BIR Registration for Online Sellers: A Comprehensive Guide for Lazada, Shopee, and Other Platforms

In recent years, the rise of e-commerce platforms like Lazada, Shopee, and other online marketplaces has transformed the way Filipinos conduct business. With the convenience of online selling, more individuals are venturing into entrepreneurship, offering products and services to a wider audience. However, with this growth comes the responsibility of complying with government regulations, particularly those set by the Bureau of Internal Revenue (BIR).

For many online sellers, the process of BIR registration can be daunting, leading to numerous inquiries and confusion. This comprehensive guide aims to demystify the BIR registration process for online sellers, providing a step-by-step walkthrough, essential requirements, and tips to ensure compliance. By the end of this article, you should have a clear understanding of what it takes to register your online business with the BIR, reducing the need for general inquiries on live chat platforms.

BIR Registration for Online Sellers

The Bureau of Internal Revenue (BIR) is the government agency responsible for tax collection in the Philippines. As an online seller, you are required to register your business with the BIR to ensure that you are contributing to the country’s tax revenues. This process not only legitimizes your business but also helps you avoid penalties and legal issues in the future.

With the increasing number of online sellers, the BIR has implemented specific guidelines to regulate e-commerce activities. Whether you are selling on Lazada, Shopee, or any other platform, understanding the BIR registration process is crucial for your business’s success and compliance.

Why Do Online Sellers Need to Register with BIR?

Online sellers must register with the BIR for several reasons:

1. Legal Compliance – The Philippine government mandates all businesses, including online sellers, to be registered for proper taxation. Failure to comply may result in penalties and legal repercussions.
2. Avoiding Penalties – Selling online without registration may lead to fines, back taxes, and even business closure if found operating illegally.
3. Business Credibility – Customers trust businesses that issue official receipts and follow tax regulations, making them more likely to transact with you.
4. Access to Business Opportunities – Having BIR registration allows you to engage in partnerships and collaborations with bigger companies, including wholesalers and suppliers who require receipts for transactions.
5. Loan and Credit Applications – Registered businesses can apply for bank loans and credit lines to expand their operations. Banks and financial institutions require proof of business legitimacy before granting financial assistance.

Who Needs to Register with the BIR?

Not all online sellers are required to register with the BIR. However, if you fall under any of the following categories, registration is mandatory:

Online Sellers with Annual Gross Sales of PHP 250,000 or More: If your online business generates sales exceeding PHP 250,000 annually, you are required to register with the BIR.

Online Sellers with a Physical Store: If you operate both an online store and a physical store, you must register your business with the BIR.

Online Sellers Engaged in Importation: If you import goods for resale, you are required to register with the BIR.

Online Sellers with Employees: If you hire employees to help run your online business, you must register with the BIR.

Even if your sales are below PHP 250,000, it is still advisable to register your business to avoid potential issues in the future.

What you Need to Prepare Before BIR Registration for Online Sellers

Before starting the registration process, determine whether you will register as an individual taxpayer (sole proprietor) or a business entity (corporation or partnership).

• Self-employed / Sole Proprietor – If you are an individual selling online without a separate legal entity, you are considered a self-employed professional.
• Corporation or Partnership – If you are running your online selling business with partners or under a corporate structure, you need to register as a business entity.

Step 1: Secure a Business Name Registration.

For Sole Proprietors:

• Register your business name with the Department of Trade and Industry (DTI).
• Visit www.dti.gov.ph to register your business name online.

For Partnerships and Corporations:

• Register with the Securities and Exchange Commission (SEC).

Step 2: Obtain a Barangay Clearance and Business Permit.

After securing your business name, proceed with obtaining the following:

• Barangay Business Clearance from the barangay where your business is located.
• Mayor’s Permit (Business Permit) from the city or municipal hall.

These permits are necessary before proceeding with BIR registration.

Step 3: Register with the Bureau of Internal Revenue (BIR).

Once you have secured the necessary permits, follow these steps to register with the BIR:

1. Accomplish BIR Forms.

• BIR Form 1901 for self-employed individuals or sole proprietors.
• BIR Form 1903 for corporations and partnerships.

2. Prepare Required Documents.

• DTI Business Name Certificate (for sole proprietors)
• SEC Certificate of Registration (for corporations/partnerships)
• Mayor’s Permit or Business Permit
• Barangay Business Clearance
• Valid government-issued ID
• Proof of Address (Lease Contract or Certificate of Land Title)
• Books of Accounts (Journal, Ledger, etc.)

3. Submit Documents to Your Local BIR Revenue District Office (RDO).

Visit the BIR RDO where your business is located. Submit all documents and pay the registration fee of ₱500.

4. Secure Your Certificate of Registration (BIR Form 2303).

Once your registration is approved, you will receive your Certificate of Registration (COR), which contains your Taxpayer Identification Number (TIN) and tax obligations.

5. Apply for Authority to Print (ATP) Receipts and Invoices.

All businesses are required to issue official receipts or sales invoices. Apply for an Authority to Print (ATP) from BIR or use BIR-accredited electronic invoicing systems.

6. Attend the BIR Seminar.

Newly registered businesses must attend a BIR seminar on tax compliance.

How to Register in BIR as an Online Seller?

Step 1: Determine Your Taxpayer Classification. 

Step-by-Step Guide to Registering with the BIR as an Online Seller or Self-Employed Individual

If you’re an online seller or a self-employed individual planning to register with the Bureau of Internal Revenue (BIR), it’s essential to comply with the necessary requirements. Below is a step-by-step guide to help you navigate the registration process.

Step 2: Prepare the Required Documents. 

Before submitting your application, make sure you have all the necessary documents ready. According to the latest BIR guidelines (RMC 27-2024 with Annex CDR Form F1101), the following are required:

Taxpayer Registration Form (BIR Form 1901)

If applying physically at the Revenue District Office (RDO), print two copies of the completed form.

If applying online via the Online Registration and Update System (ORUS), fill out the form digitally and follow the registration steps provided in the system.

Valid Government ID

Your ID must clearly display your name, birthdate, and address. If the address is missing, submit an additional proof of address.

Invoice and Receipt Registration Documents

For those issuing invoices and receipts, prepare:

• BIR Form 1906 – Authority to Print (ATP) Invoices and Receipts
• Sample printed invoice and receipt design
• BIR-accredited printer documents (if printing independently)

Alternatively, you can purchase pre-printed invoices and receipts from the New Business Registration Counter at your designated RDO.

Books of Accounts Registration Documents

If registering manual books of accounts, prepare:

• BIR Form 1905 – Application for Update
• Columnar books (e.g., journals and ledgers)

You can later transition to loose-leaf or computerized accounting systems after initially registering manual books.

Special Power of Attorney (SPA) and Representative’s ID (If someone else is processing your registration)

If you assign an authorized representative, they must present:

• A notarized Special Power of Attorney (SPA)
• A valid government-issued ID.

Additional Requirements (If Applicable)

Certain individuals may need extra documents, such as:

• DTI Certificate (if using a business trade name)
• Work Visa (for foreign nationals)
• Franchise Documents (for common carriers)
• Barangay Micro Business Enterprise (BMBE) Certificate
• Registration Proof for businesses under BOI, PEZA, SBMA, etc.

Step 3: Submit Your Registration Application. 

Once your documents are ready, you can submit your application either:

1. Physically at the BIR RDO – Bring two copies of the required forms and documents.
2. Online via ORUS – Upload scanned copies and follow the platform’s registration steps.

Upon successful registration, you will receive BIR Form 2303 (Certificate of Registration or COR), which serves as proof of compliance.

Online sellers: Platforms like Lazada, Shopee, and Facebook Marketplace may require you to upload your COR to your seller profile or website.

Step 4: Register Your Invoices and Receipts. 

After obtaining your BIR Certificate of Registration (COR), you must apply for an Authority to Print (ATP) invoices and receipts using BIR Form 1906.

Invoice vs. Receipt

Invoice – The primary document used to record sales transactions.

Receipt – A supplementary document issued for proof of collection or remittance (especially for online platform sales).

Important: Using invoices and receipts without BIR registration can lead to penalties or legal consequences.

How to register invoices and receipts:

• Physical submission via BIR RDO – Submit BIR Form 1906, a sample invoice/receipt, and accredited printer documents (if printing your own).
• Online via ORUS – Follow the system’s submission steps and upload the required documents.

Alternatively, you can buy pre-printed invoices and receipts from the BIR RDO.

Step 5: Register Your Books of Accounts. 

Every registered business must maintain books of accounts. The basic required books include:

• General Journal
• General Ledger

Optional books include:

• Cash Receipt Journal
• Cash Disbursement Journal
• Sales Journal
• Purchase Journal

For beginners, manual books are the easiest to register and maintain. Later, you can shift to loose-leaf or computerized accounting systems for convenience.

Submit your book registration via:

• BIR RDO (Physical Submission) – Bring your completed books and BIR Form 1905.
• ORUS (Online Submission) – Follow the system’s registration steps.

Step 6: Submit a Notarized Sworn Declaration (For Online Sellers, If Applicable). 

Under RR 16-2023 and RMC 8-2024, online sellers on platforms like Lazada and Shopee may be subject to creditable withholding tax on gross remittances exceeding ₱500,000 per year.

To be exempted, you must:

• Have annual gross remittances of ₱500,000 or less
• Submit a notarized Sworn Declaration to the online platform and BIR

Failure to submit this declaration means the platform will automatically withhold taxes from your earnings.

To access the Sworn Declaration template, refer to RMC 8-2024 Annex A.