LUMAGUI: ONLINE SALE OF VAPE SHOULD FOLLOW TAX STAMP, MINIMUM FLOOR PRICE, AND OTHER BIR REQUIREMENTS; ONLINE SALE OF ILLICIT VAPE WILL NOT BE TOLERATED

BIR Commissioner Romeo D. Lumagui Jr.

Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. reminds online platforms and consumers that the sale of vape products online should be compliant with tax stamps, minimum floor price, and other BIR requirements. Online platforms should only allow duly registered online sellers with the BIR, to sell vape online. The online trade of vape is regulated by BIR Revenue Regulation No. 14-2022 (RR No. 14-2022). The BIR is monitoring both online platforms and brick-and-mortar stores that are selling vape products for possible violations of BIR regulations on vape products.

“Online platforms should monitor vape sellers in their platforms, they should check if they are complying with tax stamps, minimum floor price, and other BIR requirements. They should take down any online post or offering that is in direct violation of the minimum floor price, tax stamps, and other BIR regulations on vape. We have been receiving reports that online sellers of vape are actively selling their products at a low price because they are not paying their taxes. These online sellers of illicit vape destroy the livelihood of legitimate vape sellers. The BIR protects legitimate businesses and closes illegitimate businesses. Online platforms should do the same” Commissioner Lumagui stated.

Section 5 of RR No. 14-2022 provides that the sale or distribution of Vaporized Nicotine and non-nicotine Nicotine Products, Novel Tobacco Products and their devices through internet websites or via e-commerce should be compliant with BIR requirements, including tax stamps, minimum floor price, or other fiscal marks. Internet websites and/or e-commerce and/or other similar media selling platform providers should only allow registered online sellers with the BIR.

The BIR has been active in its campaign against illicit vape products since 2022. This is consistent with the directive issued by President Ferdinand “Bongbong” Romualdez Marcos Jr. to bolster the efforts of the BIR against the smuggling of tobacco and vape products. The BIR has raided vape warehouses in Manila, Laguna, and Rizal from 2022 to 2024. The BIR will continue its crusade against illicit vape, and will further expand the same by monitoring and apprehending the online sale of illicit vape in coordination with different government agencies.

“Mapa-online o pisikal na tindahan, ang ilegal na vape ay bawal i-benta. Bawal magbenta ng vape na masmababa sa minimum floor price. Bawal magbenta ng vape nang walang tax stamp. Ang BIR ay nakatutok sa mga online platforms at mga pisikal na tindahan kung sumusunod ba ang mga nagbebenta ng vape sa mga regulasyon ng BIR,” Commissioner ­Lumagui stated.