The Bureau of Internal Revenue (BIR) gave notice, through Revenue Memorandum Circular No. 60-2020, to all persons engaged in online selling, or conducting business transactions through any forms of electronic media, to register their respective businesses and pay the appropriate taxes — not later than 31 July 2020. Online sellers are also given notice to declare past sales and pay the appropriate taxes, without penalties, if done not later than 31 July 2020. The registration guidelines and requirements, for both individual and juridical online sellers, are discussed below.
BASIC REGISTRATION GUIDELINES
The registration of online sellers is to be done in the Revenue District Office (RDO) having jurisdiction over the place where the Head Office is located, or over the place of residence of the individual taxpayer.
1. Persons doing business online with no Tax Identification Number (TIN) yet: Register business following existing policies in securing TIN and registration of business.
2. Persons doing business online who already have TINs but the business is not yet registered:
- a. Individual – whether the TIN was issued due to ONETT or employment, register the business, using BIR Form 1901, with the RDO having jurisdiction over the place of business, if with physical establishment. Otherwise, with the RDO having jurisdiction over the place of residence. The concerned RDO shall effect the update of taxpayer classification (e.g., employee to sole proprietor, ONETT to sole proprietor); and include the business activity of online selling.
- b. Non-individual – Update business registration, using Form 1905, details to include additional business activity (online selling).
The Certificate of Registration (COR) shall be issued to those engaged in business upon compliance with the requirements:
|1. Fill up Registration Form||BIR Form No. 1901 (2 originals)||BIR Form No. 1903 (2 originals)|
|2. Present any government-issued ID that is readable and untampered||e.g., Birth Certificate, Passport, Driver’s License, etc.||As applicable: SEC Certificate of Incorporation; or SEC Certificate of Recording; or License to Do Business in the Philippines|
|3. Other documents required||DTI Certificate (if with business name)||Articles of Incorporation; or Articles of Partnership|
|4. Payments to the New Business Registrant Officer (NBRO) posted in the New Business Registrant Counter (NBRC)||Registration Fee (P500.00) and loose Documentary Stamp Tax for affixture to COR (P30.00)||Registration Fee (P500.00) and loose Documentary Stamp Tax for affixture to COR (P30.00)|
|5. Secure BIR Printed Receipts (BPR) / BIR Printed Invoices (BPI) or the Authority to Print (ATP)||BPR/BPI – depending on the printing cost per RDO or ATP – own choice of printer from the list of accredited printers||BPR/BPI – depending on the printing cost per RDO or ATP – own choice of printer from the list of accredited printers|
The newly-registered business entities, including the existing registrants, are advised to comply with the provisions of the Tax Code, as amended, and other applicable tax revenue issuances, particularly the following:
- 1. Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients / customers / buyers;
- 2. Keeping of registered Books of Accounts and other accounting records of business transactions;
- 3. Withholding of taxes, as applicable;
- 4. Filing of required tax returns; and
- 5. Payment of correct taxes due on time.