The BIR issued a circular on June 2, 2026, tightening VAT enforcement for overseas digital service providers in the Philippines. The circular mandates that providers collect 12% VAT on payments received before the regime’s June 2025 effective date, and requires non‑resident providers to register and file returns even for VAT‑exempt B2C supplies. It also clarifies VAT treatment for platform operators and digital advertising services.
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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
They must collect 12% VAT on those payments.
The Circular was issued on June 2, 2026.
Primary source
Read the full article at 1stopVATThis summary was published on VATfaqs.com on 14 June 2026. It relates to VAT developments in Philippines. The original source is 1stopVAT.
