The new legislation aims to level the playing field between local and foreign digital service providers (DSPs) by mandating a 12% value-added tax on all digital services consumed in the Philippines. At present, only local DSPs are subject to paying the 12% value-added tax.
Most Filipino consumers are increasingly expecting a highly personalized and seamless experience like what they get from digital apps and services, such as online shopping, digital banks, payment apps, ad OTT platforms, among others.
The Department of Finance and the Bureau of Internal Revenue are currently crafting regulations and designing a system to collect VAT on digital transactions to help the government raise revenues.
As a result, Filipinos in the regions will increasingly experience the emerging digital lifestyle through iflix, Wi-Fi Access Point, and PayMaya Resellership.
