President Ferdinand Marcos Jr. clarified that foreign digital services related to education are exempt from the 12% Value-Added Tax (VAT) under the newly signed Republic Act No. 12023.
This move aligns with the government’s priority to make education affordable and accessible to Filipinos.
The law, which imposes a 12% VAT on non-resident digital service providers (DSPs), specifically exempts online courses, webinars, learning platforms, and other digital educational services.
Marcos assured that the law ensures tax compliance for DSPs while fostering fair competition for local service providers.
The government expects to collect around PhP105 billion in revenue over the next five years, with 5% allocated to support the country’s creative industries, benefiting filmmakers, artists, musicians, and content creators.