BIR to close tax leakage from online sellers
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Thu, 03 Oct 2019 16:15:32 +0000
THE Department of Finance (DoF) has directed the Bureau of Internal Revenue (BIR) to study on how to effectively close the tax leakage from online sellers.
“There’s an instruction from the DoF to study this [online sellers], on how to tax the digital economy,” BIR deputy commissioner Arnel Guballa said in an interview on Thursday.
Guballa explained that the reason behind the Finance department directive was the “substantial” tax leakage from the industry.
“We want to capture these tax leakages to boost our revenues,” he said without disclosing figures.
Guballa admitted that the BIR found it difficult to collect taxes from the said industry despite the existing tax regulations for online business transactions.
This was because some of these online sellers did not issue receipts to consumers, a proof that they did not pay taxes to the government, he explained.
“[That is why] we have to capture them. [They have to] pay the taxes,” the BIR official stressed.
Under Revenue Memorandum Circular 55 issued in 2013, the tax agency said persons who conducted business through online transactions should register with their respective revenue district office; secure the required authority to print invoices/receipts and register books of accounts for use in business; issue registered invoice or receipt for every sale; withhold their tax dues; file their tax returns; and keep books of accounts.
Guballa’s statement came after the BIR suspended the operations of a warehouse in Guiguinto, Bulacan, also on Thursday.
BIR said the results of the investigation showed that five establishments in Bulacan were not compliant with the registration requirements of posting of the annual registration fee, payment form (0605), original certificate of registration and the poster “Ask for Receipts” or Notice to the Public.”