When the Philippines went under a lockdown in March to combat the spread of Covid-19, many shoppers shifted to buying online. Sellers saw an opportunity. Chriz Valdez went from selling rice and fresh produce on her Facebook page “Murang Gulay Atbp” to also selling on grocery delivery service and e-commerce platform Lazada in April. Today,…
When the Philippine taxman comes knocking on online sellers’ doors
In yet another pandemic downer, the Philippines is 18% short of its tax target for the first five months of this year. It’s now issued a reminder to online sellers—the one industry to see an uptick—to pony up taxes, or else...
As Covid-19 forced business closures across the Philippines, tax collections have plunged by 25%
But internet purchases, especially of essentials, have seen a 30% rise across the region, with consumers avoiding face-to-face interactions
To plug the collection gap, the Philippine tax bureau has ordered online sellers to register their businesses and file taxes
Enforcement can be a huge challenge though—more so for social platforms like Facebook where payments do not pass through