THE Bureau of Internal Revenue (BIR) has extended the registration deadline for Non-Resident Digital Service Providers (NRDSPs) until July 1, 2025 due to the ongoing system migration affecting key online platforms.
The BIR on June 24 said it temporarily suspended access to its VAT on Digital Services (VDS) Portal and Online Registration and Update System (ORUS) due to technical upgrades.
According Revenue Memorandum Circular No. 58-2025, the extension aims to give NRDSPs more time to comply with BIR registration requirements, particularly those who have yet to update their classification or tax types.
NRDSPs already registered with the BIR but have not modified their profile to reflect their non-resident digital provider status, or those who have yet to include value-added tax (VAT) in their tax type or form, are required to amend their registration details.
“We encourage all affected NRDSPs and businesses engaged in digital services to closely monitor further announcements of the BIR and to ensure timely compliance with the Bureau’s registration requirements once the VDS Portal and ORUS become available,” BIR Commissioner Romeo Lumagui, Jr. said.
The BIR clarified that the deadline extension does not waive the tax obligations of NRDSPs.
Those providing digital services in the country must still file the appropriate tax returns and pay VAT dues as mandated by the National Internal Revenue Code of 1997, as amended.
Business buyers of digital services are also reminded of their responsibility to file remittance returns and to withhold and remit VAT on their purchases.
President Ferdinand R. Marcos Jr. in October last year signed into law Republic Act No. 12023, which slapped a 12 percent VAT on non-resident digital services such as online search engines, online marketplace, e-marketplace and cloud service, among others. (PNA)
