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Philippines Introduces Legislation to Make Digital Services Subject to VAT

|Proposed Changes|Philippines
Philippines

The chair of the Ways and Means Committee of the Philippine House of Representatives has introduced legislation that would impose VAT on digital services provided by multinational companies.

On 19 May 2020, Rep. Joey Salceda introduced H.B. 6755, which he said would clarify that "digital advertising by internet giants such as Google and Facebook and subscription-based services such as those of Netflix and Spotify" are subject to the Philippines’ 12% VAT. The bill would, "once and for all, s…

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