How to Register Your Online Shop in BIR

Filipinos are well-known for our creativity. As all of us have witnessed personally and in social media, instead of giving in to a lot of frustrations brought about by the pandemic especially the lost of income since there are so many companies closing nowadays, most of us opted to do business on the side to ensure that there is always food on the table for our family. Since we are having a pandemic due to COVID-19 and we were under ECQ and now GCQ, it was and it is very difficult and unsafe to go out and buy. So many existing sellers and new sellers are now using electronic media especially social media to conduct business transactions. But in the month of June this year, the Bureau of Internal Revenue (BIR) notifies thru Revenue Memorandum Circular 60-2020 the persons conducting business through any forms of electronic media and those persons with existing businesses that are not yet registered regarding their tax obligations and the registration of their businesses with BIR on or before 31 July 2020 to avoid penalties. 

Why do We Need to Register Our Online Shops in BIR

As per RMC 60-2020, “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means to ensure that their business are registered pursuant to the provisions of Section 236 of the Tax Code , as amended , and that they are tax compliant. ”  Although exempted to pay the income tax if gross income is less than Php 250,000, all small, medium and big businesses are required to register with BIR and file their taxes regularly. BIR also stated, ” all those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/ unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations. “

How to Register Our Online Shops in BIR

1. Register Business Name in DTI

The first thing to do is to register your business name with DTI. This is very easy since DTI is now online. You do not have to go to their office physically. You can just do this even at home. Just log- in to their website and fill out the application form. You can also pay online using e-payment facilities for example GCash and the likes. The cost of Business Name Registration is depending on your store’s scope. Please find below info on the cost:

Barangay – Php 200

City         – Php 500

Regional – Php 1000

National – Php 2000

Added to the amount above is the payment for documentary stamps which is Php 30. Upon confirmation of payment, DTI will send you an email with your DTI Business Name Registration (BNR) Certificate and an official receipt for the payment made. Print a copy of your BNR certificate because you will need this during BIR registration.

2. Register Business in BIR

Before going to BIR, make sure to bring your own ball pen. For safety measures, it is not allowed to borrow or lend a ball pen inside the BIR office. Below are the documents you need to register.

You need to fill out two copies of BIR Form no. 1901 Version 2018 – Application for Registration. You can  print this at home so you can fill it out prior going to BIR or you can ask this form from the BIR guard. After filling out this form, submit this to the BIR officer in-charge for New Business Registration together with the photo copies of your ID/s and DTI BNRS Certificate.

3. Pay for BIR Registration Fee

After the BIR officer’s evaluation of the required documents, you need to pay for BIR registration fee, Php 500 and documentary stamps Php 30. You need to fill out two copies of BIR Form No. 0605 and make payments for the registration thru e-payment gateways shown below or you can go to the banks near you. As for me, I opted to use GCash to lessen the hassle. I just went out from BIR Office to print the proof of payment thru a small store offering printing services in front of BIR. You need to attach the proof of payment to the required documents discussed earlier so they can process your application for registration.

4. Claim BIR Certificate Registration

You can claim your Certificate of Registration (COR) after 1-2 working days from your application date.

5. Register Your Books

You need to register your books where you will record you business transaction entries. During BIR inspections, they will look for your books. You need to register the following books: 

General Ledger 

General Journal 

Cash Receipts ( 10 or more columns) 

Cash Disbursement ( 10 or more columns) 

You can buy these books from any bookstore near you. BIR will stamp these books just like the picture below and make sure that you will not put entry on these book prior the registration date indicated on the stamp. It is a violation if you are using unregistered books and you will incur penalties.

5. Submit Application to Print Receipts and Invoices

As a business entity, you must issue receipts or invoices to your customers. Online shops or stores with physical products must issue sales invoices but professionals and service providers must issue official receipts.These receipts and invoices that we issue to our customers should be registered with BIR. So to apply for registered receipts and invoices, you need to fill out two copies of BIR No. 1906 – Application for Authority to Print Receipts and Invoices. In my own experience, to lessen the hassle, I ordered my Sales Invoice Booklets from my RDO’s accredited printer. I paid Php 1,500 for 10 booklets. BIR will require you to have at least 10 booklets of sales invoices or official receipts.

I was able to claim my sales invoice booklets after 7 working days. It may take longer or shorter days in your RDO.

So now you have your BIR Certificate of Registration , Registered Books and Registered Sales Invoice. You can now start selling your way to success!If you have something to share with regards to this topic,  feel free to comment so we can also learn from you. Happy Selling!