Solon slams BIR order vs. online sellers, says immediate deadline for registration 'insensitive'

ACT-CIS party-list Representative Niña Taduran on Thursday criticized the move of the Bureau of Internal Revenue (BIR) to require online sellers to register with them to ensure tax compliance.

In a statement, Taduran said the BIR's move is untimely as many online sellers or those conducting business transactions through digital or electronic means were only forced to do so after their regular jobs were affected by the COVID-19 pandemic.

"These online sellers just want to put food on the table. This might even be just a temporary activity for them until they find a more stable job,” she said.

“I know that every business should be registered and consequently pay taxes pursuant to the Tax Code. But setting an immediate deadline and warning them of stiff penalty is insensitive. Let the people recover first from the financial beating of this pandemic,” she added.

In its Revenue Memorandum Circular No. 60-2020 dated June 1, the BIR notified “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.”

This order does not include only partner sellers or merchants, but also other stakeholders such as payment gateways, delivery channels, internet service providers, and other facilitators.

Likewise, the BIR wants these businesses to declare their past transactions for taxation purposes.

Those will register their business activity and/or update their registration status on or before July 31, 2020 “shall not be imposed with penalty for late registration," the bureau added.

Taduran urged the BIR to postpone the deadline until next year so that online sellers will be able to prepare for their registration.

“Nakadapa pa ang lahat dahil sa pandemic. Pinipilit na lang ng mga taong mabuhay makaraang mawalan sila ng regular na trabaho kaya’t nag-shift sa online selling," she said.

"At this time, when we are discouraging people to go outside, it will be difficult for them to process all the requirements needed for their registration with the July 31, 2020 deadline,” Taduran added. --KBK, GMA News