Finance Secretary Benjamin Diokno hailed the passage on third reading at the House of Representatives last Nov. 14 of a bill related to imposing the value-added tax (VAT) on digital transactions, saying this would level the playing field between traditional and new businesses.
Diokno said that, in particular, House Bill (HB) No. 4122 entitled Imposing Value-Added Tax on Digital Transactions in the Philippines, would make things fair for businesses that could not make the switch to digital.
“It is only right that we allow our businesses to operate on even ground, and this bill rightfully clarifies which digital services to tax,” the Finance chief said in a statement.
“It is not fair to only tax traditional businesses like restaurants and retail stores, and not tax online platforms like Netflix,” he added.
The bill describes digital services as any service that is delivered or subscribed over the internet or other electronic networks.
Such services cannot be obtained without the use of information technology and the delivery of such services may be automated.
READ full story HERE.