Digital giants boost BIR tax collections

Compliance is high among foreign digital giants, as the Bureau of Internal Revenue (BIR) reported strong initial collections from the value-added tax (VAT) on digital services.

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Total tax haul from the imposition of the 12-percent consumption levy on digital services in June has reached P2.8 billion over the past three months, covering both business-to-business and business-to-consumer transactions.

As of Sept. 9, the BIR has collected 1.64 billion from business-to-customer transactions, according to Glenn B. Alde, chief of the BIR’s collection programs division.

Of this, a bulk or P1.27 billion came from total payments received. There is an ongoing filing totaling P370.9 million, with P2.4 million pending payment.

For business-to-business transactions, the BIR collected a total of 1.14 billion.