The Philippines’ Department of Finance has announced an amendment to the VAT requirements for non-resident digital services providers (DSPs) operating in the Philippines.
Starting 1 June 2025, non-resident digital service providers (DSPs) must comply with VAT rules on digital services consumed in the Philippines if gross sales exceed PHP 3 million.
This follows the Republic Act No. 12023, which was enacted on 2 October 2024. This Act imposed a 12% value-added tax (VAT) on non-resident digital service providers (DSPs), including streaming platforms such as HBO, Netflix, and Disney. The draft regulations for implementing VAT requirements were released in November 2024 and officially finalised in January 2025 as Revenue Regulations No. 3-2025.
Under the new regulations, resident DSPs must file VAT returns and make payments, while non-resident DSPs’ requirements depend on whether the supply is B2B or B2C.
For B2B supplies, the buyer is required to file the VAT return and pay the VAT within 10 days of the month it is withheld. For B2C supplies, the DSP files the VAT return and pays within 25 days of the end of each taxable quarter. However, in the case of B2C supplies, they have the option to file and pay monthly.
