Tag: VAT
Philippines Value Added Tax (VAT) | Frequently asked questions
Please note: be aware that this article is for informational purposes only and should not be considered as tax advice. For any specific questions, we recommend consulting with your own tax and legal advisors.
As part of the Philippine government’s new tax regulations for non-resident digital service providers (DSP), dotPH is now required to collect Value-Added Tax (VAT) on all our services. This change impacts all digital services offered, including domain registrations, hosting, SSL certificates, and more.
What is VAT and Why is It Being Collected?
VAT is a consumption tax levied on the sale of goods and services in the Philippines. The new law mandates that all non-resident DSPs, such as dotPH, collect VAT from their customers for services rendered to Filipino residents or businesses.
When Will This Take Effect?
Starting June 1, 2025, dotPH will apply a 12% VAT to all services billed to Filipino customers. This includes all products and services we provide.
Who Will Be Affected by This Change?
This VAT will apply to all Filipino customers purchasing digital services from dotPH, whether they are individuals or businesses. However, businesses that are registered with the Bureau of Internal Revenue (BIR) may self-account for VAT through the reverse charge mechanism, provided they submit their valid Taxpayer Identification Number (TIN) and registration documents.
How Will VAT Be Applied?
Filipino Individual Customers:
VAT will be added to the total amount billed for any services purchased.
Filipino Business Customers:
If you are a VAT-registered business, you must submit your TIN and other relevant registration documents to ensure you can self-account for VAT through the reverse charge mechanism. This means you will not be charged VAT by dotPH but will account for the tax yourself when filing your VAT returns.
What Can You Do to Prepare?
If you are a business, please make sure your TIN and documents are updated with us to ensure we can process your self-accounting for VAT properly. You can upload your TIN and documents here: https://www.dot.ph/manage/accounts/
More Information
If you have any questions or need further clarification, feel free to contact our customer support team or refer to the official Bureau of Internal Revenue (BIR) guidelines regarding VAT on digital services.
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