BIR classifies some foreign affiliates as digital service providers for VAT purposes

THE Bureau of Internal Revenue (BIR) said foreign affiliates involved in cross-border cost-sharing arrangements may be treated as nonresident digital service providers (NRDSP) which will require them to register with the agency. On Tuesday, the BIR issued Revenue Memorandum Circular No. 059-2026 to further clarify provisions related to the imposition of the value-added tax on digital services. […]