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How To Register Your Online Business with the Bureau of Internal Revenue (BIR)
The Bureau of Internal Revenue issued Revenue Memorandum Circular No. 60-2020 dated June 1, 2020 requiring all persons doing business and earning income online to register their online businesses pursuant to the provisions of Section 236 of the Tax Code, as amended.
Who Shall Register Their Online Business with the BIR?
These shall include:
- Online partner sellers/merchants
- Stakeholders involved such as
- payment gateways,
- delivery channels,
- internet service providers,
- and other providers.
Online Business Registration Deadline
Online businesses who will register their business activity and/or update their registration status not later than July 31, 2020 shall not be imposed with penalty for late registration.
Online businesses are also✅ encouraged to voluntarily declare their past transactions subject to corresponding taxes and ✅ pay the taxes due thereon, WITHOUT CORRESPONDING PENALTY, as long as such transactions are declared and paid on or before September 30, 2020.
The newly-registered online businesses should comply with the following:
- Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients/customers/buyers;
- Keeping of registered Books of Accounts and other accounting records of business transactions;
- Withholding of taxes, as applicable;
- Filing of required tax returns; and
- Payment of correct taxes due on time.
BASIC REGISTRATION GUIDELINES
In general, the registration and its updates are 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 with no 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:
- Individual – whether the TIN was issued due to ONETT (One Time Transactions) or employment, 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 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.
- Non-individual – Update business registration, using BIR 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 as follows:How To Register Your Online Business with the Bureau of Internal Revenue (BIR) - 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 Cerificate 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 Certificate of Registration (COR) - P30.00||Registration Fee (P500.00) and loose Documentary Stamp Tax for affixture to Certificate of Registration (COR) - P30.00|
|5. Secure BIR Printed Receipts (BPR)/BIR Printed Invoices (BPI) or the Authority to Print (ATP) for your official receipts/invoices||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|
Upon completion of all the requirements, the taxpayer shall receive:
- Certificate of Registration
- A copy of the BIR-received Registration Form (1901 or 1903), Notice to Issue Receipt/Invoice (NIRI), BPR/BPI or ATP (per taxpayer’s choice, and the proof of payment of registration fee.