BIR Says Online Sellers, Social Media Influencers Need To Pay Taxes

BIR: “There are initial observations and findings na talaga maraming non-compliant”

BIR — The Bureau of Internal Revenue said that online sellers and social media influencers must pay their taxes.

Photo source: Inquirer

The tax bureau is in talks with online shopping platforms on the collection of taxes for online sellers.

BIR Commissioner Lilia Guillermo reiterated that all sellers must pay their taxes — including those in the digital economy. However, Guillermo noted that many sellers have yet to do so.

There are initial observations and findings na talaga maraming non-compliant,” Guillermo revealed at the Philippine E-Commerce Summit in Pasay.

Guillermo is urging e-commerce giants like Shopee and Lazada to give them data so proper taxes can be collected. She said that some online shopping platforms were still studying this move as it might violate privacy laws.

READ ALSO: Benjamin Diokno Says Taxes On Digital Services Based On Principle Of “Fairness”

Also, Guillermo mentioned that social media influencers, whether companies or individuals, must pay value-added tax and income tax.

According to a report, the Bureau of Internal Revenue may soon issue a memorandum urging for the voluntary registration of social media influencers and those persons earning online.

The BIR commissioner is also hopeful for the passage of legislation in order to further help expand the tax base. One measures seeks to allow taxes on digital services subscribed or bought in the Philippines from a company based abroad.

She said that some PHP 11 billion can be added to the tax collection if changes or amendments are made.

Trade Secretary Alfredo Pascual, meanwhile, supports legislation in order to help the government and small businesses further. He said that the e-commerce economy has been growing exponentially during the coronavirus pandemic and is now what he called the “great equalizer” because even the poor can transact online.

Pascual said that the Department of Trade and Industry (DTI) is helping small businesses so they can sell online properly, as well as produce and market their products well.

We’re creating this e-commerce platform that will provide them with onboarding facility so they’ll be initiated to the digital world,” Pascual said.

Thank you for visiting You may express your reactions or thoughts in the comments section. Also, you may follow us on Facebook as well.

Leave a Comment