Philippine retailers want VAT on e-commerce sales

Retailers in the Philippines are calling for a 12% value-added tax (VAT) on physical goods sold through e-commerce platforms like Lazada, TikTok, and Shopee. They argue this would create fair competition with traditional stores. The Philippine Retailers Association claims many online sellers avoid taxes, putting brick-and-mortar retailers at a disadvantage. Current regulations exempt certain foreign sales from VAT, leading to significant revenue losses for the government. Retailers also suggest revising the de minimis rule, which allows tax-free imports valued under P10,000. They believe this policy benefits foreign sellers while local businesses face VAT and other fees.