BIR Issues Update for Owners of Online Selling Business in Western Visayas
BIR – The Bureau of Internal Revenue requires online sellers including micro, small, medium, and large online selling business owners in Western Visayas to register.
The national tax-collecting body in the Philippines is the Bureau of Internal Revenue, more popularly called BIR. Businesses in the country are required to register to the said state agency as well as property owners.
The Bureau of Internal Revenue is the body that sets taxes on properties, businesses, and assets. It is also the body that issues TIN ID to registered taxpayers. Undeniably, most of the registered businesses in the tax-collecting bureau are those with physical offices and establishments.
Nowadays, there is undeniably a huge number of online businesses. Truth be told that there are many businesses that are not registered to the BIR. There are countless online sellers in the country now.
Recently, the Bureau of Internal Revenue gave an update about online selling businesses. Based on an article on GMA News, the BIR is requiring online sellers in Visayas to register to the tax-collecting body.
The said BIR mandate includes micro, small, medium, and large online selling businesses in Western Visayas. Based on the report, to register, an online seller must submit a duly-accomplished Form 1901 with a trade name registered at the DTI or the Department of Trade and Industry.
Furthermore, the form must contain the necessary personal information of the business owner to be issued a Certificate of Registration by the Bureau of Internal Revenue. With regards to the taxes, according to Attorney Michael Alparaque, the group supervisor of the Assessment Section of the tax-collecting body of BIR said that the tax that will be implemented depends on the income of the owner.
Based on the report, if the gross income of the online business owner is below Php 3 million, a percentage tax will be applied. On the other end, in case the annual gross income reaches Php 3 million, the Value-Added Tax or VAT applies.
Furthermore, the tax-collecting bureau reminded that online sellers must issue invoice which should be attached to the products bought. Medicines and agricultural products are VAT-exempted.