Netflix backs planned VAT on digital transactions
Streaming giant Netflix expressed support for the government's plan to impose a value-added tax on digital transactions that involve foreign companies.
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| Netflix file photo |
VAT on Netflix?
This is according to a statement from the Department of Finance (DOF) following its meeting with Netflix executives to discuss the proposed law.
Netflix shared their eagerness for the bill’s implementation and committed to collaborating with the government to achieve mutually beneficial outcomes, the DOF said.
Late in June, both the lower and upper chambers approved a reconciled version of the proposed VAT on Non-resident Digital Service Providers Act.
This bill seeks to impose a 12-percent VAT on digital transactions on firms such as Netflix, Disney, and HBO.
Earlier, the agency said it expects to collect PHP 20 billion in 2025 if the proposed bill gets President Ferdinand Marcos Jr.'s approval.
Digital services refer to those provided over the Internet or other electronic networks using information technology. These include online search engines, online marketplaces, cloud services, online media and advertising, online platforms, and digital goods.
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