The digital transformation of the global economy has led to a surge and proliferation of online businesses, activities and transactions, pushing authorities to update regulations to keep pace with this shift. In line with the passage of Republic Act. No. 11967 or the Internet Transactions Act of 2023, which aims to regulate e-commerce, to protect consumer rights and data privacy, encourage innovation, promote competition, secure internet transactions, uphold intellectual property rights, ensure product standards and safety compliance, and observe environmental sustainability, the BIR has issued Revenue Regulations (RR) No. 15-2024,to establish guidelines for the mandatory registration of individuals and entities engaged in both physical and online businesses.
Key Highlights of RR 15-2024
Who is Covered?
Brick-and-Mortar Stores: Traditional physical stores must register their business with the Bureau of Internal Revenue (BIR) Revenue District Office (RDO) where the business is located.
Online Businesses:
If the online store is an extension of a physical store, it must be registered as an additional business name attached to the head office or branch; and
Purely online businesses without a physical presence should register based on the owner's place of residence (for individuals) or the principal business location registered with the Securities and Exchange Commission (SEC) (for juridical entities).
Certificate of Registration (COR)
All businesses must display their BIR Certificate of Registration (COR) at their physical premises.
For online businesses, an electronic copy of the COR/eCOR should be easily accessible and visible on their website, webpage, account, or application. This ensures transparency and compliance with the BIR's requirements.
Compliance and Consequences
Non-compliance with RR 15-2024 can result in severe penalties. The BIR has the authority to suspend business operations or issue a Closure/Take Down Order for businesses that fail to register or comply with the regulation's requirements.
Why This Matters
Revenue Regulations 15-2024 aims to create a fair and level playing field between traditional and digital businesses, ensuring that all entities contribute their fair share of taxes. By understanding and complying with these regulations, businesses can avoid penalties and operate legally within the Philippines.
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Need Help Navigating the Complexities of Tax Compliance?
Navigating tax regulations can be challenging, especially with the evolving digital economy. At Aureada CPA Law Firm, we specialize in helping businesses understand and comply with tax laws. If you need assistance with RR 15-2024 or any other tax-related matters, our team of experts is here to guide you through the process.
Contact us today for a consultation and let us help you ensure compliance and peace of mind.
Visit us at: 6772 Ayala Avenue, San Lorenzo, Makati City 1226
Email: info@aureadalaw.com
Tel: (02) 3224 5601
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