BAGUIO CITY (PIA) — The Bureau of Internal Revenue Cordillera (BIR-CAR) is calling on online sellers to register their businesses and comply with tax regulations.
The BIR has been gradually rolling out policies aimed at ensuring that online merchants are subjected to the same tax regulations as brick-and-mortar or with physical location establishments.
Merlyn Vicente of Revenue District Office 8 (Baguio City) said that all persons engaged in online trade or business are considered online sellers.
“‘Yun lang po ang pakiusap natin, sa lahat po ng online sellers, anuman po ‘yung product or services ninyo, please, mag-comply po tayo sa tamang registration,” Vicente appealed.
She also stressed that online sellers must post their Certificate of Registration (COR). “To be transparent and to be an honest taxpayer, before mag-online kayo, before mag-invite kayo ng mga customers, please i-post din natin ‘yung COR natin para alam nila – ‘yung mga clients ninyo, customers – [na] legit kayo na nagtitinda or engaged in online selling,” she stated.
BIR issued Revenue Regulation (RR) No. 16-2023, which became effective on January 11, 2024, requiring e-market places and digital service providers to withhold one percent income tax on remittances to merchants.
Under Revenue Memorandum Circular (RMC) No. 8-2024, e-marketplace operators and digital financial service providers (DFSPs) are allowed a period of 90 days from the issuance of the circular to comply with the relative policies or requirements of other agencies and to give them an opportunity to adjust and properly comply with the provisions of RR No. 16-2023.
Following further consultations, RMC No. 55-2024 extended the transitory period for another 90 days until July 14, 2024. RMC No. 79-2024 provided an additional extension until October 12, 2024 for DFSPs.
Starting October 13, 2024, DFSPs facilitating transactions through mobile and internet platforms must begin withholding taxes on gross remittances made to online sellers. These include financial services like Gcash, Maya, and major credit card providers, which all play a critical role in the digital economy.
The BIR has already filed cases against several non-compliant online sellers in the region who failed to post their CORs or meet the required tax obligations.
The bureau is encouraging all online merchants to ensure they are fully registered and compliant to avoid potential legal action. (JDP/DEG/Kate Cabañero, PIA CAR- SLU Intern]
