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  1. #1
    Moderator laurence's Avatar
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    Taxpayers Obligations in Relation to Online Business Transactions - RMC 55-2013

    The BIR has issued Revenue Memorandum Circular No. 55-2013 dated August 5, 2013, reiterating taxpayers’ obligations in relation to online business transactions. These online transactions include online shopping or online retailing, online advertisement/classified ads, and online auction. According to the Memorandum, the individuals or companies involved in those online transactions, such as the online merchant, online retailer, credit card companies, freight forwarders, auction web stores, and online website administrators are required to:

    1. Register the business at the Revenue District Office (RDO) having jurisdiction over the principal place of business/head office (or residence in case of individuals), by accomplishing BIR Form 1901 (for individuals) or 1903 (for corporations or partnerships), and pay the registration fee to any Authorized Agent
    Bank (AAB) located within the RDO. A BIR Certificate of Registration shall be issued by the RDO, reflecting therein the tax types required of the concerned taxpayer for filing and payment, which shall be displayed conspicuously in the business establishment;


    2. Secure the 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 of such;

    b) Computerized 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.


    3. Issue registered invoice or receipt, either manually or electronically, for every sale, barter, exchange, or lease of goods and properties, as well as for every sale, barter, or exchange of service. Said invoice or receipt shall conform to the information requirements prescribed under existing revenue issuances, and shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be

    retained by the seller as part of the latter’s accounting records;

    4. Withhold required creditable/expanded withholding tax, final tax, tax on compensation of employees, and other withholding taxes. Remit the same to the Bureau at the time or times required, and issue to the concerned payees the necessary Certificate of Tax Withheld.

    5. 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 the Summary List of Sales/Purchases (SLS/P), Annual Alpha List of Payees, etc., at the time or times required by existing rules and regulations; and

    6. Keep books of accounts and other business/accounting records within the time prescribed by 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.


    To read the full text of BIR Revenue Memorandum Circular No. 55-2013, please visit this link:
    ftp://ftp.bir.gov.ph/webadmin1/pdf/73941RMC%20No%2055-2013.pdf
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  2. #2
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    In effect, online sellers are no different from offline sellers of goods and services. They are likewise bound for BIR tax compliance.
    Taxes affects lives, care for taxes and save lives. For quality tax and accounting seminar, tutorials, trainings, and workshops, please visit us at [url]www.taxacctgcenter.org[/url].

  3. #3
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    how about bloggers who sell ad space? website owners who sell ad space? forums who sell ad space? freelancers?
    like my company who will sell digital products?
    the memo says selling of tangible products isnt it? or im wrong?
    and please define "online website administrators" is this the webmasters? like the ones who own this forum?
    can you please clarify this please? sorry, im still a little confused.

  4. #4
    Chief viclogic's Avatar
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    Please read the full text of the RMC here: ftp://ftp.bir.gov.ph/webadmin1/pdf/73941RMC%20No%2055-2013.pdf
    The memo does not say selling only of tangible products, it says:

    "The existing tax laws and revenue issuances on the tax treatment of purchases (local or imported) and sale (local or international) of goods (tangible or intangible) or services shall be equally applied with no distinction on whether or not the marketing channel is the internet/digital media or the typical and customary physical medium."

    Yes, website administrators include website owners, blog owners, forum owners, and those who sell ad space. Please invest time to read the full memo. Thanks.
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  5. #5
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    I'm an online freelancer and registered with the BIR as a self-employed professional. I regularly file/pay my business/income taxes. I even issue official receipts (OR) (and throw away my foreign clients' OR copies because they don't need it) just to comply with Philippine law.

  6. #6
    Chief viclogic's Avatar
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    Wow. That's great Francis. You're an honorable entrepreneur and professional.
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