With the holiday season just around the corner, the Bureau of Internal Revenue (BIR) is paying close attention to online marketplaces and sellers to monitor their tax compliance.
Revenue commissioner Romeo Lumagui Jr. warned to block online businesses that would violate the country’s tax laws.
“If retail/physical stores are registered and paying their taxes, online stores should do the same. In the coming months, we expect an increase in online business revenue due to the holiday spending spree,” Lumagui said.
Section 115 of the National Internal Revenue Code, as amended by Republic Act 12023, states that the BIR Commissioner can suspend business operations.
This also includes blocking digital services performed or rendered in the Philippines by a digital service provider.
Lumagui reminded consumers to ask online sellers for an official receipt.
“If you are spending your hard-earned income after paying taxes on their products, then online sellers/businesses should also pay their taxes,” the commissioner said.