DOF starts push for new VAT on digital service providers
The Department of Finance (DOF) on Thursday made its push to impose value-added tax (VAT) on digital service providers at a hearing of the Senate committee on ways and means on measures imposing the new taxes.
DOF Undersecretary Dakila Elteen Napao said the new VAT will be imposed on digital service providers, including online licensing software, website filters and firewalls, mobile applications, video games, webcasts and webinars, digital music, files, images, text and information, an electronic marketplace, search engine services, social networks, cloud storage services, online newspapers, journal subscriptions and payment processing services, among others.
“Assuming that there will only be 70 percent compliance among those digital service providers… in 2024 alone, there will be a P17.64 billion additional collection,” said Napao. —CHARIE ABARCA
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