Philippines VAT
The Philippines implemented a Value Added Tax (VAT) regime on 1 January 1988, replacing a range of sales and turnover taxes. The VAT system follows the OECD-model, with tax due and reclaimable throughout the production chain until the final consumer.
VAT in the Philippines is administered by the Bureau of Internal Revenue.
VAT liability and obligation to register
VAT is due on the sale, exchange or lease of goods, property or services by a taxable person. This includes the use or other transfer of intangible assets. It is generally the responsibility of the vendor to determine, collect and remit to the Bureau of Internal Revenue the correct VAT. The exceptions are non-resident sellers or supplies to government institutions, where a withholding VAT scheme applies.
Other resources
This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.
