The Bureau of Internal Revenue (BIR) has introduced rules for "takedown orders" aimed at e-marketplaces that allow online sellers and content creators to sell products without meeting tax compliance requirements.

In a statement on Monday, Sept. 9, BIR Commissioner Romeo D. Lumagui Jr. announced the issuance of Revenue Regulations No. 15-2024 that outlined policies for the registration of both brick-and-mortar and online businesses.

According to Lumagui, RR 15-2024 aims to create a level playing field by ensuring equal regulation and uniform taxation for physical and online stores.

Notably, Section 8 of the new regulations states that business operations may be suspended through a closure or takedown order issued against either physical or online businesses.

"We advise that E-marketplace Platforms, Online Sellers, and Content Creators should strictly follow RR No. 15-2024 as soon as possible,” Lumagui said.

The new regulations bolster the BIR’s campaign to ensure online businesses, including content creators and influencers, comply with tax regulations through proper registration and timely tax payments.

Since July 15, the BIR has begun collecting withholding tax from online platforms and sellers.

“It is unfair to the retail industry or to sectors with brick-and-mortar stores, if online businesses are not regulated and taxed in the same manner,” Lumagui said. 

“If physical stores can be closed down through a closure order, online businesses can be closed down through a takedown order," he added.

Moreover, Section 11 of RR No. 15-2024 requires lessors and operators of digital platforms, including e-marketplaces, to ensure that all their lessees and online sellers are registered with the BIR.

Lumagui warned that if these businesses do not enforce these rules to prevent non-registration, the BIR will consider it as aiding in the violation.

"We will be monitoring digital platforms and e-marketplace platforms like Lazada, Shopee, and Tiktok to check if their online sellers and content creators are compliant with BIR registration,” Lumagui said.

“We will also monitor lessors and sub-lessors of commercial spaces like malls and buildings to check if their tenants are also compliant,” he assured.

“Allowing lessees or online sellers/merchants to use to engage in business the premises or digital platform without BIR registration will be considered a violation of our tax laws," the BIR chief said.

Revenue from online sellers is crucial for the BIR to achieve its P2.848 trillion target this year.

As of July 2024, the BIR had collected P1.68 trillion, or 59 percent of its goal. To meet the target, it needs to raise an additional P1.17 trillion in the remaining five months.