Petitioners from the book industry filed the petition on May 29, 2026, before the Supreme Court, asking the court to declare unconstitutional the VAT imposed on “digital books, e-books, digital journals, digital newspapers, and all digital written works” under Republic Act 12023.
The Republic Act 12023 introduced the countrywide VAT on digital services and products provided remotely by domestic and overseas providers.
The argument to exempt books and other reading materials from VAT on digital services was introduced earlier to make education more accessible.
Cited as respondents are acting Finance Secretary Frederick Go and Bureau of Internal Revenue (BIR) Commissioner Charlito Martin Mendoza.
The petitioners also filled atemporary restraining order or other judicial relief against the tax measure, as well as the issuance of a Revenue Memorandum Circular by the BIR aimed at suspending it “pending legislative amendment.”
What’s Next
The Supreme Court shall decide on the submitted petition in the upcoming period. If the Court accepts the petition and abolishes VAT on digital books and related digital content, the overseas providers of digital products should stop collecting VAT on the listed supplies.
Register for a FREE consultation
We offer a FREE consultation to better understand your needs. This could result in a simple solution to your taxes issues or lead to a more collaborative working relationship. Let’s find out what’s the best solution for you!
Book a Free consultationWhat are the consequences of not being compliant?
How to ensure compliance?