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House approves bill for additional tax for Netflix, Lazada, Spotify, and more

A bill seeking to impose a 12 percent Value Added Tax for companies providing goods and services online has been approved by the House Panel today.
House approves bill for additional tax for Netflix, Lazada, Spotify, and more
Photo from dbm.gov.ph

Additional tax for Netflix and more

Two months ago, House representative Joey Salceda proposed a bill to collect tax from digital providers like  Netflix, Spotify, Lazada.  This substitute bill is meant to make a  non-resident digital service provider remit tax on the transactions that took place in its platform. 

House approves bill for additional tax for digital providers like Netflix, Lazada, and Spotify

House Ways and Means panel Chairman Joey Salceda said,

Iyong malalaking kumpanya katulad ng Netflix, nagbebenta sa Pilipinas kaya dapat magbayad ng VAT. Pero wala nang income tax kasi we  did not require them to have a domicile here.

Aside from that, the unnumbered bill gives definition to a digital service provider as "an entity which provides digital service or goods to a buyer through an online platform for purposes of buying and selling of goods or services or by making transactions for the provision of digital services on behalf of any person."

According to the House panel, here are the other definitions of a digital service provider:

1. a third party that acts as a channel for goods or services offered by a supplier to a buyer and receives a commission.
2. a platform provider for the promotion that uses the internet to attract buyers.
3. a host of online auctions conducted online in which the seller sells the product or service to the person who bids the highest price.
4. a supplier of digital services to a buyer in exchange for a regular subscription fee over the usage of the said product or service.
5. a supplier of electronic and online services that can be delivered through an information technology infrastructure, such as the internet.

Deputy Speaker Sharon Garin also added that digital service providers from outside the country gain profit from our constituents but they don’t pay tax to the Philippine government. 

This bill levels the playing field for local digital service providers which could raise PHP 10 billion in revenue for the government. PHP 9B will come from foreign companies that are based in the Philippines.

Do you think this bill will benefit customers like us in the long run?

Via: GMA
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