Cut red tape for online sellers’ registration

ARTA to BIR:

The Anti-Red Tape Authority (ARTA) said it supports the government initiative in requiring online sellers to register, but has urged the Bureau of Internal Revenue (BIR) to make the registration processes efficient least burdensome for online vendors.

ARTA Director General Jeremiah Belgica highlighted this during a meeting Friday with the BIR along with the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), and Department of the Interior and Local Government (DILG) as they discussed on how to make the business registration more efficient in this time of pandemic.

On 1 June 2020, the BIR released Revenue Memorandum Circular No. 60-2020 which reiterates the obligations of persons conducting business transactions through digital means, such as but not limited to online retailers, to register with BIR pursuant to Section 236 of the Tax Code.

Belgica noted that the BIR had set a deadline of registration on July 31, 2020 for all online sellers to register with the agency.

“ARTA wants to see to it that the processes for registering will be done in the most efficient and least burdensome way for the citizens considering the pandemic situation,” said Belgica.

“We need to find a win-able and a rational solution. As in our mandate, let us pursue to apply a whole-of-government approach in promoting efficiency but without sacrificing public interest,” Belgica enjoined the participating agencies in his opening remarks for the meeting.

“Let us be mindful that many of these online sellers could even be exempted to pay income tax having an annual income of less than ₱280,000, so we also need to make their registration process seamless and almost effortless, especially during this pandemic,” the anti-red tape chief said.

Apart from meeting with the concerned government agencies, ARTA will also be conducting a stakeholder’s meeting for online sellers in the coming weeks to discuss the pertinent matters in their business registration experience. (Bernie Cahiles-Magkilat)