The Bureau of Internal Revenue (BIR) of Philippines’ has released a memorandum, which is ensure that it will start accumulate taxes from individuals and businesses for selling products online. This measure is already permitted under the tax law and is being implications in an effort to increases additional tax revenue.
All taxpayers are required to issue ORs, for proof of income and expense, for each sale of goods and services rendered over the amount of PHP25 (USD0.57) under the Philippines tax code. The BIR make an additional evaluation for income or value added tax and could be the grounds for the termination of a business in case of failure to issue Ors. Online sellers will required creditable withholding tax, final tax, tax on recompense of employees, and other withholding taxes, and remit the revenue collected to the BIR. The taxpayers must submit information returns and other tax compliance reports and pay the correct taxes and also have to file tax returns on or before due dates.
