THE Department of Trade and Industry on Wednesday reiterated the need for online businesses to register with the Bureau of Internal Revenue, as this will be needed “sooner or later.”
According to Trade Secretary Ramon Lopez, all businesses – whether they be based online or “bricks and mortar” – will eventually need to have themselves registered.
“We know that eventually, the unregistered business will register as they grow in size,” he said during a virtual forum.
“Sooner or later they will have to borrow from formal lending institutions like banks and their registered audited financial statements will be required,” he added.
Earlier, the BIR set a July 31 deadline for those engaged in online selling to register their business with the taxman, else face the necessary sanctions.
“DTI reiterates that business registration has always been the right way of doing business. It is key in growing a business and it is also helping in increasing buyers’ confidence,” said Lopez.
Only businesses registered with the BIR are able to issue official receipts, Lopez noted, a requirement to cater to larger establishments.
“This reality is true for both in the brick and mortar and in the online business,” he said.
“At any rate, the rule basically applies to those really in business, that means they are regularly selling online. Even is such activity is small in size, it must be registered,” added Lopez.(GMA News)
