BIR: Online sellers should register their businesses and declare past transactions.

BIR: Online sellers should register their businesses and declare past transactions.

The Bureau of Internal Revenue (BIR) orders all online sellers and other business that uses a digital or electronic platform to register. They should also declare past transactions.

Stated in Revenue Memorandum Circular No. 60-2020, dated June 1, “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.”

Aside from transactions, online sellers shall also declare mode of payment, delivery options for products, internet service providers, and other facilitators.

Due to lockdown, people are choosing online transaction in buying their personal needs.

According to BIR, the online sellers should register on or before July 31, 2020, to avoid penalties for late registration.

All declared past transactions on or before July 31, will be required to pay taxes but no penalties.

Those online sellers who will fail to comply will acquire penalties based on the existing law and the revenue rules and regulations.

Applicants for the registration should follow the following:

  • Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients, customers, or buyers
  • Keeping of registered Books of Accounts and other accounting records of business transactions
  • Withholding of taxes, as applicable
  • Filing of required tax returns
  • Payments of correct taxes due on time

Meanwhile, the House Committee on Ways and Means chairman Joey Salceda pass a bill that would require digital services to pay taxes.