In the first five years of its implementation, the Value-Added Tax on Digital Services Law is expected to generate P105 billion in additional revenues for the government, according to President Ferdinand R. Marcos Jr.

The law was signed by the President on Wednesday.

President Marcos said the proceeds from the newly-signed law would enable the government to allocate more for the construction of around 42,000 classrooms, 6,000 rural health units, and 7,000-kilometer farm-to-market roads.

President Marcos added the new measure will allocate funds for the creative industry to ensure that the “creative talents are not just surviving in a competitive digital market, but will be allowed to prosper.”

“If you are reaping the rewards of a fruitful digital economy here, it is only right that you contribute also to its growth. After all, whether you are a small tech start-up or a global tech giant based halfway around the world, if you are making money here in the Philippines, you are part of our community. And with that comes a shared responsibility,” President Marcos said.

“This law is more than ensuring tax compliance. It is also in support of nation-building … fairness, inclusivity, and progress — these are the goals of this law. Today is not just about the signing of the VAT on Digital Services Law, it is also the beginning of a more equitable journey forward,” he added.

Citing the newly-signed law, the President clarified it does not impose a new tax measure, but rather strengthens and streamlines the authority of the Bureau of Internal Revenue (BIR) to collect VAT on digital services. |PND