Title: The Effect Of Value-Added Tax Implementation On The Online Spending Behavior Of Individual Users In Pampanga
Authors: Asetre
Kenneth Vincent V.
Bondoc
Evelyn B.
Garcia
Angelica Mae
Lumanog
Michael D.
Alan Y. Cabaluna
PhD
Jason Y. Carreon
CPA
MBA
Volume: 10
Issue: 7
Pages: 333-342
Publication Date: 2026/07/28
Abstract:
This study examines the effects of value-added tax (VAT) implementation on the online spending behavior of individual users in Pampanga. With the rapid expansion of the digital economy and the imposition of a twelve percent VAT on digital services in the Philippines, understanding consumer responses to tax-induced price changes has become increasingly important. The research adopts a quantitative causal design to analyze how VAT influences online spending behavior across psychological, economic, social, technological, and situational factors. Data were collected from 100 respondents using a structured survey questionnaire and analyzed through descriptive statistics, correlation, and regression analysis. Findings reveal that while consumers demonstrate general awareness of VAT, its implementation significantly affects their spending behavior. Increased prices due to VAT heighten price sensitivity, prompting more cautious and selective online purchasing. Psychological responses, such as perceived fairness and financial concern, alongside economic constraints, strongly shape consumer behavior. Technological convenience and social influences, however, continue to drive online consumption despite added costs. Moreover, results indicate a strong and statistically significant positive relationship between VAT factors and online spending behavior, highlighting VAT's influence on purchasing decisions. The study concludes that VAT serves as a significant factor influencing online spending behavior. While it encourages more cautious and budget-conscious spending, online shopping remains prevalent due to its convenience and accessibility in the digital marketplace