BIR: The e-commerce tax transition period is extended to July 14.

As per reports from Philippine media outlets, the Philippine Bureau of Internal Revenue (BIR) issued Revenue Memorandum Notice No. 55-2024 on April 15, announcing a three-month extension to the deadline for e-commerce tax registration, previously set for April 14, 2024, now adjusted to July 14, 2024.

In response, Shopee and TikTok Shop have issued notifications stating the extension of the tax registration deadline. Concurrently, the e-commerce platforms are advising sellers who are yet to complete their registration to utilize this extended period for prompt completion.

TikTok Shop is urging all users who have pending registrations to expedite the tax registration procedures and furnish compliance certificates before the stipulated deadline to preempt any disruptions to sales due to regulatory constraints. Conversely, Shopee has declared its intention to commence the implementation of the withholding tax policy on July 15, 2024, necessitating all sellers to fulfill their tax obligations by July 11 to alleviate store limitations and to facilitate the submission of tax information updates.

Failing to complete registration by the deadline poses the risk of operational constraints for merchants. Some sellers in Shopee Philippines have reported operational hindrances as a result of their failure to register before April 14, leading to abnormal store access and an inability to add new products.

Adherence to compliance can be accomplished through the process of store tax registration, enabling e-commerce enterprises to evade operational encumbrances and legal liabilities stemming from non-compliance within the prescribed timeframe. Moreover, compliance endeavors will fortify the competitive edge and sustainable growth prospects of e-commerce ventures, establishing a robust groundwork for future business expansion.