Why Online Sellers Must Register with BIR

Bakit Kailangang Mag-register sa BIR ang mga Online Seller

If you are selling online — whether on Shopee, Lazada, TikTok Shop, Facebook Marketplace, or your own website — you are legally required to register your business with the Bureau of Internal Revenue (BIR) and pay the appropriate taxes. This is not optional. Under Philippine tax law, any person who derives income from trade, business, or the exercise of a profession is required to register with the BIR (Section 236 of the National Internal Revenue Code).

Kung nagbebenta ka online — sa Shopee man, Lazada, TikTok Shop, Facebook Marketplace, o sarili mong website — legally required kang i-register ang iyong negosyo sa Bureau of Internal Revenue (BIR) at magbayad ng tamang buwis. Hindi ito opsyonal. Sa ilalim ng Philippine tax law, ang sinumang kumikita mula sa trade, business, o pagsasanay ng propesyon ay kailangang magparehistro sa BIR (Section 236 ng National Internal Revenue Code).

The BIR is watching e-commerce platforms

Minomonitor ng BIR ang mga e-commerce platform

The BIR has been actively monitoring online selling activity since 2019. Under Revenue Memorandum Circular (RMC) No. 60-2020, the BIR formally reminded all online sellers that they are required to register, file returns, and pay taxes. The BIR has also been coordinating with platforms like Shopee and Lazada to obtain seller data and transaction records. Huwag mong isiping hindi nila alam — the platforms are cooperating with tax authorities.

Aktibong minomonitor ng BIR ang mga online selling activity mula pa 2019. Sa ilalim ng Revenue Memorandum Circular (RMC) No. 60-2020, pormal na pinaalalahanan ng BIR ang lahat ng online sellers na kailangan nilang magparehistro, mag-file ng returns, at magbayad ng buwis. Nakikipagtulungan din ang BIR sa mga platform tulad ng Shopee at Lazada para makakuha ng seller data at transaction records. Huwag mong isiping hindi nila alam — nakikipagtulungan ang mga platform sa tax authorities.

Penalties for non-registration

Mga multa para sa hindi pagpaparehistro

Operating a business without BIR registration exposes you to serious penalties:

Ang pagpapatakbo ng negosyo nang walang BIR registration ay may malalaking multa:

• Fine of ₱5,000 to ₱20,000 for failure to register
• 25% surcharge on unpaid taxes, plus 12% annual interest
• Potential criminal liability for tax evasion under the National Internal Revenue Code
• Closure of your business — the BIR can issue a closure order

• Multa na ₱5,000 hanggang ₱20,000 para sa hindi pagpaparehistro
• 25% surcharge sa hindi nabayarang buwis, plus 12% taunang interest
• Posibleng criminal liability para sa tax evasion sa ilalim ng National Internal Revenue Code
• Pagsasara ng iyong negosyo — ang BIR ay pwedeng mag-issue ng closure order

The good news: registering is straightforward, and the tax burden for small online sellers is very manageable. Mas mura ang buwis na babayaran mo kaysa sa multa na mahaharap mo kapag nahuli ka. Let us walk through the entire process step by step.

Ang magandang balita: simple lang ang pagpaparehistro, at ang buwis para sa maliliit na online sellers ay napakadaling pangasiwaan. Mas mura ang buwis na babayaran mo kaysa sa multa na mahaharap mo kapag nahuli ka. I-walk through natin ang buong proseso nang hakbang-hakbang.

DTI Registration for Online Business

DTI Registration para sa Online Business

Before you register with BIR, you need a registered business name from the Department of Trade and Industry (DTI). This is required for sole proprietors — which is what most online sellers are. If you are selling as an individual (not a corporation or partnership), DTI registration is your first step.

Bago ka magparehistro sa BIR, kailangan mo muna ng registered business name mula sa Department of Trade and Industry (DTI). Ito ay required para sa sole proprietors — na siyang karamihan ng mga online sellers. Kung nagbebenta ka bilang indibidwal (hindi corporation o partnership), ang DTI registration ang unang hakbang mo.

How to register online with DTI

Paano mag-register online sa DTI

1. Go to bnrs.dti.gov.ph (Business Name Registration System)
2. Create an account or log in
3. Search for your desired business name to check availability
4. Select your business scope — for online sellers, choose National scope (covers the entire Philippines, good for e-commerce)
5. Fill out the application form — indicate that your business is home-based if you are operating from your residence
6. Pay the registration fee online: ₱200 (barangay), ₱500 (city/municipality), ₱1,000 (regional), or ₱2,000 (national)
7. Download and print your DTI Certificate of Business Name Registration

1. Pumunta sa bnrs.dti.gov.ph (Business Name Registration System)
2. Gumawa ng account o mag-log in
3. I-search ang gusto mong business name para i-check kung available
4. Piliin ang scope ng iyong negosyo — para sa mga online sellers, piliin ang National scope (sumasaklaw sa buong Pilipinas, maganda para sa e-commerce)
5. Sagutan ang application form — itukoy na home-based ang iyong negosyo kung nagpapatakbo ka mula sa iyong bahay
6. Bayaran ang registration fee online: ₱200 (barangay), ₱500 (city/municipality), ₱1,000 (regional), o ₱2,000 (national)
7. I-download at i-print ang iyong DTI Certificate of Business Name Registration

For most online sellers, the national scope at ₱2,000 is recommended since you will be selling to customers all over the Philippines. The certificate is valid for 5 years. Tip: choose a business name that relates to your online store para consistent ang branding mo sa Shopee at sa official documents mo.

Para sa karamihan ng online sellers, ang national scope na ₱2,000 ang recommended dahil magbebenta ka sa mga customer sa buong Pilipinas. Ang certificate ay valid for 5 years. Tip: pumili ng business name na may kaugnayan sa iyong online store para consistent ang branding mo sa Shopee at sa official documents mo.

BIR Registration Steps for Online Sellers

Mga Hakbang sa BIR Registration para sa mga Online Seller

Once you have your DTI certificate, it is time to register with BIR. This is the most important registration because this is how the government tracks your income and tax obligations. Here is the step-by-step process:

Kapag nakuha mo na ang iyong DTI certificate, oras na para magparehistro sa BIR. Ito ang pinakamahalagang registration dahil ito ang paraan ng gobyerno na ma-track ang iyong kita at obligasyon sa buwis. Narito ang hakbang-hakbang na proseso:

Step 1: Go to your Revenue District Office (RDO)

Hakbang 1: Pumunta sa iyong Revenue District Office (RDO)

Your RDO is the BIR office that has jurisdiction over the location of your business. Since most online sellers operate from home, this is the BIR RDO where your home address is located. You can find your assigned RDO using the BIR's RDO locator on their website or by calling the BIR hotline at 8538-3200.

Ang iyong RDO ay ang BIR office na may jurisdiction sa lokasyon ng iyong negosyo. Dahil karamihan ng online sellers ay nagpapatakbo mula sa bahay, ito ang BIR RDO kung saan nakabase ang iyong home address. Makikita mo ang iyong assigned RDO gamit ang BIR's RDO locator sa kanilang website o sa pagtawag sa BIR hotline sa 8538-3200.

Step 2: Fill out BIR Form 1901

Hakbang 2: Sagutan ang BIR Form 1901

BIR Form 1901 is the Application for Registration for Self-Employed (Single Proprietor/Professional), Mixed-Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estates, and Trusts. As an online seller registering as a sole proprietor, this is the form you need. Fill it out completely with your personal information, business name, business address, and the type of tax you want to choose (8% flat tax or graduated rates).

Ang BIR Form 1901 ay ang Application for Registration para sa Self-Employed (Single Proprietor/Professional), Mixed-Income Individuals, Non-Resident Alien Engaged in Trade/Business, Estates, at Trusts. Bilang online seller na nagpaparehistro bilang sole proprietor, ito ang form na kailangan mo. Sagutan ito nang buo kasama ang iyong personal information, business name, business address, at ang uri ng buwis na gusto mong piliin (8% flat tax o graduated rates).

Step 3: Submit requirements and get your COR

Hakbang 3: I-submit ang mga requirements at kunin ang iyong COR

Submit BIR Form 1901 along with the required documents (see the checklist below). Once processed, the BIR will issue you a Certificate of Registration (COR) — BIR Form 2303. This is your most important document as a registered taxpayer. The COR contains your TIN, registered business name, RDO code, line of business, tax types you are registered for, and your filing/payment deadlines. Post it visibly in your place of business (even if it is your home office). Itago ito nang maayos — kailangan mo ito for many transactions.

I-submit ang BIR Form 1901 kasama ang mga required na dokumento (tingnan ang checklist sa ibaba). Kapag na-process na, ibibigay sa iyo ng BIR ang Certificate of Registration (COR) — BIR Form 2303. Ito ang pinakamahalagang dokumento mo bilang registered taxpayer. Ang COR ay naglalaman ng iyong TIN, registered business name, RDO code, line of business, mga uri ng buwis na rehistrado ka, at ang iyong filing/payment deadlines. I-post ito nang visible sa iyong lugar ng negosyo (kahit home office lang ito). Itago ito nang maayos — kailangan mo ito for maraming transactions.

Step 4: Register your books of accounts

Hakbang 4: I-register ang iyong books of accounts

The BIR requires all businesses to maintain books of accounts. For micro taxpayers (gross sales under ₱3M), you only need a simplified set — typically a journal and ledger. You can buy blank accounting books at National Bookstore or similar stores. Bring them to your BIR RDO to have them stamped and registered. Under the Ease of Paying Taxes (EOPT) Act, micro taxpayers can also use simplified electronic records. Tip: you can use a simple Excel spreadsheet to track income and expenses, then transfer to your registered books during filing season.

Kinakailangan ng BIR ang lahat ng negosyo na mag-maintain ng books of accounts. Para sa mga micro taxpayer (gross sales below ₱3M), kailangan mo lang ng simplified set — karaniwang journal at ledger. Pwede kang bumili ng blank accounting books sa National Bookstore o katulad na mga tindahan. Dalhin ito sa iyong BIR RDO para ma-stamp at ma-register. Sa ilalim ng Ease of Paying Taxes (EOPT) Act, ang mga micro taxpayer ay pwede ring gumamit ng simplified electronic records. Tip: pwede kang gumamit ng simpleng Excel spreadsheet para i-track ang kita at gastos, tapos i-transfer sa iyong registered books kapag filing season na.

Step 5: Get authority to print receipts/invoices

Hakbang 5: Kumuha ng authority to print receipts/invoices

Apply for an Authority to Print (ATP) by submitting BIR Form 1906 to your RDO. This authorizes you to have official receipts and/or sales invoices printed by a BIR-accredited printer. Alternatively, under newer BIR rules, micro and small taxpayers may use the BIR's eReceipt/eInvoice system for electronic issuance. We will cover receipts in more detail in the section below.

Mag-apply ng Authority to Print (ATP) sa pamamagitan ng pag-submit ng BIR Form 1906 sa iyong RDO. Ito ang nagbibigay ng pahintulot para maipalimbag ang iyong mga opisyal na resibo at/o sales invoices ng isang BIR-accredited printer. Bilang alternatibo, sa ilalim ng mas bagong BIR rules, ang mga micro at small taxpayers ay pwedeng gumamit ng eReceipt/eInvoice system ng BIR para sa electronic issuance. Tatalakayin natin ang receipts nang mas detalyado sa seksyon sa ibaba.

Choosing Your Tax Type: 8% Flat Tax vs Graduated Rates

Pagpili ng Uri ng Buwis: 8% Flat Tax vs Graduated Rates

When you register with BIR, you will need to choose between two tax options. This is one of the most important decisions you will make as an online seller, and it directly affects how much tax you pay. Pag-isipan ito nang mabuti bago pumili.

Kapag nagparehistro ka sa BIR, kailangan mong pumili sa dalawang tax option. Isa ito sa pinakamahalagang desisyon na gagawin mo bilang online seller, at direkta itong nakakaapekto sa kung magkano ang babayaran mong buwis. Pag-isipan ito nang mabuti bago pumili.

Option 1: 8% Flat Income Tax

Opsyon 1: 8% Flat Income Tax

• Available only if your gross annual sales do not exceed ₱3,000,000
• You pay 8% of gross sales/receipts exceeding ₱250,000
• Replaces both the graduated income tax AND the 3% percentage tax
• No need to track or deduct expenses — you pay based on gross sales only
• Simpler computation, less paperwork
• File using BIR Form 1701A (annual) and 1701Q (quarterly)

• Available lang kung ang iyong gross annual sales ay hindi hihigit sa ₱3,000,000
• Nagbabayad ka ng 8% ng gross sales/receipts na lampas sa ₱250,000
• Pinapalitan nito ang graduated income tax AT ang 3% percentage tax
• Hindi na kailangan mag-track o magbawas ng expenses — nagbabayad ka batay sa gross sales lang
• Mas simpleng computation, mas kaunting paperwork
• I-file gamit ang BIR Form 1701A (taunang) at 1701Q (quarterly)

Option 2: Graduated Income Tax Rates

Opsyon 2: Graduated Income Tax Rates

• Tax rates range from 0% to 35% based on your taxable income bracket
• First ₱250,000 of taxable income is tax-exempt
• You can deduct expenses using Optional Standard Deduction (OSD — 40% of gross sales) or Itemized Deductions (actual documented expenses)
• You also pay 3% percentage tax quarterly (BIR Form 2551Q) on gross receipts — unless you exceed the ₱3M VAT threshold
• More paperwork, but potentially lower tax if your expenses are high

• Ang tax rates ay mula 0% hanggang 35% batay sa iyong taxable income bracket
• Ang unang ₱250,000 ng taxable income ay tax-exempt
• Pwede mong ibawas ang mga gastos gamit ang Optional Standard Deduction (OSD — 40% ng gross sales) o Itemized Deductions (aktwal na nado-document na gastos)
• Nagbabayad ka rin ng 3% percentage tax quarterly (BIR Form 2551Q) sa gross receipts — maliban kung lumampas ka sa ₱3M VAT threshold
• Mas maraming paperwork, pero posibleng mas mababa ang buwis kung malaki ang iyong gastos

When is 8% better for online sellers?

Kailan mas maganda ang 8% para sa mga online seller?

For most small to mid-sized online sellers earning under ₱3M/year, the 8% flat tax is often the better choice because of its simplicity. You do not need to keep detailed records of every expense — just track your gross sales. This is especially convenient for sellers on Shopee and Lazada where tracking cost of goods sold (COGS), shipping costs, and platform fees can be complex.

Para sa karamihan ng maliliit hanggang katamtamang online sellers na kumikita ng below ₱3M/taon, ang 8% flat tax ang kadalasang mas magandang pagpipilian dahil sa simplicity nito. Hindi mo kailangan mag-keep ng detailed records ng bawat gastos — i-track lang ang iyong gross sales. Ito ay lalo nang convenient para sa mga sellers sa Shopee at Lazada kung saan ang pag-track ng cost of goods sold (COGS), shipping costs, at platform fees ay pwedeng maging kumplikado.

However, if your business has very high expenses (e.g., COGS is 60-70% of sales because you are reselling products with thin margins), the graduated rate with OSD or itemized deductions might give you a lower tax bill. The rule of thumb: if your net profit is below 40% of gross sales, compute both options and compare. Kung reseller ka na halos walang margin, baka mas mura ang graduated with itemized.

Gayunpaman, kung ang iyong negosyo ay may napakalaking gastos (hal., ang COGS ay 60-70% ng sales dahil reseller ka na may manipis na margins), ang graduated rate na may OSD o itemized deductions ay maaaring magbigay sa iyo ng mas mababang tax bill. Ang pangkalahatang patakaran: kung ang net profit mo ay below 40% ng gross sales, i-compute ang parehong options at ihambing. Kung reseller ka na halos walang margin, baka mas mura ang graduated with itemized.

VAT Registration: When It Becomes Mandatory

VAT Registration: Kailan Ito Nagiging Mandatory

Value-Added Tax (VAT) is a separate tax on the sale of goods and services. As an online seller, you need to understand when VAT applies to you:

Ang Value-Added Tax (VAT) ay isang hiwalay na buwis sa pagbebenta ng mga produkto at serbisyo. Bilang online seller, kailangan mong maunawaan kung kailan applicable ang VAT sa iyo:

The ₱3,000,000 threshold

Ang ₱3,000,000 threshold

VAT registration is mandatory if your gross annual sales exceed ₱3,000,000. Once you cross this threshold, you must:

Ang VAT registration ay mandatory kung ang iyong gross annual sales ay lumampas sa ₱3,000,000. Kapag lumampas ka sa threshold na ito, kailangan mong:

• Register as a VAT taxpayer with the BIR
• Add 12% VAT to the selling price of your goods
• File BIR Form 2550M (Monthly VAT Declaration) and BIR Form 2550Q (Quarterly VAT Return)
• Issue VAT official receipts or VAT sales invoices

• Magparehistro bilang VAT taxpayer sa BIR
• Magdagdag ng 12% VAT sa selling price ng iyong mga produkto
• Mag-file ng BIR Form 2550M (Monthly VAT Declaration) at BIR Form 2550Q (Quarterly VAT Return)
• Mag-isyu ng VAT official receipts o VAT sales invoices

What does VAT mean for your pricing?

Ano ang ibig sabihin ng VAT sa iyong pricing?

When you become VAT-registered, you collect 12% VAT from your buyers on top of your selling price (or you can include it in your listed price). The VAT you collect is called output VAT. You can then deduct the VAT you paid on your purchases and expenses (input VAT) from the output VAT. The difference is what you remit to the BIR. For example, if you collected ₱12,000 in output VAT and paid ₱5,000 in input VAT during the month, you remit ₱7,000 to BIR.

Kapag naging VAT-registered ka, kinokolekta mo ang 12% VAT mula sa iyong mga buyer sa itaas ng iyong selling price (o pwede mo itong isama sa iyong listed price). Ang VAT na kinokolekta mo ay tinatawag na output VAT. Pwede mo namang ibawas ang VAT na binayaran mo sa iyong mga purchases at expenses (input VAT) mula sa output VAT. Ang pagkakaiba ang siyang ipinapadala mo sa BIR. Halimbawa, kung nakolekta mo ang ₱12,000 sa output VAT at nagbayad ka ng ₱5,000 sa input VAT sa loob ng buwan, nagpapadala ka ng ₱7,000 sa BIR.

Important: if your sales are below ₱3M, you are a non-VAT taxpayer and you pay 3% percentage tax instead (unless you chose the 8% flat tax, which already replaces the percentage tax). Hindi mo kailangan mag-charge ng VAT sa buyers mo kung below ₱3M ang sales mo. Pero once you breach that threshold, kailangan mong mag-register as VAT within 30 days.

Mahalaga: kung ang sales mo ay below ₱3M, ikaw ay non-VAT taxpayer at nagbabayad ka ng 3% percentage tax sa halip (maliban kung pinili mo ang 8% flat tax, na pinapalitan na ang percentage tax). Hindi mo kailangan mag-charge ng VAT sa buyers mo kung below ₱3M ang sales mo. Pero once you breach that threshold, kailangan mong mag-register as VAT within 30 days.

Official Receipts and Invoices for Online Sellers

Mga Opisyal na Resibo at Invoice para sa mga Online Seller

As a registered business, you are required to issue official receipts (ORs) or sales invoices (SIs) for every transaction. Under the Ease of Paying Taxes Act, the rules have been simplified:

Bilang registered business, kinakailangan kang mag-isyu ng opisyal na resibo (ORs) o sales invoices (SIs) para sa bawat transaksyon. Sa ilalim ng Ease of Paying Taxes Act, ang mga patakaran ay na-simplify:

Sales Invoice vs Official Receipt

Sales Invoice vs Opisyal na Resibo

• Sales Invoice (SI) — Issued for the sale of goods. As an online seller, this is your primary document. It should be issued at the point of sale (when the order is placed or shipped).
• Official Receipt (OR) — Issued for the sale of services or as proof of payment received. If you sell both products and services, you may need both.

• Sales Invoice (SI) — Inilalabas para sa pagbebenta ng produkto. Bilang online seller, ito ang iyong pangunahing dokumento. Dapat itong i-issue sa point of sale (kapag nag-order o nag-ship).
• Opisyal na Resibo (OR) — Inilalabas para sa pagbebenta ng serbisyo o bilang patunay ng natanggap na bayad. Kung nagbebenta ka ng parehong products at services, maaaring kailangan mo ang dalawa.

Manual vs Electronic receipts

Manual vs Electronic na resibo

You have two options for issuing receipts and invoices:

May dalawang opsyon ka para sa pag-isyu ng mga resibo at invoice:

• Manual (printed) receipts: Apply for an Authority to Print (ATP) using BIR Form 1906, then have your receipts printed by a BIR-accredited printing press. These come in booklet form (usually 50 sets of 3-ply carbonless forms).
• Electronic receipts (eReceipt/eInvoice): The BIR has been rolling out the Electronic Invoicing/Receipting System (EIS). Large taxpayers are required to use it, and it is being gradually extended to smaller businesses. Check with your RDO if this is already available for your taxpayer classification. For many micro sellers, manual receipts are still the standard.

• Manual (printed) na resibo: Mag-apply ng Authority to Print (ATP) gamit ang BIR Form 1906, tapos ipalimbag ang iyong mga resibo sa isang BIR-accredited printing press. Ang mga ito ay nasa booklet form (karaniwang 50 sets ng 3-ply carbonless forms).
• Electronic receipts (eReceipt/eInvoice): Nag-roll out ang BIR ng Electronic Invoicing/Receipting System (EIS). Ang mga large taxpayers ay required na gumamit nito, at unti-unti itong pinalawak sa mas maliliit na negosyo. I-check sa iyong RDO kung available na ito para sa iyong taxpayer classification. Para sa maraming micro sellers, ang manual receipts pa rin ang standard.

Practical tip for online sellers: many Shopee and Lazada buyers do not request official receipts, but you are still required to issue them. Keep a copy for your records. Some sellers include a printed receipt in the package or send a photo/PDF via chat after delivery. It is good practice and protects you during BIR audits. Kahit hindi hinihingi ng buyer, ilabas mo pa rin — para sa records mo.

Practical tip para sa mga online sellers: maraming Shopee at Lazada buyers ang hindi humihingi ng opisyal na resibo, pero required ka pa ring mag-isyu. Mag-keep ng kopya para sa iyong records. Ang ilan sa mga sellers ay nagsasama ng printed receipt sa package o nagpapadala ng photo/PDF sa chat pagkatapos ng delivery. Ito ay magandang practice at nagpoprotekta sa iyo sa panahon ng BIR audits. Kahit hindi hinihingi ng buyer, ilabas mo pa rin — para sa records mo.

Quarterly Filing for Online Sellers

Quarterly Filing para sa mga Online Seller

Unlike employees whose taxes are withheld by their employer, self-employed online sellers must file and pay taxes quarterly. Huwag mong hintayin ang end of the year — quarterly ang filing schedule mo. Here is what you need to know:

Hindi tulad ng mga empleyado na ang buwis ay winawithheld ng kanilang employer, ang self-employed online sellers ay kailangang mag-file at magbayad ng buwis quarterly. Huwag mong hintayin ang end of the year — quarterly ang filing schedule mo. Narito ang kailangan mong malaman:

Quarterly Income Tax (BIR Form 1701Q)

Quarterly Income Tax (BIR Form 1701Q)

You must file BIR Form 1701Q (Quarterly Income Tax Return for Self-Employed Individuals, Estates, and Trusts) every quarter. The schedule is:

Kailangan mong mag-file ng BIR Form 1701Q (Quarterly Income Tax Return para sa Self-Employed Individuals, Estates, at Trusts) bawat quarter. Ang schedule ay:

• 1st Quarter (Jan-Mar): Due on or before May 15
• 2nd Quarter (Apr-Jun): Due on or before August 15
• 3rd Quarter (Jul-Sep): Due on or before November 15
• Annual Return (Jan-Dec): Due on or before April 15 of the following year (BIR Form 1701A or 1701)

• 1st Quarter (Ene-Mar): Due on o bago ang Mayo 15
• 2nd Quarter (Abr-Hun): Due on o bago ang Agosto 15
• 3rd Quarter (Hul-Set): Due on o bago ang Nobyembre 15
• Taunang Return (Ene-Dis): Due on o bago ang Abril 15 ng susunod na taon (BIR Form 1701A o 1701)

Percentage Tax (BIR Form 2551Q) — if applicable

Percentage Tax (BIR Form 2551Q) — kung applicable

If you chose the graduated tax rates (not the 8% flat tax), you also need to file BIR Form 2551Q — the Quarterly Percentage Tax Return. This is a 3% tax on your gross receipts, filed on the same quarterly schedule. If you chose the 8% flat tax, you do NOT need to file this form — it is already covered.

Kung pinili mo ang graduated tax rates (hindi ang 8% flat tax), kailangan mo ring mag-file ng BIR Form 2551Q — ang Quarterly Percentage Tax Return. Ito ay 3% na buwis sa iyong gross receipts, sine-file sa parehong quarterly schedule. Kung pinili mo ang 8% flat tax, HINDI mo na kailangan i-file ang form na ito — kasama na ito.

What income to declare

Anong kita ang idedeklara

Declare all income from your online selling activities — this includes:

Ideklara ang lahat ng kita mula sa iyong online selling activities — kasama rito ang:

• Sales from Shopee, Lazada, TikTok Shop, and other marketplaces
• Sales from Facebook Marketplace, Instagram, or direct messages
• Payments received via GCash, Maya, bank transfer, or cash on delivery
• Income from your own e-commerce website
• Wholesale or bulk orders

• Sales mula sa Shopee, Lazada, TikTok Shop, at iba pang marketplaces
• Sales mula sa Facebook Marketplace, Instagram, o direct messages
• Mga bayad na natanggap sa pamamagitan ng GCash, Maya, bank transfer, o cash on delivery
• Kita mula sa sarili mong e-commerce website
• Wholesale o bulk orders

The BIR considers all sources of business income taxable. Kahit GCash or Maya ang ginamit na payment method, taxable pa rin ito. Do not think that digital payments are invisible to the BIR — they are not. E-wallet companies report transaction data to regulatory agencies.

Itinuturing ng BIR ang lahat ng pinagkukunan ng business income bilang taxable. Kahit GCash o Maya ang ginamit na payment method, taxable pa rin ito. Huwag mong isipin na hindi nakikita ng BIR ang mga digital payments — nakikita nila. Ang mga e-wallet companies ay nagrereport ng transaction data sa mga regulatory agencies.

Record-Keeping for Online Sellers

Record-Keeping para sa mga Online Seller

Good record-keeping is essential for tax compliance and for understanding the health of your online business. Here is how to keep organized records as an e-commerce seller:

Ang maayos na record-keeping ay mahalaga para sa tax compliance at para maunawaan ang kalusugan ng iyong online business. Narito kung paano mag-keep ng organized records bilang e-commerce seller:

Track your Shopee and Lazada payouts

I-track ang iyong Shopee at Lazada payouts

Both Shopee and Lazada have seller dashboards where you can download transaction reports and payout summaries. Make it a habit to download these reports at least monthly. The reports typically include:

Ang Shopee at Lazada ay parehong may seller dashboards kung saan pwede mong i-download ang transaction reports at payout summaries. Gawing habit ang pag-download ng mga reports na ito nang hindi bababa sa monthly. Ang mga reports ay karaniwang kasama ang:

• Gross sales per order
• Platform commission/fees deducted
• Shipping fees charged and subsidized
• Voucher deductions and seller discounts
• Net payout amount and date

• Gross sales bawat order
• Platform commission/fees na ibinawas
• Shipping fees na siningil at subsidized
• Voucher deductions at seller discounts
• Net payout amount at petsa

Track your Cost of Goods Sold (COGS)

I-track ang iyong Cost of Goods Sold (COGS)

COGS is the direct cost of the products you sell. This includes the purchase price from your supplier, shipping costs to get inventory, and packaging materials. Keeping accurate COGS records is important if you choose itemized deductions. Even if you chose the 8% flat tax (where COGS does not reduce your tax), knowing your COGS helps you understand your actual profit margin.

Ang COGS ay ang direktang gastos ng mga produktong binebenta mo. Kasama rito ang purchase price mula sa iyong supplier, shipping costs para makuha ang inventory, at packaging materials. Ang pag-keep ng tumpak na COGS records ay mahalaga kung pinili mo ang itemized deductions. Kahit pinili mo ang 8% flat tax (kung saan hindi binabawasan ng COGS ang iyong buwis), ang pag-alam ng iyong COGS ay nakakatulong na maunawaan ang iyong aktwal na profit margin.

Simple bookkeeping setup

Simpleng bookkeeping setup

You do not need expensive accounting software. A simple spreadsheet works for most online sellers. Create columns for:

Hindi mo kailangan ng mamahaling accounting software. Isang simpleng spreadsheet ang sapat para sa karamihan ng mga online sellers. Gumawa ng columns para sa:

• Date — Transaction date
• Description — What was sold or what expense was incurred
• Income — Gross sales amount
• Expense — Cost of goods, shipping, supplies, platform fees
• Platform — Shopee, Lazada, FB, website, etc.
• Payment method — GCash, Maya, bank transfer, COD
• Receipt/Invoice number — Your official receipt or invoice number

• Petsa — Petsa ng transaksyon
• Paglalarawan — Ano ang ibinenta o anong gastos ang natamo
• Kita — Gross sales amount
• Gastos — Cost of goods, shipping, supplies, platform fees
• Platform — Shopee, Lazada, FB, website, atbp.
• Paraan ng pagbabayad — GCash, Maya, bank transfer, COD
• Receipt/Invoice number — Ang iyong opisyal na resibo o invoice number

At the end of each quarter, sum up your total income and expenses. This makes quarterly filing straightforward. Keep this spreadsheet for at least 10 years — the BIR's prescription period for tax assessments. I-save mo sa Google Drive o cloud storage para hindi mawala.

Sa katapusan ng bawat quarter, pagsamahin ang iyong kabuuang kita at gastos. Ginagawa nitong diretso ang quarterly filing. Itago ang spreadsheet na ito nang hindi bababa sa 10 taon — ang prescription period ng BIR para sa mga tax assessment. I-save mo sa Google Drive o cloud storage para hindi mawala.

Home-Based Business Permits

Mga Permit para sa Home-Based Business

Most online sellers in the Philippines operate from home — packing orders in the living room, storing inventory in a spare bedroom. While this is perfectly fine, you still need some local permits to operate legally:

Karamihan ng mga online sellers sa Pilipinas ay nagpapatakbo mula sa bahay — nag-iimpake ng orders sa sala, nag-iimbak ng inventory sa spare bedroom. Kahit okay lang ito, kailangan mo pa rin ng ilang local permits para legal ang operasyon mo:

Barangay Clearance / Business Permit

Barangay Clearance / Business Permit

Go to your barangay hall and apply for a barangay business clearance. This is usually quick and affordable (around ₱200-₱500). You will need to present your DTI certificate and a valid ID. The barangay clearance states that your business is allowed to operate in the barangay. For home-based businesses, this is straightforward — most barangays are accommodating as long as the business does not cause disturbance to neighbors (no heavy foot traffic, no noise, no industrial activity). Kung online selling lang naman, wala namang magiging issue.

Pumunta sa iyong barangay hall at mag-apply ng barangay business clearance. Ito ay karaniwang mabilis at abot-kaya (humigit-kumulang ₱200-₱500). Kailangan mong ipresenta ang iyong DTI certificate at valid ID. Ang barangay clearance ay nagsasaad na pinapayagan ang iyong negosyo na mag-operate sa barangay. Para sa mga home-based business, diretso lang ito — karamihan ng mga barangay ay accommodating basta ang negosyo ay hindi nakakagambala sa mga kapitbahay (walang maraming tao, walang ingay, walang industrial na aktibidad). Kung online selling lang naman, wala namang magiging issue.

Mayor's Permit / Business Permit

Mayor's Permit / Business Permit

After getting the barangay clearance, apply for a Mayor's Permit (Municipal/City Business Permit) at your local city or municipal hall. Requirements and fees vary by LGU, but typically include:

Pagkatapos makuha ang barangay clearance, mag-apply ng Mayor's Permit (Municipal/City Business Permit) sa iyong local city o municipal hall. Ang mga requirements at fees ay iba-iba depende sa LGU, pero karaniwang kasama ang:

• Barangay business clearance
• DTI certificate
• BIR Certificate of Registration (COR)
• Lease contract or proof of address
• Community tax certificate (cedula)
• Applicable fees (varies, but usually ₱500-₱2,000 for small home-based businesses)

• Barangay business clearance
• DTI certificate
• BIR Certificate of Registration (COR)
• Lease contract o proof of address
• Community tax certificate (cedula)
• Applicable fees (iba-iba, pero karaniwang ₱500-₱2,000 para sa maliliit na home-based businesses)

Some LGUs have simplified processes for home-based online businesses, and a few cities now offer online application for business permits. Check your city hall's website or Facebook page for updates. Renewal is annual — typically in January. Tandaan: ang Mayor's permit ay nire-renew taon-taon, kaya i-mark mo sa calendar mo ang January deadline.

Ang ilan sa mga LGU ay may simplified processes para sa mga home-based online businesses, at ilang siyudad na ang nag-ooffer ng online application para sa business permits. I-check ang website o Facebook page ng iyong city hall para sa mga updates. Ang renewal ay taunang — karaniwang sa Enero. Tandaan: ang Mayor's permit ay nire-renew taon-taon, kaya i-mark mo sa calendar mo ang January deadline.