Section 11Sec./Art. 11

Section 236 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 236. Registration Requirements. -

"(A) x x x

"(B) x x x

"(C) x x x

"(D) x x x

"(E) x x x

"(F) Persons Required to Register for Value-Added Tax. -

"(1) Any person, who in the course of trade or business, selles, barters, exchanges, or leases goods or properties including those digital in nature, any person who renders services, including digital services, or engages in the sale or echange of services, shall be liable to register, either electronically or manually, for value-added tax if:

"(a) The person's gross sales for the past twelve (12) months, other than those that are exempt under Section 109(A) to (CC), have exceeded the threshold as provided in Section 109(CC); or

"(b) There are reasonable grounds to believe that the gross sales for the next twelve (12) months, other than those that are exempt under Section 109(A) to (CC), will exceed the threshold as provided in Section 109(CC):

"Provided, That the BIR shall establish a simplified automated registration system for nonresident digital service providers, which shall be prescribed by the Secretary of Finance, upon the recommendation of the Commissioner.

"x x x."