1stopvat

Philippines – VAT on Digital Services: Revenue Targets and Repeal Debate

The Bureau of Internal Revenue (BIR) recently confirmed it expects to collect approximately USD 360 million in VAT revenue under the Digital Services Act, which took effect in August 2025 following several postponements.
This projection highlights the fiscal importance of VAT on digital services for the Philippine state budget.

🔹 Revenue Authority Position
🔸 The BIR is strengthening its infrastructure to ensure efficient VAT collection from non-resident digital service providers
🔸 Continuous monitoring mechanisms are in place to track VAT registration, reporting, and payment compliance
🔸 With the introduction of a simplified VAT registration and reporting system, the BIR has made it clear that non-compliance will no longer be tolerated
The message from the tax authority is clear: digital platforms and overseas providers serving Philippine customers must fully comply with VAT obligations.

🔹 Simplified System = Fewer Excuses
The new framework provides:
🔸 Simplified VAT registration for non-resident providers
🔸 Streamlined reporting procedures
🔸 Clear remittance channels

From the BIR’s perspective, the administrative barriers that once complicated compliance have now been significantly reduced.

🔹 Political Pushback: Repeal Proposal
At the same time, political resistance is emerging.
🔸 A bill has been filed to repeal Republic Act No. 12023, which introduced VAT on digital services
🔸 The proposal argues that the tax is regressive and disproportionately affects SMEs, freelancers, online sellers, and domestic consumers
The repeal initiative raises an important fiscal question: can Parliament realistically remove a measure projected to generate hundreds of millions in revenue?

🔹 What Comes Next?
VAT on digital services is now in operation, revenue projections are significant, and enforcement is intensifying.
Whether the repeal proposal gains traction remains uncertain, particularly given the Act’s contribution to public finances.

Interested to learn more: https://eu1.hubs.ly/H0rV3jK0

💬 Do you believe VAT on digital services is a necessary modernization of tax policy, or does it disproportionately burden small digital actors?

France – Small Parcel Fee on E-Commerce Imports from 2026

🔸 France Moves Ahead with the “Small Parcel Tax”
On February 2, 2026, the French Parliament adopted the Finance Bill 2026. Under Article 22, the Bill introduces a new EUR 2 handling fee on low-value goods imported from outside the EU.
The measure is designed to address the rapidly increasing volume of small-value e-commerce imports and the administrative burden placed on customs authorities.

🔹 Timeline
🔸 Effective date: March 1, 2026
🔸 The fee will apply until the planned EU-wide customs handling fee becomes effective (currently scheduled for November 2026)
🔸 The Finance Bill still awaits final approval by the Constitutional Court before formal enactment

🔹 Scope of the New Measure
The small parcel fee should be understood as a customs management fee, not as customs duty or import VAT.
🔸 Applies to low-value consignments (below EUR 150)
🔸 Covers imports declared under the simplified H7 customs declaration
🔸 Charged EUR 2 per declaration line (per product classification)
🔸 Applies to all low-value imports from outside the EU, except certain listed transactions between mainland France and overseas departments
🔸 The person liable for reporting and paying the fee is the party responsible for remitting import VAT under the H7 declaration

This means that a parcel containing multiple product types will be charged separately for each classification line.

🔹 What This Means for E-Commerce
The measure primarily impacts:
🔸 Non-EU online sellers shipping low-value goods to French customers
🔸 E-commerce marketplaces facilitating such sales
🔸 Logistics operators handling simplified H7 declarations

This is not an isolated move. It is part of a broader EU-level shift toward tighter customs controls and reduced competitive advantage for low-value imports.

Interested to learn more: https://eu1.hubs.ly/H0rTgjd0

💬 Are your pricing models and customs processes ready for France’s March 2026 small parcel fee?

Now is the time to reassess your import flows, declaration structures, and VAT accountability framework.

Germany – eBay Marketplace: Simplified Shipping Solution for Local Sellers

eBay has launched SpeedPAK for German merchants, introducing a streamlined international shipping option designed to make cross-border sales more predictable for both sellers and customers.

🔸 What SpeedPAK changes for cross-border shipping
🔹 A simplified shipping option for German sellers focused on international deliveries
🔹 Greater price transparency for customers at checkout
🔹 Clearer expectations on customs clearance and delivery timelines

🔸 All-in pricing at checkout
🔹 SpeedPAK enables customs-cleared shipping
🔹 The final amount shown to customers can include: import duties, shipping costs, and any applicable customs clearance fees
🔹 This reduces unpleasant surprises on delivery and improves customer trust

🔸 Operational flow for sellers
🔹 Select SpeedPAK as the shipping option when listing items
🔹 Purchase the shipping label directly through eBay
🔹 Drop off the parcel at a DHL drop-off point in Germany
🔹 After drop-off, Orange Connex (eBay’s logistics partner) manages the international transportation

🔸 Why this matters for sellers
🔹 Fewer disputes and returns caused by unexpected import costs
🔹 Faster and smoother customs processing compared to fragmented shipping methods
🔹 More confidence for international buyers, which can support higher conversion rates

Interested to learn more: https://eu1.hubs.ly/H0r4-xk0

💬 Do you think all-in pricing and customs-cleared delivery will become the new standard for marketplace shipping in 2026?

World – Cross-Border E-Commerce Marketplace Leaders 2025

The global cross-border e-commerce landscape has shifted dramatically. Just three years ago, Temu accounted for barely 1% of cross-border e-commerce sales. Fast-forward to 2025, and Temu now shares the top position with Amazon in terms of cross-border sales volume.

🔸 What the data shows
🔹 Temu’s rise from niche player to global leader has been exceptionally fast
🔹 2025 figures place Temu alongside Amazon for cross-border sales volume
🔹 Insights are supported by a comprehensive survey from International Post Corp

🔸 How this growth happened
🔹 Strong reliance on de minimis thresholds in major markets
🔹 Simplified customs procedures and fast clearance
🔹 Extremely competitive pricing and rapid product availability
🔹 Limited regulatory oversight in several jurisdictions during the early growth phase

🔸 Why the outlook for 2026 is less certain
🔹 Abolition of the de minimis threshold in the US
🔹 Introduction of handling fees in multiple EU countries
🔹 Upcoming EU fixed parcel customs levy for low-value imports
🔹 Increasing scrutiny from tax and customs authorities

🔸 What changes for marketplaces and sellers
🔹 VAT compliance frameworks will need reassessment
🔹 Logistics and warehousing strategies may shift toward local or regional models
🔹 Pricing structures will likely change to absorb new customs and tax costs
🔹 Demand for specialised tax and compliance advisory support will increase

The era of friction-free, low-value cross-border e-commerce is clearly ending. As regulatory pressure intensifies, marketplaces and third-party sellers must adapt quickly to remain competitive and compliant.

Interested to learn more: https://eu1.hubs.ly/H0r4CPh0

💬 Do you expect Temu and similar platforms to maintain their momentum in 2026, or will tax and customs reforms reshape global e-commerce leadership?

Nigeria – VAT on Digital Financial Services from January 19, 2026

Nigeria is taking another decisive step in strengthening its digital economy tax framework. From January 19, 2026, banks and other financial institutions will be required to collect and remit VAT at 7.5% on specific digital financial services, in accordance with a Directive issued by the Federal Government.

🔸 What is changing
🔹 VAT at 7.5% will apply to selected electronic and digital banking services
🔹 The tax is charged on banking fees, not on the transferred or underlying transaction amount
🔹 Financial institutions are responsible for collecting and remitting the VAT

🔸 Services in scope
🔹 Fees for online and electronic bank transfers
🔹 Other designated digital financial and e-banking services
🔹 VAT applies strictly to the service fee element

🔸 Policy background
🔹 Nigeria continues to expand its digital economy tax framework
🔹 Digital services taxation is a core pillar of recent VAT reforms
🔹 The goal is to align traditional and digital service taxation and reduce revenue leakage

🔸 Impact on non-resident digital service providers
🔹 Payments from Nigerian customers may be subject to additional local charges
🔹 VAT obligations may apply alongside other indirect taxes or surcharges borne by customers
🔹 Pricing models should factor in both VAT and banking-related charges

🔸 What businesses should do now
🔹 Review payment flows involving Nigerian customers
🔹 Assess the indirect tax impact on digital and financial service pricing
🔹 Update customer communications and pricing transparency

As Nigeria continues to refine its digital tax framework, early awareness and pricing adjustments will be critical for both domestic and cross-border digital service providers.

Interested to learn more: https://eu1.hubs.ly/H0r4DQ70

💬 How will this VAT change affect your digital payments or pricing strategy in Nigeria? Are you already preparing for the January 2026 transition?