THE Bureau of Internal Revenue (BIR) last Jan. 16 issued Revenue Regulations (RR) 3-2025 implementing provisions of Republic Act (RA) 12023 that imposed a 12-percent value-added tax (VAT) on gross sales derived from the sale or exchange of digital services in the Philippines.
RR 3-2025 adopted the definition of "digital services" set in RA 12023 which is that of any service supplied over the internet or electronic network with the use of information technology (IT) and where the supply of service is automated.
