Section 236 of the Tax Code, as amended, requires registration of every person subject to any internal revenue tax with the Bureau of Internal Revenue (BIR). It is the duty of all persons engaged in business in the Philippines to comply with business registration requirements and pay taxes, where applicable. Any person who is engaged in any trade or business and fails to register the same with the BIR shall be administratively and criminally liable for fines and penalties.
With the proliferation of online selling and other online business activities throughout the country, the Department of Finance (DOF) has recently issued new guidelines in the registration of online sellers and laid down penalties, which include closure of business operations as a penalty for not being able to register with the BIR within the period prescribed by law, which should be made on or before the commencement of business or before payment of any tax due or upon the filing of a return, statement or declaration, as required under the Tax Code.
920 TypingSo, as a general rule, a person engaged in the sale and/or lease of goods and services through a physical store (brick-and-mortar store) shall register its head office at the BIR district office having jurisdiction over the place of business address while any branch and/or facility shall be registered with the BIR district office having jurisdiction over the place of business address or location of the branch and/or facility.
Now, under Revenue Regulations (RR) 15-2024, a person operating, maintaining, or setting up an online presence or an online store for its brick-and-mortar store shall, in addition to the registration of its physical store, likewise, register its store name with the BIR as an additional “business name” attached to the head office or branch managing or operating the said online store or business. The online presence or an online store attached to the head office or a branch shall not be separately registered as a branch.
On the other hand, a person engaged in the sale and/or lease of goods and services through website, webpage, page, platform, or application who does not have a brick-and-mortar store, shall register at the BIR district office having jurisdiction over the place of residence for individuals or principal place of business registered with the Securities and Exchange Commission (SEC) for juridical entities.
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