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      Bureau of Internal Revenue

      The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 078-2025 on 29 July 2025 to provide guidelines and procedures on the registration, filing of returns, and payment of Value-Added Tax (VAT) for Nonresident Digital Service Providers (NRDSPs) through the VAT on Digital Services (VDS) Portal.

      Among the salient provisions of RMC No. 78-2025 include the following under the general guidelines (Part IV of the RMC):

      • NRDSPs must enroll via the VDS Portal and the enrollment may also be done through their resident third-party service provider. Enrollment in VDS Portal requires prior registration with the BIR which can be done by accessing the Online Registration and Update System (ORUS) link. Updates to VAT registration/information may also be done through the ORUS.
      • The BIR shall be formally informed of the appointment of a resident third-party service provider within 30 days from the date of appointment, through email at rdo39_vds@bir.gov.ph, attaching a PDF copy of the Letter of Appointment with email Subject: “Notice of Appointment – (Philippine Taxpayer Identification Number of NRDSP)”. For VAT purposes, the appointment of a resident third-party service provider shall not classify the NRDSP as a resident foreign corporation doing business in the Philippines.
      • NRDSPs are required to file their VAT returns and pay the VAT due thereon on or before the 25th day of the month following the close of each taxable quarter following Philippine Time Zone (GMT+8).
      • All VAT returns by the NRDSP shall be filed through the VDS Portal. Payments shall be made via authorized payment channels integrated with the portal or as may be prescribed by the BIR.
      • The NRDSP cannot claim refund for the erroneously paid VAT. However, the NRDSP may amend previously filed BIR Form No. 2550-DS to reflect the overpayment which may be then carried over to the succeeding quarter/s.

      The NRDSP shall create an account accessing the official VDS Portal link (https://vds.bir.gov.ph) and following the instruction provided in the VDS User Guide posted in the VDS Portal.

      NRDSPs shall log in to the VDS Portal and encode the necessary data for the filing of BIR Form No. 2550-DS and the payment of the corresponding taxes due thereon following the procedures set forth in the VDS User Guide.

      To avoid surcharge, penalties, and interests, NRDSPs must strictly follow the payment instructions and ensure that the VAT payment is made on or before the 25th day of the month following the close of each taxable quarter.

      The BIR shall inform the NRDSPs of any discrepancy discovered upon conducting of independent verification and provide the NRDSPs with an opportunity for voluntary correction. Failure to rectify such discrepancies may result in the imposition of administrative and criminal sanctions under Section 12 (Suspension or Closure of Online Business Operation) and Section 13 (Penalties) of Revenue Regulations No. 3-2025.

      The RMC is effective immediately.

      Here is the link to the full text of the issuance: RMC No. 78-2025.