The BIR has issued a form and related guidelines for nonresident digital service providers to file and pay VAT.
The Philippines Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 52-2025 on 30 May 2025, introducing a new BIR Form No. 2550-DS (VAT Return for Nonresident Digital Service Providers) in line with Republic Act No. 12023 and Revenue Regulations (RR) No. 3-2025.
The RMC No. 52-2025 also includes guidelines and instructions for filing and paying BIR Form No. 2550-DS, required for nonresident digital service providers supplying digital services in the Philippines. These instructions are designed to assist taxpayers, or their representatives, with the preparation of the VAT return.
Who shall file
This return shall be filed by a nonresident digital service provider who supplies or renders Digital Services in the Philippines. Digital services refer to automated services delivered online or via electronic networks using information technology. Examples include search engines, online marketplaces, cloud services, digital goods, media, advertising, and online platforms.
A nonresident digital service provider (DSP) is a DSP with no physical presence in the Philippines. Taxpayers must file this return as long as their VAT registration remains active, even if there are no taxable transactions during the quarter.
When and where to file
This return must be filed and paid electronically through the Value-Added Tax on Digital Services (VDS) Portal within 25 days after the end of each taxable quarter.
Earlier, the BIR issued Revenue Memorandum Circular No. 47-2025 on 9 May 2025, offering guidance through FAQs on applying VAT to cross-border digital services.
