Philippines
The Bureau of Internal Revenue (BIR) recently published Revenue Memorandum Circular No. 47-2025, this gives further detailed guidance relating to the introduction of VAT on digital services provided by foreign providers to local Filipino consumers and non-VAT registered resident businesses from 1 June 2025.
The BIR have opened a new simplified VAT registration portal and have confirmed that affected companies will not be required to register until they exceed an annual threshold of PHP 3 million (approx. £41,000).
There is no need to engage a local tax agent or fiscal representative to VAT register in the country.
Sri Lanka
The Inland Revenue Department of Sri Lanka confirmed it will introduce VAT on digital services supplied by non-resident providers to Sri Lankan consumers. This will be implemented from 1 October 2025 and guidance on registration, collections and compliance will be issued later this year.
Currently, foreign businesses providing digital services to consumers in Sri Lanka are not required to charge VAT on their sales. However, to ensure a level playing field between non-resident and resident providers, the Sri Lankan government will expect VAT at a rate of 18% to be charged on these transactions. When implemented, this tax will apply to various electronic services, including streaming services, apps, films, e-books, e-journals, and internet services.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
