Online Sellers' BIR Tax Guide: Shopee, Lazada, TikTok Shop (2026)

Selling on Shopee or Lazada is not a tax-free business. Many Filipino online sellers still believe that because their store is digital, the BIR doesn't know about it — or doesn't care. Both assumptions are increasingly wrong.

The BIR has been systematically closing the compliance gap on e-commerce since 2020. If you're running an online store with any meaningful volume, here's what you need to know.

The Legal Basis: RMC 60-2020

The BIR's Revenue Memorandum Circular No. 60-2020 (issued July 2020) officially required all online sellers — whether on marketplace platforms, social media, or their own websites — to register and pay taxes like any other business.

Before 2020, many online sellers operated in a gray area. RMC 60-2020 ended that ambiguity. The circular specifically covers:

• Sellers on digital marketplaces (Shopee, Lazada, Carousell, Zalora, etc.)
• Live sellers on Facebook and TikTok
• Sellers on their own websites (Shopify, WooCommerce)
• Resellers operating from home
• Sellers using GCash, Maya, or bank transfers for payment

The BIR has since signed MOUs with major platforms to share seller data for compliance monitoring.

Step 1: Get a TIN (Tax Identification Number)

If you don't have one, you need a TIN before you can register your business with the BIR. Individuals can apply for a TIN using BIR Form 1901 (self-employed/professional) or through the BIR's ORUS (Online Registration and Update System) at onlineregistration.bir.gov.ph.

If you're already employed and have a TIN from your employer, you use that same TIN — you don't get a separate one for your online business.

Step 2: Register Your Business at Your RDO

Your Revenue District Office (RDO) is the BIR office assigned to your area. You register your online selling business there using:

• BIR Form 1901 — Registration form for self-employed individuals
• BIR Form 0605 — Payment form for the ₱500 registration fee
• Documentary requirements: Valid ID, proof of address, DTI business name registration (if trading under a business name), and lease contract if operating from a commercial space

After registration, you'll receive:

• Certificate of Registration (COR) — your BIR permit to operate
• Official Receipts (ORs) or Sales Invoices (SIs) — printed through an authorized BIR printer

What Tax Type Are You?

Non-VAT (Percentage Tax) — Most Online Sellers

If your annual gross sales or receipts are below ₱3,000,000, you register as a non-VAT taxpayer and pay:

• 3% Percentage Tax on gross quarterly receipts (under Section 116, Tax Code)
• Filed quarterly using BIR Form 2551Q, due on the 25th day after each quarter
• No input tax credits — you simply pay 3% on everything you receive

Example: An online clothing seller with ₱80,000/month in sales = ₱960,000/year gross sales. Quarterly percentage tax = ₱960,000/4 × 3% = ₱7,200 per quarter.

VAT — High-Volume Sellers

If your annual gross sales are ₱3,000,000 or more, you must register as VAT:

• 12% Output VAT collected from buyers on each sale
• Input VAT credits for 12% VAT you paid on your purchases and shipping
• Filed monthly using BIR Form 2550M (due 20th of following month), then quarterly summary on BIR Form 2550Q

VAT registration involves more paperwork but gives you the benefit of crediting input taxes — making it more advantageous if your cost of goods is high.

Official Receipts for Online Transactions

Here's where many online sellers get confused: do you need to issue an Official Receipt (OR) for every Shopee or Lazada sale?

For marketplace platforms

Marketplace platforms like Shopee and Lazada issue their own sales documentation to buyers. The BIR has clarified (through subsequent revenue issuances) that for platform sales, the platform's transaction records can serve as a form of documentation — but you are still required to issue your own OR or SI if the buyer requests one.

In practice: keep your platform sales data (monthly payout statements, order history) as your primary record. Issue a manual OR when a customer specifically requests one.

For direct sales (social media, your own website, COD through riders)

For these, you must issue an OR or SI at the point of sale. If you're doing Facebook Live selling with GCash payments, you need to issue ORs to buyers who request them.

Electronic Official Receipts

The BIR allows Electronic ORs (eORs) through accredited software providers. Akauntants generates BIR-compliant eORs that can be emailed to customers immediately after payment — no paper required.

ATC Codes for Online Sellers

When filing your percentage tax return (2551Q), you use:

• PT 010 — Percentage tax on domestic carriers and keepers of garages (not applicable to most)
• PT 030 — Percentage tax on other percentage taxpayers (most online sellers file under this)

Your registered tax type and the BIR's instructions on your COR will specify the correct code. If unsure, ask your RDO.

Are Platform Fees Deductible?

Yes. Shopee, Lazada, and TikTok Shop charge sellers a commission on each sale (typically 1%–5% depending on category). These platform fees are legitimate business expenses deductible from your gross income when computing your annual income tax (filed in April using BIR Form 1701A or 1701).

Keep your platform settlement reports as documentation. Akauntants can import these reports directly so deductible expenses are already categorized.

Penalties for Non-Compliance

The BIR's penalties for unregistered online sellers are real:

• Failure to register: Penalty of ₱20,000 to ₱50,000 + criminal liability
• Failure to issue ORs: Penalty of ₱10,000 for first offense, ₱20,000 for second, and closure/criminal prosecution for third
• Failure to file and pay taxes: 25% surcharge + 12% annual interest + compromise penalties
• Business closure: BIR can padlock your operations (including suspension of your marketplace account in coordination with platforms)

The BIR runs periodic "Oplan Kandado" (padlock operations) campaigns targeting unregistered sellers. These have happened to visible Facebook sellers and physical stores alike.

Your Annual Filing Obligations

Once registered, your recurring BIR obligations as a non-VAT online seller are:

Filing	Form	Deadline
Quarterly Percentage Tax	2551Q	25th day after quarter end
Annual Income Tax Return	1701A or 1701	April 15
Registration renewal	—	January 31 (pay ₱500 ARF)

If you have employees, add monthly withholding tax returns and annual payroll returns (1604CF).

Making Compliance Manageable

The biggest barrier to BIR compliance for online sellers isn't the money — it's the paperwork and the confusion about what to do. A few things that help:

1. Separate your business bank account or e-wallet. Use a dedicated GCash or Maya account for your store, or a separate bank account. Never mix personal and business money.
2. Download your platform payouts monthly. Shopee, Lazada, and TikTok Shop all have seller finance dashboards. Download and file these monthly statements.
3. Track expenses the moment they happen. Platform fees, packaging, shipping materials, product purchases — log them as they occur, not at tax time.
4. Hire a bookkeeper or use software early. At ₱1M+ in annual sales, a part-time bookkeeper or accounting software pays for itself in avoided penalties alone.

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BIR requirements for online sellers are governed by RMC 60-2020 and subsequent revenue issuances. Thresholds, forms, and deadlines are current as of 2026. Consult the BIR or a registered tax agent for registration specific to your business type and location.