical presence in the Philippines).
The foreign digital service provider will be subject to VAT if:
- The service is offered via the internet or another electronic network with the use of information technology, and where the supply of the service is essentially automated; and
- The service is consu…