Practice question
A foreign streaming provider supplies covered automated subscriptions to consumers located in the Philippines in 2026. It argues that its overseas servers alone place all services outside Philippine VAT. No exemption applies. Which rule controls?
- Nonresident digital services consumed in the Philippines are treated as performed or rendered here under the amended rule
- Overseas server location conclusively exempts them
- Foreign incorporation makes all services zero-rated
- Only mailed physical discs can be taxed
- Every subscriber must become a corporation
Legal references
- RA 12023, NIRC Sections 105,108,108-A,108-B and114(D): https://lawphil.net/statutes/repacts/ra2024/ra_12023_2024.html
- RR 3-2025: https://bir-cdn.bir.gov.ph/BIR/pdf/RR%203-2025.pdf
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