Is there a free VAT/GST threshold for foreign digital sellers?

Yes — PHP 3,000,000 (engine approximation). Proposed in

Is a local tax representative mandatory?

Not required for VDS NRDSP registration as of 2026-10-29

No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice

Compendium · Asia · Philippines

Philippines: VAT on digital services

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Not supported by the free-threshold API · Local term: VAT

Last verified: 2026-10-29

Nonresident Digital Service Providers (NRDSPs) must register with BIR for VAT on digital services consumed in the Philippines (VDS portal / ORUS). Rate 12%. B2B: Philippine buyer generally reverse-charges via Form 1600-VT within 10 days after month-end. NRDSPs file Form 2550-DS quarterly (see BIR calendar; e.g. extensions published for early 2026). Registration was required even for VAT-exempt digital services (report exempt sales)

Not supported by the free-threshold API: why

Free-threshold row proposed in

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Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.

Threshold and rates (VAT)

Free threshold?: Yes — Free-threshold row proposed in
Amount / measure: PHP 3,000,000
Registration when sales into the jurisdiction reach PHP 3,000,000. calendar year approximates rolling 12-month tests where applicable
Window: Calendar year
Standard rate: 12.0%
12% VAT on digital services consumed in the Philippines (VAT on Digital Services Act / RR 3-2025)
Who must register: Nonresident digital service providers supplying digital services consumed in the Philippines
Evidence of location: Digital services consumed in the Philippines. Fixed multi-evidence checklist: Not specified in official English guidance as of 2026-10-29
Invoicing: Charge 12% VAT on taxable B2C digital services once registered. B2B: buyer remits under reverse charge (1600-VT)
Filing: Quarterly Form 2550-DS per BIR tax calendar (watch RMC deadline extensions)
Effective: VAT on Digital Services Act implementing regulations (RR 3-2025); VDS portal; RMCs on filing deadlines 2025–2026
Authority: Bureau of Internal Revenue (BIR)

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
Product class: Digital service
Support status: Not supported by the free-threshold API — Free-threshold row proposed in

How to register

Self-register online?: Yes — Nonresident Digital Service Providers (NRDSPs) enrol via BIR ORUS (if needed) then the VAT on Digital Services (VDS) portal. No Philippine fiscal representative required solely for NRDSP VDS registration under RR/RMC materials reviewed
Resident representative / fiscal agent: Not required solely for NRDSP VDS registration under RR/RMC materials reviewed as of 2026-10-29. An authorised representative TIN may be used in portal fields if applicable
Regime: BIR VAT on Digital Services Portal (VDS) / ORUS registration for NRDSPs

Steps (in order)

If not already registered with BIR, complete ORUS registration first
Create / enrol the VDS Portal account (TIN, email, exact registered name → VERIFY → activate emailed account) — https://vds.bir.gov.ph/BIR-DSP-VAT/
Sign-up / register flow for DSP VAT — https://vds.bir.gov.ph/BIR-DSP-VAT/DSP/register
File and pay VAT on digital services through the VDS Portal per RMC guidance (e.g. RMC 47-2025 / 78-2025)

Documents

Home-country government registration evidence — Articles of incorporation, tax-residency certificate, or equivalent government-issued registration document (RMC materials)
Entity and contact particulars — Business/trade name, foreign address, contacts; authorised representative and TIN if applicable

Official processing time: Not published as a single English SLA as of 2026-10-29; account activation follows email verification OTP login
Official fees: No BIR VDS registration fee stated in the RMC/job-aid materials reviewed
Portal: https://vds.bir.gov.ph/BIR-DSP-VAT/
Local bank account: Pay via VDS Portal payment channels per BIR RMC
Filing frequency: As prescribed for digital-services VAT (see current RMC)
Payment currency: PHP
Input VAT recovery: NRDSP digital VAT is collection-oriented; input VAT recovery generally not available — confirm with BIR
Portal language: English VDS portal / RMCs
Penalties: NIRC / RR penalties for late registration or VAT

Firms offering this service

Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging

KPMG Philippines — Member firm
EY Philippines — Member firm
Grant Thornton Philippines — Member firm

Official sources

BIR VDS portal
RR No. 3-2025
RMC No. 47-2025

Last verified: 2026-10-29.

FAQ

Is there a free VAT/GST threshold for foreign digital sellers?: Yes — PHP 3,000,000 (engine approximation). Proposed in
Is a local tax representative mandatory?: Not required for VDS NRDSP registration as of 2026-10-29
What rate applies?: 12% VAT
Is this tax advice?: No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice