THE world of shopping is gradually shifting from malls to online stores. People who used to hang out at the mall now socialize over social media and through their smartphones. Mall boutique and stall owners are thus exploring more and more the opportunities of online selling. Furthermore, online platforms can accommodate a thousand more sellers than malls could.

With this development, the Bureau of Internal Revenue (BIR) has seen an opportunity that will contribute to the increase in its tax collections. Two new taxes will be introduced — a 1 percent withholding tax and a 12 percent value-added tax (VAT) to online sellers using an online platform provider that serves as an intermediary, where the seller and buyer of goods and services transact their business using information technology and other electronic means.

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