Palace defends BIR move to tax big online sellers

Why not tax online sellers? This is where Malacañang stands in tandem the Bureau of Internal Revenue's (BIR) intent to go after Web-based businesses starting next year to boost government collections. 

 

“The national internal revenue [code] states that if you are a seller and that you engage in retail then, you are subject to tax unless you can show the BIR that you are exempted under a particular law,” Presidential Deputy Spokesperson Abigail Valte told a briefing Friday, referring to the 1997 Tax Code. 

 

She said online shops are no different from businesses who operate physical stores.

 

“Ang hinahabol naman po ni Commissioner [Kim] Henares dito ay makapagbayad po sila nung tamang income tax at nung tamang VAT [value added tax], kasi sales naman po ‘yan at dapat pinapatawan po ‘yan talaga ng VAT, depende po sa binebentang item. Ngayon, lalo ho kung retail po ‘yan... that really is subject to VAT,” the Palace official noted. 

 

Malacañang, however, clarified that the government is only going after “big” online retailers and not those who sell used items part-time. 

 

“Ang tina-target po really ng BIR are the online sites that really do selling as a business. Hindi po ‘yung, halimbawa, meron kang bag tapos gusto mo nang ibentang pre-owned or... Hindi po ganoon,” Valte said.  

 

Valte noted that the BIR is already eyeing specific online stores, but she refused to name them. 

 

“May mga binanggit po siyang site na ‘yung mga malalaki that, you know, that people really go to, to buy things,” she said, referring to BIR's Henares.

 

“So, hindi ko na po babanggitin ‘yung mga pangalan... Everybody has a good idea what these sites are.” 

 

Earlier this week, Heneras said the BIR will slap online businesses with income tax and VAT starting 2013. The plan to go after retailers on the Web was unveiled earlier this year. 

 

The online community, however, criticized the plan, warning that it could curb growth of the country's sprouting e-commerce sector. — Siegfrid Alegado/GMA News