Estimating that there are about six million big, medium, and minimal digital merchants operating in the country today, the Bureau of Internal Revenue (BIR) requires online merchants to register with the agency.
Arnel Guballa, BIR Deputy Commissioner for Operations said the Bureau requires the following digital merchants to register:
- E-Commerce platform providers;
- Internet retailers of consumer goods;
- Digital service, membership, and subscription;
- Digital transaction through the use of electronic platforms and media;
- Online bloggers, film makers earning from advertising gained from their online channels; and
- Ride-hailing services for food, transportation, delivery, or merchandise.
Meanwhile, Guballa clarifies that the BIR will only impose income tax on those earning more than P250,000 a year.
BIR registration of business in digital or electronic platforms
Earlier, the BIR reiterated its previous order requiring online sellers or those who conduct business in a digital or electronic platform to register and declare past transactions. It includes not only partner sellers/merchants, payment gateways, delivery channels, internet service providers, and other facilitators.
Moreover, they are encouraged to voluntary declare past transactions, as well as comply with the Tax Code provisions on the 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; and payment of correct taxes due on time.
BIR likewise orders its more than 120 revenue district offices (RDOs) across the country to release the certificate of registration of digital sellers of goods and services who will apply for such, in a day or two.
Revenue Memorandum Order No. 30-2020 states that the submission of the application, payment, and release of the papers shall be made at the same counter reserved for senior citizens and persons with disabilities.