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The Bureau of Internal Revenue (BIR) issued an advisory on January 17, 2025, announcing Revenue Regulations (RR) No.3-2025, prescribed by the Philippine Secretary of Finance to outline the implementation guidelines for the VAT on Digital Services Law.
According to the Regulation, the VAT on Digital Services Law applies to digital services in the Philippines but excludes physical goods from abroad, which are treated as imports subject to existing tax and customs laws.
The regulation also verified that business-to-business (B2B) or digital services delivered to businesses in the Philippines, including the government and its entities, and business-to-consumer (B2C) classified as digital services supplied to individuals not engaged in business in the Philippines will be covered.
The Bureau of Internal Revenue (BIR) has recently released Revenue Memorandum Circular (RMC) No. 7-2025, which introduces key improvements to the Enhanced Monitoring and Managing Administrative Cases (EMMAC) system. These enhancements aim to streamline administrative processes within the agency, ensuring better case management and more efficient resolution of complaints and violations.
