In view of this, Shopee will start withholding taxes from July 15, 2024. Sellers now have until July 11, 2024 to complete tax regulations. Shopee will also lift restrictions on sellers' stores as soon as possible.
It is understood that in order to maintain the fairness of tax obligations between physical stores and e-commerce merchants, the Philippine Bureau of Revenue (BIR) issued BIR Tax Regulation No. 16-2023 on December 27, 2023.
The regulations require local e-commerce sellers to pay a deductible withholding tax of 0.5% of total sales. In addition, all e-commerce sellers need to register with the BIR to conduct business on the e-commerce platform.
