Tax Compliance for Bazaar and ‘Tiangge" Sellers

The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 80-2007 which deploys the BIR -on- Wheels at areas where ambulant vendors, more popularly known as, “bazaar” and “tiangge” sellers are situated. Bazaar sellers grew by leaps and bounds over the years, much to the chagrin of the department stores and fixed outlets. While established stores regularly declare revenues and are subjected to applicable taxes, ambulant sellers have been spared from these. With the BIR-on-Wheels concept, the BIR seeks to exact compliance by requiring ambulant vendors to issue official receipts and pay the advance sales tax of 200 Philippine pesos per day, Php50 of which is for income tax, while Php150 is for the value added tax. The BOW shall be opened everyday, starting December 5 to December 28 from 11:00 in the morning to 6:00 in the evening. The BOW shall be manned by two revenue officers who are to ensure that tiangge operators issue official receipts. They are authorized to apprehend those who refuse to do so. Penalties for refusing to issue receipts range from P1,000 for the first offense, P3,000 for the second offense and P5,000 for the third offense. The tax bureau will also close establishments as part of the sanctions.