If you haven’t registered your online store in the BIR, let me give you some facts/reasons why you should register now before you’ve realized that it was a huge mistake of not doing it now. It’s great news that the Bureau of Internal Revenue extends the deadline for online business registration until the end of this month.
Businesses involved in the selling of goods and services through digital transactions (online stores) have until August 31, 2020, to register or update their registration information with the Bureau of Internal Revenue (BIR) without the imposition of penalties. This Revenue Memorandum Circular (RMC) No 75-2020 issued by the BIR on July 29, 2020.
Said Circular extended the deadline for the registration or update of registration of said businesses, which was initially set on July 31, 2020, under RMC No. 60-2020.
Covered by the two Circulars are not only partner sellers/merchants, but also other stakeholders involved in the digital transaction, such as the payment gateways, delivery channels, internet service providers, and other facilitators.
Benefits of Online Registration Before Due Date
One significant benefit of processing the online registration in the BIR before the due date is to avoid tax penalties and closure of your business in the future. It would be easy for your business to expand once it booms.
On the other hand, failure to register or update business registration is subject to tax penalties imposed by the Bureau of Internal Revenue (BIR).
“Since June 10, persons conducting business through any forms of electronic media were notified (thru the issuance of RMC No. 60-2020) regarding their tax obligations and the registration of their business with the BIR, according to the provisions of Section 236 of the Tax Code, as amended”
In general, the registration of a taxpayer/business and its updates are done in the Revenue District Office (RDO) having jurisdiction over the place where the Head Office of the business is located or over the place of residence of the individual taxpayer.
Persons doing business online with no Taxpayer Identification Number (TIN) must register their business following the existing policies in securing TIN and registration of business. If you’re employed, you can get your TIN Number online unless otherwise, you have to apply your TIN number to the nearest RDO or BIR.
Individuals who already have TINs (whether their TIN was issued due to ONETT or employment) but their business is not yet registered must register their business using BIR Form 1901 with the RDO having jurisdiction over their place of business, if with the physical establishment, or with the RDO having jurisdiction over their place of residence.
Non-individuals who already have TINs must update their business registration using BIR Form 1905, and include the additional business activity of online selling.
Upon compliance with all the BIR’s requirements for registration, online business owners will receive from the RDO a Certificate of Registration, Notice to Issue Receipt/Invoice, BIR Printed Receipt/Invoice or Authority to Print (per taxpayer’s choice), and the proof of payment of registration fee.