Online stores ordered to issue receipts

Kim Arveen Patria
Yahoo! Southeast Asia Newsroom

Listen up, online stores: you will soon be required to issue receipts, the Bureau of Internal Revenue (BIR) said.

By yearend, the BIR will run after online businesses who fail to issue electronic invoices to customers, BIR Commissioner Kim Jacinto-Henares has said.

This, as she noted that traders using the Internet such as, e-bay Philippines and must be registered with the tax bureau.

"[T]hey should be paying the corresponding taxes. Otherwise, we will run after them," reports quoted Jacinto-Henares as saying.

She added that those using social networking sites to regularly sell online must also follow this rule.

"What will happen is when you buy, you receipt it by e-mail, since the negotiation already took place via email or online. The buyer will just print the receipt and keep it," Jacinto-Henares said.

She noted that online traders may also enlist the services of a BIR-accredited third party to issue transaction receipts.

BIR does not have to issue a new policy to require online traders to comply, Jacinto-Henares said.

She cited Section 237 of the National Internal Revenue Code which requires receipts "for each sale or transfer of merchandise or for services rendered valued at P25 or more."