Manila Bulletin reports that the Philippine BIR has clarified that bilateral tax treaties do not exempt foreign digital service providers from the country's 12% VAT. The new guidance, issued in RMC No. 59‑2026 on June 2, 2026, requires non‑resident providers to register and file VAT returns, and outlines reverse‑charge rules for cross‑border B2B services. It also details how online booking platforms and pre‑existing subscriptions are taxed.
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Manila Times · 5 days ago
Philippines: The Supreme Court has upheld the constitutionality of the VAT refund law for foreign tourists, confirming that the incentive is a valid policy measure to promote tourism. The law allows non-resident foreign tourists to claim VAT refunds on purchases of at least P3,000 per transaction from accredited retailers, provided the goods are taken out of the Philippines within 60 days of purchase.
Deloitte · 5 days ago
Philippines' VAT refund rules have evolved significantly since 1987, with recent changes under the Create More Act affecting zero-rated taxpayers. The Supreme Court clarified processing periods and documentation requirements in December 2025, tightening the 90+30 day rule.
ManilaTimes · 5 days ago
Philippines Supreme Court upholds constitutionality of VAT refund law for foreign tourists, confirming the policy as a valid tourism incentive.
Global Nation · 5 days ago
Philippines Supreme Court declares VAT refund for foreign tourists constitutional, upholding Republic Act No. 12079. The decision affirms the state’s right to offer fiscal incentives to boost tourism without violating equal protection.
GMA News · 6 days ago
Philippines Supreme Court upholds law allowing VAT refunds for foreign tourists on purchases of at least P3,000, valid for goods taken out within 60 days.
Manila Times · 7 days ago
Philippines: The article outlines how VAT refund rules have evolved since 1987, detailing changes in claim periods, documentation, and appeal procedures.
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Key Takeaways
It states that bilateral tax treaties apply only to income tax; digital services remain subject to the Philippines’ 12% VAT.
They must register with the BIR and file VAT returns, reporting sales as VAT‑exempt transactions.
The Philippine subsidiary must file the VAT return and pay 12% VAT based on the foreign affiliate’s invoice.
Only on the portion of income from subscription, commission, or service fees, not on the gross booking value.
Primary source
Read the full article at Manila BulletinThis summary was published on VATfaqs.com on 4 June 2026. It relates to VAT developments in Philippines. The original source is Manila Bulletin.
