BIR ramps up drive against noncompliant online sellers
THE Bureau of Internal Revenue (BIR) said that it will intensify crackdowns on organized crime activities through the use of advanced tools.
In a social media post, the agency said that it will be working with the Presidential Anti-Organized Crime Commission (PAOCC) to strengthen coordination against activities that undermine fair trade, consumer protection, and government revenues.
According to the BIR, there is rising tax noncompliance in the digital space — particularly in online selling and emerging payment channels.
“To strengthen enforcement, the BIR and PAOCC are exploring advanced tools such as data and blockchain analytics, while coordinating with key agencies including the Bureau of Customs, the Anti-Money Laundering Council, and the Department of Trade and Industry (DTI),” it added.
BIR Commissioner Charlito Martin R. Mendoza said that the intensified crackdown “aims to close enforcement gaps, enhance intelligence-sharing, improve joint operations, protect government revenues, and help ensure a level playing field for compliant taxpayers.”
Data from the Bureau of the Treasury showed that the BIR raised P719.2 billion in the first three months driven by its intensified tax administration, digital transformation, and aggressive efforts to curb revenue leakages.
Meanwhile, the Philippine Retailers Association backed BIR’s push to curb tax noncompliance among online sellers, saying foreign merchants have long operated on an uneven playing field with brick-and-mortar retailers.
The group flagged “thousands” of overseas sellers — particularly from China — that use local e-commerce platforms but do not pay value-added tax or import duties.
“These foreign online sellers are in violation of our Internet Transaction Act by not registering their companies with DTI as mandated by law,” he added.
He said that the disparity in tax treatment has eroded revenues for domestic retailers, underscoring the need for stricter enforcement.
The group said it is open to working with the government and discussing how the it can collect taxes and duties from foreign online merchants.
“We wish the governments success on these efforts to address the potential revenue that the government is missing out on,” he said.
“We must tax all these online foreign sellers from benefiting from the Phil market without paying their share of our nation building (in other words, taxes and duties),” he added. — Justine Irish D. Tabile
