Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr., in time for the holiday sales and spending sprees, warned Online Marketplaces, E-Marketplaces, and Online Sellers of the consequences if their online businesses violate our tax laws. Online businesses can be blocked by the BIR, much like its Oplan Kandado program against physical stores.
“If retail/physical stores are registered and paying their taxes, online stores should do the same. In the coming months, we are expecting an increase in revenue of online businesses due to the holiday spending spree. To all consumers, ask online sellers/businesses 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,” Commissioner Lumagui stated.
Section 115 of the National Internal Revenue Code, as amended by Republic Act No. 12023, provides that the power of the Commissioner of Internal Revenue to suspend business operations shall include the blocking of digital services performed or rendered in the Philippines by a digital service provider.
