REVENUE MEMORANDUM CIRCULAR NO. 55-2013
REITERATING TAXPAYERS' OBLIGATIONS IN RELATION TO ONLINE BUSINESS TRANSACTIONS
What does it means?
It means online sellers, in however form should pay taxes says the BIR. :-)
BIR has classified online transaction as follows: Check which one you're classified with.
1. Business to Consumer ( "B2C") - which involves online store selling gods and services to final consumers.
( You are included in this group if you have a website, online store, selling goods or services to your costumers/clients/consumers. )
2. Consumer to consumer ( "C2C')
( You are included in this group if you sell online through www.facebook.com, www.sulit.com.ph, www.ayosdito.ph, www.ebay.com.ph, etc. as long as your are selling online whatever website you are coursing/using to sell your goods and services.)
3. Business to Business ( "B2B") which encompasses job recruitment, online advertising, credit, sales, market research, technical support, procurement, and different types of training.
( This includes companies who offers their goods and services to other companies. )
If you are classified in any of the above you are required to register your business with BIR and pay your taxes accordingly. :-)
How do you do it?
First: Register your business at the Revenue District Office ( RDO) having jurisdiction over the principal place of business/head office ( or residence in case of individuals).
Before you go to BIR to register your business,
You have to secure first the ff:
1. Go to your barangay hall for Barangay Clearance.
2. Then, register your business in Department of Trade and Industry (DTI) . www.dti.gov.ph
( Think of what you will name your business, ex. Mabenta Online Enterprise but you have to check it first with DTI if the name is taken already so you need to prepare at least three names for your business just in case the other two have been taken already.)
3. Go to city hall for your business permit.
Requirements for new business in Quezon city:
( Original & Photocopy)
1. Barangay Clearance
2. DTI for single proprietor, SEC with Articles for Corporation
3. Title or tax declaration ( if owned) Contract of lease ( if rented)
4. Location Clearance
5. Authorization letter & ID ( if representative)
6. Other documents required per nature of business.
Reminder: May bayad lahat ang pagkuha ng barangay clearance, DTI and business permit. :-)
Those are the requirements before when you register your business in BIR.
But someone told me last week ( October 2013) that you only need DTI to register in BIR in Makati. But last week October 2013, our staff went to BIR - RDO 40 in Cubao, Quezon City to register and they are still asking for business permit. if you are in Makati area, you can check it first with them if you can register your business with DTI only, then you can go straight to BIR first, before you get your business permit from the city hall.
How do you register your business in BIR?
1. Accomplish BIR form 1901 ( for individual ) & 1903 ( for corporations or partnerships)
With the ff:
For individual: 1. birth certificate 2. mayor's permit 3. DTI
2. Pay registration fee to any bank ( AAB-Authorized Agent Bank) located within you RDO.
( Use BIR form 605 when you pay this in bank)
3. Then, the BIR will issue your Certificate of Registration
( this should be displayed conspicuously in the business establishment for those in traditional/not online business, since the BIR usually conduct tax mapping for these.)
*** conspicuously meaning it should be where it can be seen clearly, or it should be in a noticeable place.
What to do next?
1. Secure te required Authority to print (ATP) invoices/receipts and register books of accounts for use in business, which may either be:
A.) Manual books of accounts, booklets of invoices/receipts, accounting records or loose-leaf.
B.) Computrized Accounting System (CAS) and/or its components including e-Invoicing system under Revenue Memorandum order (RMO) No. 21-2000 as amended by RMO No. 29-02.
After you register your business and you have your books of account, what do you do now?
1. Issue registered invoice or receipt, either manually or electronically after every sale, barter, exchange, or lease of goods and properties as well as for every sale, barter, or exchange of service.
2. Withhold required creditable/ expanded withholding tax, final tax. tax on compensation of employees, and other withholding taxes. Remit the same to the BIR at the time/ times required, and issue to the concerned payees the necessary Certificate of Tax Withheld.
3. File applicable tax returns on or before the due dates, pay correct internal revenue taxes, and submit information returns and other tax compliance reports such as Summary of List of Sales/Purchases. ( SLS/P), Annual Apha List of Payees, etc. at the time or time required by existing rules and regulations.
( Check your Certificate of Registration, it is listed their the required tax return you need to file.
Ex. if you are VAT registered you need to file BIR form 2550M every month and 2550Q for the quarter or BIR form 2551M if you registered in percentage tax.)
4. Keep books of account and other business/accounting records with in time prescribed by the law, and such shall be made available anytime for inspection and verification by duly authorized Revenue Officer/s for the purpose of ascertaining compliance with tax rules and regulations.
For "C2C' type, i think the above information is enough for you since mostly of C2C transact are on cash basis but the "B2C" and "B2B" i think they have their own accountant to take care of the withholding and other accounting stuff they need to accomplish. :-)
For comments, questions and suggestions, please email me at yourtaxmama@gmail.com or at ione.mejia@gmail.com
