Summary
RMC No. 55-2013 reiterates the tax obligations of persons doing business through online transactions.
Key points
- Types of online transactions. The common types are online shopping or retailing, online intermediary service, online advertisement or classified ads, and online auction.
- Registration and receipts. Online businesses register at the RDO over their principal place of business or residence, using BIR Form 1901 for individuals or 1903 for corporations or partnerships, and pay the registration fee at an Authorized Agent Bank. They secure an Authority to Print for invoices and receipts, register books of accounts, and issue a registered invoice or receipt for every sale, barter, exchange or lease.
- Withholding, returns and records. They withhold and remit required taxes and issue Certificates of Tax Withheld. They file returns and information reports, such as the Summary List of Sales/Purchases and Annual Alpha List of Payees, on time, and keep books open for inspection by Revenue Officers.
- Same rules as physical sales. Existing tax laws and issuances on purchases and sales of goods and services apply equally to internet and digital channels as to physical ones.
- Penalties. A person in internet commerce who does not comply faces the penalties of existing laws and rules, plus penalties under Chapters II and IV, Title X of the NIRC.
Who is affected
- Persons who conduct business through online transactions
- Individuals, corporations and partnerships doing online business
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.