THE Bureau of Internal Revenue (BIR) has announced that it will impose a 1% withholding tax and a 12% value-added tax (VAT) on online sellers who use an online platform provider as an intermediary. This is in response to the growing trend of online shopping, which has affected the business of mall owners and sellers.
According to the BIR, the new taxes will help increase tax collections and regulate the online market. The BIR said that online sellers who earn less than P250,000 per year are exempted from the withholding tax, but still have to pay the VAT.
The BIR also urged online sellers to register with them and declare their income.
Online shopping has become more popular in recent years, especially during the pandemic, due to convenience and social media influence.
Many people prefer to shop online rather than go to malls, which have seen a decline in foot traffic and sales. Online platforms such as Lazada, Shopee, and Zalora have also offered discounts and promotions to attract more customers.
However, some online sellers have expressed concern over the new taxes, saying that they will affect their profit margins and competitiveness. They also said that they are already paying taxes through their bank transactions and delivery fees.
Some online sellers have also complained about the lack of clear guidelines and assistance from the BIR. (PAN)
