BIR: Tax non-compliance rising among online sellers

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April 28, 2026 | 12:00am

MANILA, Philippines — The Bureau of Internal Revenue (BIR) and the Presidential Anti-Organized Crime Commission (PAOCC) are exploring advanced technology such as data and blockchain analytics to tighten tax compliance among online sellers.

BIR Commissioner Charlito Mendoza recently met with PAOCC officials and discussed rising tax noncompliance in the digital space, including online selling and emerging payment channels.

“To strengthen enforcement, the BIR and PAOCC are exploring advanced tools such as data and blockchain analytics, while coordinating with key agencies including the Bureau of Customs (BOC), the Anti-Money Laundering Council and the Department of Trade and Industry,” the BIR said in a statement yesterday.

Aside from collecting withholding tax from online sellers, the BIR is also imposing the 12 percent value-added tax on digital services.

Electronic marketplace operators such as Shopee and Lazada began collecting withholding taxes from merchants on their platforms in 2024.

Mendoza said these measures are part of broader efforts to close enforcement gaps, enhance intelligence-sharing and strengthen joint operations with other agencies.

This will also protect government revenues and help ensure a level playing field for compliant taxpayers, he said.

For the first three months of 2026, BIR revenue collections rose by 4.2 percent to P719.2 billion, data from the Bureau of the Treasury showed. This represented 23.2 percent of the P3.102 trillion target haul for 2026.

PAOCC officials present were PAOCC Undersecretary Benjamin Acorda Jr., Assistant Commissioner James Roldan of the Enforcement and Advocacy Service and Yeziahara Sanchez.

Meanwhile, the BOC launched the I AM BOC Movement, a values-driven initiative and part of commissioner Nepomuceno’s Integrity, Accountability and Modernization Program.

The initiative encourages every BOC employee to take ownership of their role in building an institution grounded on integrity, accountable in its actions and responsive to the demands of modernization, it said in a separate statement.