Pia Cayetano seeks VAT on digital transactions | Inquirer News

Pia Cayetano seeks VAT on digital transactions

/ 01:33 PM August 04, 2022
online payment or e-pay or cashless transaction

Senator Pia Cayetano stressed that her measure does not impose new taxes but only “strengthens and streamlines the Bureau of Internal Revenue’s authority to collect VAT on digital transactions.” (FILE PHOTO)

MANILA, Philippines — Senator Pia Cayetano has filed a bill seeking to impose value-added tax on digital transactions.

In filing Senate Bill No. 250, Cayetano noted that the COVID-19 pandemic contributed to the digital economy boom as people shifted purchasing their needs and accessing services online when lockdowns were imposed.

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“As the country moves towards more digitalization, so too must our tax regime. The government needs to catch up with the trends and constantly expend an all-out effort to strengthen its revenue-generating capability to aid our country’s economic recovery from the adverse impacts of COVID-19,” the bill’s explanatory note stated.

“This bill… aims to level the playing field between traditional and digital businesses by clarifying the imposition and collection of value added tax (VAT) from digital service providers, which are required to help the government monitor and collect VAT from persons engaging businesses on their digital platforms,” it added.

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Cayetano stressed that her measure does not impose new taxes but only “strengthens and streamlines the Bureau of Internal Revenue’s authority to collect VAT on digital transactions.”

Document: Senate Bill No. 250

The senator’s bill aims to amend certain sections and add a new section of the National Internal Revenue Code of 1997.

Cayetano’s measure was based on a bill transmitted to the Senate from the House of Representatives during the previous Congress.

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TAGS: Business, Sen. Pia Cayetano, taxes on digital transactions, value added tax
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