THE Bureau of Internal Revenue (BIR) and the Land Bank of the Philippines (LANDBANK) said they signed an agreement to streamline the payment of value-added tax (VAT) by foreign digital service providers (DSPs).
“This Memorandum of Agreement (MoA) outlines the agreement between two government agencies to collaborate in the collection of Value-Added Tax on Digital Services (VDS) through a dedicated portal,” the BIR said in a statement over the weekend.
The MoA was signed on July 8.
The BIR previously extended the registration of all non-resident digital service providers to July 1 due to the unavailability of the VDS portal and the online registration and update system.
President Ferdinand R. Marcos, Jr. signed the law imposing VAT on DSPs in October.
“LANDBANK will serve as the solution provider for the VDS portal to establish a platform where foreign DSPs can file and pay their VAT,” the BIR said.
As of the end of May, BIR collections rose 13.8% to P1.35 trillion.
The Department of Finance has said that the government will generate P102.12 billion in revenue from the VAT on DSPs between 2025 and 2028. — Aubrey Rose A. Inosante