BIR reminds e-commerce platforms to pay right taxes this holiday season

Online shopping /INQUIRER.net Stock Photo

Amid the anticipated increase in revenues this coming Christmas season, the Bureau of Internal Revenue (BIR) issued a warning to online marketplaces to pay the right taxes, saying that they are closely monitoring them this Yuletide season.

“If retail or 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,” BIR Commissioner Romeo Lumagui Jr. said in a statement.

The government’s tax agency said that they can block website access, similar to their “oplan kandado program” which covers physical stores.

READ: BIR to monitor online sellers’ tax compliance during holiday season

Citing section 115 of the National Internal Revenue Code, as amended by Republic Act No. 12023, the BIR said that their commissioner has the power to suspend business operations.

This includes the blocking of digital services performed or rendered in the Philippines by a digital service provider.

Additionally, the BIR also encouraged consumers to ask online sellers and 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,” Lumagui said.

Preliminary data from the Department of Finance (DOF) released last month showed that collections from BIR, which typically accounts for 80 percent of state revenues, had reached P2.08 trillion during the first nine months of the year, up by 12.13 percent from a year ago.

It amounted to 68.2 percent of the P3.05-trillion target for this year.

Lumagui had expressed hope that they will reap gains from the recently imposed 1-percent withholding tax on online sellers this month.