Online seller to gov't: We're willing to comply, but give us more time

An online seller on Friday called on the government, particularly the Bureau of Internal Revenue, to give those into online business enough time to get back on their feet after the pandemic before requiring them to register and pay appropriate income taxes.

“Pakiusap ko po sa gobyerno, ‘wag naman po muna ngayon. Napaka wrong timing naman na patawan kami ng tax pinipilit pa lang naming tumayo,” Edgar, not his real name, said in an interview on Dobol B sa News TV.

“We will definitely comply pero not now, napaka wrong timing lang po. Magko-comply kami sa tamang panahon siguro one or two years... ‘wag lang ura-urada,” he said.

Earlier, the BIR released Revenue Memorandum Circular No. 60-2020 notifying “all persons doing business and earning income in any manner or form – specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means – to make sure their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant. 

BIR's order covers partner sellers or merchants, as well as other stakeholders such as payment gateways, delivery channels, internet service providers, and other facilitators.

Likewise, the BIR wants these businesses to declare their past transactions for taxation purposes.

While those earning less than P250,000 a year are exempted from paying income tax, Edgar said the 3% percentage tax for gross income receipts, annual fees, among others are still a burden for online sellers.

“Merong registration fee, merong annual fee, merong kung ano anong registration kaya malaki rin ang mawawala,” he said.

The BIR earlier said that online sellers need not worry as the agency will be reasonable on their declarations and no hefty fees will be charged such as P500 registration fee and P30 documentary tax stamp. 

“Ang masakit, wala na nga kaming nakuhang ayuda from government, nagsara ang negosyo ko tapos ita-tax pa kami ng ganito. Gumagagawa kami ng diskarte para mabuhay,” Edgar said.

“[W]ala na nga kaming nakuha ay pipigain pa kami nang pipigain ng gobyerno,” he added.

In a separate statement, the Department of Finance said the aim of the BIR circular is to encourage online sellers to register and “not to go after online merchants for unreported sales or unpaid taxes.” —LBG, GMA News