It’s official: Netflix, Spotify subscriptions will be taxed
It’s over
Per GMA, the House of Ways and Means Panel has approved a bill calling for ‘digital service providers‘ such as Netflix, Spotify, and Lazada to be hit with a 12% VAT (value-added tax).
The still-untitled bill calls for foreign and local services to comply to remit VAT on their monetary transactions from PH citizens, such as in-app purchases and subscriptions.
‘Digital service providers from outside gain profit from our constituents but they don’t pay tax. This bill levels the playing field for local digital service providers,’ shared one of the measure’s authors, Deputy Speaker Sharon Garin.
The add VAT could also raise as much as PHP10 billion for the government, per Finance Assistant Secretary Daki Napao.
Details are murky when the actual implementation will start, but based on the service’s current subscription rates, we might see the following new rates with the 12% VAT per VAT Calculator PH:
NETFLIX
- Mobile: PHP 149/month to PHP 169
- Basic: PHP 369/month to PHP 413
- Standard:PHP 459/month to PHP 514
- Premium: PHP 549/month to PHP 614
SPOTIFY
- Basic Premium: PHP 129/month to PHP 144
The post <b> It’s official: Netflix, Spotify subscriptions will be taxed </b> appeared first on WE THE PVBLIC.
Source: we the pvblic
No comments