Posting of Proof of BIR Registration of Online Sellers

Under the new BIR Regulation RR 7-2024, effective as of April 27, 2024, there are specific guidelines that online sellers, e-commerce merchants, and other platform-based businesses need to follow regarding the posting of their proof of registration. Here’s what you need to know:

Key Requirements:

1. Proof of Registration Display:
   • All online sellers, e-commerce merchants, and platform-based businesses must prominently display their Certificate of Registration (COR) from the Bureau of Internal Revenue (BIR) on their online platforms. This includes their websites, e-commerce stores, and any other digital marketplaces where they conduct business.
2. Visibility and Accessibility:
   • The COR must be displayed in a manner that is easily visible and accessible to customers. It should be placed in a prominent location on the website or e-commerce page, such as the footer section or the "About Us" page, ensuring that it is straightforward for customers to view.
3. Digital Copies:
   • A digital copy of the COR must be uploaded to the website or platform. This digital copy should be clear, legible, and in a format that ensures all details are visible, such as PDF or high-resolution image formats.
4. Compliance and Verification:
   • The displayed COR must be valid and up-to-date. Online businesses must ensure that their BIR registration is current and that any changes in registration status are promptly updated on their online platforms.
5. Supplementary Documentation:
   • In addition to the COR, businesses may be required to display other pertinent registration documents or certifications as mandated by specific e-commerce platforms or local regulations.
6. E-Commerce Platform Requirements:
   • Businesses operating on third-party e-commerce platforms (e.g., Lazada, Shopee) must comply with both BIR regulations and the specific requirements of the platform regarding the display of proof of registration.

Compliance Steps for Online Sellers and E-Commerce Merchants:

1. Obtain a BIR Certificate of Registration (COR):
   • Ensure your business is registered with the BIR and obtain your COR if you haven’t already done so. This involves completing the necessary registration forms and paying the required fees.
2. Digital Copy Preparation:
   • Prepare a high-quality digital copy of your COR. Ensure all details are clearly visible.
3. Website Integration:
   • Upload the digital copy of your COR to your website. Choose a prominent location where customers can easily find it. Common placements include the website footer, "About Us" page, or a dedicated compliance section.
4. E-Commerce Platform Compliance:
   • For businesses on third-party e-commerce platforms, follow the platform-specific guidelines for displaying registration documents. This may involve uploading the COR to your seller profile or store page.
5. Regular Updates:
   • Regularly check and update your displayed COR to ensure it remains current and accurate. Promptly update any changes in your registration status.
6. Customer Transparency:
   • Ensure that customers can easily contact you for verification or inquiries regarding your registration status. Providing clear contact information alongside the COR can enhance transparency and trust.

Importance of Compliance:

• Legal Requirement: Compliance with BIR regulations, including the display of the COR, is a legal obligation for businesses operating in the Philippines. Failure to comply can result in penalties and fines.
• Customer Trust: Displaying proof of registration builds trust with customers, assuring them of your legitimacy and adherence to local laws.
• Operational Integrity: Maintaining compliance demonstrates your commitment to ethical business practices and can enhance your reputation in the market.

By following these guidelines, online businesses can ensure they are fully compliant with RR 7-2024 and contribute to a transparent and trustworthy e-commerce environment in the Philippines.