Quick answer

If you regularly sell goods or services online as a business—through an e-marketplace, social-media account, messaging app, livestream, your own website, or similar channel—you must register with the Bureau of Internal Revenue. The rule applies even if the operation is home-based, part-time, newly opened, or earning below the VAT threshold.

Two commonly misunderstood thresholds do not excuse BIR registration:

The ₱3 million VAT threshold determines whether VAT registration is compulsory; it is not a small-business exemption from BIR registration.
The ₱500,000 e-marketplace remittance threshold concerns platform withholding-tax procedures; it is not a registration threshold.

the date of the first sale; or
30 calendar days after the issuance of a Mayor’s Permit, Professional or Occupational Tax Receipt, DTI Certificate of Business Name Registration, or SEC Certificate of Registration.

The controlling registration rules are in the Ease of Paying Taxes Act, Revenue Regulations No. 7-2024, and Revenue Memorandum Circular No. 91-2024.

Who must register

BIR registration generally applies to a person or entity carrying on online trade or business, including:

Sole proprietors selling physical or digital goods
Sellers using Shopee, Lazada, TikTok Shop, Facebook, Instagram, or other marketplaces and social-media channels
Sellers accepting orders through websites, messaging applications, or livestreams
Dropshippers, resellers, and made-to-order businesses
Businesses selling both online and through a physical store
Individuals who remain employed while operating a separate online business
Partnerships, corporations, cooperatives, and associations conducting online sales

An isolated private sale—such as occasionally disposing of a personally used item—is not automatically the operation of a business. Regularity, the nature and volume of transactions, acquisition of items for resale, advertising, and other facts may show that the activity is already trade or business. There is no safe rule that a seller may remain unregistered merely by describing transactions as a “sideline,” “hobby,” or “pre-order.”

Register the correct legal taxpayer

Before preparing the BIR application, identify who legally owns the store.

Sole proprietor

An individual operating the business personally registers through BIR Form No. 1901. If a trade or business name is used, obtain the applicable DTI business-name registration.

A DTI certificate registers the business name; it does not complete BIR registration or by itself authorize all aspects of business operation. The DTI likewise explains that a business-name registration is distinct from the required local business permit. See the DTI Business Name Registration System and its official FAQs.

Partnership or corporation

A partnership, corporation, or One Person Corporation registers through BIR Form No. 1903, using its SEC-registered identity and organizational documents. A cooperative uses its CDA registration documents.

Do not register a corporation’s sales under a shareholder’s personal TIN or treat a sole proprietorship as though it were legally separate from its owner.

Seller who already has a TIN

Use the existing TIN. This includes a TIN previously issued for employment, a one-time transaction, or another legitimate purpose. An individual ordinarily updates the existing record and registers the business activity instead of applying for another TIN.

Having more than one TIN is not a solution to a registration or ORUS problem. If the system cannot locate the existing record, raise the issue with the proper Revenue District Office rather than creating another taxpayer identity.

Documentary requirements

The BIR’s current detailed list is the Checklist of Documentary Requirements, revised July 2025. Requirements may expand where the applicant has a representative, a regulated activity, a branch, incentives, or foreign ownership.

For an individual online seller

Prepare the following basic documents:

BIR Form No. 1901—two originals for a manual application.
Government-issued identification showing the applicant’s name, address, and birthdate. If the ID does not show the address, provide proof of residence or business address in the applicant’s name.
Invoice arrangement, either:
- BIR Printed Invoices obtained from the New Business Registrant Counter; or
- a final clear sample of the seller’s own invoice and an application for Authority to Print through a BIR-accredited printer.
DTI certificate, if the seller uses a registered business name.
₱30 loose documentary stamp tax for the Certificate of Registration. Retain proof if paid electronically.
If a representative will transact:
- a transaction-specific Special Power of Attorney; and
- the required identification of the taxpayer and representative.

For an online ORUS application, the applicant must upload the required electronic documents, including a selfie while holding the identification document.

For a corporation, partnership, cooperative, or association

The basic documents generally include:

BIR Form No. 1903—two originals for a manual application.
The applicable organizational certificate, such as:
- SEC Certificate or Digital Certificate of Incorporation;
- SEC Certificate of Recording for a partnership;
- License to Do Business for a resident foreign corporation; or
- CDA Certificate of Registration for a cooperative.
The applicable articles of incorporation, partnership, cooperation, or association.
BIR Printed Invoices or a final clear sample of the entity’s own invoice for an Authority to Print.
The ₱30 loose documentary stamp tax for the Certificate of Registration.
If a representative will transact:
- a board resolution, written resolution for an OPC, or Secretary’s Certificate identifying the representative and purpose; and
- the required IDs.

Franchises, special registrations, investment incentives, or regulated activities may require additional supporting documents.

The ₱500 annual registration fee has been abolished

The former ₱500 Annual Registration Fee is no longer collected from business taxpayers, effective January 22, 2024. This was confirmed in Revenue Memorandum Circular No. 14-2024.

Do not confuse that abolished annual fee with:

the ₱30 documentary stamp tax for the Certificate of Registration;
the cost of BIR Printed Invoices; or
the private printing cost charged by an accredited printer.

Where and how to register

ORUS

The primary end-to-end online option is the Online Registration and Update System. A new applicant selects registration as an individual or non-individual, completes the corresponding Form 1901 or 1903 information, uploads the supporting documents, and selects either BIR Printed Invoices or an Authority to Print.

The BIR’s current ORUS guide instructs applicants to wait for RDO approval, stated as within three working days for a complete online application, and then pay the ₱30 documentary stamp tax before generating the electronic Certificate of Registration and applicable Authority to Print. Deficient documents, inconsistent data, or system issues can delay processing.

Manual registration

A manual application may be filed at the New Business Registration Counter of the proper RDO:

Use the RDO with jurisdiction over the physical place of business when there is a separate business location.
For a home-based online business, use the RDO with jurisdiction over the residence used as the business address.

Bring the originals needed for presentation and the number of copies stated in the current checklist.

Other official channels

Depending on the applicant and transaction, the BIR also recognizes:

the NewBizReg Portal;
the Philippine Business Hub; and
other registration-related electronic channels identified by the BIR.

Check that the selected channel accepts the particular taxpayer type and transaction. If ORUS produces an error, preserve screenshots, reference numbers, and emails. BIR guidance permits manual processing when the taxpayer can show the technical problem.

Choose the correct tax types

Registration is not only about obtaining a TIN. Each applicable internal-revenue tax must be registered, and the resulting tax types and return obligations should appear correctly in the Certificate of Registration.

VAT or non-VAT

VAT registration is generally compulsory when taxable gross sales for the past 12 months exceed ₱3 million, or when there are reasonable grounds to expect taxable gross sales for the next 12 months to exceed that amount. A person below the threshold may voluntarily register for VAT, but voluntary VAT registration generally cannot be cancelled for three years.

A qualified non-VAT seller may instead be subject to percentage tax, unless a valid alternative—such as the 8% income-tax option for a qualified individual—applies.

The 8% option for qualified individuals

A self-employed individual whose gross sales and other non-operating income do not exceed the VAT threshold may be eligible to choose an 8% income tax on gross sales and other non-operating income in lieu of graduated income tax and the Section 116 percentage tax.

For a purely self-employed individual, the 8% computation generally applies to the amount above ₱250,000. That ₱250,000 reduction does not apply in the same way to a mixed-income earner because the person also receives compensation income.

The option is not automatic or permanent. It must be properly elected for the taxable year through the available registration or filing method. VAT-registered sellers and other excluded taxpayers cannot use it. Obtain tax advice before selecting a tax type when projected sales are close to the VAT threshold or the seller has both compensation and business income.

Other tax types

Withholding-tax registrations may also be required if the seller has employees, rents business premises, pays professionals or contractors, or makes other payments subject to withholding. The correct profile depends on the actual business arrangements, not merely on the fact that sales are made online.

Review the Certificate of Registration immediately. An incorrectly registered tax type can create unnecessary return obligations or cause missed filings.

Complete the invoicing requirement

Registration is incomplete in practice if the seller has no compliant way to issue invoices.

Under the EOPT amendments, the primary sales document is a duly registered sales or commercial invoice. The Tax Code currently requires an invoice:

for each sale or service valued at ₱500 or more;
whenever the buyer requests one, regardless of amount;
for every sale by a VAT-registered person, regardless of amount; and
for the aggregate of below-threshold sales at day-end when the aggregate reaches at least ₱500.

A marketplace order confirmation, courier slip, payout statement, acknowledgment receipt, or payment-app record is not automatically a substitute for the seller’s BIR-registered invoice.

A seller choosing privately printed invoices must first obtain an Authority to Print and use an accredited printer. Do not print or issue improvised invoice booklets that lack BIR authority. The governing provisions appear in Sections 237 and 238 of the Tax Code, as amended by the EOPT Act, and in RR No. 7-2024.

Register and maintain books of accounts

A new business may choose:

manual books;
loose-leaf books; or
computerized books or a computerized accounting system.

Under RMC No. 65-2025, registration of the books need not occur simultaneously with the initial business-registration transaction. However, the taxpayer must be ready to make the required entries when business operations begin.

Manual books may be registered through ORUS, which generates a QR stamp, or through the applicable manual procedure. Loose-leaf books require a Permit to Use before use. Computerized books or systems require the applicable acknowledgment certificate or permit.

Books, subsidiary records, and supporting accounting documents generally must be preserved for five years, counted from the day after the return-filing deadline or, for a late return, from the filing date for the taxable year in which the last entry was made.

Display the BIR Registration Seal Badge online

Online sellers must display proof of BIR registration on the relevant website, platform, shop, or seller page.

Beginning in 2026, the BIR uses a Registration Seal Badge containing a QR code so an online business can show verifiable registration without exposing its full TIN and business address. Under RMC No. 38-2026:

Post the badge on the seller’s store page, profile, shop details, business page, or another visible and easily accessible location.
Post only the badge—not the entire Certificate of Registration.
Keep the badge clear, readable, and unaltered.
Confirm that the QR code leads to the official BIR verification domain before relying on the result.

An existing registered seller whose information is already current may generate the badge through ORUS under the supplemental procedure in RMC No. 64-2026. If the COR does not contain the correct online-selling activity or classification, update the registration first.

A physical establishment must continue to display its Certificate of Registration conspicuously at the registered location.

Requirements imposed by e-marketplaces and payment providers

E-marketplace operators are required to obtain proof that participating sellers are BIR-registered. A platform may therefore request the seller’s COR or verified registration information before allowing the store to sell, post, list, or offer products.

Platform withholding is separate from registration. Under RR No. 5-2025, covered e-marketplace operators and digital financial-services providers generally withhold 0.5% of gross remittances to sellers or merchants. Subject to the conditions preserved from the earlier rules, withholding may not apply while the relevant annual or cumulative gross remittances do not exceed ₱500,000.

To use the below-₱500,000 treatment, RMC No. 8-2024 requires the prescribed BIR-received sworn declaration to be submitted to the platform or provider. For a continuing seller, the declaration is generally submitted on or before January 20 of the taxable year. Without the required declaration, the platform may withhold regardless of actual remittances.

Any amount withheld is generally a creditable income-tax payment—not a final settlement of the seller’s income tax. Obtain and preserve the applicable BIR Form No. 2307 and reconcile it with platform payouts and tax returns.

Practical registration sequence

Identify the real owner and legal structure of the store.
Search existing records and confirm the owner’s current TIN.
Obtain the applicable DTI, SEC, CDA, and local registrations.
Determine the correct registered address and RDO.
Estimate 12-month sales and decide whether VAT, non-VAT, or a qualified 8% option applies.
Prepare Form 1901 or 1903 and the current documentary checklist.
Choose BIR Printed Invoices or apply for an Authority to Print.
File through ORUS or another accepted channel before the registration deadline.
Pay the ₱30 documentary stamp tax and retain the payment confirmation.
Download or collect the COR/eCOR and applicable ATP.
Check the name, address, trade name, line of business, tax types, and return forms on the COR.
Register the appropriate books and begin recording transactions.
Generate and post the Registration Seal Badge on every relevant online store or page.
Submit the COR, seal, and any required sworn declaration to the marketplace.
Calendar every return and payment listed in the COR, including nil returns where required.

Evidence to preserve

Keep organized copies of:

DTI, SEC, CDA, and LGU registrations
BIR application forms and supporting documents
COR/eCOR, Registration Seal Badge, ATP, and printer documents
ORUS submissions, emails, error screenshots, reference numbers, and payment confirmations
Registered invoices and cancelled or returned invoice records
Marketplace orders, sales reports, payout statements, fees, commissions, discounts, refunds, and returns
Courier and cash-on-delivery reports
Bank and e-wallet statements
Supplier invoices and proof of purchases
Inventory records
Forms 2307 and other withholding certificates
Filed returns, payment confirmations, and registered books

Records should allow a transaction to be traced from the customer’s order to the invoice, delivery or cancellation, platform settlement, bank or wallet receipt, and book entry.

Common mistakes

Waiting to reach ₱500,000 or ₱3 million

Neither amount is a general BIR-registration exemption. Registration is tied to conducting business and the statutory commencement deadline.

Getting a second TIN

An employed person starting a business normally updates the existing TIN. Duplicate TINs can create serious record and filing problems.

Treating DTI registration as complete business registration

DTI, BIR, and LGU registrations serve different purposes. Completing one does not automatically complete the others.

Registering under the wrong address or RDO

A home-based online business should use the actual residence or business address and the RDO with jurisdiction over it. Do not use a relative’s address or virtual location merely for convenience unless it is legally and factually the business address.

Using an unregistered store name or personal payout account

The store name, BIR record, marketplace profile, invoices, and settlement account should be consistent. Existing BIR rules require covered digital remittances to be made to an account under the seller’s BIR-registered trade name.

Selecting tax types without considering projected sales

A wrong VAT or percentage-tax classification can affect pricing, invoicing, returns, and tax liability. Review expected sales for the next 12 months, not only sales already earned.

Assuming platform withholding finishes the tax obligation

Creditable withholding is generally claimed against income tax. It does not replace the seller’s books, invoices, returns, and final tax computation.

Posting the entire COR online

Post the Registration Seal Badge. Uploading the full COR unnecessarily exposes the TIN and registered address.

Stopping sales without formally closing the registration

Tax-return obligations can continue until the registration and affected tax types are properly closed or updated. A dormant store, deleted account, or expired DTI name does not by itself close the BIR registration.

When professional help is urgent

Consult a Philippine CPA or tax lawyer promptly if:

the business began before registration and has unreported sales;
the registration deadline has already passed;
cumulative sales have crossed or are about to cross the VAT threshold;
the seller has received a Letter of Authority, assessment notice, summons, closure notice, or takedown notice;
an e-marketplace has frozen or threatened to close the store for registration defects;
the taxpayer has duplicate TINs or conflicting RDO records;
substantial platform withholding credits are missing or do not match Forms 2307;
the seller uses several entities, nominees, foreign payment accounts, or cross-border arrangements;
the business sells regulated, imported, excisable, or potentially prohibited products; or
prior returns were not filed, including required nil returns.

Preserve the complete notice and envelope or electronic delivery record. Follow the response deadline stated in the document; do not assume that an ORUS submission or informal RDO conversation suspends it.

The BIR may suspend business operations or issue a closure or online takedown order for covered violations under RR No. 15-2024. Correcting the registration does not automatically erase tax liabilities or filing violations from earlier periods.

FAQ

Do small online sellers need BIR registration?

Yes, when the activity constitutes trade or business. There is no general registration exemption simply because sales or profit are small.

Must I register before my first sale?

Yes. The safest and legally consistent course is to complete registration before accepting or completing the first sale. The BIR’s commencement rule can also trigger registration 30 calendar days after the relevant DTI, SEC, or LGU document is issued, even if no sale has yet occurred.

Can an employed person register an online business?

Yes. The person becomes a mixed-income earner and should update the existing TIN rather than obtain another one. Compensation and business income have separate tax-treatment considerations.

Can I use my home address?

Yes, if the residence is genuinely the place from which the online business operates. Provide acceptable proof of address and separately check zoning, condominium, subdivision, barangay, and LGU requirements.

Is a Mayor’s Permit a standard attachment to every new BIR application?

It is not listed as a universal standard document in the BIR’s current initial-registration checklist. It may nevertheless be required under local law and in particular BIR transactions or factual situations. Its issuance also affects the 30-day commencement rule.

Is the ₱500 BIR registration fee still payable?

No. The Annual Registration Fee was abolished effective January 22, 2024. The ₱30 documentary stamp tax for the COR and invoice-printing costs remain separate.

Does the ₱500,000 platform threshold mean I do not have to register?

No. It concerns the withholding-tax exception and sworn-declaration procedure. The platform may still require a COR before allowing the store to operate.

What if I already have a registered physical store?

Update the registration if online selling, an additional trade name, a new branch, or another line of business is not reflected in the BIR record. Generate and display the Registration Seal Badge for the online channel.

Must every social-media selling account show the badge?

The rule requires the badge to be visible and easily accessible on the relevant website, seller page, profile, store, or marketplace page. If the business sells through multiple distinct pages or platforms, apply the posting rule to each relevant customer-facing channel.

Are one-time sales of used personal belongings covered?

An isolated disposal of a personally used item is not necessarily a business. Repeated selling, maintaining inventory, buying for resale, advertising, or operating for commercial purposes can support a different conclusion. When the facts are mixed, obtain advice rather than relying on a label such as “decluttering.”

Official references

This article provides general legal and tax information, not advice for a particular seller or transaction. Registration, tax classification, local permits, and filing obligations depend on the seller’s documents, ownership structure, location, products, projected sales, and actual transactions. Official sources and procedures were checked as of July 30, 2026.