REVENUE MEMORANDUM CIRCULAR NO. 78-2025 issued on July 29, 2025 provides the 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.

Said guidelines apply to all NRDSPs engaged in the supply or delivery of digital services consumed or used in the Philippines.

NRDSPs must enroll via the VDS Portal. The enrollment of the NRDSPs may also be done through their resident third party service provider. Enrollment in the VDS Portal requires prior registration with the BIR. If the NRDSP is not yet registered with the BIR, it shall first register by accessing the ORUS link (https://orus.bir.gov.ph) provided in the VDS Portal. For those registered NRDSPs which need to update their VAT registration/information, the same may be done through the ORUS.

The BIR shall be informed of the appointment of a resident third-party service provider within thirty (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 twenty-fifth (25th) day of the month following the close of each taxable quarter, in accordance with the Philippine Time Zone (GMT+8).

All VAT returns by NRDSP shall be filed through the VDS Portal. Payments shall be made via authorized payment channels integrated within the portal or as may be prescribed by the BIR.

Any act of misrepresentation, failure to file VAT returns, or non-remittance of VAT payments on the prescribed due date shall be subject to the applicable surcharges, interests, penalties, and where warranted, criminal liability and blocking of sites under the National Internal Revenue Code of 1997, as amended.

The NRDSP cannot claim refund for the erroneously paid VAT. However, the NRDSP may amend the previously filed BIR Form No. 2550-DS to reflect the overpayment which may be then carried-over to the succeeding quarter/s.

BIR may conduct verification from third-party information/sources whether they are correctly declaring their gross sales and those of their customers for VAT purposes. All data submitted through the VDS Portal shall be treated as confidential and protected under RA No. 10173, otherwise known as the “Data Privacy Act of 2012” and existing tax laws and regulations.

The procedures for the registration and enrollment, filing and payment, and monitoring of compliance of DSPs are specified in the Circular.