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  Parties  to   Transaction   Merchant/Retailer   A.    ONLINE  SHOPPING   (Without  intermediary)   1.

If  payment  received  thru  credit  card  companies:    (a)  Issue  electronically  the  BIR  registered  Invoice/OR   for   the   full   amount   of   the   sale   to   the   buyer;     (b)   issue   acknowledgement   receipt   to   the   credit   card   company  for  the  amount  received;  (c)  pay  the  commission  of  credit  card  company  net  of  10%  EWT   2. If  payment  received  thru  the  banks:   (a) issue  Invoice/OR  to  the  buyer  for  the  payment  of  the  goods/services;  (b)  issue  acknowledgement   receipt  to  the  bank  for  the  amount  received   3. If  buyer’s  payment  is  cash  on  delivery  or  in  the  office  of  merchant  (pick-­‐up):  Issue  either  electronically   or  manually  the  BIR  registered  Invoice/OR  for  the  full  amount  of  the  sale  to  the  buyer     Pay  the  price  of  the  goods/service  thru:   1.  Credit  Card-­‐    (a)  receive  the  Payment  Confirmation,  under  the  name  of  the  merchant,  for  the  purchase   price   charged     by   credit   card   company;     (b)   receive   Invoice/OR   from   the   merchant   upon   delivery   of   the   goods  or  rendering  of  service   2. Banks  –  (a)  receive  validated  copy  of  the  deposit  slips  made  in  the  name  of  the  merchant;    (b)  receive     Invoice/OR  from  the  merchant  upon  delivery  of  the  goods  or  rendering  of  service   3. Cash   on   delivery   or   in   the   office   of   merchant   (pick-­‐up):   Receive   either   the   electronic   or   manual     registered  Invoice/OR  for  the  full  amount  of  payment  made  to  merchant/retailer   1. Credit  Cards:   (a) Issue  Payment  Confirmation  (in  the  name  of  the  merchant-­‐seller)  for  the  purchase  price  charged  to   buyer;             (b)   Remit   to   merchant-­‐seller   the   price   amount     less   EWT   of   ½   of   1%;     (c)   receive   agreed   commission  from  merchant,  net  of  EWT  of  10%     2. Banks  (over  the  counter):   (a) Issue  validated  bank  deposit  slips  in  the  name  of  merchant  to  the  depositor-­‐buyer;    (b)  remit  the   amount  to  the  merchant   3. Cash   –   whether   on   delivery   or   in   the   office   of   merchant   (pick-­‐up):   merchant   to   issue   invoice   /OR   to   buyer   Issue  OR  for  the  service  fee  paid  by  the  merchant    

ANNEX  “A”  

Buyer/Customer  

Payment  Gateways  

Freight  Forwarders  

Online   Website   Issue  OR  for  the  service  fee  paid  by  the  merchant   administrators   (if   third  party)             Parties  to   Transaction   Merchant/Retailer   Intermediary-­‐Seller       B.    ONLINE  INTERMEDIARY  SERVICE    (With  Intermediary  –  Commission  Basis)   (a) Issue   Invoice/OR   to   intermediary   for   the   amount   of   sale   to   intermediary;   (b)     pay   intermediary’s   commission  of  30-­‐40%  (according  to  industry  insider)  net  of  10%  EWT  on  the  commission   1. If   payment   received   thru   credit   card   companies:     (a)   Issue   electronically   or   manually   the   BIR   registered  Invoice/OR  to  the  buyer  for  the  purchase  amount  charged  (b)  issue  acknowledgement  receipt   to  the  credit  card  company  for  the  amount  received;  (c)  pay  the  commission  of  credit  card  company  net   of  10%  EWT   2. If  payment  received  thru  the  banks-­‐  (a)  issue  Invoice/OR  to  the  depositor-­‐buyer  for  the  payment   of  the  goods/services;  (b)  issue  acknowledgement  receipt  to  the  bank  for  the  amount  received   3. If   buyer’s   payment   is   cash   on   delivery   or   in   the   office   of   merchant   (pick-­‐up):   Issue   either   electronically  or  manually  the  BIR  registered  Invoice/OR  for  the  full  amount  of  the  sale  to  the  buyer   Pay  the  price  of  the  goods/service  thru:     1. Credit   Card-­‐   (a)   receive   the   Payment   Confirmation   credit   card   company,   under   the   name   of   the   intermediary,  for  the  purchase  price  charged;  (b)  receive  Invoice/OR  from  the  intermediary-­‐seller  upon   delivery  of  the  goods  or  rendering  of  service   2. Banks   –   (a)   receive   validated   copy   of   the   deposit   slips   made   in   the   name   of   the   intermediary;   (b)   receive    Invoice/OR  from  the  intermediary  upon  delivery  of  the  goods  or  rendering  of  service   3. Cash   on   delivery   or   in   the   office   of   intermediary   (pick-­‐up):   Receive   either   the   electronic   or   manual     registered  Invoice/OR  for  the  full  amount  of  payment  made  to  intermediary   1. Credit   Cards:     (a)   Issue   Payment   Confirmation,   in   the   name   of   the   intermediary-­‐seller,   for   the   price   charged  to  buyer;    (b)  Remit  to  intermediary-­‐seller  the  price  amount  less  EWT  of  ½  of  1%;  (c)  receive  

Buyer/Customer  

Payment  Gateways  

agreed  commission  from  intermediary-­‐seller,  net  of  10%  EWT     2. Banks   (over   the   counter):     (a)   Issue   validated   bank   deposit   slips   in   the   name   of   intermediary   to   the   depositor-­‐buyer;    (b)  remit  the  amount  to  the  intermediary   3. Cash  –  whether  on  delivery  or  in  the  office  of  intermediary  (pick-­‐up):  intermediary  to  issue  invoice  /OR   to  buyer   Freight  Forwarders   Issue  OR  for  the  service  fee  paid  by  the  intermediary-­‐seller   Online   Website   Issue  OR  for  the  service  fee  paid  by  the  intermediary-­‐seller   administrators   (if   third  party)           Parties  to   C.    ONLINE  –ADVERTISEMENT   Transaction   (Transactional  Fee)   Merchant/Retailer   A. As  Online  Advertiser:   (a) Pay  the  online  advertising  entity  for  the  advertising  fee,  net  of  2%  EWT;    (b)  receive  from  said  entity   the   BIR   registered   electronic   copy   or   original   copy   of   manually   issued   OR   for   the   amount   of     advertising  fee  paid;    (c)  remit  to  BIR  the  EWT  from  the  advertising  entity  
 

Advertising  Entity    

B. As  Merchant/  Retailer:   1. If   payment   received   thru   credit   card   company:   (a)   Issue   electronically   the   BIR   registered   Invoice/OR   for   the   full   amount   of   the   sale   to   the   buyer;   (b)   issue   acknowledgement   receipt   to   the   credit   card   company  for  the  amount  received;  (c)  pay  the  commission  of  credit  card  company  net  of  10%  EWT   2. If   payment   received   thru   the   banks:   (a)   issue   acknowledgement   receipt   to   the   bank   for   the   amount   received;  (b)  issue  Invoice/OR  to  the  buyer  for  the  payment  of  the  goods/services   3. If  buyer’s  payment  is  cash  on  delivery  or  in  the  office  of  merchant  (pick-­‐up):  Issue  either  electronically   or  manually  the  BIR  registered  Invoice/OR  for  the  full  amount  of  the  sale  to  the  buyer   (a) Issue  OR  to  advertiser/merchant  for  the  full  amount  of  advertising  fee  (amount  received  is  net  of  2%   EWT);    (b)  receive  from  advertiser/merchant  at  prescribed  time  a  Certificate  of  Creditable  Tax  Withheld   at  Source  (Form  2307)  for  the  amount  of  tax  withheld  

Buyer/Customer  

Pay  the  price  of  the  goods/service  thru:   1. Credit   Card-­‐   (a)   receive   Payment   Confirmation,   under   the   name   of   the   merchant,   for   the   purchase   price   charged   by   credit   card   company;   (b)   receive   Invoice/OR   from   the  merchant  upon  delivery  of  the   goods  or  rendering  of  service   2. Banks   –   (a)   receive   validated   copy   of   the   deposit   slips   made   in   the   name   of   the   merchant;     (b)   receive     Invoice/OR  from  the  merchant  upon  delivery  of  the  goods  or  rendering  of  service   3. Cash   on   delivery   or   in   the   office   of   merchant   (pick-­‐up):   Receive   either   the   electronic   or   manual     registered  Invoice/OR  for  the  full  amount  of  payment  made  to  merchant/retailer   Payment  Gateways   1. Credit   Cards:     (a)   Issue   Payment   Confirmation   (in   the   name   of   the   merchant-­‐seller)   for   the   price   amount  charged  to  the  buyer;    (b)  Remit  to  merchant  the  price  amount  less  EWT  of  ½  of  1%;  (c)  receive   agreed  commission  from  merchant,  net  of  10%  EWT     2. Banks   (over   the   counter):     (a)   Issue   validated   bank   deposit   slips   in   the   name   of   merchant   to   the   depositor-­‐buyer;  (b)  remit  the  amount  to  the  merchant   3. Cash   –   whether   on   delivery   or   in   the   office   of   merchant   (pick-­‐up):   merchant   to   issue   invoice   /OR   to   buyer   Freight  Forwarders   Issue  OR  for  the  service  fee  paid  by  the  merchant     Online   Website   Issue  OR  for  the  service  fee  paid  by  the  advertising  entity   administrators   (if   third  party)       Parties  to   D.      Online  Auction   Transaction     Merchant/Retailer   Regular  transaction  of  merchant/retailer-­‐  issue  invoice/OR     Auction  Webstore   A. Payment  for  voucher/coupon/bid  packs  received  thru:   1. credit   card   companies:   (a)   Issue   electronically   the   BIR   registered   Invoice/OR   to   the   buyer   for   the   purchase   price   of   bid   packs;     (b)   issue   acknowledgement   receipt   to   the   credit   card   company   for   the   amount  received;  (c)  pay  the  commission  of  credit  card  company  net  of  10%  WT   2. banks:   (a)   issue   Invoice/OR   to   the   depositor-­‐buyer   for   the   payment   of   the   bid   packs;   (b)   issue   acknowledgement  receipt  to  the  bank  for  the  amount  received    

B. Sale  of  Auctioned  Item  to  the  highest  bidder:                  Issue  either  electronically  or  manually  the  BIR  registered  Invoice/OR  for  the  winning  bid  price  to  the   buyer/bid  winner  [the  above  (A)  shall  apply  for  payments  received  thru  the  modes  discussed]   Buyer/Customer   Pay  the  price  of  the  bid  packs  to  designated  payment  gateway:   (a)    receive  Payment  Confirmation  from  the  payment  gateway  for  the  amount  paid  for  the  bid  packs;  (b)   receive  from  the  auction  webstore  the  BIR  registered  electronic  copy  or  original  copy  of  manually  issued   OR   for   the   purchase   of   bid   packs;   (c)   if   winning   bidder,   receive   the   goods/service   together   with   the   invoice/OR  for  the  bid  price  of  goods/service     Payment  Gateways   1. Credit  Cards:   (a) Issue  Payment  Confirmation  (under  the  name  of  the  auction  webstore-­‐seller)  for  the  price  charged   to   the   buyer   of   bid   packs   or   to   winning   bidder;       (b)remit   to   auction   webstore-­‐seller   the   price   amount  less  EWT  of  ½  of  1%;    (c)  receive  agreed  commission,  net  of  EWT  of  10%     2. Banks  (over  the  counter):   (a) Issue  validated  bank  deposit  slips  in  the  name  of  auction  webstore-­‐seller  to  the  depositor-­‐buyer;    (b)   remit  the  amount  to  the  auction  webstore-­‐seller       Freight  Forwarders   Issue  OR  for  the  service  fee  paid  by  auction  webstore   Online   Website   Issue  OR  for  the  service  fee  paid  by  the  auction  webstore   administrators   (if   third  party)