How to Register an Online Business with the BIR in the Philippines

Registering your online business with the Bureau of Internal Revenue (BIR) is no longer just a “good idea”—as of 2024 and 2026, it is strictly mandated for anyone selling on digital platforms (Shopee, Lazada, TikTok Shop, etc.) or providing digital services.

Here is the updated 2026 guide to getting your online business tax-compliant.

1. Pre-Registration: Choose Your Structure

Before heading to the BIR, you must register your business name with the appropriate agency:

• Sole Proprietorship: Register with the Department of Trade and Industry (DTI) via the BNRS portal.
• Corporations/Partnerships: Register with the Securities and Exchange Commission (SEC).

Note: As of 2024, the BIR requires online platforms to withhold a 1% creditable income tax on remittances to sellers. You must provide your BIR Certificate of Registration (COR) to these platforms to keep your shop active.

2. Prepare Your Requirements

Gather these documents (scanned PDF for online, or 2 physical copies for walk-in):

• BIR Form 1901 (for Individuals/Sole Props) or 1903 (for Corporations).
• DTI or SEC Certificate of Registration.
• Valid Government ID (e.g., Passport, Driver’s License, PhilID) showing your name, address, and birthdate.
• Proof of Address (e.g., Barangay Clearance, Lease Contract, or Utility Bill).
• P30 for Documentary Stamp Tax (DST). (The P500 Annual Registration Fee was abolished starting 2024).

3. The Registration Process

You can choose between the “Traditional” walk-in method or the “Digital” route.

Option A: The Digital Route (NewBizReg / ORUS)

1. Visit the NewBizReg Portal or the ORUS (Online Registration and Update System).
2. Submit Documents: Upload your scanned requirements and the Tax Type Questionnaire.
3. Pay Fees: Pay the P30 DST via e-payment channels like GCash, Maya, or Landbank.
4. Wait for Confirmation: You will receive an email instruction on when to pick up your physical Certificate of Registration (Form 2303).

Option B: The Walk-in Route

1. Identify your RDO: Go to the Revenue District Office (RDO) that has jurisdiction over your place of residence (for home-based businesses) or your physical office.
2. Submit & Interview: Present your documents at the “New Business Registrant” counter. An officer may conduct a brief interview about your business nature.
3. Payment: Pay the P30 DST at the RDO’s collection officer or an Authorized Agent Bank (AAB).

4. Post-Registration Compliance

Getting your COR (Form 2303) is just the start. To be fully legal, you must:

• Register Books of Accounts: You need a General Journal, General Ledger, Cash Receipts, and Cash Disbursements books. You can now register these online via ORUS to get a QR code stamp.
• Apply for Invoices: Use BIR Form 1906 (Authority to Print) to get your official invoices. Note that under the Ease of Paying Taxes Act, “Invoices” have replaced “Official Receipts” as the primary document for both goods and services.
• Attend the Taxpayer’s Briefing: Most RDOs require a short orientation to explain your filing deadlines.

Pro-Tip: The 8% Tax Option

If your gross annual sales are P3 million or less, you can opt for the 8% Flat Income Tax Rate during your initial registration. This is often much simpler for online sellers because it replaces both the graduated income tax and the 3% percentage tax.

Summary

Registering your business with the BIR will give you the authority to print your official receipts and other invoices, provide you or your corporation a Tax Identification Number (TIN) and register the books you will use to record your business transactions. Furthermore, your BIR certificate of registration will state the types of taxes you will pay, such as business taxes, withholding taxes and income tax.

For more information about taxation in the Philippines, you may visit this article Tax in the Philippines