Evaluating Rural Consumers’ Knowledge and Attitudes toward Digital Service VAT: Evidence from a Philippine Countryside Market

Authors

  • Jeselle Montiagodo

    College of Business and Management, Partido State University, Goa 4422, Philippines
  • Yumi C. Hamasaki

    College of Business and Management, Partido State University, Goa 4422, Philippines
  • Emmanuel A. Onsay *

    College of Business and Management, Partido State University, Goa 4422, Philippines

    Graduate School, University of the Philippines, Los Baños 4031, Philippines

DOI:

https://doi.org/10.55121/nc.v5i2.1010

Abstract

This study examines the impact of online customers’ knowledge on their attitudes and perceptions towards Republic Act No. 12023, focusing on Value-Added Tax (VAT) for digital services in online sales transactions. Through a causal research design, socio-economic profiles were determined, online customers’ knowledge of R.A. No. 12023 was evaluated, attitudes and perceptions were analyzed, and the influence of knowledge on attitudes and perceptions was assessed. Surveys were conducted online and face-to-face with buyers in a selected municipality in the Partido Area, with data analyzed using an ordinal regression model. Results indicate that a majority of online buyers in the Partido Area possess knowledge of the Digital Services Tax Law, with a higher proportion acknowledging awareness. The study reveals a positive attitude among online buyers towards continuing online purchases despite the Value-Added Tax (VAT) imposition, with most displaying a favorable perception of the Digital Services Tax. Statistical analysis demonstrates that online customers’ knowledge significantly influences their purchasing behavior and perceptions of the VAT on Digital Services Law. In conclusion, this research underscores the crucial role of knowledge in shaping customers’ behaviors and acceptance of VAT on Digital Services. Clear communication and public education efforts are recommended to ensure users understand the law accurately, potentially increasing their acceptance of the policy.

Keywords:

Online Customers, Republic Act No. 12023, VAT on Digital Services, Attitudes, Perceptions, Knowledge, Online Sales Transactions

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How to Cite

Montiagodo, J., Hamasaki, Y. C., & Onsay, E. A. (2026). Evaluating Rural Consumers’ Knowledge and Attitudes toward Digital Service VAT: Evidence from a Philippine Countryside Market. New Countryside, 5(2), 1–16. https://doi.org/10.55121/nc.v5i2.1010

Issue

Vol. 5 No. 2 (April 2026): In Progress

Section

Article

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Copyright (c) 2026 Jeselle Montiagodo, Yumi C. Hamasaki, Emmanuel A. Onsay

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This work is licensed under a Creative Commons Attribution 4.0 International License.