I. Overview

Any person or entity doing business in the Philippines is required to register with the Bureau of Internal Revenue (BIR). A small printing business—whether a neighborhood print shop, digital printing studio, or offset printing press—is no exception.

In addition to the basic registration as a taxpayer, a printing business may also be subject to special rules if it prints official receipts (ORs), sales invoices, or other accountable forms for itself or for clients.

This article walks through:

The legal basis in the Tax Code
Who must register and when
Step-by-step BIR registration process
Special rules for printers of receipts and invoices
Books of accounts, invoicing, and filing obligations
Penalties and compliance tips

All discussion is in the context of Philippine law and practice.

II. Legal Framework

The primary law governing BIR registration and receipts/invoices is the National Internal Revenue Code of 1997 (NIRC), as amended, particularly:

Section 236 – Registration requirements for each person subject to any internal revenue tax
Section 237 – Issuance of receipts or sales or commercial invoices
Section 238 – Printing of receipts or sales or commercial invoices
Section 113 – Invoicing requirements for VAT-registered taxpayers
Sections 248–275 – Civil and criminal penalties

These provisions are fleshed out by various Revenue Regulations (RR), Revenue Memorandum Orders (RMO), and Revenue Memorandum Circulars (RMC) issued by the BIR.

III. Who Needs to Register

1. By Legal Form

A small printing business can be operated as:

Sole proprietorship – under the owner’s name, with DTI business name registration
Partnership or corporation – registered with the SEC
Cooperative – registered with the Cooperative Development Authority (CDA)

All of these are required to register with the BIR before starting business.

2. By Type of Activity

A printing business may:

Provide printing services (e.g., tarpaulins, calling cards, brochures, flyers, signage, packaging, labels)
Manufacture printed products for sale
Print official receipts, sales invoices, and other commercial invoices (either for itself or as a service for other taxpayers)

The last category—printing ORs/SIs—is specifically regulated under Section 238 NIRC and related BIR issuances and carries additional requirements.

IV. Timing of BIR Registration

Under Section 236, registration must generally be done:

On or before starting business, or
Within the prescribed period (often tied to the issuance of local permits and commencement of operations)

In practice, the sequence usually is:

Register business name
Secure local permits (barangay clearance, mayor’s permit)
Register with BIR and secure Certificate of Registration (COR) and Authority to Print (if needed)
Start issuing official receipts/invoices and recording transactions

Operating without BIR registration or without proper receipts is a ground for penalties and closure.

V. Basic BIR Registration Requirements

The exact forms vary by taxpayer type, but generally include:

1. BIR Registration Form

BIR Form 1901 – for sole proprietors and self-employed individuals
BIR Form 1903 – for corporations, partnerships, and cooperatives

These forms capture details about business name, address, type of business (“printing services” / “printing press”), tax types, and accounting method.

2. Supporting Documents

Commonly required attachments:

Proof of registration of the business name
- DTI Certificate (sole prop), or
- SEC Registration and Articles of Incorporation/Partnership, or
- CDA registration (cooperative)
Local government documents (depending on the RDO’s practice):
- Barangay clearance
- Mayor’s/Business permit (or application/OR of payment)
Proof of address
- Lease contract if rented
- Title or tax declaration if owned
- Consent of owner, if free use
Government-issued IDs of owner and/or authorized officers
Sample forms or description of activities (especially if also applying as a printer of OR/SI)

The assigned Revenue District Office (RDO) depends on the business address.

3. Taxpayer Identification Number (TIN)

An individual owner who has no existing TIN will be issued one with BIR Form 1901.
Corporations and partnerships apply for a TIN via BIR Form 1903 upon registration.

Each taxpayer should have only one TIN; multiple TINs are illegal.

4. Registration Fee

Under Section 236(B) of the NIRC, businesses are required to pay an annual registration fee (ARF) per business establishment using BIR Form 0605. The amount is fixed in the law (commonly known to be ₱500 per business establishment per year), but always verify the current rate and rules before paying.

The ARF is payable upon initial registration and subsequently every year, usually on or before the last day of January (unless changed by later law/regulations).

5. Books of Accounts

At registration, the taxpayer must also register its books of accounts. Options typically include:

Manual books (columnar books, ledger, cash receipts, cash disbursements, etc.)
Loose-leaf (requires BIR permit and printing rules)
Computerized accounting system (CAS or eCAS) (requires separate application/approval)

A small printing shop usually starts with manual books, but may use loose-leaf or computerized systems as it grows.

VI. Tax Type Classification for Printing Businesses

At registration, the business indicates which taxes it will be subject to. For a small printing business, the typical taxes are:

Income Tax
- Individuals: graduated income tax rates under the TRAIN and subsequent laws
- Corporations: corporate income tax as provided in the NIRC as amended (e.g., as adjusted under the CREATE law)
Business Tax – either:
- Value-Added Tax (VAT), or
- Percentage Tax (non-VAT)

1. VAT vs Non-VAT

A printing business becomes VAT-registered if:

Its gross annual sales/receipts exceed the VAT threshold set by law (for some years ₱3,000,000 under the TRAIN Law), or
It voluntarily opts to register as VAT-taxpayer even below the threshold.

If below the threshold and not voluntarily VAT-registered, the business is usually liable to Percentage Tax at the rate provided in the NIRC for its category (e.g., sale of services or use/lease of properties).

The VAT/percentage tax rules determine:

Type of receipts/invoices to issue (VAT official receipt, non-VAT official receipt, etc.)
Return/s to file (VAT returns vs percentage tax returns)
Ability to claim input VAT and pass on output VAT

Because thresholds and rates may change by law, it is important to confirm the current VAT threshold and percentage tax rate when registering.

VII. Special Rules for Printers of Receipts and Invoices

This is the part uniquely relevant to a printing business.

1. Legal Basis

Under Section 237 NIRC, persons subject to internal revenue tax must issue duly registered receipts or sales/commercial invoices for each sale or service above certain amounts.

Under Section 238 NIRC, no person shall print receipts or sales/commercial invoices without authorization from the BIR. This applies to:

Persons printing their own ORs/SIs, and
Persons printing receipts/invoices for other taxpayers (commercial printers)

Therefore, a printing business that offers printing of ORs/SIs and other accountable forms must comply with Section 238 and BIR rules on Authority to Print (ATP) or its current equivalent.

2. Authority to Print (ATP)

Historically, taxpayers obtained an Authority to Print using BIR Form 1906, which:

Identified the taxpayer-owner of the receipts/invoices
Identified the accredited printer
Stated series (from – to) and validity period of the receipts/invoices
Covered both principal (official receipts, sales invoices) and supplementary receipts

Although the procedural details and systems (e.g., online ATP) may evolve, the core idea remains:

You cannot print official receipts/sales invoices for use in tax reporting without BIR approval.

If your small printing shop is the printer, you may be required to:

Apply for accreditation as a printer
Secure your clients’ ATP applications and print only within the authorized serial ranges
Keep records of all receipts/invoices printed for clients
Comply with BIR reporting on printed receipts/invoices, as may be required by regulations

If your printing shop is printing only for itself (its own ORs/SIs), you will apply for an ATP as the taxpayer, and you may specify that you will print your own receipts. In such case, the same BIR rules on control and record-keeping of serial numbers apply.

3. Accredited Printer Requirements (for commercial printers)

BIR rules for accredited printers have included requirements such as:

BIR application form for accreditation
Details and serial numbers of printing machines/equipment
Mayor’s permit and other local permits for the printing establishment
Proof of business registration and tax compliance
Sample lay-out of proposed receipts/invoices
Undertaking to comply with BIR regulations on printing and reporting

The BIR may inspect the printer’s facilities and impose technical requirements (security features, printing quality, layout requirements, etc.), especially for government or highly sensitive accountable forms.

4. Content and Format of ORs/SIs

Receipts/invoices must generally contain at least:

Registered name and business name of the taxpayer
Registered business address
Taxpayer Identification Number (TIN) and branch code
Statement whether taxpayer is VAT or non-VAT (e.g., “VAT Registered” plus VAT Reg. TIN, or “NON-VAT REG. TIN” and appropriate legend)
Serial number, page number, and booklet identification
Date of transaction
Name, address, and TIN of buyer (in certain cases, particularly for B2B/VAT transactions or above specific amounts)
Description of goods or services, quantity, unit price, and total
For VAT-registered taxpayers: breakdown of VAT-able sales, zero-rated sales, exempt sales, VAT amount, etc. as required by Section 113 NIRC and regulations

The BIR publishes detailed layout standards that must be followed.

VIII. Registration and Use of Books of Accounts

1. Manual Books

For a typical small printing shop, manual books include:

General Journal
General Ledger
Cash Receipts Book
Cash Disbursements Book
Subsidiary Ledgers (e.g., Accounts Receivable, Accounts Payable, Inventory)

These must be:

Presented to the RDO for stamping/registration at the beginning (or before use)
Maintained regularly, with entries written in ink and without erasures that obscure the original entries

2. Loose-Leaf and Computerized Books

A printing business often has many transactions; it may eventually choose:

Loose-leaf system (printed ledgers generated by accounting software); or
Computerized accounting system

Both usually require a BIR permit/approval, submission of system description, sample reports, and periodic submission of printed reports.

For a printing business engaged in printing loose-leaf forms (e.g., own journals, ORs/invoices), there may be an overlap of obligations as printer and user of the forms.

IX. Tax Compliance Obligations After Registration

Registering with BIR is only the start. Continuing obligations typically include:

1. Filing of Tax Returns

Depending on the chosen tax types and taxpayer classification:

Income tax returns – quarterly and annual
Percentage tax or VAT returns – at intervals prescribed by the latest regulations
Withholding tax returns – if the printing business:
- Has employees (withholding on compensation), and/or
- Pays suppliers or professionals subject to expanded withholding tax (EWT)

2. Withholding of Taxes

Printing businesses often need to withhold:

Withholding tax on compensation for employees
Expanded withholding tax on payments to certain suppliers of services or rentals
Possibly final withholding taxes in specific transactions

Failure to withhold and remit withholding taxes is a serious violation with corresponding civil and even criminal liability.

3. Issuance and Preservation of Receipts/Invoices

The printing shop must:

Issue BIR-registered ORs/SIs for every taxable transaction as required by law
Use only those receipts/invoices covered by a valid Authority to Print
Maintain stock cards or logs of OR/SI booklets issued and used
Ensure proper custody of unused OR/SI booklets to prevent misuse
Keep copies of receipts/invoices and books of accounts for the period required by law (commonly at least ten [10] years, with some rules allowing a shorter period for certain records—always check current BIR issuances)

4. Updating Registration

Any change in:

Business trade name or registered name
Business address
Tax type (e.g., from non-VAT to VAT)
Line of business (e.g., from “printing services” to “printing and trading of supplies”)
Opening or closure of branches or facilities

must be reported to the BIR by filing the appropriate update form (e.g., BIR Form 1905) within the period prescribed by regulations.

X. Additional Considerations for a Printing Business

1. LGU Permits and Zoning

While this article focuses on BIR, in practice a printing business must also:

Secure barangay clearance and mayor’s/business permit
Comply with zoning and environmental rules, particularly for large printing presses (noise, waste disposal, chemical use, etc.)

These LGU clearances are usually required when registering with the BIR or renewing your BIR registration (e.g., proof of payment of business taxes).

2. Employment and Labor Compliance

If the print shop hires employees (graphic artists, machine operators, helpers):

Comply with labor laws, including minimum wage, benefits (SSS, PhilHealth, Pag-IBIG, etc.), and DOLE requirements
Register as an employer for social contribution agencies and withhold and remit employee contributions

3. Intellectual Property and Content

Printers should also be mindful of:

Copyright and trademark laws when printing designs, logos, or trademarks for clients
Avoiding printing counterfeit or infringing materials, which can lead to legal liability independent of tax issues

XI. Penalties for Non-Compliance

The NIRC imposes various penalties, including:

Surcharges and interest on unpaid taxes
Compromise penalties for violations such as late registration, failure to issue receipts, improper books of accounts, unregistered printers, etc.
Closure or suspension of business operations for flagrant violations (e.g., repeated failure to issue official receipts, non-registration of sales, etc.)
Criminal liability in more serious cases (e.g., willful tax evasion, use of fake receipts)

For printers specifically:

Printing ORs/SIs without BIR authorization
Printing fake or unregistered receipts/invoices
Violating ATP conditions (e.g., printing beyond authorized serial ranges)

These can result in substantial fines and imprisonment under the Tax Code.

XII. Practical Step-by-Step Checklist for a Small Printing Business

While the precise process can vary slightly by RDO and over time, a typical sequence is:

Choose business structure
- Sole prop / partnership / corporation / cooperative
Register business name
- DTI (sole prop) or SEC/CDA
Secure local permits
- Barangay clearance, Mayor’s permit (or at least proof of application)
Prepare BIR registration
- Fill up BIR Form 1901 or 1903
- Prepare supporting docs (IDs, contracts, permits, etc.)
Pay the annual registration fee (ARF) via BIR Form 0605
Submit to the RDO with jurisdiction over your business address
- Obtain Certificate of Registration (COR), which lists your tax types and return forms
Register books of accounts
- Manual or apply for loose-leaf/CAS permit
Apply for Authority to Print (ATP) via BIR Form 1906 (or current equivalent)
- If you will print your own OR/SI
- If you will act as commercial printer, secure or maintain printer accreditation as required
Print and use BIR-registered ORs/SIs
- Ensure all required information is on the receipts/invoices
Start operations and comply with ongoing obligations
- Issue receipts/invoices for every taxable sale
- Record all transactions in books
- File and pay tax returns on time
- Withhold and remit necessary withholding taxes
- Maintain and store records for the prescribed period

XIII. Final Notes

BIR rules change from time to time through new laws and BIR issuances. Specific forms, deadlines, and procedures may be updated.
For an actual business, it is wise to consult a tax professional or lawyer or coordinate directly with your Revenue District Office to ensure that you are following the latest regulations, especially on:
- VAT thresholds and percentage tax rates
- Electronic filing and payment requirements
- Updated procedures for Authority to Print and printer accreditation
- Any new systems (e.g., e-invoicing, e-receipts) that may apply to your business

Proper BIR registration and compliance are essential not only to avoid penalties but also to build a legitimate, bankable, and scalable printing business in the Philippines.