Due to the surge in the number of registrants in various revenue district, the Bureau of Internal Revenue (BIR) once more extended the deadline for the registration of online sellers and other related businesses to September 30, 2020.
The last day of registration was supposed to be set on September 1, 2020, but the number of online sellers trying to beat the deadline, in addition to the BIR’s resource constraints at this time of pandemic resulted in the further extension of registration.
Through a memorandum circular, the BIR reminded businesses transacting through digital or online platforms should register their business on or before the deadline to avoid penalties.
“It is reminded that all those who will be found later doing business without complying with the registration or update requirements, and those who failed to declare past due or unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations,” the BIR says.
Registration is not only limited to online sellers but also include payment platforms, delivery channels, and internet service providers, for tax purposes. Even if they already have a TIN, businesses are still required to come to the agency for validation.
As of September 1, there are 5,650 online sellers who have already registered with the BIR. Meanwhile, the Department of Trade and Industry (DTI) reported that there are about 60,000 online businesses in the country.
When it was first announced, the registration of online businesses was not well-received by the public and the lawmakers. It did not sit well with the legislators that the BIR is capturing taxes from people who are just trying to make a living in the midst of the job-killing pandemic.
However, Congress recognized that the BIR also needs to raise revenues for the government, and taxing online sales is one source of such.