Trade Secretary Ramon Lopez has clarified his recent statement that ‘online barter’ is illegal, saying exchanges of goods for personal transactions, not as business, is allowed.
This came after he released a statement on Tuesday, July 15, said that online barter trade is illegal and encouraged online sellers to register with the Bureau of Internal Revenue (BIR).
“Outside those areas, barter trading across borders is not allowed. This is what I meant as illegal if done in other areas, or if done online and cross border and as a regular business, in (the) course of trade and not registered, not taxed,”– Trade Secretary Ramon Lopez
In barter trade, participants in a transaction directly exchange goods or services for other goods or services without using money.
During the community quarantine period, there is a resurgence of barter trading — the world’s oldest form of trade by exchanging goods and services with no money involved in the transaction — but it is now done in social media.
Lopez said local barter trade is subject to regulation. It should be registered and is subject to tax if done in the course of business.