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Philippine tax for digital services

Soon we will be paying more for digital services, even internet identifier like domain names can be included, and that's a definitive VAT. In PH it's equivalent to 12%. Although, we still have to see invoice for domain names registration and renewal fees being added with VAT. You should be getting reminders from your local and international service providers to key-in your tax details, if you haven't yet done so. We must say, this is especially for those who had to directly acquire digital services with the source and not through local resellers. If you've been dealing with local resellers, your digital services may probably have been subjected with, and had added, VAT included in your payment ever since. You should be, but you have to check it.  For online local retailers, you may have been VAT registered and paying your taxes with or without that digital tax. Don't take this as an advice and ascertain it with your accountant to be sure.

Outsource overall management and operation of IT possible

With the ever increasing reliance of organizations to IT, and others not keen to supporting their in-house technical staff to update skills, there is a big chance they cannot deliver what is expected of them. Some years ago, many claims that IT already plays a major part in the business including national infrastructure like energy, finance and transportation. It is critical that IT including the most important element of it, the people, are given reasonable access to resources they require to become effective in what they have been assigned to do. Organizations even though they require it, cannot maximize IT if so-called resources are not being treated fairly. Solution is outsource overall IT activities.

Though outsourcing has been successful in many areas, IT management and operations might require a different parameters, a carefully crafted policy, terms and service agreement, so customers are assured that IT is constantly being delivered to support the needs of the organization. The management would expect good strategy and stakeholders will always be informed about the condition of their IT and how they use it to provide services required of the business.

The outsourcing company would have to innovate, develop techniques and work diligently to make sure IT, their duties and responsibilities are optimally utilize as expected by the customers. That they will provide notifications. It would also be included in the service to tap education and training and consider allowing participation of all stakeholders to any IT-related activities, especially that can directly impact the operation of the business. The customer’s management team would have to be furnished necessary information for them to know how and when to act, about their organization’s strive in IT, and that they should have a clear picture of how IT is supporting their business. It is also apparent that the outsourced and outsourcing organizations be always in the same page about IT. For the outsourced to have accurate knowledge and understanding on situations regarding their business’ use of IT, the outsourcing organization should provide adequate resources and timely information, to mention a few.

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