So-called “online sellers” or people who engage in business via online or digital means are being required by the Bureau of Internal Revenue (BIR) to register to ensure tax compliance.
At the same time, the BIR is requiring the online sellers to declare their past transactions for tax purposes, a report by GMA News Online said.
The directive was bared last Wednesday, June 10, 2020.
In BIR’s Revenue Memorandum Circular No. 60-2020, dated June 1, the BIR notified “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.”
Likewise, the order also includes other businesses such as payment gateways, delivery channels, internet service providers, and other similar businesses.
Many people have resorted to buying products and other stuff online due to the lockdown in relation to the response to the Covid pandemic, observers say.
The BIR has informed those engaged in such activity of doing business online or through digital means to register their business and/or update their registration status on or before July 31, 2020 in order to avoid “penalty for late registration”.
Furthermore, the tax agency told those engaged in online businesses to “voluntarily” declare past transactions.
Earlier, the Department of Finance through the BIR, is looking at how to impose taxes on digital activities such as online selling and video streaming services.
Meanwhile, Rep. Joey Salceda, chair of the House Committee on Ways and Means, filed a bill seeking to impose taxes on digital services. On the other hand, Sen. Ramon “Bong” Revilla Jr., filed a similar bill in the Senate.