Philippines — Bir rmc 59 digital services

The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 59-2026 on 2 June 2026, clarifying the VAT-on-digital-services rules under Republic Act No. 12023 and Revenue Regulations No. 3-2025: non-resident digital service providers must register with the BIR and file VAT returns even where their supplies are VAT-exempt, and in cross-border cost-sharing arrangements the Philippine user of the service is responsible for withholding and remitting the 12% VAT under the reverse-charge mechanism.