BIR warns online marketplaces of strict tax monitoring during holidays

The Bureau of Internal Revenue (BIR) has warned that it will closely monitor tax compliance among online marketplaces and sellers during the holiday season, threatening to suspend operations of non-compliant businesses.

Violating businesses can face suspension or blocking of digital services under Section 115 of the National Internal Revenue Code, as amended by Republic Act 12023, similar to the BIR's Oplan Kandado program for physical stores.

BIR Commissioner Romeo Lumagui Jr. emphasized that all online stores must register with the BIR regardless of their size and reminded them of their responsibility to monitor compliance among their sellers.

The government tax agency encouraged consumers to request official receipts from online sellers to ensure tax compliance, stressing the importance of transparency in transactions.

Lumagui noted that while small businesses may not have immediate tax obligations, they must register with the BIR to avoid complications if they grow and need to pay taxes.