Mercado, Mark Anthony S.

BSIT 4 -1

 Tax Guidelines for E – Commerce Transaction in the Philippines

 E – Commerce Advertising Regulations
 The E – Commerce Law Republic Act 8792

Tax Guidelines for E – Commerce Transaction in the Philippines

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;
Keep books of accounts and other business/accounting records within the time prescribed by
law,
• Shall be made available any>me for inspection and verification by duly authorized Revenue Officer/s
for the purpose of ascertaining compliance with tax rules and regulations.
__________________________________________________________________________________
E – Commerce Advertising Regulations
1. Selling of gift certificates cannot have an expiration date. What is only excluded are those that
are covered under a special promotion that may have come as a value added or free.

 DTI-DAO 10-04 series of 2010 No expiry date on gift card / certificates / checks sold beginning July
1, 2012
2. Only registered business can do sales promotions, with or without purchase required. This
should be applied at least one month before the actual conduct of the promotion. It must be
supported by relevant documents that will assert a well organized campaign and will be able to
deliver its promise to the participants of the promotion.

 DTI Sales Promotion Permit Process

 DTI-DAO 10-02 Series of 2010 Addenda on Chapter IV Sales Promotion
 DTI-DAO 01-A series of 2000 Schedule of Fees and Charges for Sales Promotion
 DTI-DAO 2 Series of 1993: IRR on Sales Promotion – Consumer Act of the Philippines
3. Companies that conduct sales promotion without permit or may have done neglect in the
course of its promotion can be contacted by the consumer for resolution of the issue. However,
complaints can also be elevated to the government for resolution.

 DTI-DAO 06 series of 2007 on Administrative Fines

 DTI-DAO 5 series of 2007 – Rules on Mediation in the Resolution of Inquiries, Complaints and Cases
Filed with the DTI in violation of the Consumer Act
 DTI DAO 7 series of 2006 – Instituting Simplified and Uniform Rules of Procedure for Administrative
Cases filed with the DTI for Violations of the Consumer Act
4. E-commerce site owners are expected to practice fair and truthful advertising. It will also be
responsible in the handling of customer data gathered through promotions or sales. It will also
set up a help desk to resolve customer complaints.

 Joint DTI-DOH-DA DAO 1 series of 2008: Consumer Protection in E-Commerce Transactions

 E-Commerce Law
 Data Privacy Act
5. In the online world, as well as the offline world, the Consumer Act of the Philippines provided
guidelines how products and services should be advertise. This includes being wary on
misleading advertisement such as superlative claims where products or services or individuals
claim to be “#1” without disinterested parties’ study supporting the claim.
It is important for entrepreneurs to be familiar of existing advertising regulations and be wary of
doing any promotion practice deemed as unethical by Internet marketing organizations.