As online sales explode, BIR reminds sellers to register and pay taxes


Bureau of Internal Revenue says online businesses that register by July 31 won’t be charged late fees

MANILA, Philippines — As online selling takes off during the coronavirus lockdown, the Bureau of Internal Revenue (BIR) has reminded sellers to register their business and pay taxes — including on past sales.

In Circular No. 60-2020 dated June 1, the BIR stated that all Filipinos conducting business online, through any use of electronic platforms and media or any digital means, must comply with the tax code. .

The memo also covers payment gateways, distribution channels, internet service providers and other business enablers.

The BIR said businesses that register by July 31 will not be hit with fines for late registration.

If sellers sold before registration, they must report past transactions and pay the appropriate taxes by July 31. (INFOGRAPHIC: Fast facts on online shopping in PH)

Once registered, businesses must issue receipts, maintain books of accounts and other accounting records, withhold taxes where applicable, file tax returns, and pay the correct taxes on time.

The BIR’s reiteration of existing rules for businesses comes as government revenues plummet due to the coronavirus pandemic.

Lawmakers have also considered taxing online transactions.

The Department of Trade and Industry previously reminded online sellers to display prices, instead of prompting customers to send private messages. – Rappler.com

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