Section 108Sec./Art. 108

Value-added Tax on the Sale of Services, Including Digital Services, and the Use of Lease of Properties. -

"(A) rate and Base of Tax. - There shall be levied, assessed and collected, a value-added tax equivalent to twelve percent (12%) of the gross sales derived from the sale or exchange of services, including digital services, and the use or lease of properties.

"The phrase 'sale or exchange of services' means the performance of all kinds of services in the Philippines for others for a fee, remuneration, or consideration, including those performed or rendered by coonstruction and service contractors; stock, real estate, commercial, customs and immigration brokers; lessors ofproperty, whether personal or real; warehousing services; lessors or distributors of cinematographic films, persons engaged in milling, processing, manufactuyring or repacking goods for others; proprietors, operators or keepers of hotels, motels, rest houses, pension houses, inss, resorts; proprietors or operators of restaurants, refreshment parlors, cafes and other eating places, including clubs and caterers; dealers in securities; lending investors; transportation contractors on their transport of goods or cargoes, including persons who transport goods or cargoes for hire and other domestic common carriers by land relative to their transport of goods and cargoes; common carriers by air and sea relative to their transport of passengers, goods or cargoes from one place in the Philippine to another place in the Philippines; sales of electricity by generation companies, transmission by any entity, and distribution companies, including electric utilities, telephone and telegraph, radio and television broadcasting and all other franchise grantees except those under Section 119 of this Code, and non-life insurance companies (except their crop insurance), including surety, fidelity, indemnity and bonding companies; digital service providers; and similar services regardless whether or not the performance thereof calls for the exercise or use of the physical or mental faculties.

The phrase 'sale or exchange of services' shall likewise include:

"(1) x x x;

"(2) x x x;

"(3) x x x;

"(4) x x x;

"(5) x x x;

"(6) x x x;

"(7) The supply of digital services;

"(8) The lease of motion films, films, tapes, and discs; and

"(9) The lease or the use of or the right to use radio, television, satellite transmission, and cable television time.

"Lease of properties shall be subject to the tax herein imposed irrespective of the place where the contract of lease or licensing agreement was executed if the property is leased or used in the Philippines.

"x x x."