BIR, sisingilin na ng 12% na VAT ang foreign digital service providers

PTVPhilippines

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Transcript

00:00President Ferdinand R. Marcos Jr. signed the law that provides 12% VAT to foreign digital service providers or DSPs.

00:10Cucubra is expected to have a revenue of P100 billion for the government within 5 years.

00:17But the BIR assured that this will not have any effect on the consumers.

00:23This is what Clayzel Pardilla has to say.

00:27From his shoes, clothes, and make-up,

00:31Astred bought all of these from various international online shops.

00:36It's cheaper and more convenient.

00:39I have a lot of claims of vouchers, discounts, and free shipping.

00:44But Astred is now worried that the price of the product he is buying has increased.

00:49The Bureau of Internal Revenue will now issue a value-added tax,

00:53or 12% VAT, to foreign digital service providers or DSPs.

00:59In the lack of electronic marketplaces and online shops owned by businessmen,

01:05and foreign streaming platforms such as Netflix and HBO, Adam is going crazy.

01:12I'm very worried because my subscription fee is not just an app.

01:18I have three subscribers.

01:20If it's x3, my expenses will increase every month.

01:25According to an expert in BUIS,

01:28We expect that the subscription fees will immediately be increased by this new digital service tax.

01:37That means additional 12%.

01:40They are just depending on the consumers.

01:43And since they are not registered here, they are not paying income tax here,

01:47so they won't let the new law affect their operations.

01:51The BIR admitted that foreign digital service providers may be affected,

01:58but it should not be left to the consumers.

02:02It's a business decision by the service providers.

02:05But again, they should have been paying from the very beginning.

02:11So they should have incorporated the concept of VAT in the beginning during their pricing.

02:17So there can be a price increase.

02:21But again, I think it would be minimal.

02:23It won't automatically increase by 12%.

02:26Also, commensurate and same rate.

02:29Only foreign DSPs who earn more than P3 million will receive VAT.

02:35Not including those who are involved in education or training accredited by the Department of Education,

02:41Commission on Higher Education, and TESDA.

02:44The BIR believes that competition will be fairer between foreign and local online businesses

02:51that have been receiving the same BUIS for a long time.

02:55The BUIS will go to government projects and will go back to the Filipinos.

03:01It will help in turn in funding government projects, social welfare services, and infrastructure projects.

03:10So it will go back to us.

03:11This is effective 10 days after the Implementing Rules and Regulations were issued.

03:17The BIR will be aware if the website of foreign digital service providers will be blocked

03:24and will have to pay a value-added tax.

03:28Kalei Zalpardilla for Pambansang TV in Bagong, Philippines.

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