Online Services Custom Tax?

Is it true that online services such as web hosting requires Custom Tax aside from your VAT?

We do not even bring the equipment here in the Philippines but instead they are rented abroad since the infrastructure is a lot better. All the access are via the Internet.

The BIR website mentioned that any tangible or intangible goods are subject to custom tax. But I'm not sure if my understanding is correct.

I emailed BIR and they cannot even answer my question. What they know is I have to pay 12% VAT to BIR which is obvious.

Appreciate your help and advise

By the way, can you recommend a VERY knowledgeable lawyer in e-commerce law.

Thanks again.

if the web hosting is being conducted outside of philippine territory then i believe it is not taxable. the situs of taxation for service is where the service is rendered.