BIR Guidelines for Business Registration for Online Sellers

How to register your online business with the BIR

Summary:

  • Basic Registration Guidelines
    • Individuals
    • Non-Individuals
  • Certificate of Registration issuance 

The Bureau of Internal Revenue (BIR) as of June 01, 2020, gave Revenue Memorandum Circular No. 60-2020 (RMC No. 60-2020), which is effective immediately. The subject of this memorandum is  “Obligations of Persons Conducting Business Transactions Through Any Forms of Electronic Media, and Notice to Unregistered Businesses”.

This circular is meant to give notice to all the people doing business and earning income in any manner or form, specifically for those who are into digital transactions- E-commerce. These do not only include partner sellers or merchants, but also the  stakeholders involved such as the payment gateways, delivery channels, internet service providers, and other facilitators.

The newly-registered business entities, including existing registrants are advised to comply with the provisions of the Tax Code and other applicable tax revenue issuances, particularly on the following:

  1. Issuance of registered Sales Invoice or Official Receipt for every sale of goods and services
  2. Keep a registered Books of Accounts and other accounting records of business transactions
  3. Withholding of taxes (if applicable)
  4. Filing of required tax returns
  5. Payment of correct tax dues on time 

Basic Registration Guidelines:

  1. People doing business online with no TIN yet- Register business following existing policies in securing TIN and registration of business
  2. People doing online business who have TINs but the business is NOT registered-
    1. Individuals
      1. Register the business using BIR Form 1901, with the RDO having jurisdiction over place of business, if with physical establishment. Otherwise, with the RDO having jurisdiction of the place of residence. 
    2. Non-Individuals
      1. Update business registration using BIR Form 1903, details to include additional business activity (online selling).

The Certificate of Registration will only be issued to those who comply to these following requirements:

Requirements Individuals Non-Individuals
  1. Fill up Registration Form
 2 Original Copies of BIR Form No. 1901 2 Original Copies of BIR Form No. 1903
  1. Present any government-issued ID that is readable and untampered
 Ex. Birth Certificate, Passport, Drivers License, Etc.  Only if applicable: SEC Certificate of Incorporation or SEC Certificate of Recording; or License to Do Business in the Philippines
  1. Other documents required
 DTI Certificate (if with business name) Articles of Incorporation; or Articles of Partnership
  1. Payments to the New Business Registrant Officer (NBRO) posted in the New Business Registrant Counter (NBRC)
 Registration Fee (PhP 500) and
Loose Documentary Stamp Tax for affixture of Certificate of Registration- COR (PhP 300)
  1. Secure BIR Printed Receipts (BPR) or BIR Printed Invoices (BPI) or the Authority to Print (ATP)
 BPR/BPI- depending of the printing cost per RDO
ATP- own choice of printer from the list of accredited printers

 

Wondering why the Mayor’s Permit isn’t a mandatory requirement anymore? Learn more with this link RMC 57-2020.

Category: FAQ