BIR: VAT on digital service providers not new tax
Manila: The Bureau of Internal Revenue (BIR) said on Thursday the value-added tax (VAT) on resident and non-resident digital service providers is not a new tax. ‘This is not a new tax. RA No. 12023 only ensures that the VAT being paid by local digital businesses, will also be paid by foreign digital businesses,’ BIR Commissioner Romeo Lumagui Jr. said in a statement. Signed into law by President Ferdinand R. Marcos Jr. on Wednesday, RA No. 12023 imposes a 12-percent VAT on electronic or online sale of services, such as online advertisement services and provision for digital advertising space; digital