House panel OKs bill enabling VAT collection from nonresident digital service providers

THE House of Representatives's tax committee has approved a bill that will enable the Philippines to collect value-added tax (VAT) from nonresident digital service providers.

"Talaga namang may (There is actually a) VAT already on sale of services in the Philippines...Kaya lang, dahil non-resident sila (It's just that because they are non-residents), there's no mechanism for the Philippine government to collect," Finance Undersecretary Antonette Tionko said during the committee's deliberation on Wednesday.