BIR VAT collections up over 35% in 2024
BIR VAT collections up over 35% in 2024
THE Bureau of Internal Revenue (BIR) said it collected P643.85 billion in value-added tax (VAT) revenue last year, up 35.48%.
VAT is a 12% levy on the sale, barter, exchange or lease of goods or properties and services and on goods imported into the Philippines.
VAT accounted for 22.58% of the P2.852 trillion in overall collections in 2024.
“The substantial rise in VAT collections resulted from collecting 12 months’ worth of VAT in 2024 compared to just 10 months’ worth in 2023 due to the change in filing schedule from monthly to quarterly that started in January 2023,” the Bureau of the Treasury said in a 2024 Cash Operations Report.
Overall, BIR collections increased 13.29% year on year to P2.852 trillion, driven by the VAT performance. It surpassed the P2.849-trillion target by 0.09%.
This year, the BIR is seeking to collect P710.04 billion in VAT revenue, targeting 10.28% growth over actual 2024 collections.
In addition, the BIR has said it is now expecting to collect additional revenue from new tax measures such as the VAT on digital service providers (DSPs).
President Ferdinand R. Marcos, Jr. on October signed Republic Act No. 12023, which imposes a 12% VAT on DSPs, both resident and nonresident.
The implementing rules and regulations were signed in January, with DSPs immediately subject to VAT on digital services on June 1.
In other tax segments, BIR collections on income and profits tax grew 9.15% to P1.53 trillion.
Excise taxes grew 3.86% to P304.28 billion, other taxes rose 8.80% to P234.39 billion and percentage taxes were up 5.61% at P136.32 billion. — Aubrey Rose A. Inosante
With Beyoncé's Grammy Wins, Black Women in Country Are Finally Getting Their Due
February 17, 2025
Bad Bunny's "Debí Tirar Más Fotos" Tells Puerto Rico's History
February 17, 2025
Comments 0