The online business in the Philippines currently has not much regulations imposed by government unlike businesses with physical stores. With that known, bureau of internal revenue (BIR) announced last 2013 that they want to tax online sellers.
Any individuals or groups who will conduct businesses must meet their obligations in the government. They must register their businesses at the revenue district office and pay the imposed fees. Then, the business will be issued a certificate of registration, reflecting that they have to pay their taxes. The commissioner of the BIR, Kim Henares, cited from the national internal revenue code, that sellers must issue official receipts to buyers for every sale of goods. Failure to issue official receipts can subject the business to suspension. They must also pay a 10% net of withholding tax. Bureau of internal revenue also stressed that, all the existing tax codes shall be equally applied, whether channel is in the internet or customary physical medium.
Given that memorandum, online sellers are obliged to abide by the said regulations for the sake of legality and meeting their obligations to the government.
Any individuals or groups who will conduct businesses must meet their obligations in the government. They must register their businesses at the revenue district office and pay the imposed fees. Then, the business will be issued a certificate of registration, reflecting that they have to pay their taxes. The commissioner of the BIR, Kim Henares, cited from the national internal revenue code, that sellers must issue official receipts to buyers for every sale of goods. Failure to issue official receipts can subject the business to suspension. They must also pay a 10% net of withholding tax. Bureau of internal revenue also stressed that, all the existing tax codes shall be equally applied, whether channel is in the internet or customary physical medium.
Given that memorandum, online sellers are obliged to abide by the said regulations for the sake of legality and meeting their obligations to the government.