If you’re an online seller operating on platforms like Lazada, Shopee, Facebook Marketplace, or any other digital marketplace in the Philippines, complying with the latest tax requirements is crucial. Under the provisions of RR 16-2023, one essential requirement is submitting a sworn declaration (SD) that accurately reflects your expected annual gross revenue from e-commerce sales. This guide will walk you through the process of fulfilling this obligation and ensuring you remain compliant with the Bureau of Internal Revenue (BIR) regulations.
What is a Sworn Declaration for Online Sellers?
A sworn declaration for online sellers is a formal statement made to the BIR, declaring the anticipated gross revenue from online sales. This declaration determines whether taxes should be withheld from the payments you receive through online marketplaces.
Steps to Process Your Sworn Declaration:
- Downloading the Form: Start by obtaining the BIR’s Sworn Declaration of Gross Remittance Form. You can download this form from the BIR website or directly through RMC 08-2024, Annex A.
- Completing the Sworn Declaration: Fill out the form carefully. Ensure you include:
- Your BIR-registered name, business address, and Tax Identification Number (TIN).
- The names of the online marketplace platforms where you conduct your sales.
- An accurate estimate of your gross remittances, specifying whether it does not exceed or exceeds Five Hundred Thousand Pesos (PHP 500,000).
- Submission and Notarization: Once completed, get your sworn declaration notarized. Attach a documentary stamp and submit the notarized document to the Revenue District Office (RDO) where you are registered. Ensure you receive a “Received” stamp on your form. Subsequently, provide this BIR-received SD to the operators of the electronic marketplaces you utilize, ideally by the 20th day of the first month of the taxable year.
- Additional Registration Requirements: In addition to the sworn declaration, online sellers must register their business with the BIR and provide a copy of their Certificate of Registration to the marketplace operator. This ensures full compliance with all regulatory requirements and facilitates a smoother operation on digital sales platforms.
Why is Compliance Important?
Proper submission of the sworn declaration and maintaining up-to-date registration with the BIR are not just regulatory requirements but also enhance your credibility and trustworthiness as a seller. It assures both your customers and the marketplace platforms that you are a responsible merchant who adheres to local laws and regulations.
Stay Updated and Compliant
With the digital economy rapidly evolving, keeping abreast of all tax obligations, including the sworn declaration for online sellers, is essential. Understanding and complying with these requirements can prevent legal issues and foster a healthier business environment.
For more detailed assistance and step-by-step guidance in registering your e-commerce business and managing your tax obligations, visit Taxumo’s blog. Embrace your entrepreneurial journey with confidence by ensuring your business is compliant from the start.
For further assistance, please contact customercare@taxumo.com.