12% VAT on digital services to hike telemedicine rates

Telemedicine rates would also likely rise due to the collection of the 12-percent Value-Added Tax (VAT) on digital services to be implemented by the government, according to the tax advisory firm KPMG.

- By DERCO ROSAL

KPMG noted in a report published on May 12 that the Bureau of Internal Revenue’s (BIR) revenue memorandum circular released on May 8 clarified that telemedicine services are among the digital services covered by the new tax measure.

"The circular clarifies the extent of the rules by stating that the regime also applies to teleconsultation platforms when appointments are booked through a website, applications, or e-marketplace," KPMG said.

Digital services refer to services provided online or through electronic networks, mainly delivered through automated systems.