The Bureau of Internal Revenue (BIR) has issued its policies and guidelines on the mandatory registration of persons engaged in businesses, including those who are doing it online.
Revenue Regulations No. 015-2024 published on August 15 also prescribes the administrative sanctions and criminal liabilities for non-registration of business activities.
The issued regulations cover brick-and-mortar stores as well as those involved in online trade and businesses and digital content creation.
“It has been observed there has been proliferation of online businesses and activities in the Philippines. Hence, the Internet Transactions Act of 2023 was issued, which provides that in order to build trust in e-commerce and to protect and uphold the interest of consumers at all times, persons engaged in online trade or business shall observe and comply with the policies, laws and regulations in the countries where their goods and services are marketed, which necessarily includes, the registration of online trade or business with the BIR, filing of proper tax returns and payment of applicable internal revenue taxes,” the BIR said.
The BIR said a person engaged in the sale and/or lease of goods and services through brick-and-mortar stores shall register its head office at the BIR district office having jurisdiction over the place of business address.
Any branch and/or facility shall be registered with the BIR district office having jurisdiction over the place of business address or location of the branch and/or facility.
A person operating, maintaining or setting up an online presence or an online store for its brick-and-mortar store shall register its store name with the BIR as an additional “business name” attached to the head office or branch managing or operating the said online store or business, and shall not be registered as branch.
A person engaged in the sale and/or lease of goods and services through website, webpage, page, platform or application who do not have a brick-and-mortar store shall register at the BIR district office having jurisdiction over the place of residence for individuals or principal place of business registered with the Securities and Exchange Commission for juridical entities.
The BIR said all registered persons covered by these regulations shall post or exhibit their original Certificate of Registration (COR)/ Electronic COR (eCOR) at the place where the business is conducted and at each branch and/or facility in a way that is clearly and easily visible to the public.
In case of a peddler or other persons not having a fixed place of business, the COR/eCOR shall be kept in the possession of the holder thereof or at the place of residence or at the head office’s address, if applicable, subject to production upon demand of any internal revenue officer.
The tax agency said all covered persons operating a business through a website, social media or any digital or electronic means, shall display conspicuously the electronic copy of the BIR COR/eCOR on their website, webpage, account, page, platform or application.
“The displayed proof of registration shall be (at all times) easily accessible and visible to buyers or customers visiting the seller or lessor’s webpage, account, page, platform or application,” the BIR said.
In the event that any covered person doing business in the Philippines fails to register as required under these regulations, the BIR has the authority to issue a closure or take down order to close business operations.
“The closure of business operations under a duly approved closure/take down order shall not preclude the BIR from filing the appropriate charges, if evidence so warrants, against the person concerned, or in the case of corporate taxpayers, against the responsible officers of the corporation, under the Run After Tax Evaders Program of the BIR,” the tax agency said.
The BIR said lessors, sub-lessors of commercial establishments/buildings/space and operators of digital platform, including e-marketplace platforms, shall ensure all their respective lessees and online sellers or merchants are duly registered with the BIR, with a taxpayer identification number, and duly compliant with the invoicing requirements and in accordance with the Tax Code.
“Failure to enact, or strictly enforce internal mechanisms or rules to prohibit lessees and online sellers or merchants without the required BIR COR/eCOR from further selling, posting, listing or offering goods and/or services in their respective brick-and-mortar stores, website, webpage, account, application and digital platforms, including e-marketplaces, shall be construed as an act of aiding or abetting in the commission of the offense,” the BIR said.
