With announcements from Steam, Netflix, and Zoom that they will be charging 12% VAT in compliance with the Digital Services Law, Meta will also implement the same 12% VAT across its platforms, which include Facebook ads.

Unlike with Steam and Netflix, Meta is stricter with its compliance: in an email we received, Meta said that businesses should provide a TIN number and VAT registration status. They explained in the email that they need this information to confirm that the business is done in the Philippines so that Meta can issue the proper invoice with the VAT charges for Facebook ads.

Zoom also has the same policy as Meta, where they require you to provide your TIN number so that they can collect the 12% VAT and remit it to the BIR as part of their compliance. There’s a need for digital platforms to comply, as the BIR is given the authority to suspend or block noncompliant platforms under the Digital Services Law.

While there’s outrage over the 12% VAT on digital services, the government promises that for the next 5 years from the law’s effectivity, 5% of the collected VAT will be used to help the local creative industry to “foster innovation and empower the next generation of Filipino creators and entrepreneurs.”