BIR just reminding online businesses to register, not chasing them — DOF
MANILA, Philippines — The Department of Finance on Friday sought to pacify public anger over the government's move to slap levies on sales online, saying taxmen were only urging online businesses to register with the Bureau of Internal Revenue, not running after them.
"The goal of this project is not to go after online merchants for unreported sales or unpaid taxes," DOF Revenue Operations Group Undersecretary Antonette Tionko said in a statement
"We just want to encourage those who are engaged in online businesses to register with the BIR,” Tionko added.
The BIR issued Revenue Memorandum Circular 60-2020 dated June 1 ordering businesses earning income “through the use of any electronic platforms and media, and other digital means” to register and settle taxes on or before July 31. Failure to meet the deadline will result in penalties.
The order applies even on “past transactions."
The BIR's move came as shoppers and merchants migrate online due to strict stay-at-home orders enforced to curb the coronavirus outbreak. Experts say this is a way for tax officials to “adapt” to life after lockdowns especially after the government's pandemic response depleted cash in state coffers.
In 2013, BIR issued RMC 55-2013 reminding taxpayers that sales online are taxed, but it is only this latest circular that gave a deadline to settle these taxes and warned that surcharges may apply.
The order received backlash from both consumers and small business owners. Two senators criticized the BIR's move and urged the tax bureau to instead go after industries with delinquent tax payers, including Philippine Offshore Gaming Operators or POGOs.
"Online transactions have increased for quite some time now, especially during the community quarantine period," Tionko said.
"That’s why we want to take this opportunity to remind them to register their businesses. The BIR will issue an Operations Memorandum to this effect," she added.
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