Ramon Lopez, the Trade Secretary issued statement to clarify his previous statement that “Online Barter” is illegal. Citing that exchanging of goods for personal transactions not for business is allowed.

His recent statement came after the online community puzzled over his previous statement on Tuesday, July 15, 2020 saying that Online Barter trade is illegal. With his statement he also noted that sellers must register with the Bureau of Internal Revenue (BIR). But on Thursday, July 16, 2020, he issued another statement to correct the previous one.

“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,”

The netizens had their extra time spent hovering the cursor of their gadgets searching items in the “Online Barter.” The Online Barter trends since it was started on Facebook. Netizens unused items are looking other item to exchange and it caught the attention of the online community as easy way of acquiring item for their use.

The nature of “Barter Trade” is just the same as old time. Participants of the transaction directly exchange goods or services without money involved in the transaction which is rampant in social media especially in Facebook and other media platform. During the Quarantine Period there was a resurgence barter trading taking place anywhere as it is now using a modern technology of reaching people from point-to-point as long as it can be easily reach.

However, Lopez clarifies that local barter trade is subject to regulation. It should be registered and is subject to tax if done in the course of business.

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