The government is expecting to collect billions from digital services due to an increase of 12% in value-added tax, the Department of Finance (DOF) said.
In a statement, it said that they are expecting to collect P102.12-B from 2025-2029.
For the year 2025 alone, for the 50% compliance, the DOF said they are expecting revenues amounting to P7.25-B.
The DFA further said that the collected VAT from the digital service providers “will be channelled into projects that directly benefit the Filipino people, such as building more schools, roads, and hospitals as well as supporting vital socio-economic programs.”
President Ferdinand “BBM” Marcos Jr, signed into law the Republic Act 12023 which imposes a 12% VAT on foreign digital services.
Finance Secretary Ralph Recto, on the other hand, was thrilled about the new law and ensured that there would be fair treatment of all digital services.
Digital services include cloud services, digital goods, marketplaces, online media, and online search engines.
The IRR of the new law will be released 90 days after it is signed into law.
