When Taxes Go Online

In the past, very little attention was given to online stores, especially by our taxing authorities. However, with the government imposing community quarantines, the popularity and utility of online stores has hit an all-time high. The underside of this rise in popularity is that it has come into the radar of the BIR. In recent months, calls have been made to tax these online stores/sellers. Expectedly, these calls have been met with staunch opposition from the online seller community. But I think there is a disconnect with the understanding here. Our tax laws provide for 0% tax rate. That’s right, zero. Let us explain.