The Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 015-2024 detailing the guidelines and requirements for the registration of businesses selling goods or services online or offline, operating digital platforms and offering freelance services.
The new RR, released on Aug. 15, 2024, covers everything from brick-and-mortar stores to online sellers and even digital content creators.
The RR requires all covered persons to register with the BIR. Failure to do so can result in administrative penalties and even criminal charges, it says.
Businesses with physical stores need to register their head office and any additional online stores with the BIR.
Online-only businesses should register based on their place of residence or principal place of business.
Once registered, businesses are required to display their certificate of registration (COR) or electronic certificate of registration (eCOR) prominently at their physical location and on their website or online platform.
The BIR stressed its authority to issue closure or takedown orders for non-compliant businesses.
The regulation also requires lessors and digital platforms to ensure that their lessees and online sellers are registered with the BIR. Non-compliance can lead to penalties.
Penalties can vary from P1,000 for late registration to P50,000 for businesses subject to excise tax that fail to register. Lessors and digital platforms can face penalties of P20,000 per branch or establishment for allowing unregistered sellers to operate.
RR 015-2024 will take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.
The BIR said entrepreneurs are advised to familiarize themselves with the new rules and take the necessary steps to register their businesses to avoid penalties.
