A legal–practical guide for owners and barangay officials

1) The big picture

If you plan to sell beer, wine, or distilled spirits in a sari-sari store, you’ll typically need two layers of permission:

Barangay Business Clearance / Barangay Certificate – issued by the barangay where the store is located; and
City/Municipal Business Permit (Mayor’s Permit) with a Liquor License/Endorsement – issued by the LGU’s Business Permits and Licensing Office (BPLO) or Treasurer.

The barangay clearance is a statutory prerequisite to the mayor’s permit and liquor licensing in most LGUs. Without it, the city/municipality will not process your liquor selling authority.

No single nationwide fee applies. Fees and conditions are set by local ordinances under the Local Government Code (LGC). Expect amounts, forms, and standards to vary by barangay and city/municipality.

2) Legal bases (Plain English)

Local Government Code (RA 7160):
- Empowers barangays and cities/municipalities to regulate businesses, require clearances, and impose reasonable fees and charges by ordinance.
- The Sangguniang Barangay may fix barangay clearance fees; the Sangguniang Panlungsod/Bayan sets the mayor’s permit and liquor license fees, plus penalties for late renewal.
Police power / public welfare: LGUs use it to regulate hours of sale, proximity to schools/places of worship, public drinking, and sales to minors, typically through liquor ordinances.
Other national rules still apply (sanitation, building/fire safety, consumer protection), but liquor retailing details are primarily local.

3) What the barangay clearance covers

A Barangay Business Clearance (sometimes called Barangay Permit/Endorsement):

Confirms the store’s location within the barangay and the owner’s identity;
States business nature (e.g., retail sari-sari; with liquor);
Certifies no objection from the barangay to the operation subject to LGU ordinances;
Is time-bound (usually one calendar year, co-terminus with the mayor’s permit);
Is renewed annually (often January) and may require updated documents.

Many barangays issue a separate endorsement or add a notation specifically allowing liquor retail, which your city/municipal BPLO will look for.

4) Fees you should expect (structure and timing)

All amounts depend on your barangay/city ordinance. Below is how fees are usually structured:

Barangay Clearance Fee (Business) – fixed amount; may differ for new vs renewal.
Barangay Endorsement/Certification for Liquor – some barangays charge an additional certificate fee when the clearance notes liquor selling.
Community Tax Certificate (CTC/Cedula) – required to transact; paid to the city/municipality (not the barangay), but often checked when you apply for barangay clearance.
Mayor’s Permit Fees (separate, at city/municipal level):
- Business permit fee based on business nature and size;
- Liquor license fee (new/renewal; often higher than the barangay fee);
- Regulatory fees (sanitary, zoning, fire safety inspection fee, garbage, signboard, etc.).
Surcharges for late renewal – Local ordinances commonly impose up to 25% surcharge plus monthly interest on mayor’s permit and related fees if filed after the deadline (often on or before Jan 20). Barangays may mirror surcharges for late barangay clearance.

Official Receipts (ORs) are a must. Pay only at the barangay treasurer’s desk or authorized cashier and insist on an OR referencing the ordinance.

5) Usual documentary requirements at the barangay

Barangays can add to or pare down this list, but most will ask for:

Accomplished application form (new/renewal), indicating “retail sari-sari store – with liquor”;
Valid ID of the owner (and spouse, if applicable);
DTI Business Name Certificate (for sole proprietors) or SEC/Cooperative registration (if a corporation/co-op);
BIR proof (TIN and/or BIR Certificate of Registration once available);
Proof of right to use the premises (Lease Contract with lessor’s ID, or land title/tax declaration if owned; lessor’s permit/clearance is often requested);
Sketch/location plan (simple map from a landmark);
Photographs of storefront and interior (counter, shelves, chiller);
Neighborhood conformity or consent (some barangays collect signatures of adjacent neighbors or require a brief public posting period);
Sworn undertaking to follow liquor ordinances (no sale to minors, hours of sale, no public drinking within the restricted radius, etc.);
Fire Safety or Building/Occupancy references (if already secured; otherwise, barangay clearance is issued subject to city requirements).

Tip: Bring two sets of copies and the originals for verification. Name and address across all documents should match your signage and deed/lease.

6) Substantive standards you’re measured against

While fees are the headline, eligibility drives approval. Barangays and cities usually require that a sari-sari store selling liquor:

Observe minimum distance from schools, churches/places of worship, and hospitals (e.g., 50–200 meters measured by the ordinance).
Comply with selling hours (e.g., no sales past curfew or during liquor ban periods; hours differ by LGU and sometimes by product type—beer vs. spirits).
Prohibit sales to minors (age threshold set by ordinance; commonly below 18).
Prohibit on-premise consumption unless you also have the proper permit for on-premise service (e.g., “eatery” or “bar” classification).
Display permits visibly (barangay clearance, mayor’s permit, sanitary permit, fire safety inspection certificate).
Keep noise and public drinking within ordinance limits (many barangays restrict drinking within public roads/sidewalks or within a certain radius of the store).
Maintain sanitation (segregated waste bins, no sale of adulterated/expired items, clean water source).

Failure on these points is a common reason for denial, suspension, or non-renewal, regardless of fee payment.

7) End-to-end process (new applicant)

Prepare business identity
- Secure DTI Business Name (sole prop) and TIN.
Barangay step
- Submit documents; pay Barangay Clearance and, if required, Barangay Liquor Endorsement fees; receive Barangay Business Clearance noting liquor.
City/Municipal step (BPLO/Treasurer)
- File for Mayor’s Permit with Liquor License; pay corresponding city fees (business, liquor, sanitary, fire, etc.).
- Complete Sanitary and Fire Safety inspections; address any compliance findings.
Display permits and start selling within ordinance hours/conditions.

Renewal: Repeat barangay and city steps annually (usually in January). Some LGUs allow early renewal in December for the next year.

8) Money-saving and compliance tips

Combine trips: Some cities run one-stop shops during January—barangay desks may be onsite.
Name hygiene: Make sure your DTI name, signboard, lease, and applications spell the business name and exact address the same way; mismatches cause re-printing charges and delays.
Know your LGU’s liquor hours: Selling during prohibited hours is a fast way to get inspection citations and permit suspension (fees paid won’t shield you).
No minors, no proxy: Train staff not to sell to minors; avoid “proxy buying” risks by checking IDs when in doubt.
Keep your ORs: File official receipts from the barangay and city by year; they’re vital for inspections and disputes.

9) Enforcement, penalties, and remedies

Administrative: Warning → fines → suspension/revocation of barangay clearance and/or mayor’s permit; closure orders are issued by the city/municipal authorities, often upon barangay recommendation.
Criminal/Citation: Violations of liquor ordinances (e.g., selling to minors, public drinking) can lead to tickets, community sanctions, or charges per ordinance.
Due process: You’re entitled to notice and a chance to explain/rectify. Keep your receipts and permits ready; ask for the ordinance citation number in any inspection report.
Appeal/Review: You may seek reconsideration with the barangay/city and, if necessary, bring disputes to appropriate administrative or judicial forums (e.g., questioning the reasonableness of fees or arbitrary denial under the LGC standards).

10) Quick checklists

A) New application (barangay)

Filled-out Barangay Business Clearance form (tick with liquor).
Owner’s valid ID (and spouse’s, if applicable).
DTI Business Name (or SEC/Coop papers).
TIN (BIR).
Lease (with lessor’s ID) or proof of ownership.
Photos of site and interior; sketch.
Affidavit/Undertaking to observe liquor rules.
Fees for barangay business clearance and liquor endorsement; OR.

B) Compliance after issuance

Display barangay clearance and mayor’s permit.
Observe hours and distance rules.
No sales to minors; check IDs when uncertain.
No public drinking in restricted areas.
Keep store and frontage clean; maintain sanitary and fire compliance.

11) FAQs

Is the barangay clearance enough to sell liquor? No. It’s necessary but not sufficient. You still need the mayor’s permit with specific liquor license/endorsement from the city/municipality.

How much is the barangay fee? It depends on the barangay ordinance. Expect a fixed fee for the business clearance and possibly an additional certificate/endorsement fee for liquor. Always pay only to the authorized cashier and ask for an Official Receipt quoting the ordinance.

Do I need neighbor consent? Some barangays require neighbor sign-offs or posting for a few days before issuing the clearance—check your barangay’s practice.

Can the barangay deny my clearance even if I pay? Yes, if you fail distance or zoning rules, have prior violations, or refuse to sign an undertaking to follow liquor ordinances. Fees paid for a denied application may be non-refundable per ordinance.

Do I need to renew every year? Yes. Barangay clearance and mayor’s permit are annual. Renew on time to avoid surcharges and inspection issues.

12) Bottom line

Barangay clearance is the first gate for a sari-sari store that wants to sell liquor.
Fees are local (no single national rate) and must be backed by barangay/city ordinances; pay only against official receipts.
Approval hinges on substantive compliance—distance limits, selling hours, no sale to minors, no public drinking, and health & safety rules.
Renew annually, keep permits visible, and run a clean, compliant shop—your cheapest “fee” is always zero penalties.

This guide is for general information only and not legal advice. For exact fees and forms, ask your barangay treasurer/secretary and your city’s BPLO; bring the ordinance citation to keep everyone aligned.