The Philippine government is planning to impose taxes on online stores by next year, a senior government official said Friday.
Deputy presidential spokesperson Abigail Valte, in a news briefing, said that the proposal of Bureau of Internal Revenue ( BIR) Commissioner Kim Henares of taxing online stores would provide the government considerable revenues.
"What Commissioner Kim Henares wants is for them to pay the right income tax and the right value added tax (VAT) because they are still sales and...that really is subject to VAT," she said.
Henares has explained that online shops are no different from the actual stalls that sell items or merchandises to people.
She stressed the need for online businesses to be registered with the BIR to level the playing field in the buy-and sell market. She also said that online businesses should also issue on-line receipts.
The BIR's proposal aims to boost tax collection next year and protect the rights of consumers who wish to return or exchange the items they bought, Valte said.
There are traders and sellers in the Philippines who usually conduct their transactions through buy-and-sell websites.