Description
Starting June 2, 2025, all non-resident digital service providers selling to Philippine customers must register with the Bureau of Internal Revenue and charge 12% VAT on applicable sales. Republic Act No. 12023 and its implementing regulations mark a significant shift in the country’s tax landscape, ensuring foreign and local providers compete on equal footing. From streaming platforms to cloud service companies, compliance is no longer optional—those unprepared risk penalties or service suspension.