By Czarina Nicole Ong Ki,Jun Ramirez, and Ben Rosario Ninth grader Samantha (not her real name) gave her jobless mom a near heart-attack of a surprise when she bought her roasted chicken to celebrate Mother’s day last month. That day, the 55-year-old single mother had no money left even buy rice for dinner to feed her three children. But unknown to her, Samantha, 15, had been saving money she made as an online reseller for food products cooked by her classmate’s family residing in Rodriguez, Rizal. Samantha started selling on-line a few days after barangay and local officials of Rodriguez town refused to give her mother a Social Amelioration Program (SAP) form for her to avail of the government’s cash dole out. The single mom was disqualified from the financial aid even before the Department of Social Welfare and Development could look at her application. “Wala po naman trabaho ang nanay ko at tatlo kaming pinapakain niya. Umaasa kasi kami dati sa isa ko pang kapatid na wala na ngayon pinagkikitaan, kaya tumulong na lang ako para may makain po kami (My mother is jobless with three children to feed. We used to depend on my other sibling who is now jobless so I have to help so we have something to eat),” she told Manila Bulletin. Like Samantha, thousands of other Filipinos economically displaced by quarantine measures to contain the COVID-19 pandemic have resorted to online selling to earn income for the family. The online business has provided a ray of hope during the pandemic. With so many locked in their homes, online businesses flourished. People began to rely on online sellers for access to their basic necessities, household goods, and food cravings. Even fashion items appear to be flying off the virtual shelves. Given the spike in online sales, it is no wonder that the Bureau of Internal Revenue (BIR) set its sights on online shops and decided that they, too, should pay taxes just like those with retail storefronts. The BIR issued Revenue Memorandum Circular (RMC) No. 60-2020 on June 1 requiring online sellers to register their businesses on or before July 31 so they can finally take part in the government's tax collection program Digital transactions include delivery channel and Internet service providers. No penalty will be imposed onthose who register their operations on or before July 31. The BIR also asked online business operators to declare their earnings and pay the corresponding taxes before the deadline. DOF Revenue Group Undersecretary Antoinette Tionko said "the goal of the project is not to go after online traders for unreported sales. We just want to encourage online businesses to register with the BIR." Like individual taxpayers, an online business is exempt from income tax if the annual sale is ₱250,000 and below. While Samantha believes that as a minor, she is exempted from paying taxes, she entertain fears that the government move would put an end to her enterprise. “Baka po kasi magsara na rin iyong kinukuhanan ko ng food items dahil bubuwisan na sila. Maliit lang naman ang kita sa online (The food supplier might close shop because they will be asked to pay taxes. We just earn a little from online selling),” she said. Reps. Nina Taduran (ACT-CIS Partylist) and Onyx Crisologo (NP, Quezon City) share Samantha’s concern. In separate press statements, Taduran and Crisologo slammed the timing by which the BIR is pursuing its bid to tax on-line retailers and re-sellers. The two solons urged the revenue agency to postpone the implementation of RMC 60-2020, pointing out that most of those who will suffer the tax burden are Filipinos rendered jobless by the COVID 19 crisis. Despite the initial mumble and grumble from a number of online sellers, as well as questions raised by members of the Senate against the circular, the BIR is firm in its decision. The Manila Bulletin reached out to several online sellers in the hope of getting their thoughts regarding the BIR circular. Some chose not to respond, while others agreed to the interview but never replied again. Those who did, however, requested for anonymity. Liza (not her real name), sells locally-made footwear online. Her brand, which has reached a cult following because of its classic and comfortable designs, is sought after not just in the Philippines but also overseas. Liza admitted sales significantly dropped during the quarantine. But was surprised there were a good number of customers who have been actively buying from her website. When asked about the BIR memorandum, Liza said she would definitely comply with it. "It is the prerogative of any surviving business this time of need to help the government in any capacity they see fit," she said. However, Liza asked that the BIR be more specific in its memorandum in order to avoid confusion. Liza has physical stores apart from her online shop. "If the business is registered already, should they also re-register their online business and will they be taxed again for the sales generated online?" she asked. Government, she said should be clear on which business classifications are valid for taxation. And since the memorandum was raised in the midst of the pandemic, Liza hopes that the funds generated by the government from online sales tax would be put to good use. Another online seller, Amarah, (not her real name) who sells athletic wear online will comply with the BIR memo. Like Liza, Amarah noted a slump in sales during the quarantine. Thankfully, home workouts became a trend during the lockdown. A lot of women wanted to look good and feel good whenever they post their exercise videos on social media, so online shops such as Amarah's managed to weather out the economic storm. Amarah described herself as a "hobbyist" who went into business. She said online selling helped her venture into business with less capital and risks. But since the BIR decided to impose taxes on online sellers like her, Amarah is worried that this might discourage future sellers from going into business. "Some are lucky to be able to have high-profit margins but some are already happy with little profit. For the latter who pursue online selling more for sustaining their hobbies and not mainly for earning, having to pay taxes and going about issuing receipts might discourage them to continue their business online," she said. Since the BIR is firm on taxing online sellers, Amarah said she is ready to comply even though she knows it will be a lot of extra work. On the other hand, June (not her real name) suspects that not every online sellers will comply with the BIR's memorandum. June sells a variety of things online, from baby items, fashion accessories, to personal protective equipment (PPEs). She describes herself as a small-time online "sari-sari store" (sundry store). June said online selling has only gotten more competitive over the past few months. She complained that it would be too much of a hassle to comply with the BIR and it would be costly because she would need to hire an accountant. "As long as everyone will pay taxes, I think okay lang (it will be okay)," she reflected. "But I'm sure madami hindi mag-co-comply na mga small time lang like me (a lot of small-time online sellers will not comply)." "For the big-time online sellers, they should comply to be fair also to other businesses. So I think it is right for the BIR to tax big-time online sellers," she added. Deborah (not her real name), whose online food business really took off during the quarantine, prefers the online selling platform to remain as it is. She is hoping the BIR would reconsider its decision because it will really put a strain on her business. "To be honest, we are hoping for a resolution. Pero if wala (But if there is none), as Christians we will have to obey the authorities and register," she said.