WebClick Tracer

Relief for online sellers: Tax implementation pushed back

The Bureau of Internal Revenue (BIR) has granted a 3-month delay on the implementation of the tax on online sellers and merchants.

This means online sellers won’t be kicked off e-commerce platforms for now, even if they don’t have a BIR certificate of registration yet.

BIR Commissioner Romeo D. Lumagui Jr. issued Revenue Memorandum Circular No. 55-2024, giving online sellers, e-commerce platforms, and digital financial service providers until July 14, 2024 to comply with the new tax regulations.

Previously, under Revenue Regulation No. 16-2023, online sellers on e-commerce platforms were supposed to start paying a 1% withholding tax on their sales exceeding P500,000 annually.

This regulation also required them to secure a BIR certificate of registration, which e-commerce platforms had to verify during seller accreditation.

“This 90-day extension of the transitory period under RR No. 16-2023 shows the BIR’s commitment to listening to the voice of the private sector,” Lumagui said. “We hear the thoughts of the private sector, and if the same is reasonable, then we make policy adjustments for the benefit of the Filipino people,” Lumagui said.

Milyonaryo | Latest News