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Online Sellers and Freelancers are now Required to Register their Digital Business
Online Sellers and Freelancers are now Required to Register their Digital Business

How to register your business as an Online Seller or as a Freelancer

Maui Banag avatar
Written by Maui Banag
Updated over a week ago

The Bureau of Internal Revenue (BIR) issued a memorandum on June 10, 2020, notifying all individuals doing business and earning income in any manner or form to register and comply with the existing provisions of the Tax Code.

Highlights of RMC No. 60-2020:

All businesses whether newly registered or existing registrants must be compliant with the tax code, particularly on the following:

  • Must issue a registered invoice/official receipt

  • Must keep books of accounts

  • Must withhold taxes; if applicable

  • Must file & pay returns on time

Those who will register or renew their business registration before July 31, 2020, shall be imposed no penalty for late registration and late filing for past transactions.

While those who will be found later doing business without registration/updated requirements, and those who failed to declare past due taxes/unpaid taxes, shall be imposed with the applicable penalties under the law and existing policies.

Basic Registration Guidelines

According to BIR’s memorandum, 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 online with no Tax Identification Number (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:

  • a. Individual – whether the TIN was issued due to ONETT or employment, register the business, using BIR Form 1901, with the RDO having jurisdiction over the place of business, if with the physical establishment. Otherwise, with the RDO having jurisdiction over the place of residence. The concerned RDO shall affect the update of taxpayer classification (e.g., employee to a sole proprietor, ONETT to the sole proprietor); and include the business activity of online selling.

  • b. Non-individual – Update business registration, using 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:

Upon completion of the above, the taxpayer will receive the following:

  • Certificate of Registration (COR)

  • Copy of BIR-received Registration Form (1901 or 1903)

  • Notice to Issue Receipt/Invoice (NIRI)

  • BPR/BPI or ATP (per taxpayer’s choice)

  • Proof of payment of registration fee

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