House Committee Okays VAT On Digital Transactions
VAT ON DIGITAL TRANSACTIONS – The House Committee on Ways and Means recently approved a bill imposing a 12% VAT on digital transactions.
This would mean that shopping online and streaming Netflix shows would be more costly amid the COVID-19 pandemic.
According to CNN Philippines, the said panel, which was led by Albay Rep. Joey Salceda, has approved a substitute bill in order to amend the Internal Revenue Code of 1997 by taxing digital service providers that are operating through online platforms.
The said bill aims to subject to tax transactions such as online licensing of software, mobile applications, and provision of digital content such as music and information.
This will also include online advertisements, e-learning and online courses, and subscription and payment processing services.
Based on the report, third parties that act as conduit for digital goods and services or receive commission from transactions will also be subjected to taxes, Salceda added.
With the said approval, the measure may be endorsed for plenary action in order to allow further deliberations among lawmakers.
In a Twitter post containing this report, not many were happy about the said approval. Here are some of the comments:
“me: I have 2020 vision this will be my year!
gobyerno: kelangan mong magbayad ng 12% VAT para maenjoy mo at malinaw ang 2020 vision mo while watching Netflix and buying online sa Lazada”
@superhuxmom on Twitter
“Sana ayusin ng gobyerno yung efficient tax collection tapos yung corruption. Hindi yung magdadagdag ng mabigat na pasanin sa mamamayan. Tapos sasabihan ka pa na, “Anong ambag mo sa bansa?” Yan ambag ko sa bansa, tax.”
@tayo_yan on Twitter
“Soon. Pati paghinga may tax na! Nahihiya pa silang pgsabay sabayin ngayon kaya inuna muna cla Netflix at Lazada”
@SilbiDora on Twitter
What do you think of this report? How will you react to this? Let us know more about it in the comments below.
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