The Bureau of Internal Revenue (BIR) in the Philippines has issued Revenue Regulations No. 7-2024, which mandates the posting of proof of registration on online websites, e-commerce platforms, e-marketplaces, and other platforms where sellers or merchants operate. Here are the key points from these regulations:
Key Points of BIR RR 7-2024:
Scope and Coverage:
The regulation applies to all individuals and entities engaged in online business transactions. This includes those selling goods and services through their own websites, social media accounts, or third-party e-commerce platforms and marketplaces.
Proof of Registration:
Sellers/merchants must prominently display their BIR Certificate of Registration (BIR Form No. 2303) on their online business platforms. This certificate shows that the business is duly registered with the BIR and compliant with tax regulations.
Details to be Posted:
The following information from the BIR Certificate of Registration must be clearly visible on the seller's page:
Taxpayer Identification Number (TIN)
Business Name
Date of Registration
Type of Registration (e.g., as a corporation, individual, etc.)
A scanned copy or digital image of the actual certificate may be used, provided it is clear and readable.
Purpose and Rationale:
The regulation aims to enhance transparency and ensure that all online sellers are properly registered with the BIR. This helps in the collection of correct taxes from online transactions and combats the proliferation of unregistered businesses.
Compliance Period:
Existing online sellers must comply with these regulations within a specified period from the date of effectivity of RR 7-2024. New online businesses must comply immediately upon registration.
Penalties for Non-Compliance:
Failure to comply with the posting requirement will result in penalties, including fines and possible closure of the online business platform. Specific penalties are detailed within the regulation.
Monitoring and Enforcement:
The BIR will regularly monitor compliance through online inspections and customer reports. The cooperation of e-commerce platforms and marketplaces is also solicited to ensure adherence to this regulation.
Implementation
Sellers and merchants need to take the following steps to comply:
Update Online Platforms: Ensure that your business's BIR Certificate of Registration is posted on all online selling platforms you use.
Check Compliance Regularly: Periodically check that the posted information is current and accurate.
Stay Informed: Keep abreast of any updates or changes in regulations from the BIR to ensure ongoing compliance.
Revenue Regulations No. 7-2024 aims to bring more online businesses into the formal economy, ensuring that they contribute their fair share of taxes. For sellers and merchants, adhering to these regulations not only avoids penalties but also builds customer trust by demonstrating legal compliance.
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