How to Start Sari sari Store in the Philippines?

sari sari store tax 2021

If you’re looking for a business opportunity that is both profitable and tax-exempt, consider starting a sari-sari store. Operating a sari-sari store can be relatively simple, and there are many tips and resources available to help you get started. Keep reading to learn more about how to start a sari-sari store, and the tax exemptions that are available to business owners like you.

In this article, you will learn seven (7) practical tips on starting a sari-sari store in the Philippines. Indeed, you will benefit from knowing what tax you should be paying to save money, how much it costs to start a sari-sari store, and how to process your registration. For more details, read this to know how to reduce your tax legally.

Sari-sari store Meaning

These are the small businesses explicitly established by a single owner. Usually, it sells essential commodities necessary for daily needs like noodles, sugar, coffee, rice, junk foods, shampoo, vinegar, etc.

Many Filipinos are engaged because it is easy to open and less capital. You can buy a small item in the sari-sari store compared to the mall or grocery store. If you need anything, you can walk to your neighbor or the nearest sari-sari store.

Benefits or Advantages

Why many Filipinos open sari-sari stores despite the numbers of sari-sari in their community of place. Fortunate, the sari-sari store is easy to open; it requires less capital than other business enterprises. However, the sari-sari store is not only advantageous, but it also has disadvantaged. One of the disadvantages of the sari-sari store is that it quickly close as fast as they open.

Capital Needed to Startup

If you don’t have significant capital and want to start right away, open a sari-sari store. Why is the sari-sari store easy to open? Well, in the amount of 3,000 pesos or more, you can have your sari-sari store. By having that small amount, you now have your budget for the sari-sari store.

You can start your store with a small amount of capital and space. As your customer grows and your worth, you can expand your store by having a bigger space and adding more items to sell. Make sure that your capital is rolling over. Once your store is stable or growing, ensure that your invested money must be kept or separated from the total income. Why is it important? It will help you to know how much you earn from your investments.

Assuming you already know where you can put the sari-sari store and capital, the next thing to do is open now. But wait, how can you open the sari-sari store?

Related: How To Start A Car Wash Business In The Philippines 

Procedures to Start a small business in the Philippines

I know it’s easy to open a sari-sari in the Philippines, but you have to know these tips. These will help you to start your business with a higher percentage of success. Here are Top seven (7) suggestions for a sari-sari store to help you manage your business. It also includes the requirements for sari-sari store business permits and processes.

Tip 1: Get a Business Permit.

As your business is growing, make sure to register your store in your municipality or city. If you register, your business will avoid you in the future during the tax mapping. You might be asking as to how many business permits for the sari-sari store in the Philippines? Well, it depends on your business location. The processing fee might be 200 pesos for Barangay, 500 pesos for City and Municipality, 1,000 for Regional, and 2,000 pesos for National.

Aside from the processing fee, you will also pay for documentary stamps and other processing fees. How can you register your sari-sari store in the Department of Trade and Industry (DTI)?

  • Make sure your business name processed has no conflict. Check your business name on the DTI home page
  • Submit the online application form. Submit at least three (3) business names to have other choices if your first business name is invalid.
  • Submit the application form and other necessary documents.
  • Pay the processing fees.
  • After the evaluation, you will be informed by the DTI personnel if your Certificate of Business Names Registration is approved.
  • Once you received the DTI Business Name Certificate and Barangay Permit, you can start to get the Mayor’s Permit.

Here are the procedures for obtaining the Mayor’s Permit:

  • Submit your application to the Business Permits and Licensing Office (BPLO) in your location.
  • Get approval from the Electrical Department for your building.
  • Make your business approved by the Bureau of Fire Protection.
  • Secure a Health and sanitation Permit at the Sanitary Office.
  • Claim your Fire Safety Permit
  • Claim the business plate and Mayor’s Permit.

After securing the Mayor’s permit, don’t forget to register your business in the Bureau of Internal Revenue (BIR). Here are simple tips on how you can get your TIN or registered your company.

Tip 2: Make Good Records

In every business, success is keeping good records. Keeping records will help to monitor the flow of business income. Make sure to separate the personal expenses from business expenses. What does it mean? You need to make sure that your family members will not get items from your business without paying the cost of items taken. It will help you to know if your business is earning income or losing.

Have an inventory list of all items. This inventory system will help you monitor the date of expiration and the sales of each item.

Related: How to Use the Double Entry System in Your Businesses

Tip 3: Buy Your Items in Wholesaler Store.

Sari-sari store will continue to exist because of the profits. To maximize your earnings is to buy items from the wholesaler or retailer. Purchasing from the wholesalers gives a chance to have a more significant amount of mark-up.

Also, buying from the authorized distributors will give more significant volume discounts. A bigger volume discount and less mark-up will provide higher returns.

Tip 4: Unique Products to Sell

If your neighbor is selling beauty products, don’t sell the same items. Having unique items from other competitors will give you a more significant income or profits. If your things are different, you will have more customers and higher profits.

Tip 5: Have a Complete Package

To attract more customers, make sure you have completed items that you’re customers need. If a customer wanted to cook spaghetti, make sure that you have all the ingredients in cooking spaghetti. In that way, you will avoid them not buying from your competitors.

Tip 6: Make Sure to Have Enough Stocks Always

In the business world, readiness is always vital. Make sure to have enough supply of your inventories. If your business has out of stock, it will affect your business reputations. Running out of stores will lose numbers of customers. So next time, make sure you always check your inventory if you still have enough items to sell to your community.

Tip 7: Say No to Credits

Many small businesses in the Philippines survive because of borrowing money from lending companies or any other financial institutions. If you want your business to stay in the long run or more extended period, make sure you must say no to credits when somebody approaches you.

Related: No Payment of Tax on Your Online Business in the Philippines

Registration of Small Business in the BIR

A person is required to register the business when the annual gross sales exceed 100,000 pesos. If your sari-sari store has gross sales of more than 100,000 but less than the vat threshold of 3,000,000 is required to register as a non-vat business. A non-vat company is subject to a percentage tax of three percent (3%) on the gross sales.

If you have a sari-sari store or small business, here are the steps on how to register in the BIR. 

Sari-sari store is Exempted from Tax.

If you have a sari-sari store, are you wondering if what tax should you pay? In the Philippines, there are different taxes, and it might confuse the taxpayer as to what tax they are required to pay.

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All small businesses, including the sari-sari store, are not subject to tax provided that the income does not exceed 250,000 pesos per year. If the revenue from the sari-sari store exceeded the said amount, the business would be subject to percentage tax or value-added tax. If your sari-sari store is not a value-added registered, then you have to pay percentage tax.

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Is Sari-sari Store Considered as Small Medium-size Business (SMB)?

What is a small and medium-sized business? Any business with 100 or fewer employees while with 100-999 employees is considered the medium size. Does it mean that the sari-sari store owner belongs to small companies with less than 100 employees? The answer is No.

A small sari-sari store is not for gaining profits but only for subsistence or livelihood. Therefore, a sari-sari store is not considered a small business in the Philippines.

Tax Rate for sari-sari store

Under the new tax system,  the train tax law will exempt those who are earning less than 250, 000 pesos.  This train law will exempt the owner of the sari-sari store business as long as the income is less than the exempted amount of profits. Therefore, the new income tax under train law will exempt the sari-sari store in the Philippines.

Sari-sari stores could be subject to a percentage tax rate (3%) on total gross sales or subject to value-added tax. To reduce taxes or exempt from paying individual income, you can register as Barangay Micro-Business Enterprises (BMBE).

Sari-store store is not exempted from Business Tax.

Are all sari-sari stores subject to business tax? The answer is No. If no, what is the business tax for the sari-sari store?

 Income generated from a sari-sari store is a Marginal Income Earner or Compensation (MIC). Marginal Income Compensation is an individual whose gross sales do not exceed 100 000 annual income. (RMC No. 7-2014) 

Your sari is also subject to percentage tax or value-added tax depending on your Certificate of Registration (COR).  There are things that you can do to minimize tax from your small business. You can register it as BMBE or 8% tax, or could it be better to pay a percentage tax of 1% under the CREATE Law.

Besides, the activities of Marginal Income Earner should focus principally on subsistence or livelihood. These earners shall include but not limited to the following:

  • Agricultural growers or producers
  • Direct seller to the ultimate consumers
  • Small sari-sari store
  • Small carinderias or turo-turo
  • Drivers or operators of a single unit tricycle

NOTE: MIC is also not subject to value-added tax (VAT) and other percentage tax in the Philippines.

Person Engaged in Sari-sari Subject to Individual Tax?

All persons who earn an income are subject to tax. How about a person engaged in a small sari-sari store is still exempted from individual income tax? Yes, if the total income does not exceed the 250 000 as the thresholds. To learn more, you can read things you should know more about de minimis benefits under TRAIN law 2018. It has an illustration of how to compute tax after the individual thresholds.

How about those earning income as an individual at the same time with a sari-sari store? Do I need to file a mixed-income? The answer is NO. An employed person should file individual tax if the other income is taxable. Since income from small sari-sari is not subject to any tax, therefore, profit from your sari-sari store is not included in your tariff.


Therefore, any person who has a small sari-sari store in the Philippines is not subject to any business tax. It is not also subject to an individual tax provided only for subsistence or livelihood only. To the question as to sari-sari store exemptions, 2018 and 2019 are still the same. Any small sari-sari store will be exempted provided that the total sales should not exceed 250,000.

Recommended: How to Register Your Business as Barangay Micro Business Enterprise (BMBEs)

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75 Replies to “How to Start Sari sari Store in the Philippines?”

  1. Naguguluhan parin ako. Kase yung store ng tita ko kumikita lang ng 45000 a year. Pero sabi nila mumultahin sya ng BIR ng 10,000 kase hindi sya nag reg sa BIR… Pero may DTI at Mayors permit sya. Pano po yun.


    1. May sari sari store po ako, kaka renew lang ng ng brgy at mayors permit po. Before kasi di naman siya kumikita ng lampas ng 100k sa isang taon, nito nalang Nagpandemic, Di nan po ako aware na kailangan iregister sa B.I.R amg maliit na sari sari store
      May penalty po ba yung mga nakaraang taon ko incase ngayon palang ako mag papa register sa B.I.R?

  3. Hi, I have question regarding taxation. If the gross income of my business is greater than 250 000 PHP but less than 3 000 000 PHP, I will pay 3%?
    How about if I exceed 3 000 000 ? What percentage shall I pay? Thank you.

  4. Hi Mindee, thank you for reaching us. If you’re business capital is not more than 3,000,000 you may apply as BMBE which is exempted from tax,. However, if your income exceeded you’re subject to VAT of 12%.

  5. Hi! I planning to become a sub-dealer of coca-cola products what kind of industrial classification i apply for dti permit and also i have a sari-sari store earning less than 250,000 a year. Thank you for your answer?

  6. Hi good morning. I am Necil, sari-sari store din po at nka registered na po sa bir as 8% tax type ,pwede po ba malaman anu-ano mga dapat kung bayaran at I file na forms? D ko po kasi naiintindihan gang ngayon po nalilito parin po ako kasi tuwing punta ko sa bir para magpa assist iba-iba pong tao nakakausap ko at iba-iba rin sinasabi…kakalito po lalo. SALAMAT sa sasagot.

      1. Hi sir. Paano po pag hindi na po siya operational , nalugi po hindi po siya na close ng mga ilang taon. Pag nag apply po ba ng panibagong business name makikita yung previous name mo na under sa u. Kaila gan po ba magbayad ng penalty at magkano po usually ang penalty ng sari sari store. Salamat po

  7. Hello po.. Ask po ako kung mag oopen po ako ng sari-sari store this 2020 when po ako dapat mag process ng registration at ano po dapat na process ko by this year kung January 2021 pa po ang processing? Thank you po

  8. Good day. May sari sari store ang kapatid ko na isang pwd. May business permit na po pero wala pa po sa 100k o 50k ang sales revenue yearly. Anu po ang mga dapat bayaran sa bir.

  9. May sarisari po ako at walang sigarilyo at inuming makalasing. May mayor’s permit din po ako.Ask ko lang po need pa ba ako magparegistered sa BIR?

  10. good day! mag open po ako ng sari sari store, ask ko lang po how and what should I file to BIR? Need po ba na kumuha ng sercives ng accountant

  11. Every comment is confusing, straightbanswer lang please because as per article above , there is no tax needed, if incone is below 100k annually, so what is the point of getting a business permit from ng LGU and BIR stuff?

    1. Magkaiba ang municipal tax and national tax. When it says no tax on less than 100k that is referring to national tax but it doesn’t mean no fees or permit required in the municipality.

      Also, to avail tax exemptions, you still need to apply to the BIR. Make sure po to distinguish the National tax that you pay in the BIR and taxes to the municipality.

      1. Nag aapply na po ako ng Mayor’s permit. Pagkatapos po ay magpa register na ako sa BIR? Anu-ano pong documents ang kailangan ipakita sa BIR para malaman nila na below 250,000 ang income po ng sari sari store? Wala pa pong 1 year ang sari sari store ko.

  12. Hello! I’m a freelancer (virtual assistant) and paying for my taxes as self-employed. I am planning to open a sari-sari store this February. Ano pong mga kelangan ko to register my new business sa BIR? Kelangan ko po ba magregister as mixed-income earner?

  13. may itatanong po ako hindi po nagbabayad ng title tax ng bahay ung byenan ko pero magtatayo po ako ng sari sari store dun ko po itatayo ung sari sari store mabibigyan po ba ako ng mayors permit

    1. Paano kung inside a subdivision po, tapos my designated store unit, pero my mga backyard store pa din, my ilan kompleto ang permit, meron din nmn malakas lng kay pangulo at hindi maipaskil o wla ang mga permit, ano ang dpt gawin ng HOA at maaari bang maipasara ang mga walang permit? anong ahensiya ng LGU ang dpt katukin para sa mga sari sari store na nag ooperate ng walang permit?

  14. Magtatanong Lang po ako. May tindahan po nanay ko 87detriot brgy. Pinagkaisahan at meron sya parehas Ng barangay permit dti at mayor’s permit. Kakompetensya nya po na katabi nya at parehas Ng landlord ay me canteen po at sarisari store po sa iisang pwesto po Pero barangay permit Lang po ang meron at halos parehas din po Ng tinda me alak at iba pa except po SA smartpadala po namin. Wala Lang sigarilyo. Para po kasing hinde po patas.

  15. May tanong lang po ako. what penalties po pag di po naka bayad ng taxes like monthly taxes or quarterly taxes? maari bang mapasara ang sari-sari store po?

  16. May tanong lang po ako. Meron po akong sari-sari store at gusto ko po magtayo ng photo printing. Yung mga basic lang po na piniprint like photo picture, docs, meron din xerox kasi 3 in 1 po gamit ko na printer. Pero yung maliit lang na printer ang gamit ko at hindi sya heavy duty like sa malalaking company. Tanong ko lang kung kukuha pa ako ng separate na permit maliban sa sari-sari store ko para doon sa pagprint ng mga photo picture? Salamat po sa sasagot ng tanong ko.

  17. Hello po , may maliit po kaming sari sari store , kunti lng din po Ang kita araw araw Hindi halos aabot sa 1k sa isang araw dahil kunti lng din Ang mga bahay malapit sa amin. May barangay permit na po kami. Need pa po ba namin kumuha ng business permit?

  18. Hi. Me and my husband are both senior citizens of cainta rizal. We dont have an income and are retired and we plan to put up a sari sari store so we can atleast have an income to buy for his maintenance and so that we have something to do. We have not yet opened the store because i would lkke to apply first for a bus.permit and have it registered. when i did this they are aßking me to pay 6667 for the permit it is to be paid quarterly but oct 20 is the deadline. Then by jan i have to pay again until dec quarterly also. I said i would cancell andjust re apply on jan. For the cancellation i have to pay 7t plus! I cant believe it! Is this how it is? My stre isnt even operational yet and my capital is only 3 to 5t. Pls help. What must i do? I refuse to pay these and with penalties?!

  19. Question po…yung tatay ko po ang freelance contractor cleaners po after mag harvest ng manok sila ang nglilinis ng bahay ng manok….wala po kami office or outlet pinapatawag lng kapag may gawa na po .kailngan pa po ba namin kumuha ng mayors permit may dti po kami …diba pwedeng sa bir nlng kami.mgbayad ng percentage tax…since comission basis po ang tatay ko sa mga sub contractor nia…

  20. hello , pano po pag walang nakalagay na 8% sa COR ? anyways, we have a small sari sari store, kakaregister lang.

  21. May maliit na tindahan po ako sa bicol, may brgy at mayors permit at dti din… Kaso d maregister dahil ang RDO ko ay nasa pasig… Unemployed ako nung nag tindahan ako, pero ngayon magttrabaho ulet. Pano ko na po marregister ung tindahan kung magging employed na ko.

  22. Hello po,
    Ano po pede na iparegister sa business permit po kung sakali po na may sari sari store po at may maliit na snack hauz din po ang store?

  23. nguguluhan po aq,ng open po aq ng store March 2021,nkakuha po dti at bus permit Apr.5,2021 tas sb po nung ng aasikaso til now hnd prn ok ung BIR q pro byad q n po lhat s knya

  24. hello po sari sari store owner po ako at ang 2303 ko po is subject sa 8% at ang may check po ay 1701q at 1701 at 0605. kailangan parin po ba mag file ng 2251q kahit wala nmn po check? naguguluhan po tlga ako sa filing sa BIR. sana po masagot TIA.

    1. Hi, No need to file the 2551q since you’re in 8%. 2551q is only for those who are subject to 1% business tax. Since 8% you’re no longer required to pay business tax.

      If you want to learn more. you can reach me personally. If you want consultation.

  25. Hello po. I just opened a sari sari store this January. I am employed. – a call center agent at the same time. My company pays for our tax annually. My question is, since I opened a sari sari store business, should I put mixed income earner po sa BIR for 1901 or just single proprietorship only? I do not earned more than 250k sa sari sari store po 🙁

  26. Good day pwde ba aq mag bayad NG bussines permit na UMABOT NG 5395 plus 500 for fire.. At small sari sari lang ang hawak ko at hinde Wholesaler.. Dati kase 1700 lang tapos ngayun big lang lumaki. Salamat po sa maka sagot.

  27. May question po ako regarding sa yearly inventory, kailangan din po ba mag file sa bir kahit small sari sari store lang?

  28. Hi. Mag rerenew po ako ng business permit. Na process ko na sa brgy then proceed na sa city. Pero nagulat po ako na yung assessment po is 4200 ang babayaran for a small sari sari store. Is it really that much po? Actually this is not mine but i am just concerned po kasi sa family yun ng bf ko.

  29. If may BMBE Certificate po, makaka save po ba sa Municipal Permit ? How much po in average ang babayaran sa Munisipyo for new Sarisari Store registration?

  30. Hello po,Good day,Gs2 ko lng po sana humingi ng idea,im planning to open a sari sari store dis month,tapos may add on na payment center.Pwede po bang magregister sa DTI as sari sari store & payment center?sa business permit po ba ay kukuha muna ako brgy permit,then mayors permit?iisang business permit lng po ba kukunin ko for sarisari store &payment center?sana po may mkahelp po at ng maliwanagan po ako.Salamat po

    1. Yes, register with the DTI and before maregister with the BIR, make sure po you have the requirements. I’m willing to assist you. I offer also personal coaching and planning with low professional fee. Just fill up the form.

  31. Me tindahan po ako ang kaso sobrang hina ng benta kaya po isasara ko nlng muna,kelangan pa bang kumuha ng mga permit for temporary close?

  32. Hello po. Meron po kaming maliit na sari-sari store at nasa looban rin po kami ng street namin. Nagpunta po kami ngayon sa City Hall po namin para po sana magparenew ng business permit, kaso daw po nagkapenalty po kami ng 12 years. Ang concern po namin nagbabayad naman po kami ng renewal sa barangay every year, for the past 12 years (tapos this year lang po nalipat sa City Hall ang pagbabayad) pero pinagbabayad po kaming penalty? Bakit po kaya? Thank you po sa response!

  33. Hello po Sir, nagpa register na po ako sa Brgy and BIR with BMBE cert po, 2 books lang binigay sakin. Journal and GL, it means po ba Sales and expenses lang po i book ko? TIA po

  34. Hello po pag may sari-sari store na kumikita ng 300 a day anong permit po pwede e apply thanks sa sagot.

  35. Hi Ma’am/Sir,

    Tanong ko lng po regading sari-sari store sa public market. since i was planing take over the family bussiness and to make it as legit as posible.

    Q1. Anu po ba mga BIR taxation law’s ang applicable sa ganitong bussiness? and anu ba mga taxes na dapat bayaran sa ganitong bussiness? Lets say if capital ko is 200,000 to 300,000 pesos. and yung busness is kumikita ng mga 100,000 to 290,000 a year

    Q2. If yung Bussiness is dating bussiness na and my BIR registration na. Pwede po ba ipa bago or I amend yung Registraion ng isang bussiness Sa BIR? if Yes How?

    Q3. Pano kung wala pang libro yung sari sari store? anu dapat gawin?

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