Recto confident Marcos will sign VAT on foreign digital services bill 

Finance Secretary Ralph Recto expressed confidence on Wednesday that President Ferdinand Marcos Jr. will sign into law the Congress-approved measure seeking to charge a 12% value-added tax (VAT) on digital services provided by foreigners.

At the Kapihan sa Manila Bay news forum, Recto said the Department of Finance, along with the Bureau of Internal Revenue and the Bureau of Customs, are now preparing to craft the implementing rules and regulations for the measure.

“Alam namin magiging batas ‘to at pipirmahan ng Pangulo ‘to…Sinusuportahan namin 'to (We know this will become a law and the President will sign it into law… We are supporting it),” Recto said.

In June, lawmakers approved the harmonized version of House Bill 4122 and Senate Bill 2528 during the bicameral conference. 

The reconciled version of the bill seeks to slap a 12% VAT on digital transactions by non-resident digital service providers such as Netflix, Disney, and HBO.

Recto said the estimated revenue to be collected by the government from the VAT on digital services is P20 billion every year. — VBL, GMA Integrated News