BIR warns online shopping sites to follow tax order

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BIR warns online shopping sites to follow tax order

Jekki Pascual,

ABS-CBN News

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Angelica Aguado, an online seller, arranges her products at a coffee shop in Marikina, May 9, 2024. Maria Tan, ABS-CBN News

MANILA - The Bureau of Internal Revenue (BIR) warned online shopping platforms to follow the order on imposing withholding tax on online sellers and to only allow BIR-registered shops on its sites.

BIR Commissioner Romeo Lumagui Jr. said all online merchants must be registered with the bureau regardless of size and earnings. He also reminded electronic marketplace operators to impose a 1 percent creditable withholding tax on half of the gross remittances to online sellers. This policy started on July 15 this year.

Lumagui said, “Kung hindi mag rehistro ang mga online sellers, dapat hindi payagan magbenta sa platforms.” 

(If online sellers do not register, they should not be allowed to sell on online platforms.)

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“Pag hindi nila tanggalin ang lahat ng mga online sellers na hindi rehistrado, pati sila pwede ma shutdown,” he added. 



(If online platforms do not remove unregistered online sellers, they can be shut down.)

The BIR chief has also said that based on talks with some of the popular online shopping platforms, all have expressed support for the new policy.

Lumagui said the new policy is needed to help the economy. He expects billions in pesos of additional revenues because of this new order. This will also help them understand and quantify the online selling sector in the country.

This also levels the playing field for businesses, he said, because those with physical shops are also paying taxes. The new policy will help existing legitimate businesses and consumers as well.

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“Yung mga involved sa brick and mortar stores, nagbabayad yan ng buwis. Bakit ang online sellers patuloy ang pagrereklamo nila dito. Dapat mag comply na lang din sila, dahil tutal lahat ng nagnenegosyo nagbabayad dapat ng buwis” he said.

(Those involved in brick-and-mortar stores are paying taxes. Why are some online sellers complaining? They should comply because all businesses should pay taxes.)

BIR is targeting over P3 trillion in tax collection this year. They are banking on the this new policy as well as revenues from the Vape Law to help boost tax collection in the second half of the year.

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