On Sept. 21, 2021, the House of Representatives passed on third reading House Bill 7425 (HB 7425), which seeks to amend the National Internal Revenue Code (Tax Code) to impose a 12-percent value-added tax (VAT) on the sale of digital services and goods to Philippine residents.

HB 7425 expanded the definition of VAT-liable persons to include those selling goods that are 'digital or electronic' in nature and those rendering services 'rendered electronically or otherwise'. This sale of goods or services should be done through an 'online platform'.