Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. issued Revenue Regulations No. 15-2024 (RR No. 15-2024) that prescribes the policies of the BIR in relation to the registration of brick-and-mortar stores and online businesses.
RR No. 15-2024 was issued for the purpose of leveling the playing field between physical stores and online stores by regulating them equally, and taxing them uniformly.
Section 8 of RR No. 15-2024 provides that business operations may be suspended through the issuance of a closure/take down order against physical or online businesses.
The closure of such business operations does not preclude the BIR from filing tax evasion cases under its Run After Tax Evaders program.
“We advise that e-marketplace platforms, online sellers and content creators should strictly follow RR No. 15-2024 as soon as possible. It is unfair to the retail industry or to sectors with brick-and-mortar stores, if online businesses are not regulated and taxed in the same manner. If physical stores can be closed down through a closure order, online businesses can be closed down through a takedown order,” Lumagui said.
Section 11 of RR No. 15-2024 also provides that lessors, sub-lessors of commercial establishments/buildings/space, and operators of digital platforms, including e-marketplace platforms are required to ensure that all their lessees and online sellers or merchants are duly registered with the BIR.
Failure to enact or strictly enforce internal mechanisms or rules to prohibit the non-registration of these lessees or online sellers shall be considered by the BIR as an act of aiding or abetting in the commission of the offense.
“We will be monitoring digital platforms and e-marketplace platforms like Lazada, Shopee, and Tiktok to check if their online sellers and content creators are compliant with BIR registration. We will also monitor lessors and sub-lessors of commercial spaces like malls and buildings to check if their tenants are also compliant. Allowing lessees or online sellers/merchants to use to engage in business the premises or digital platform without BIR registration will be considered a violation of our tax laws,” Lumagui said.
