- Online sellers should pay their taxes and register with the BIR according to its memo released on Wednesday.
- Other stakeholders involved and not just the online merchants are covered by the memo.
- Businesses who will register after July 31, 2020, will be penalized for late registration.
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Online sellers should pay their taxes and register with the Bureau of Internal Revenue, as e-commerce exploded during the coronavirus pandemic, it said Wednesday.
Those who sell products and make money on digital platforms should “ensure that their businesses are registered pursuant to the… Tax Code, as amended, and that they are tax-compliant,” the BIR said in a memo.
The BIR memo covers, “not only sellers/merchants, but also other stakeholders involved such as payment gateways, delivery channels, internet service providers, and other facilitators.”
“All those who will register their business activity and/or update their registration status not later than July 31, 2020 shall not be imposed with penalty for late registration,” the BIR stated in the same memo.
The BIR also encouraged digital entrepreneurs through the memo to “voluntarily declare their past transactions subject to pertinent taxes and pay taxes due thereon, without corresponding penalty.”