RMC No. 78-2025: Providing the guidelines and procedures on the registration, filing of returns, and payment of Value-Added Tax (VAT) for Nonresident Digital Service Providers through the VAT on Digital Services Portal

Key points

1. Coverage and enrollment. The guidelines apply to all NRDSPs supplying or delivering digital services consumed or used in the Philippines. They enroll via the VDS Portal, or through a resident third party service provider. Enrollment requires prior BIR registration, which an unregistered NRDSP does first through the ORUS link in the portal.
2. Third-party service provider. The BIR must be informed of the appointment within thirty (30) days from the date of appointment, by email to rdo39_vds@bir.gov.ph with a PDF of the Letter of Appointment. For VAT purposes, the appointment does not make the NRDSP a resident foreign corporation doing business in the Philippines.
3. Filing and payment. VAT returns are filed and VAT is paid on or before the 25th day of the month following the close of each taxable quarter, by Philippine Time Zone (GMT+8). Returns go through the VDS Portal and payment through the authorized channels integrated in the portal or as the BIR prescribes.
4. Penalties. Misrepresentation, failure to file VAT returns, or non-remittance on the due date is subject to surcharges, interests, penalties and, where warranted, criminal liability and blocking of sites under the Tax Code.
5. Refunds, verification and data. An NRDSP cannot claim a refund of erroneously paid VAT. It may amend its BIR Form No. 2550-DS to show the overpayment, which carries over to later quarters. The BIR may verify gross sales through third-party sources, and submitted data is confidential under RA No. 10173.

Who is affected

• Nonresident Digital Service Providers (NRDSPs)
• Resident third party service providers of NRDSPs

Deadlines and effectivity

• VAT return and payment: on or before the 25th day of the month following each taxable quarter
• Notice of appointment: within thirty (30) days from appointment