THE Bureau of Internal Revenue (BIR) - Revenue District Office 113-A West is monitoring online sellers, particularly those whose places of residence fall under its jurisdiction.
“We are checking online sa FB (Facebook) and records of the DTI (Department of Trade and Industry) gina-compile namin,” said revenue officer Datu Yusoph Amad during the recent Kapehan sa SM.
According to him, there is a team at the BIR tasked with inspections as to the activities of the online sellers. Amad said the monitoring group is also assisted by other revenue officers, particularly those registered at the DTI; they would regularly check if these sellers are still active.
“We are checking online on Facebook, Shopee, Lazada, and Tiktok. If ever we see them, we urge them to register,” he said.
He stressed that presently, the group is still in the process of online monitoring, and no formal notifications have been issued yet to the online shops.
The BIR is urging online sellers to register their businesses with the bureau, which can be done manually by visiting the respective revenue district offices or through the web with the NewBizReg online portal.
“We hope the online sellers will know that there is a team tasked with monitoring online and that they are required to register their business sa BIR maski online seller sila (even if they are online sellers),” said Revenue Officer III Ace Madrianda.
Unregistered online shops could face penalties for violations such as failure to register and non-issuance of receipts, among other penalties.
“If ever naka monitor kami and merong mission order na i-check yung mga sales and hindi po siya registered, ma-impose po siya penalties. For violations, let’s say, ang sales nila mahulog sobra 30 percent wala gi-declare, yun pwede siya fraud. And resibo maski online sellers dapat meron tayo copy of receipts, if ever wala siyang resibo, walang details kung kanina nya gibenta yan po non-issuance of receipts (If we ever monitor and there is a mission order to check the sales and it is not registered, we will impose penalties. For violations if more than 30% of the sales were not declared, it can be considered as fraud. Even online sellers should have copy of receipts. If there are no receipts, there are no details where the item is sold, then that is non-issuance of receipts),” Amad said.
Revenue Regulation 16-2023
Meanwhile, on December 21, 2023, the BIR issued Revenue Regulation 16-2023, which subjects online sellers earning more than P500,000 annually to a one percent withholding tax.
According to Revenue Regulation 16-2023, which took effect on January 5, 2024, the withholding tax will apply to one-half of the gross remittances by electronic marketplace operators and digital financial services providers to the sellers or merchants for the goods or services sold through their platform.
This means that apps or website platforms like Shopee, Lazada, Foodpanda, Grab, etc. will have to withhold 1 percent of half of the gross remittances sent to their merchants, partner drivers, or online sellers.
The new BIR measure is meant to improve tax collection and encourage more online small and medium-sized businesses to register. PIA DAVAO