BIR memo aimed at getting online sellers to register —DOF

The controversial move of the Bureau of Internal Revenue requiring those into digital transactions to register and declare past transactions is not meant to squeeze money out of online sellers’ incomes, the Department of Finance said Friday.

DOF Revenue Operations Group Undersecretary Antonette Tionko said, the purpose is to get online businesses to register with the BIR.

This BIR released Revenue Memorandum Circular No. 60-2020, dated June 1, required “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 ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.” 

“The goal of this project is not to go after online merchants for unreported sales or unpaid taxes. We just want to encourage those who are engaged in online businesses to register with the BIR,” Tionko said.

“Online transactions have increased for quite some time now, especially during the community quarantine period. 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,” Tionko added.

BIR's memo is supposedly part of initial phases that both the DOF and the taxman have undertaken to implement a tax collection program on digital transactions.

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

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

The DOF said there is no penalty for late registration shall be imposed on those who will register and/or update their registration status on or before July 31, 2020.

Newly-registered business entities, including existing registrants, are also advised to comply with the following:

• Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients, customers, or buyers
• Keeping of registered Books of Accounts and other accounting records of business transactions
• Withholding of taxes, as applicable
• Filing of required tax returns
• Payments of correct taxes due on time

Earlier, the BIR said that online sellers need not to 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. 

Presidential spokesperson Harry Roque had said that those earning below P250,000 are exempted from paying income tax. This is pursuant to the Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law. —LBG, GMA News