Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. asked online platforms to make sure the sale of vape products are compliant with tax stamps, minimum floor price and other BIR requirements.
He said online platforms should only allow duly-registered online sellers with the BIR to sell vape online. The online trade of vape is regulated by BIR Revenue Regulation No. 14-2022 (RR No. 14-2022).
The BIR is monitoring both online platforms and brick-and-mortar stores that are selling vape products for possible violations of BIR regulations on vape products.
“Online platforms should monitor vape sellers in their platforms, they should check if they are complying with tax stamps, minimum floor price, and other BIR requirements. They should take down any online post or offering that is in direct violation of the minimum floor price, tax stamps, and other BIR regulations on vape,” he said.
“We have been receiving reports that online sellers of vape are actively selling their products at a low price because they are not paying their taxes. These online sellers of illicit vape destroy the livelihood of legitimate vape sellers. The BIR protects legitimate businesses and closes illegitimate businesses. Online platforms should do the same,” Lumagui said.
Section 5 of RR No. 14-2022 provides that the sale or distribution of vaporized nicotine and non-nicotine products, novel tobacco products and their devices through internet websites or via e-commerce should be compliant with BIR requirements, including tax stamps, minimum floor price, or other fiscal marks.
Internet websites and/or e-commerce and/or other similar media selling platform providers should only allow registered online sellers with the BIR.
Lumagui said the BIR has been active in its campaign against illicit vape products since 2022, consistent with the directive issued by President Ferdinand Marcos Jr. to bolster the efforts of the BIR against the smuggling of tobacco and vape products.
The BIR has raided vape warehouses in Manila, Laguna and Rizal from 2022 to 2024.
He said the agency would continue its crusade against illicit vape and would further expand the same by monitoring and apprehending the online sale of illicit vape in coordination with different government agencies.
“Whether online or in the stores, illegal vape is not allowed for sale. It is prohibited to sell vape below the minimum floor price. It is prohibited to be sold without stamp. The BIR is closely watching online platforms and physical stores to ensure their compliance to BIR’s regulations,” Lumagui said.
