UPDATE: Philippines implements VAT on e-services provided by non-resident suppliers

31 January 2025

The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services provided by foreign providers to local Filipino consumers and non-VAT registered resident businesses from the 16 May 2025.

The BIR has also confirmed that they will open a new simplified VAT registration portal from 31 March, and that affected companies will not be required to register until they exceed an annual threshold of PHP 3 million (approx. £41,000).

There will also be no need to engage a local tax agent or fiscal representative to VAT register in the country.

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