Section 4Sec./Art. 4

A new section designated as Section 108-B under Chapter 1, Title IV, of the National Internal Revenue Code of 1997, as amended, is hereby inserted to read as follows:

"Section 108-B. Liability of a Nonresident Digital Service Provider to Withhold and Remit Value-Added Tax. - A nonresident digital service provider required to be registered for value-added tax (VAT) under Section 236(F) of this Code shall be liable for the remittance of value-added tax on the digital services that are consumed in the Philippines, if the consumers are non-VAT registered: Provided, That if the consumers are VAT-registered, the provision of Section 114(D) shall apply.

"If a VAT-registered nonresident digital service provider is classified as an online marketplace or e-marketplace, it shall also be liable to remit the value-added tax on the transactions of noresidet sellers that go through its platform: Provided, That it controls key aspects of the supply and performs any of the following:

"(a) It sets, either directly or indirectly, any of the terms and conditions under which the supply of goods is made; or

"(b) It is involved in the ordering or delivery of goods, whether directly or inidrectly."