The Philippine Chamber of Commerce and Industry (PCCI) said it supports the enactment of a law imposing value-added tax (VAT) on digital services.
PCCI president Enunina Mangio said the law would enhance fair competition and potentially benefit domestic businesses.
“By imposing VAT on both local and foreign digital services, the government is fostering a more competitive environment for local providers and encouraging innovation in their offerings,” she said.
Republic Act No. 12023 extends the 12-percent VAT to non-resident digital service providers, aiming to create a level playing field for local and foreign providers.
Mangio said a formalized taxation system could motivate local service providers to register their businesses, enhancing credibility and building consumer trust.
The new law also modernizes the country’s tax system and improves tax collection efficiency in the expanding digital economy, she said.
Mangio said revenue generated from VAT could be reinvested in ICT infrastructure and digital initiatives, benefiting local providers and creative industries.
The law aligns the Philippines with other nations that implemented similar measures to capture revenue from global tech companies and digital platforms, including online marketplaces and streaming services.
Countries like Singapore, Indonesia and Malaysia introduced digital tax regulations in 2020, while Thailand implemented VAT on foreign digital service providers in 2021.
