By J. Jala | 01:09 AM July 15, 2020
Image: Dreamstime

The Department of Trade and Industry (DTI) reminded the public on Tuesday that barter-trading is illegal as transactions are not subject to taxes.

Trade Secretary Ramon Lopez said it was “very unusual” to hear urban communities resorting to the decades-old form of commerce to acquire goods.

He said the scheme – where goods and services are exchanged without using money – is allowed in Sulu and Tawi-Tawi pursuant to an executive order issued by the President, particularly Executive Order No. 64 signed in 2018.

“Ang barter trade ho ay allowed po iyan doon po sa mga limited places sa Mindanao dahil po sa nature po ng … iyong mga lugar doon na kailangan ma-improve iyong livelihood, iyong mga hanapbuhay po lalo na sa tabi ng dagat,” the Trade chief said.

Online selling during the months-long community quarantines has become so prevalent that even barter-trading has found its way to the internet.

Lopez added that in all other areas, barter trade is not allowed. People must resort to regular transactions and pay the corresponding taxes.

It is unclear how such deals will be taxed.

Existing rules of the Bureau of Internal Revenue (BIR) state that value-added taxes may be imposed on consumption via the “sale, barter, exchange or lease” of goods and services.

By Bohol Island News

Your reliable source of news and content in the island and the rest of Central Visayas and Mindanao.

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