New VAT rules on service providers and lessors: Easy or not?

IN my interview with Business Outlook last Thursday, Jan. 24, 2024, I was asked if we are competitive as a country from a taxation point of view. I mentioned that while there have been efforts, through tax reforms, to make the Philippines competitive, there is still much to be desired. One of the reasons I cited, which would turn off foreign investors, is changing the tax rules in the middle of the game.

We saw the passage of the Republic Act 11976, or the "Ease of Paying Taxes Act" (Eopta), which sought to introduce several reforms like allowing taxpayers to file and pay anywhere, electronically or manually, and classified taxpayers to give way to tailor-fitting tax compliance and value-added tax (VAT) refunds.