THE Bureau of Internal Revenue (BIR) said non-resident foreign digital service providers (DSPs) have until June 1 to register for value-added tax (VAT) in compliance with the digital services law.
According to Revenue Regulations No. 014-2025, non-resident DSP will be subject to VAT starting June 2.
“The Commissioner of Internal Revenue may further extend the deadlines on the transition period prescribed in these Regulations as may be deemed necessary,” the BIR said.
Such entities may register via the VAT on Digital Services portal or through the Online Registration and Update System.
In October, President Ferdinand R. Marcos, Jr. signed Republic Act No. 12023, which imposes a 12% VAT on DSPs, both resident and nonresident.
About P7.25 billion is expected to be collected from this law this year, another P21.37 billion in 2026, and a further P26.27 billion in 2029, the Department of Finance said.
Under the law, the digital services include search engines, e-marketplaces, cloud services, online media and advertising, online platforms, or digital goods. — Aubrey Rose A. Inosante
