I. Overview of BIR Registration for Printing Services

Any person or entity operating a printing services business in the Philippines is required to register with the Bureau of Internal Revenue (BIR) as a taxpayer engaged in trade or business. This obligation arises under the National Internal Revenue Code (NIRC), particularly on registration of taxpayers, maintenance of books of accounts, and invoicing requirements.

A “small printing services business” may range from a home-based tarpaulin or digital printing shop to a small commercial print shop. Regardless of size, once you are regularly engaged in business with intent to profit, BIR registration is mandatory.

For printing establishments, there are two distinct roles that may exist simultaneously:

As a taxpayer engaged in printing services (i.e., selling printing services and products to customers), and
As a BIR-accredited printer of official receipts (ORs), sales invoices (SIs), and other accountable forms (if you want to print these for other taxpayers).

This article focuses on both, with emphasis on practical registration requirements and ongoing compliance.

II. Prerequisites Before BIR Registration

While BIR registration is a tax requirement, it is normally done after securing basic business registrations, which the BIR will usually ask for as documentary requirements.

Common prerequisites:

Business Registration with DTI/SEC/CDA
- Sole proprietorship: DTI Certificate of Business Name Registration
- Partnership or corporation: SEC Certificate of Incorporation or Partnership (including Articles of Incorporation/Partnership and By-laws)
- Cooperatives: CDA registration (less typical for small printing businesses, but possible)
Local Government Permits
- Mayor’s/Business Permit (or at least proof of application)
- Barangay Business Clearance
Business Address Documents
- If rented: lease contract
- If owned: tax declaration, title, or proof of ownership
- If home-based: any document proving the address, and barangay clearance where applicable

These documents are not BIR registrations themselves, but the BIR will typically require them when you apply for registration or submit “other” supporting documents.

III. Determining the Proper BIR Registration Form and RDO

A. Identify the Correct Revenue District Office (RDO)

You must register with the RDO that has jurisdiction over your principal place of business (for corporations/partnerships) or your place of business or residence (for sole proprietors and self-employed individuals).

B. Choose the Correct BIR Registration Form

BIR Form 1901 – For:
- Self-employed individuals (sole proprietors) engaged in trade or business
- Professionals (not usually printing, but for completeness)
BIR Form 1903 – For:
- Partnerships
- Corporations (including one-person corporations)
- Cooperatives
BIR Form 1905 – For:
- Updating registration information (e.g., change of address, additional branches, closure, change in tax type, etc.)
BIR Form 1906 – For:
- Application for Authority to Print (ATP) official receipts, sales invoices, and other commercial invoices (whether for your own business or as an accredited printer for other taxpayers)

IV. Basic BIR Registration Requirements for a Small Printing Business

Below are the typical core requirements when registering a printing business as a taxpayer (not yet as an accredited printer of OR/SI):

A. Documentary Requirements (Sole Proprietor – Form 1901)

DTI Business Name Certificate
Government-issued ID of the owner (e.g., passport, driver’s license, UMID, etc.)
Proof of address (lease contract, tax declaration/land title, or any suitable proof)
Mayor’s or Barangay Permit (or proof of application if still in process)
If already has a TIN (e.g., as employee): use the same TIN; no new TIN should be issued (one TIN per taxpayer rule)

B. Documentary Requirements (Partnership/Corporation – Form 1903)

SEC Certificate of Incorporation/Partnership
Articles of Incorporation or Partnership and By-laws
Mayor’s Permit (or proof of application)
Proof of business address (lease, tax declaration, etc.)
Valid IDs of responsible officers (e.g., president, managing partner)
Board resolution or secretary’s certificate identifying the authorized representative for BIR purposes, if applicable

C. Tax Types to Be Registered

Upon registration, the BIR will issue a Certificate of Registration (COR) – BIR Form 2303, listing the tax types applicable to your printing business. Common tax types include:

Income Tax
- For individuals: graduated income tax rates; possible 8% option on gross sales/receipts (subject to conditions and thresholds under the NIRC and subsequent tax reforms)
- For corporations: regular corporate income tax rates under the NIRC and amendments (e.g., CREATE Law)
Value-Added Tax (VAT) or Percentage Tax (Non-VAT)
- The choice is typically based on your gross annual sales/receipts compared with the VAT threshold and whether you voluntarily opt to be VAT-registered
- Below the VAT threshold, you are generally classified as non-VAT and subject to percentage tax (unless you voluntarily register as VAT)
Withholding Tax on Compensation
- Required if you have employees
- You must withhold on salaries and wages and remit the same to the BIR
Creditable/Expanded Withholding Tax (EWT)
- If you make payments subject to withholding (e.g., rent, professional fees, certain services), you may be required to withhold and remit EWT

Other tax types or registrations may apply depending on your specific operations.

D. Registration Fee and Related Payments

Historically, taxpayers were required to pay a fixed registration fee per year (commonly ₱500 via BIR Form 0605). The rules on this have been subject to amendments and exemptions over time, especially under more recent tax reform laws. Because of frequent changes, it is prudent to verify current rules directly with your RDO or a tax professional, particularly on whether your specific category (individual vs corporation) is still liable for an annual registration fee.

Other possible payments at registration can include documentary stamp taxes on certain documents (e.g., lease contracts), depending on the circumstances.

V. Registration of Books of Accounts

Under the NIRC, every registered business must maintain books of accounts appropriate to its operations. For a printing services business, typical books include:

General Journal
General Ledger
Cash Receipt Book
Cash Disbursement Book
Subsidiary sales and purchases ledgers (if needed)

You must register these books with the BIR, either:

Manual Books – Hardbound books presented to the RDO for registration and stamping; or
Loose-Leaf Books – Printed sheets, subject to separate BIR approval and periodic submission; or
Computerized Accounting System (CAS) – Requires prior evaluation and approval by the BIR (more common for larger operations).

Proper registration of books is part of the initial registration process. Books must be kept up to date and preserved for the period required by law (often long-term, to cover potential audits).

VI. Registration of Official Receipts, Sales Invoices, and POS/CRM

A. Authority to Print (ATP) – BIR Form 1906

All businesses are required to issue registered receipts or invoices for their sales and services. For your own printing business, you must apply for an Authority to Print (ATP) for:

Principal receipts/invoices – e.g., Official Receipts (OR) for services, Sales Invoices (SI) for sale of goods
Supplementary receipts/invoices – e.g., Delivery Receipts, Collection Receipts, Billing Statements

Key points:

Application: Accomplish BIR Form 1906 and submit together with certain documents (e.g., COR, sample layout of receipt/invoice, etc.) to your RDO.
Printer: You may:
- Engage a BIR-accredited printer to print your receipts/invoices; or
- If your printing services business itself is an accredited printer, print your own using your accreditation.
Content of Receipts/Invoices: Principal receipts/invoices must contain, among others:
- Taxpayer’s name, business name (“doing business as”), and address
- TIN and “VAT Registered” or “Non-VAT” indication as applicable
- Serial numbers and ATP number and validity
- Date of transaction, amount, VAT breakdown (if VAT-registered), etc.

Issuing unregistered or unnumbered receipts/invoices can result in penalties and even temporary closure of the business under the BIR’s enforcement programs.

B. Registration of POS Machines or Cash Register Machines (CRM)

If your printing shop uses POS systems or cash registers (common in walk-in retail settings), these machines must be:

Registered with the BIR
Assigned to a specific branch/location
Configured to produce BIR-compliant receipts

This involves separate application and adherence to BIR technical requirements for POS/CRM systems.

VII. Additional Requirements if You Want to Be a BIR-Accredited Printer

A small printing business may also want to provide printing of official receipts, sales invoices, and other accountable forms for other taxpayers. In that case, you must secure BIR accreditation as a printer of receipts/invoices.

While exact documentary specifics can change through BIR revenue regulations and issuances, typical requirements include:

Duly accomplished application (often related to or in addition to Form 1906)
COR of the printing business and proof of BIR registration
SEC/DTI documents and Mayor’s Permit
List and description of printing machines and equipment
Sample print layouts and security features, where required
Sworn statements or affidavits as may be prescribed

Once accredited:

You may be authorized to print principal and supplementary receipts for your clients based on their ATPs.
You usually must submit periodic reports to the BIR on the receipts/invoices printed, including details such as range of serial numbers, client names, ATP reference, etc.

Failure to comply with printer reporting rules can lead to suspension or cancellation of accreditation and penalties.

VIII. Ongoing Tax Compliance Obligations

Once registered, a printing services business has continuous obligations beyond registration.

A. Issuance of Receipts/Invoices

Issue registered official receipts or sales invoices for every sale or service rendered (as required by the NIRC and BIR regulations).
Ensure proper VAT or non-VAT annotations, such as:
- “VAT Registered TIN: ______” for VAT taxpayers, showing amounts broken down into VATable sales, VAT amount, etc.
- “NON-VAT Reg. Taxpayer” and reference to the applicable section of the Tax Code for non-VAT taxpayers, if required by prevailing rules.

B. Maintenance and Updating of Books of Accounts

Record all sales, purchases, and expenses chronologically and accurately.
Keep supporting documents such as:
- Sales invoices/official receipts issued
- Supplier invoices/receipts
- Payroll records
- Contracts (e.g., large printing jobs, lease agreements)

Books and records must be kept for a minimum period set by law to cover the BIR’s authority to assess taxes (often several years from the date of filing of the return or last entry in the book).

C. Filing of Tax Returns and Payment of Taxes

Income Tax
- Individuals (sole proprietors): quarterly and annual income tax returns, applying either:
  - Graduated tax rates on net taxable income; or
  - The 8% gross receipts option, where allowed by law and subject to choice and thresholds
- Corporations: quarterly and annual income tax returns using corporate income tax rates under current law.
Percentage Tax or VAT
- Percentage Tax (for non-VAT taxpayers):
  - Paid on gross sales/receipts at a rate prescribed by law for non-VAT businesses below the VAT threshold
  - Historically around 3% (subject to reductions or temporary rates set by particular tax reform laws and periods)
- VAT (for VAT-registered taxpayers):
  - Commonly 12% on taxable sales/receipts
  - Requires filing of VAT returns (monthly, then changed to quarterly under later reforms, depending on period and regulations) and proper input-output tax reporting
Withholding Tax Returns
- Compensation (employees): withholding and remittance through monthly/quarterly returns, plus annual information returns and alphalists
- Expanded/Creditable withholding: if you are a withholding agent (e.g., paying rent to a VAT-registered lessor), you must withhold and remit, and issue the corresponding BIR forms to payees.
Other Information Returns
- The BIR may require submission of summary lists of sales or purchases, alphalists of payees, etc., depending on the tax type and regulations in effect.

D. Updates and Changes in Registration

Use BIR Form 1905 for:

Change of business address
Opening or closing of branches
Change of trade name or business style
Change in tax type (e.g., from non-VAT to VAT upon exceeding threshold or voluntary registration)
Closure or cessation of business operations

For closure, you must:

Apply for cancellation of registration
Surrender unused receipts/invoices for inventory and destruction or stamping as “cancelled”
Ensure all tax returns are filed and liabilities settled

IX. Penalties for Non-Registration and Non-Compliance

The NIRC imposes various administrative and criminal penalties for violations, including:

Failure to Register as a Taxpayer
- Fines and surcharges
- Possible assessment of taxes due from date of deemed commencement of business plus penalties
Failure to Issue Registered Receipts/Invoices
- Compromise penalties for each violation
- Possible temporary closure of business under enforcement programs (e.g., “Oplan Kandado”-type closures)
Use of Unregistered Receipts/Invoices or POS
- Penalties for failure to comply with invoicing requirements
- Possible disallowance of expenses and input taxes, leading to higher tax assessments
Failure to File Returns or Pay Taxes on Time
- Surcharge (often 25% of basic tax, or higher for certain fraudulent acts)
- Interest per annum on unpaid tax, plus compromise penalties
Failure of an Accredited Printer to Comply with Printer-Specific Rules
- Suspension or revocation of accreditation
- Penalties related to unreported or improperly accounted printed accountable forms

X. Special Considerations Specific to Printing Services

Service vs. Goods
- Many printing transactions are deemed sale of services (e.g., printing marketing materials from customer’s design).
- Some may be treated as sale of goods depending on the nature of the printed items and contract. For tax purposes (particularly VAT/percentage tax), the distinction generally affects classification but both are taxable business income.
Large Contracts and Withholding
- Corporate clients may be required to withhold tax on payments to your printing business. You should monitor and secure your Certificates of Tax Withheld at Source (BIR Form 2307) to claim them against your income tax.
Inventory of Materials
- For larger shops, paper, ink, and other printable materials may represent significant inventory. Proper bookkeeping and cost accounting can affect income tax computations and audit exposure.
Environmental and Local Regulations
- While not directly a BIR concern, printing shops may also be subject to environmental, zoning, and safety regulations at the local government level, which can affect your ability to continue operations and, indirectly, your tax compliance.

XI. Practical Tips and Best Practices

Confirm Current Rates and Forms with the BIR or a Tax Professional Tax rates, forms, and filing frequencies may change through new laws and revenue regulations. Always check the latest official issuances for:
- VAT threshold
- Percentage tax rate
- Income tax brackets and options (e.g., 8% gross tax regime)
- Annual registration fee rules
Document Everything
- Keep copies of all registrations, ATPs, receipts, books of accounts, contracts, and major transactions. These are crucial in case of BIR audits.
Use a Simple but Proper Accounting System
- Even a small shop should have a basic system (manual or digital) to track:
  - Sales per job or per day
  - Costs of materials
  - Labor expenses and overhead
  - Taxes withheld and payable
Coordinate COR, ATP, and Actual Practice
- Ensure that the tax types listed in your COR match your actual operations (e.g., if you hire employees, make sure “withholding tax on compensation” is reflected and complied with).
- Your receipts/invoices must match your registration status (VAT vs. non-VAT, business name, address, etc.).
Plan Ahead if You Want to Become an Accredited Printer
- Accreditation is an additional regulatory layer. Make sure that your equipment, recordkeeping, and control systems can handle the responsibility of printing accountable forms for others.

XII. Conclusion

Registering a small printing services business with the BIR in the Philippines involves more than just filling out a form. It requires:

Choosing the correct taxpayer classification and tax types
Securing a Certificate of Registration (Form 2303)
Registering books of accounts and receipts/invoices or POS systems
Complying with ongoing filing and payment obligations
Observing specialized rules if you wish to be a BIR-accredited printer

While many small printing businesses start informally, formal BIR registration is essential to operate legally, serve corporate and government clients, and avoid penalties. Because tax rules evolve through new laws and regulations, it is always advisable to confirm details with the BIR or consult a qualified tax professional for up-to-date, situation-specific guidance.