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MANILA, Philippines – As online selling takes off during the coronavirus lockdown, the Bureau of Internal Revenue (BIR) reminded vendors to register their business and pay taxes – including for their past sales.
In Revenue Memorandum Circular No. 60-2020 dated June 1, the BIR said all Filipinos engaged in an online business, through any use of electronic platforms and media or any digital means, must follow the Tax Code.
The memo also covers payment gateways, delivery channels, internet service providers, and other business facilitators.
The BIR said businesses that will register on or before July 31 will not be slapped with late registration fines.
If vendors have been selling prior to registration, they need to declare past transactions and pay appropriate taxes on or before July 31. (INFOGRAPHIC: Fast facts on online shopping in PH)
Once registered, businesses must issue receipts, keep books of accounts and other accounting records, withhold taxes as applicable, file tax returns, and pay correct taxes on time.
The BIR’s reiteration of existing rules for businesses comes as government revenues plummet due to the coronavirus pandemic.
Lawmakers have also looked into taxing online transactions.
The Department of Trade and Industry earlier reminded online vendors to display prices, instead of prompting customers to send private messages. – Rappler.com