Selling to the Philippines? Register with BIR Before June 1 or Risk Penalties
Foreign Digital Services Must Register and Charge 12% VAT Starting June 2025
Para tuloy-tuloy ang kita at iwas penalties, mag-register na sa BIR kung may digital service ka sa Pilipinas.
Bakit Kailangan Ito?
May digital platform ka ba na ginagamit ng mga tao sa Pilipinas pero naka-base ka abroad?
Simula June 1, 2025, under the BIR (Bureau of Internal Revenue) Revenue Regulations No. 3-2025 at 14-2025, required na ang mga foreign digital service providers to:
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Register with BIR Philippines
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Charge 12 percent VAT sa benta sa Philippine customers
Goal nito ay gawing fair ang tax system sa local at foreign providers.
Sino ang Kailangan Mag-register?
Affected ang foreign digital platforms and service providers na may kita sa Pilipinas.
Halimbawa:
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Netflix, Viu – streaming with PH subscribers
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Canva, Adobe, Figma – SaaS and creative tools
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Facebook Ads, Google Ads – ad platforms used by PH businesses
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Shopee, Lazada, TikTok Shop – kung abroad ang HQ at may PH sales
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Online games – may PH players na bumibili ng in-game items
- Upwork at Freelance Marketplaces – kung kumikita sila mula sa Filipino freelancers through fees or services
Kahit wala kang office sa Pilipinas, kung may PH users ka, kasama ka sa rule na ito.
Important Dates and Requirements
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Deadline to register with BIR: June 1, 2025
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Start charging 12% VAT: June 2, 2025
Consequences of Non-Compliance
According to the BIR:
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Pwedeng ma-penalize ang business mo
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Service mo sa PH could be suspended or banned
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Customers might not be able to pay you legally anymore
Paano Apektado ang PH Users?
If you’re using digital services in the Philippines:
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Pwedeng tumaas ang presyo ng subscriptions
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Mas malinaw na ang billing dahil kasama na ang 12% VAT
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May changes sa offers o features depende sa provider
Next Steps for Compliance
To avoid penalties and service disruption:
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Mag-register agad sa BIR via ORUS or VDS
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Update your billing system to add 12% VAT
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Review your invoicing to meet PH tax standards
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