The Bureau of Internal Revenue (BIR) is set to collect ₱21 billion from the Value Added Tax (VAT) on foreign digital services in 2026, Commissioner Charlito Mendoza announced Friday.
The tax applies to nonresident digital service providers, including online streaming platforms.
Mendoza said full-year collections will follow the launch of the VAT on Digital Services Portal in August 2025, allowing providers to register, file returns, and pay taxes online. Last year, the measure generated about ₱8 billion.
The BIR is targeting ₱3.58 trillion in total collections this year, a 15.4% increase from ₱3.105 trillion in 2025.
Mendoza cited GDP growth of 5–6%, infrastructure spending, and digitalization as key revenue drivers, noting that 85% of 2025 tax payments were made via e-payment channels.
Finance Secretary Frederick Go emphasized accountability:
“Public service is a two-way street: as you fulfill your duty to the country, we honor our responsibility to serve by managing every peso with integrity.”