Government-owned Land Bank of the Philippines (Landbank) said it will develop a “value-added tax on digital services” (VDS) portal for the Bureau of the Internal Revenue (BIR) to boost the government’s digital tax administration.
The VDS is a dedicated platform for digital service providers located outside the Philippines to file and pay value-added tax (VAT) online for their in-country services.
The partnership was formalized and signed on July 8, in line with Republic Act No. 12023, which mandates the imposition of VAT on foreign digital service providers for services consumed within the country.
Landbank, the country’s largest government bank, said it will serve as the solution provider for the portal’s development and maintenance, while BIR will oversee implementation and policy compliance.
For the first six months of 2025, the government collected P2.260 trillion in total revenues, P110.7 billion or 5.15 percent more than the previous year’s P2.149 trillion.
For the month of June alone, total revenues reached P306.9 billion, up by P10.4 billion or 3.5 percent over P296.5 billion recorded in June 2024.
Tax revenues accounted for 89.93 percent of the total P2.032 trillion as of end-June this year, up by P197.2 billion or 10.74 percent.
The remaining 10.07 percent, amounting to P227.7 billion, comprised non-tax revenues. This was P86.5 billion lower or 27.53 percent from the previous year’s P314.2 billion.
For the January to June period, the BIR collected P1.554 trillion, which was P192.1 billion or 14.11 percent higher than P1.362 trillion recorded in the same period of 2024.
BIR collections were boosted by corporate income tax, VAT and personal income tax, the Bureau of the Treasury said.
