Philippines: The Bureau of Internal Revenue's RMC 59-2026 clarifies that nonresident digital service providers must register and file VAT returns even if transactions are VAT-exempt. This blanket registration requirement applies regardless of the P3 million threshold and could lead to suspension of operations for non-compliant providers.
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Fiscal Requirements · 4 days ago
Philippines: The BIR has extended the e-invoicing deadline to 31 December 2026, giving e-commerce businesses, large taxpayers and CAS/CBA users more time to comply. Taxpayers must issue e-invoices in XML, JSON or other BIR-approved formats via accredited systems, and sales data reporting will begin once the central system is operational.
BusinessWorld · 7 days ago
Philippines: The Court of Tax Appeals upheld the denial of Zuellig Pharma Asia Pacific Ltd's P59.81-million VAT refund claim after finding the company failed to meet documentary requirements. The court ruled that the lack of certificates of inward remittance for P2.88 million of zero-rated sales and non-compliant official receipts made the claim fatal.
BusinessWorld · 7 days ago
Philippines: Deloitte Philippines highlights that e-invoicing could curb corruption by improving tax transaction transparency, but notes the government’s limited tech capacity and lack of clear guidance as key challenges. Revenue Regulations No. 11-2025 set a March 2026 deadline for covered taxpayers to issue electronic invoices, later extended to 31 December 2026 by RR No. 26-2025.
BusinessWorld Online · 11 days ago
Philippines: The Supreme Court ruling and the CREATE MORE Act clarify VAT zero-rating eligibility for domestic market enterprises. DMEs that are high-value, with P15-billion investment or $100-million export sales, may qualify, while others may face 12% VAT on local purchases.
Manila Times · 19 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 · 19 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.
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Key Takeaways
As of 2 June 2026, the Bureau of Internal Revenue requires all nonresident digital service providers supplying digital services to Philippine consumers to register through its online VAT on Digital Services portal and file VAT returns, even if the services are VAT-exempt.
No, from 2 June 2026 RMC 59-2026 treats the mere supply of digital services to Philippine consumers as sufficient basis for registration, regardless of whether the gross sales exceed the P3 million threshold.
From 2 June 2026, non-registration can lead to suspension of business operations or blocking of digital services in the Philippines, as the BIR may enforce these penalties.
Primary source
Read the full article at Manila TimesThis summary was published on VATfaqs.com on 26 July 2026. It relates to VAT developments in Philippines. The original source is Manila Times.
