The Revenue Memorandum Circular No 55-2013 with subject: Reiterating Taxpayers’ Obligations in Relation to Online Business Transactions, has been released and was posted recently under the ‘Issuances & Rulings’ of the BIR website. To download, you may click this link: ftp://ftp.bir.gov.ph/webadmin1/pdf/73941RMC%20No%2055-2013.pdf.
The said RMC is the end-product of a consultative meeting as documented by Ms Janette in her post:
An excerpt from the Policies and Guidelines
“Like any other business establishments, persons who conduct business through the above-described online transactions and its permutations have the obligations to:
- Register the business at the Revenue District Office (RDO) having jurisdiction over the principal place of business/head office (or residence in case of individuals), by accomplishing BIR Form 1901 (for individuals) or 1903 (for corporations or partnerships), and pay the registration fee to any Authorized Agent Bank (AAB) located within the RDO. A BIR Certificate of Registration shall be issued by the RDO, reflecting therein the tax types required of the concerned taxpayer for filing and payment, which shall be displayed conspicuously in the business establishment;
- Secure the required Authority to Print (ATP) invoices/receipts and register books of accounts for use in business, which may either be:
a) Manual books of accounts, booklets of invoices/receipts, accounting records or loose-leaf of such;
b) Computerized Accounting System (CAS) and/or its components including e-Invoicing System under Revenue Memorandum Order (RMO) No. 21-2000 as amended by RMO No. 29-02.
- Issue registered invoice or receipt, either manually or electronically, for every sale, barter, exchange, or lease of goods and properties, as well as for every sale, barter, or exchange of service. Said invoice or receipt shall conform to the information requirements prescribed under existing revenue issuances, and shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of the latter’s accounting records;
- Withhold required creditable/expanded withholding tax, final tax, tax on compensation of employees, and other withholding taxes. Remit the same to the Bureau at the time or times required, and issue to the concerned payees the necessary Certificate of Tax Withheld.
- File applicable tax returns on or before the due dates, pay correct internal revenue taxes, and submit information returns and other tax compliance reports such as the Summary List of Sales/Purchases (SLS/P), Annual Alpha List of Payees, etc., at the time or times required by existing rules and regulations; and
- Keep books of accounts and other business/accounting records within the time prescribed by law, and such shall be made available anytime for inspection and verification by duly authorized Revenue Officer/s for the purpose of ascertaining compliance with tax rules and regulations.“
It is advisable for entrepreneurs and professionals engaged in e-commerce to be guided by this circular.
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(updated link 8/8)
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