Policies, Guidelines and Requirements for Mandatory Registration of person engaged in Business, in pursuant of Section 236(A) of the Tax Code and Republic Act No. 11967, otherwise known as the INTERNET TRANSACTIONS ACT OF 2023.
Are you still unsure whether you need to register your business with the BIR, even if you are operating through an online marketplace? If you think that not registering your business will save you more money for not paying any amount of taxes. Think again! Because BIR issued last August 15, 2024 the Revenue Regulation No. 015-2024, which outlines the policies and guidelines including the penalties for non-registration of business.
There has been a rapid increase in online selling in the Philippines. Consequently, the government enacted RA No. 11967, also known as the “Internet Transactions Act of 2023, which aims to “build trust in e-commerce and to protect and uphold the interests of consumers at all times. Persons engaged in online trade or business must observe and comply with the policies, laws, and regulations in the countries where their goods and services are marketed, including the registration of online trade or business with the BIR, filing proper tax returns, and paying applicable internal revenue taxes.”
If you are a business owner engaged in any of the following activities in the Philippines:
a. Sale and/or Lease of goods and Services through physical store/ establishment with fixed location;
b. E-Commerce of Online Businesses, whether formal or informal, including, but not limited to sale, procurement or availment of Physical or digital goods (including virtual items in online games), digital content/products, digital financial services, entertainment services, travel services, transport and delivery services and educational services, social commerce, on-demand labor and repair services and property and space rentals;
c. Operation of digital platforms, including e-marketplace platforms;
d. Sale and/or Lease of goods and services through digital platforms;
e. Digital Content creation and streaming that are income generating including, but not limited to, online advertising, blogging/vlogging, subscription or commission;
f. E-retailing of goods and services;
g. Sale of Creative or professional services, on-demand or freelance services or digital services supplied over the internet; and
h. Other forms of businesses other than those mentioned above which are conducted online.”
Hence, you are required to register, either electronically or manually, with the Bureau of Internal Revenue (BIR) within ten (10) days from the date of employment; or on/ before the commencement of the business; or before payment of any tax due; or upon filing of a return, statement or declarations as required under the Tax Code.
Failure to register the same with the BIR may result in fines and penalties. Any person violating Section 236 (A) in relation to the Tax Code shall be liable as follows:
| Nature of Violation | Tax Code Provision | Amount of Compromise Penalty |
| Late Registration – Voluntary registration | Sec 275 | ₱ 1,000.00 |
| Failure to register store name or business name | Sec. 275 | ₱1,000.00 per business name or store name |
| Failure to post COR/eCOR on the place of business or website, webpage, account, page, platform or application | Sec. 275 | ₱1,000.00 for every violation/per business name or store name |
| Allowing lessees or online sellers/merchants to use to engage in business the premises or digital platform without BIR Registration | Sec. 253 in relation to Sec. 258 | ₱20,000.00** for each branch/store/establishment **Penalty of lessor/digital platform/e-marketplace |
| Failure to obey or refusal to comply with the closure/takedown Order | Sec. 258 | ₱20,000.00 |
| Failure to Register Head Office or Branch – if the business or self-employed is discovered through various means, including: During Tax Compliance Verification Drive (TCVD)Ocular inspection or mission orderUpon BIR notification to registerThrough third- party reports | Sec. 258 | Medium and Large Taxpayer – ₱20,000.00Small Taxpayer – ₱15,000.00Micro Taxpayer – ₱5,000.00Business subject to excise tax – ₱50,000.00 |
For hassle-free and stress-free registration, you may contact us on our Facebook page or email us at mpcamaso@mpca.com.ph for assistance. Reference:
BIR Revenue Regulation No. 15-2024
