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Victoria Tulad

ABS-CBN News

<p>MANILA — The Bicameral Conference Committee on Thursday approved its joint version of the bill imposing Value Added Tax (VAT) on digital service providers.</p><div><a href="https://news.abs-cbn.com/business/08/04/22/bill-seeking-to-impose-vat-on-digital-transactions-filed">• Bill seeking to impose VAT on digital transactions filed</a> </div><p>According to Senate Ways and Means Committee chair Sherwin Gatchalian and Senate Minority Leader Koko Pimentel, this bill will even out the field as online service providers such as streaming services and online shops will be made to pay VAT, same as local providers. </p><p>“Ginagawa nating patas ‘yung tax regime natin,” Pimentel said. </p><p>(We are making our tax regime fair.) </p><p>“Ipapantay lang natin kasi unfair naman sa mga local na pinapatawan ng VAT,” Gatchalian said. </p><p>(We will just even it out because it is unfair for the local providers who pay VAT.) </p><p>According to Pimentel, there was no contention during their discussion during the bicam meeting. </p><p>In a statement, House Ways and Means chair Albay Rep. Joey Salceda said they immediately agreed on two remaining issues — that the Department of Finance will set withholding tax rates for businesses which are not covered by VAT and that small taxpayers will “not be subject to excessive audits or complicated compliance.”</p><div><a href="https://news.abs-cbn.com/business/07/06/23/digital-vat-seen-yielding-p967-billion-for-govt">• Digital VAT seen yielding P96.7 billion for gov&#x27;t</a> </div><p>Gatchalian and Pimentel said the country stands to earn an additional P18 to P20 billion per year. </p><p>According to Gatchalian, this money will be used for the construction of schools, infrastructure, and funding for the creative industries such as the field of script writing and film making. </p><p>He hopes that President Ferdinand Marcos, Jr. will sign the bill into law in the next 30 days and will be implemented in the next three months.</p><div><strong>RELATED VIDEO</strong></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/aLzUT6u6Png?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></div>

<p>Senators Gatchalian and Pimentel said the country stands to earn an additional P18 billion to P20 billion per year if the new tax regime becomes a law.</p>

Senators Gatchalian and Pimentel said the country stands to earn an additional P18 billion to P20 billion per year if the new tax regime becomes a law.

Lawmakers finalize version of bill imposing VAT on digital service providers | ABS-CBN

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Lawmakers finalize version of bill imposing VAT on digital service providers

Lawmakers finalize version of bill imposing VAT on digital service providers

Victoria Tulad,

ABS-CBN News

Published Jun 27, 2024 05:44 PM PHT

Read More:

VAT

digital providers

bicameral conference committee

sherwin gatchalian

koko pimentel

joey salceda

ANC

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