BIR extends deadline for online seller registration

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is giving online merchants one more month to comply with its registration requirements without incurring penalty or other charges.

Pursuant to Revenue Memorandum Circular 75-2020 signed by BIR Commissioner Caesar Dulay on July 29, the deadline for the registration of online sellers without penalty has been extended to Aug. 31, 2020 from July 31.

Dulay said this was in response to online merchants’ clamor for more time to comply with the requirements due to movement restrictions amid the pandemic.

“When (RMC 60-2020) was disseminated and discussed in various fora, the online merchants have signified their cooperation but are requesting for more time to comply due to the current problem in going to the district offices, such as the means of transportation, fear of dealing face-to-face with others, limited open bank branches for their funding, and others,” Dulay said.

“In view thereof, the July 31 deadline stated in the same RMC for registration of the business activity and/or updates with no penalty imposition is hereby extended to Aug. 31, 2020,” he said.

In addition, BIR said those who voluntarily declare their past transactions and pay corresponding taxes until this date shall not be subject to penalty for late filing and payment.

“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,” BIR said.

The BIR earlier issued RMC 60-2020, reminding those doing business through digital platforms to comply with tax regulations.

This comes at a time when there is a surge in digital transactions, with more people resorting to online selling due to the COVID-19 pandemic.

Earlier, BIR deputy commissioner Arnel Guballa said this was issued to determine the total population of individuals and enterprises earning money through digital platforms.

BIR also clarified the circular does not aim to increase the tax burden of small online business owners, but rather, to capture large online businesses into the country’s tax net.