BIR Registration for Online Sellers in the Philippines: A Step-by-Step Guide

Online sellers and merchants in the Philippines must register with the Bureau of Internal Revenue (BIR) on or before the commencement of business on an e-marketplace platform, in accordance with the registration requirements under the Tax Code as implemented by Revenue Regulations No. 7-2024. Registration is done electronically or manually with the Revenue District Office (RDO) having jurisdiction over the place of business. Once registered, the seller must secure a Certificate of Registration (COR), comply with invoicing and bookkeeping rules, display proof of registration on the online shop, and attend the RDO's initial briefing. Selling without BIR registration is punishable under the penalty provision of the Tax Code.

Who must register as an online seller

Under RR No. 7-2024, all persons engaged in business or the practice of a profession — including online sellers and merchants, and those providing digital goods and services — must register unless otherwise exempted. This covers sellers on e-marketplaces, social media, websites, and mobile applications.

E-marketplace operators are likewise required to demand a COR or BIR Form No. 2303 from their sellers and merchants, and to include this among their minimum accreditation requirements. In practice, this means a seller often cannot complete platform accreditation without BIR registration.

When to register: the deadline that matters

Registration must be made on or before the commencement of business. Under RR No. 7-2024, commencement of business is reckoned from the day the first sale transaction occurred, or upon the lapse of thirty (30) calendar days from the issuance of the Mayor's Permit, Professional Tax Receipt, or Occupational Tax Receipt by the local government unit, or the Certificate of Business Name Registration from the DTI, or the Certificate of Registration from the SEC — whichever comes first.

A person is considered to have violated this rule by failing to register with the BIR within thirty (30) calendar days from the issuance of the Mayor's Permit or the DTI/SEC registration, or from the date of the first sales transaction, whichever comes first.

Where to register

Self-employed individuals, including single proprietors, register online or manually at the RDO having jurisdiction over the place of business address. Professionals without a physical place of business register at the RDO covering their residence. Corporations, partnerships, and other juridical entities register at the RDO covering their place of business.

The step-by-step registration process

RR No. 7-2024 lists the obligations of business taxpayers, which translate into the following order of steps:

1. Register and secure a BIR Certificate of Registration (COR) by the prescribed deadline.
2. Comply with invoicing requirements. For manual invoices, secure an Authority to Print (ATP) or use BIR Printed Invoice. For computer-aided issuance, secure a Permit to Use Loose Leaf Invoice and ATP. For a Computerized Accounting System, secure an Acknowledgement Certificate.
3. Comply with bookkeeping requirements. Register books of accounts manually, or register loose-leaf books and CAS within the prescribed period.
4. Secure a Notice to Issue Invoices.
5. Attend the taxpayer's initial briefing conducted by the RDO, which informs newly registered businesses of their rights and obligations.

Each business name — including any "store name" used in an online store or e-commerce platform — must be registered with the BIR and reflected in the COR, provided it is also registered with the DTI or SEC.

Invoicing rules every online seller should know

Under the invoicing requirements implemented by RR No. 7-2024, a seller must issue a duly registered invoice for each sale and transfer of merchandise or services valued at Five hundred pesos (P500.00) or more, showing the name, Taxpayer Identification Number, date of transaction, quantity, unit cost, and description of merchandise or nature of service. This threshold is adjusted to present value every three years using the consumer price index.

If a buyer requires an invoice, the seller must issue one regardless of amount, provided the aggregate sales for the day reach at least P500.00 — in which case one invoice may cover the aggregate daily sales. VAT-registered persons must issue a duly registered invoice regardless of the amount of the sale.

The word "Invoice" must be printed prominently on the face of the invoice. Since the Ease of Paying Taxes Act no longer requires Official Receipts, the Invoice is now the primary evidence of both sales of goods and services, though taxpayers may still issue Official Receipts as supplementary documents.

Displaying proof of registration online

Online businesses — including sellers and merchants operating through a website, social media, or any digital or electronic means — must conspicuously display the electronic or copy of their BIR Certificate of Registration on their website, seller or merchant account or profile pages, and on the e-commerce platform or mobile application. The displayed proof must be easily accessible and visible to buyers or customers visiting the shop.

Frequently asked questions

Do online sellers really need to register with the BIR? Yes. RR No. 7-2024 expressly covers online sellers and merchants, including those providing digital goods and services, unless otherwise exempted. All online sellers must register on or before the commencement of business in an e-marketplace platform.

What happens if I sell online without registering? Any person who carries on or engages in any business and is not duly registered with the BIR shall, upon conviction for each act or omission, be punished in accordance with the penalty provided in the Tax Code.

What documents do I need to show my online customers? You must display your BIR Certificate of Registration conspicuously on your website, seller profile, or e-commerce shop so buyers can easily see it.

Practical takeaways

• Register with the BIR before you start selling, or within 30 calendar days from your Mayor's Permit, DTI/SEC registration, or first sale — whichever comes first.
• Secure your COR, invoicing authority (ATP or equivalent), and registered books of accounts, and attend the RDO initial briefing.
• Register every business or store name you use online and have it reflected in your COR.
• Display your BIR Certificate of Registration visibly on your online shop or seller page.
• Issue duly registered invoices for sales of P500.00 or more, and always if you are VAT-registered.

Primary sources

The rules discussed above are drawn from the following issuances, embedded here in full for your reference.

RR No. 7-2024 — Implements Section 113, 235, 236, 237, 238, 242, 243 of the Tax Code of 1997, as amended by RA No. 11976 (Ease of Paying Taxes Act), on the registration procedures and invoicing requirements (Date Posted: April 12, 2024)Open in Law LibraryDownload PDF

RR No. 16-2005 — Prescribes the Consolidated Value-Added Tax Regulations of 2005 superseding RR No. 14-2005 (Published in Manila Times on Oct. 21, 2005) Digest | Full TextOpen in Law LibraryDownload PDF

RAO No. 02-2014 — Defines the organization and functions of all Services/Offices in the BIR National Office, including its Divisions and Sections pursuant to the Rationalization Plan under Executive Order No. 366 Digest | Full TextOpen in Law LibraryDownload PDF

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.