With the advent of digitalization where services worldwide are being availed online, legislators has noted the increasing consumption of digital services by Filipinos and has seen this as an opportunity to impose new taxes leading to the passage of Republic Act No. 12023 – VAT on Digital Services Law dated July 22, 2024.
Recently, the BIR issued Revenue Regulations No. 3-2025 dated January 16, 2025 to implement the provisions of Republic Act No. 12023 – VAT on Digital Services Law that is set to take effect 15 days following its publication through BIR website last January 17, 2025 or on Feb. 1, 2025.
