BIR Registration for Online Sellers

Since the online business has been very in demand, the Bureau of Internal Revenue (BIR) came up with an order requiring all online sellers to register and pay taxes to the government. If you’re an online seller you might get affected by this new order which is BIR registration. You don’t have a choice but to follow since it’s an obligation for you as a seller and an order from the government.

Online selling plays a big part in our daily lives at this time. It gives us the advantage of not going outside just to buy something. In short, we can stay in the comfort of our home during this pandemic. In short, it makes our life easier because almost all of the items were already offered online. You just have to choose and buy whatever you prefer.

If you wanted to know some information about the new order and how to register in BIR, this might help.

Do I Really Need To Register My Online Business?

YES! No matter how big or small your online business is as long as you’re regularly earning an income using digital transactions through the use of any digital platforms and media, you must register to BIR in accordance with the Revenue Memorandum Circular No. 60-2020.

Who are Exempted from the DTI and BIR registration?

Those people who sell something online irregularly.
For instance, those who sell some homemade food as a hobby, but they do not intend to sell for business purposes.

When should we register?

Supposedly, the registration needs to be made until July 31, 2020, only. However, BIR Commissioner Caesar Dulay said they will consider moving the deadline of registration.

You may think that BIR registration will just cost you money, but actually, it’s not. There are benefits that you can get if you register your online business and here are some:

1. You will qualify for business loans
2. You will receive assistance from the government
3. Your customers will increase
4. Will serve as proof of legitimacy that you can show to your customers

What are the Requirements Needed?

-Government Issued ID
-Mayor’s Business Permit (Photocopy)
-Proof of Payment of Annual Registration Fee 
-New sets of permanently bound books of account
-Final and clear sample of Principal Receipts/Invoice
-Certificate of Authority 
-Franchise Documents (if applicable)

How to Register?

1.  Visit the BIR Revenue District Office (RDO) which has jurisdiction over your place of business.
2. Fill out the BIR Form No. 1901 or choose which is the application form that is suitable for you
3. Submit all the requirements needed
4. Proceed to  CSO for an interview to determine what tax type is applicable for you
5. Once done the officer will encode and generate a TIN for you
6. Secure the TIN and copy of BIR form 1901
7. Pay for the fee, ARF – Php 500 and documentary stamp Php 15
8. Secure the receipts
9. Present your proof of payment so that they can generate Certificate of Registration (COR) and Authority to Print (ATP)
10. Get your COR, ATP, Receipt Notice, and Books of accounts.

How much is the Tax?

Note: Businesses earning less than Php 250,000 a year will not be required to pay tax. However, they are still required to register their online business to BIR.

Here are the standard taxes:

-All businesses earning more than P3 Million per year will pay
Monthly and Quarterly Value Added Tax
-All businesses earning ₱3 million or less annually will pay:
Quarterly Percentage Tax
-Withholding Tax on Compensation
-Expanded Withholding Tax/Creditable Withholding Tax
-Quarterly and Annual Income Tax Returns

How to Pay Taxes?

1. Visit EFS and fill out then log in
2. Upload sales and receipt to the system for your quarterly percentage tax amount

Note: If you have paid for first, second, or third month of the quarter, your payment will reflect in BIR Form 2551Q in Item No. 20A-Creditable Percentage Tax Withheld per BIR Form 2307.

3. Once done, click the “payment” button to pay.

BIR also offers a convenient way to pay your tax payment, you can pay tax using your mobile banking app, Gcash, Paymaya, etc.

Make sure to take extra care if you’re planning to register your online business to BIR. Observe physical distancing, wear a mask and bring alcohol with you. It may be our obligation but your health is far more important than anything, so follow safety precautions.

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