Online sellers are increasingly facing a difficult question: should business income be declared based on gross platform sales or the actual amount received in the bank?
The gap between these two figures has grown significantly due to platform commissions, transaction fees, vouchers, affiliate costs, refunds, and other deductions. As a result, gross platform sales no longer reflect the actual cash received by the business.
Relying solely on gross platform figures can lead to income reporting that does not accurately represent business reality. For many small and medium-sized sellers, using bank-in cash statements is a far more practical and transparent approach.
At the same time, reconciling accrued platform reports has become increasingly complex and time-consuming. Instead of focusing on business growth, entrepreneurs are forced to spend valuable time resolving accounting differences that continue to grow each year.
If this issue remains unchanged, the government may eventually lose potential tax revenue.
Many small online sellers may avoid declaring income not because they refuse to comply, but because the process has become too complicated, too costly, and too time-consuming.
Some may also struggle to pay taxes simply because too much productive time is being wasted on difficult reconciliation work instead of growing sales and generating more taxable income.
A practical reporting framework will not weaken compliance. It will encourage more small businesses to declare income properly and sustainably.
This issue deserves serious attention from policymakers. The complexity of income generated through modern e-commerce platforms has evolved rapidly, and reporting policies should evolve alongside it.
If needed, I would be happy to brief the relevant government agencies on the operational challenges faced by online sellers and explain why a more practical reporting framework is necessary.