Online sellers with less than 250K annual revenue exempted from tax, registration

ADVERTISING

Trade Secretary Ramon Lopez said Tuesday online sellers earning less than P250,000 per year are exempted from paying tax and registering to the Bureau of Internal Revenue.

“Excluded naman talaga dito maliliit na negosyante. It’s really an important measure for traceability ng mga binibili natin online,” Lopez told ABS-CBN’s Teleradyo. “Kung ang kita nila P250,000 and below, sila ay exempted naman sa pagre-register.”

ADVERTISING

(Small businesses are exempted. It’s an essential measure for traceability of what we buy online. If their income is 250,000 and below, they are exempted from registration.)

“This is for consumer protection. At the same time… we also believe in the principle na kung gusto mong lumaki ang negosyo mo, kailangan magregister ka,” he said.

(We also believe in the principle that if you want your business to grow, you need to register.)

ADVERTISING

Lopez advised customers to buy from large online platforms that have a rating system and mandates online sellers to register so they can be traced.

“Pagka bumili sila sa Facebook o Instagram na hindi nila kakilala, may risk po talaga na mahirap hagilapin,” he said.

(If they buy from a seller they don’t know on Facebook or Instagram, there’s a risk that they will be hard to find.)

Also read: How to Register Online Business under BIR

Lopez added resellers who use the official receipt of the product they are selling are not required to register.

Presidential spokesperson Harry Roque said last week online sellers earning less than P250,000 per year are exempted from paying tax.

“If your  net income does not exceed P250,000 eh wala po talaga kayo ibabayad (you don’t have to pay),” Presidential Spokesman Harry Roque said.

On June 10, required online sellers or those facilitating business transactions through electronic or digital means to register to ensure tax compliance.

Those who will not register their business activity and/or update their registration status on or before July 31, 2020, shall be imposed with a penalty for late registration.

Likewise, they are encouraged to voluntarily declare their past transactions subject to pertinent taxes and pay the taxes thereon, without the corresponding penalty, when declared and paid on or before the said date.

ADVERTISING