Authors - Jonalyn Echano, Carla Dayne N. Ferreras, Jhaniella Anne T. Ganuelas, Maria Angela P. Obsuna, Regienald G. Obina Abstract - As digital commerce continues to thrive, the Philippine government has implemented the Creditable Withholding Tax on Electronic Marketplace Transactions to ensure tax compliance among online sellers. This study explores how online sellers in Quezon City cope with the challenges brought by this regulation. Specifically, it examines their coping mechanisms in relation to the complexity of tax laws, perceived fairness of the tax system, quality of tax admin-istration, effectiveness of enforcement measures, and the level of penalties and sanctions. A quantitative research design was employed, using a structured survey distributed via email and social media. The study gathered responses from 113 online sellers operating within Quezon City. Statistical tools such as frequency distribution, weighted mean, and ANOVA were used to analyze the data. Findings revealed that while most sellers perceived the tax system as generally fair and the administration as responsive, they struggled with the complexity of the laws. Many sellers acknowledged the effectiveness of enforcement and the influence of penalties in motivating compliance. However, differences in coping mechanisms were significantly evident only when sellers were grouped by busi-ness experience and perceived fairness—while factors like capitalization and business category showed no major influence. The results highlight the need for clearer guidelines, simplified tax processes, and continuous education efforts. This research contributes to a deeper understanding of how small digital entre-preneurs adapt to evolving tax policies, offering insights for policy improvements that support voluntary compliance and fairness in the growing e-commerce sec-tor.
