A revenue regulation encouraging online sellers to register with the Bureau of Internal Revenue (BIR) is not meant to run after micro sellers but rather big online merchants, officials said.
“We’re not looking at employees who were affected by the lockdown and decided to sell food online or to their neighbors to boost their income. We are looking at big businesses that transact online,” said Arnel Guballa, BIR deputy commissioner, referring to revenue memorandum circular no. 60-2020 dated June 1, 2020, that was issued to remind persons doing business, specifically those who are into digital transactions, to ensure that their businesses are registered and they are tax compliant.
He said business owners should register their businesses so they won’t be dubbed as “colorum” or unlicensed merchants.
“Just register your businesses. If it’s small, then you don’t have to pay taxes. If your business is growing, you’re earning so much more, then you should pay the right amount of taxes,” Guballa said. Under the Tax Reform for Acceleration and Inclusion Law, a sole proprietorship earning P250,000 or less is not subject to tax.
Secretary Ramon Lopez of the Department of Trade and Industry said micro enterprises who are intermittent online sellers are exempt from registering their businesses.
Lopez clarified only online sellers doing business regularly are required to comply with the BIR regulation.
He said registering online business is an important measure for consumer protection especially for traceability in case the product sold is defective or has the wrong specifications.
Lopez advised consumers to buy from known platforms which have rating systems and tracking capabilities.
He warned consumers to be cautious when transacting with sellers on social media sites.