Ripple News: Online Platforms Now Taxed in PH: How This Affects VAs, Freelancers, and Creators

In 2025, the digital world is thriving—and now being taxed.Republic Act No. 12023, also known as the Value-Added Tax on Digital Services Law, was signed into law by President Ferdinand Marcos Jr. on October 2, 2024. This legislation imposes a 12% VAT on digital services provided by non-resident digital service providers (DSPs) consumed within the Philippines, including widely used platforms like Netflix, Amazon, Disney+, Canva, Zoom, and Google Workspace.

While the law was enacted in 2024, implementation is expected in 2025 following the issuance of the Bureau of Internal Revenue’s (BIR) Implementing Rules and Regulations (IRR). Once enforced, this tax will directly affect the monthly expenses of virtual assistants, freelancers, and online business owners who rely on these tools for their daily operations.

This move—distinct from Republic Act No. 11976, which amended certain tax code provisions—aims to establish tax parity between local and foreign digital service providers. However, it also brings a financial ripple effect for online professionals navigating an increasingly digital economy.

What Platforms Are Affected?

The VAT applies to digital services like:

• Project Management & Workflow Tools: Notion, Trello, ClickUp, Asana

• Communication & Collaboration: Zoom, Slack, Google Workspace

• Design & Media Tools: Canva Pro, Adobe Creative Cloud, Descript

• Storage & Cloud Platforms: Dropbox, Google Drive, iCloud

• AI & Productivity Apps (growing in 2025): ChatGPT Plus, Grammarly, Jasper, Copy.ai

• Streaming & Marketplace Services: Netflix, Spotify, Shopee, Lazada, Amazon Prime

• Marketing & Scheduling Platforms: Meta Ads Manager, Buffer, Later, Mailchimp, Calendly
  

If you’re subscribed to any of these, you may have already noticed a price increase of 12% or more in your billing.

What This Means for Ripple VAs and Online Workers

The impact (yes, the ripple effect!) of this tax is real for digital professionals. Here’s what to expect:

1. Higher Monthly Costs

That ₱499 Canva Pro plan? It’s now around ₱559. That ChatGPT Plus subscription? Also taxed. Multiply that by 3–5 tools and your overhead just increased.

2. Client Budgets May Shift

Clients relying on VAs for tools or ad management might be more cautious with subscriptions. Be ready to justify tool usage and ROI.

3. Opportunity to Explore Local Alternatives

There’s rising interest in local tech platforms or bundled tools that offer tax-inclusive pricing. You may also suggest client-managed accounts to reduce your expenses.

4. Rising Demand for Tech-Savvy VAs

Clients now want VAs who can optimize tool usage, reduce redundancy, and automate tasks smartly—especially with cost increases involved.

5. Tax Literacy is Now a Skill

It’s worth understanding how the VAT affects your own freelance taxes, client billing, and reimbursements. If you haven’t already, consider setting up a bookkeeping system for your VA business.

We’re in a new season where being a virtual assistant means more than doing tasks—it means being a smart, strategic, and financially-aware digital partner. The 12% VAT law is just one of many shifts in 2025. Ripple VAs, let’s rise above, together.

For more detailed information on Republic Act No. 12023 and its implications, you can refer to the official news release from the Presidential Communications Office. (Philippine Commission on Elections)(Philippine News Agency)

Stay proactive and informed to navigate the changing digital environment effectively.