Unregistered online businesses now liable for penalties — BIR

unregistered online businesses now liable for penalties bir - Unregistered online businesses now liable for penalties — BIR

OVER 6,000 businesses selling goods and services online have registered with the Bureau of Internal Revenue (BIR), with any unregistered businesses now subject to penalties following the lapse of the deadline.

In a text message Tuesday, BIR Deputy Commissioner for Operations Arnel SD. Guballa said the deadline was set out in Revenue Memorandum Circular (RMC) No. 60-2020 issued in June.

Starting Wednesday, Sept. 2, BIR Assistant Commissioner Elenita B. Quimosing said late registrants and business owners found operating without permit from the bureau will be slapped with corresponding penalties and surcharges.

“(If they register) after Sept. 1, at nung prior months nagbi-business na sila, may penalty na po ‘yun (and they operated in the previous months, they are subject to penalty),” she said, listing late registration fees, surcharges and interest on the amount of tax that should have been paid on the civil liability side.

Meron din pong kaakibat na (there is also corresponding) criminal liability depending on the severity of the offense,” Ms. Quimosing said over DZBB radio on Monday.

The bureau had extended the registration deadline for online sellers to Aug. 31 from the initial cut off date of end-July, but since Monday was a holiday, the last day of registration was moved to Tuesday.

“All those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations,” according to RMC No. 75-2020, which was issued in July.

Online transactions surged during the pandemic, attracting the attention of the BIR, which is under pressure to generate new revenue in a faltering economy.

The Department of Finance (DoF) said in May it is working with the BIR on measures that will plug value-added tax (VAT) leakages in the digital economy. The DoF estimates up to P17 billion in fresh VAT can be collected from online transactions. — Beatrice M. Laforga

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