RR NO. 3-2025 – IMPOSING THE VALUE-ADDED TAX (VAT) ON DIGITAL SERVICES

The Bureau of Internal Revenue (BIR) has expanded the scope of the Value-Added Tax (VAT) to include digital services, ensuring that online platforms, applications, and other digital providers contribute their fair share of taxes. This development aligns with global practices of taxing the digital economy, recognizing the increasing shift of commerce to online platforms.

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