Daily News

Gov’t eyes VAT on digital services

The government is bent on capturing the digital economy into the country’s value-added tax (VAT) base even as the international community has not yet agreed on the taxation of cross-border digital transactions, according to the Department of Finance (DOF). Finance Secretary Carlos Dominguez said the Philippines would need to wait for an international agreement on cross-border digital transactions before it can consider imposing tax on the revenues of digital service providers. For now, Sec. Dominguez said the DOF and the Bureau of Internal Revenue (BIR) would focus on developing a tax regime that would allow the government to collect VAT on digital transactions, whether they are local or cross-border.