Blog > Marketplace News > The Philippine Bureau of Internal Revenue reminds e-commerce sellers such as Shopee to pay taxes legally
The Philippine Bureau of Internal Revenue reminds e-commerce sellers such as Shopee to pay taxes legally
Jack 18 Nov 2024 12:16
With Christmas just around the corner, the Bureau of Internal Revenue (BIR) has stepped up its efforts to monitor online sellers to ensure they pay taxes as required. In light of the expected increase in sales during the holiday season, BIR Commissioner Romeo Lumagui Jr. stressed that both brick-and-mortar and online stores must comply with the same tax regulations, according to Philippine media reports.
He noted that revenue from online commerce is expected to rise significantly in the coming months as holiday shopping increases, so all online sellers need to properly declare and pay the corresponding taxes.
To tighten control over such activities, the BIR said it may take steps to restrict access to non-compliant websites, similar to its "Oplan Kandado" operation against physical stores.
Under Section 115 of the National Internal Revenue Code, the BIR has the power to suspend the operations of businesses that fail to comply with tax laws and even interrupt the services of digital service providers in the Philippines.
At the same time, the BIR is also actively promoting consumer protection, encouraging them to ask for official invoices from merchants after purchasing goods or using services. This not only helps safeguard the legitimate rights and interests of consumers, but also promotes transparency and accountability.
It is worth noting that the latest data released by the Ministry of Finance shows that the tax revenue collected by the tax bureau is crucial to the entire national finance, usually accounting for about 80% of the total national revenue. As of the end of September this year, the tax bureau has successfully collected 2.08 trillion pesos, an increase of 12.13% year-on-year, close to two-thirds of the full-year target of 3.05 trillion pesos.
He noted that revenue from online commerce is expected to rise significantly in the coming months as holiday shopping increases, so all online sellers need to properly declare and pay the corresponding taxes.
To tighten control over such activities, the BIR said it may take steps to restrict access to non-compliant websites, similar to its "Oplan Kandado" operation against physical stores.
Under Section 115 of the National Internal Revenue Code, the BIR has the power to suspend the operations of businesses that fail to comply with tax laws and even interrupt the services of digital service providers in the Philippines.
At the same time, the BIR is also actively promoting consumer protection, encouraging them to ask for official invoices from merchants after purchasing goods or using services. This not only helps safeguard the legitimate rights and interests of consumers, but also promotes transparency and accountability.
It is worth noting that the latest data released by the Ministry of Finance shows that the tax revenue collected by the tax bureau is crucial to the entire national finance, usually accounting for about 80% of the total national revenue. As of the end of September this year, the tax bureau has successfully collected 2.08 trillion pesos, an increase of 12.13% year-on-year, close to two-thirds of the full-year target of 3.05 trillion pesos.
