Taxing Digital Goods and Services
Explore innovative research topic ideas on taxing digital goods and services. Delve into the complexities of digital services taxation and effective tax policy for digital services to stay ahead in this evolving landscape.
QUANTITATIVE AND QUALITATIVE RESEARCH
Realyn Manalo
5/26/20253 min read
As the global economy rapidly shifts toward digital platforms and e-commerce, the Philippines faces increasing pressure to modernize its tax system. From ride-hailing apps and streaming platforms to informal online sellers, the tax base is expanding beyond traditional models. However, legal ambiguities, infrastructural gaps, and compliance issues have hindered the country’s ability to effectively tax digital goods and services. While policy proposals exist, including those modeled after global and regional practices, empirical data evaluating their impact remains limited. This research seeks to examine the structural, economic, and administrative challenges of digital taxation in the Philippines, and to explore evidence-based strategies for equitable, feasible implementation.
Who Can Use These Topics
This research is ideal for students and professionals pursuing the following courses or strands:
College Programs:
BS Accountancy
BSBA Financial Management
BA Political Science
BS Economics
BS in Public Administration
Senior High School Strands:
Humanities and Social Sciences (HUMSS)
Accountancy, Business, and Management (ABM)
General Academic Strand (GAS)
Why This Topic Needs Research
Current research has opened essential debates, but many gaps still persist in implementation, measurement, and practical equity.
Weak enforcement mechanisms: Although existing digital tax frameworks are well-structured on paper, limited internet infrastructure, cross-border jurisdictional issues, and informal online businesses create serious enforcement gaps in low- and middle-income countries (Umenweke, 2025).
Lack of small-business impact analysis: Prior reviews often ignore the effects of direct digital service taxes on small businesses, especially regarding their ability to remain competitive and financially sustainable (Mpofu, 2022).
Unmeasured consumer behavior responses: While policy designs exist, few studies have empirically analyzed how taxes on digital financial services affect user behavior, market inclusion, and affordability (Munoz et al., 2022).
Ineffective taxation of non-monetized services: The growth of free or ad-supported platforms (e.g., social media) presents a taxation challenge that remains largely unexplored under current frameworks (Agrawal & Fox, 2021).
Administrative and trust barriers: Countries in Southeast Asia share similar issues in implementing digital VAT or DST, particularly in jurisdictions with weak political trust and underdeveloped digital systems (Wardani & Majid, 2021).
Unregulated informal online commerce: The rise of online sellers without physical storefronts or proper registration makes it difficult to build a tax base or assess real digital transaction values (Cuenca, 2021).
Lack of real-time value flow tracking: Although reforms have been proposed, there is little empirical work validating how value flows in actual digital ecosystems interact with tax administration systems (Bañez, 2022).
Feasibility & Challenges by Target Group
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References
Agrawal, D. R., & Fox, W. F. (2021). Taxing goods and services in a digital era. National tax journal, 74(1), 257-301.
Bañez, E. S. (2022). Rethinking Taxation in the Digital Economy (No. 2022-56). PIDS Discussion Paper Series.
Cuenca, J. S. (2021). Emerging tax issues in the digital economy (No. 2021-08). PIDS Discussion Paper Series.
Mpofu, F. Y. (2022). Taxation of the digital economy and direct digital service taxes: Opportunities, challenges, and implications for African countries. Economies, 10(9), 219.
Munoz, L., Mascagni, G., Prichard, W., & Santoro, F. (2022). Should governments tax digital financial services? A research agenda to understand sector-specific taxes on DFS.
UMENWEKE, M. N. (2025). Taxation of Digital Goods and Services in the Nigeria Legal System: Challenges and Opportunities. Journal of Refugee Law and International Criminal Justice, 3(1).
Wardani, S. P., & Majid, G. M. (2021). Digital Taxes in Southeast Asia: A Review. Incredible, 2774 (7395), 570-578.