WITH the continuing advances in information technology, the internet has become a popular medium not only for business advertisements but also for the conduct of online business transactions. This includes online retailing through virtual shopping malls, online market places, webstores, and similar websites (or "online stores").
Due to the growing use of digital platforms by businesses in the selling and marketing of their products/services even before the start of the Covid-19 pandemic, the Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 55-2013 on August 22, 2013 to clarify the taxability of digital transactions. Said Circular reiterated the taxpayer's obligations in relation to online business transactions that include: a) online shopping or online retailing; b) online intermediary service; c) online advertisement/classified ads; and d) online auction.
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