MANILA, Philippines — The Bureau of Internal Revenue (BIR) yesterday called on vape traders to comply with the business registration requirement and tax obligations amid the continued smuggling of vaporized cigarettes despite the enactment of the Vape Law.
BIR Commissioner Romeo Lumagui issued the statement as tons of smuggled and untaxed vape products continue to be seized from traders.
The business registration requirements and tax obligations are part of the implementation of the Vape Law that covers the importation, manufacture, sale, packaging, distribution and use of vape products.
Vape products being sold should only be made by online sellers or distributors registered with the BIR, Department of Trade and Industry (DTI), Securities and Exchange Commission or the Cooperative Development Authority.
Lumagui said duly registered distributors, merchants and retailers must post the required government certificates and approvals of the products at the landing page of their website or selling platforms.
Other administrative requirements include the registration of brand and variants, affixing of internal revenue stamps for vape products, and maintenance of official register books and other records.
Violators face up to six years in prison and fines ranging from P2 million to P5 million.
The BIR will revoke and cancel business permits and licenses of violators as well as recall, ban and seize vape products from public sale of distribution.
Online sellers and distributors of vape products that are non-compliant will be ordered by the DTI to suspend trading of such products.
If the offender is a foreign national, the trader will be deported after service of sentence and payment of fines, and will be barred from re-entering the Philippines.
Data showed that the government has collected about P15.3 billion in vape taxes since 2019.