BIR Warns E-Marketplaces, Online Sellers on Tax Compliance

The Bureau of Internal Revenue (BIR) will intensify its monitoring of online marketplaces and sellers during the holiday season to ensure compliance with tax laws, Commissioner Romeo D. Lumagui Jr. announced.

As holiday shopping boosts online transactions, Lumagui reminded e-commerce platforms and digital sellers of their obligations under the National Internal Revenue Code (NIRC), which mandates tax registration and payment compliance.

“If retail/physical stores are registered and paying their taxes, online stores should do the same,” Lumagui said.

He warned that online businesses violating tax laws could face operational disruptions under the BIR’s “Online Kandado” initiative, modeled after the agency’s Oplan Kandado program for physical stores.

This initiative empowers the BIR to suspend or block digital services of non-compliant online businesses under Section 115 of the NIRC, amended by Republic Act No. 12023.

Lumagui emphasized that consumers can play a role by demanding official receipts for their purchases.

“To all consumers, ask online sellers/businesses for an official receipt. If you are spending your hard-earned income after paying taxes on their products, then online sellers/businesses should also pay their taxes,” he urged.

The holiday season typically sees a surge in e-commerce activity, raising concerns about revenue leakage from unregistered or tax-evading digital sellers.

The BIR’s move reflects the government’s broader strategy to regulate and generate revenue from the fast-growing digital economy while ensuring a level playing field for traditional and online businesses.

The Online Kandado initiative aims to close tax loopholes and reinforce the importance of compliance in an increasingly digital marketplace.