The Silent Struggles of Filipino VAs: Are Taxes on Digital Products Helping or Hurting Us?

In recent years, the freelancing and virtual assistant (VA) industry in the Philippines has seen a massive rise. More and more Filipinos are trading the 9-to-5 life for flexible online work, serving clients around the globe — armed only with a laptop, stable internet, and a dream.

But behind this flexible work-from-home setup lies a growing set of challenges, especially with the recent implementation of added taxes and VAT on digital products and services.

The Reality of Being a Filipino VA

Many Filipino VAs are independent contractors — we don’t have the luxury of employer-provided benefits such as health insurance, paid leaves, or retirement plans. We hustle to find clients, handle our own equipment, pay our own tools and subscriptions, and manage unstable incomes depending on client availability.

Now, with the recent government move to impose VAT on digital services such as Canva, Google Workspace, Zoom, Adobe, and other online tools, many VAs are asking: Is this fair? And more importantly, do we benefit from it in any way?

Added VAT on Digital Tools: A Blow or a Boost?

Let’s be real: almost every Filipino VA relies on paid digital tools. These tools are essential to our productivity — whether we’re graphic designers using Canva Pro, marketers using Flodesk or Mailchimp, or executive assistants using Notion, Slack, and Google Workspace.

Under the new tax policies, many platforms are now charging 12% VAT on top of subscription fees. That may not seem like a lot to some, but for a VA earning in pesos while paying in dollars, it adds up. Monthly tools that used to cost $10 now charge $11.20, and this accumulates across all subscriptions.

But here’s the big question: Do we get anything in return?

No Benefits, Still Paying More?

As independent VAs, we are not classified as employees. We're not covered by SSS, PhilHealth, or Pag-IBIG unless we manually enroll and contribute. We don't receive government support unless we go out of our way to register, pay BIR taxes, and comply with often confusing business permit requirements.

So when we’re forced to pay VAT on platforms that help us do our work — without any visible return — it feels more like a burden than support.

Yes, we understand taxes help the country, but shouldn’t there also be clear support for freelancers and digital workers in exchange?

What Can Be Done?

This isn’t just a rant. Many of us are simply asking for:

• Better education and simplified processes for VAs who want to register properly.

• Specific benefits or incentives for digital freelancers — such as tax deductions, health benefits, or financial grants.

• Consultation with the freelance sector before implementing policies that directly affect us.
  

We are not against paying taxes. We just want it to be fair — and for us to feel that the system sees and supports our contribution to the economy.

Final Thoughts

The Filipino VA community is one of the most hardworking, resourceful, and global-minded workforces in the world. We thrive not because of systems, but often in spite of them.

So before we get buried under rising costs and zero benefits, we hope that this digital shift in policy can also come with a shift in understanding, inclusion, and support.

We’re not just taxpayers — we’re dreamers, builders, and contributors to a growing digital economy.