Advice 2 Talent

Why Transparent Employment Matters More Than Ever

How the New VAT Law Is Reshaping Remote Work for Filipino Virtual Assistants 

The Philippine government newly implemented 12% VAT on digital services has triggered concern across the country’s freelancer and virtual assistant (VA) communities. Widely used tools—Zoom, Canva, Google Workspace, Adobe, and others—are now taxed, increasing costs for self-employed professionals. But beyond just tool expenses, this shift highlights the deeper structural issues of remote work compliance in the Philippines.

For years, Filipino virtual assistants and online freelancers have operated with minimal legal protections, unclear labor policies, and limited support in the gig economy. This VAT law, affecting digital tools and subscriptions, adds to the burden—without addressing the core needs of this underserved workforce.

The Hidden Costs of Doing It Alone

For independent VAs and freelancers, the lack of structured support means juggling: 

  • Quarterly tax filings and business permits 
  • Out-of-pocket expenses for now-taxed digital work tools 
  • Platform fees, poor exchange rates, and remittance costs 
  • No guaranteed SSS, PhilHealth, or Pag-IBIG contributions 
  • No clear access to remote worker benefits in the Philippines 

This law magnifies the difficulty of staying profitable and compliant without employer support. The VAT impact on freelancers is not just financial—it’s a signal that the digital economy demands more structure. 

What Sets Advice2Talent Apart

At Advice2Talent, we believe Filipino VAs deserve more than freelance gigs. They deserve legal, transparent employment and protection against shifting regulations. 

As an Employer of Record in the Philippines, we: 

  • Offer full legal employment under Philippine labor laws 
  • Handle income tax, SSS, PhilHealth, and Pag-IBIG 
  • Provide client-funded access to tools (no VAT deduction from your pay) 
  • Ensure market-aligned salaries and pay transparency 
  • Empower VAs with compliance support and peace of mind 
 

This is transparent employment at its core—one that shifts admin and tax burdens away from the VA, enabling you to focus on delivering high-quality work. 

🔍 Why Now Is the Time to Choose Stability 

The introduction of VAT on digital services in the Philippines may feel like just another policy, but it underscores a bigger issue: legal protections for remote workers are still lagging behind. 

While digital services taxes rise, most freelancers are still absorbing costs their global counterparts are shielded from. This lack of infrastructure makes it harder to grow long-term, sustainable careers. 

Choosing a transparent and compliant employer is no longer optional—it’s essential. 

 

🚀 Build a Future-Proof Career with Advice2Talent 

Our EOR model allows you to: 

  • Access client-specific contracts with full legal employment 
  • Receive transparent payroll and benefits (no hidden deductions) 
  • Focus on your work—while we handle the rest 

Whether you’re navigating freelancer tax compliance in the Philippines or seeking stable remote work with full benefits, Advice2Talent helps you future-proof your career. 

💬 Talk to us today and explore how real employment can protect your income, your time, and your growth.