A. How to register your business in the BIR including branch offices and other facilities?
- Proceed to the Revenue District Office having jurisdiction over your head office, branch office/s, place of production and storage places where inventory of goods for sale or use in business are kept.
- Accomplish and submit Application for Registration (BIR Forms 1901/1903), together with the following:
- Sketch of business site of taxpayer
- Photocopy of Mayor’s Permit & Municipal License
- Certificate of Registration of Business name DTI for single proprietorship; or SEC Certificate of Registration, for corporation or partnership
- Articles of Incorporation or Partnership;
- Proof of Ownership/Lease Contract;
- For branch offices, Photocopy of BIR Certificate of Registration of the Head Office.
- For Individual
>>> Marriage Contract
>>> Birth Certificate of dependents
- Pay a registration fee of P500.00 using BIR form 0605 with Authorized Agent Bank (AAB) located within the revenue district or in the absence of an AAB, to the Revenue Collection Officer.
- Display in a conspicuous place within the place of business the Certificate of Registration (BIR form 2303), the registration fee for the current year and “Notice to the Public/Ask for Receipt” signage.
- Accomplish BIR form 2000 and pay documentary stamp on Subscribed Capital Stock for Corporation and documentary stamp on lease contract.
B. How to register the books of accounts?
All books of accounts (i.e. journals, ledger etc,) are required to be registered before using any of them. However, VAT taxpayers are required also to register and maintain, in addition to the regular accounting records, subsidiary sales journal and subsidiary purchase journal on which the daily sales and purchases are recorded.
- Accomplish BIR Form No. 1905
- Submit to the RDO the books of accounts for stamping together with other requirements stated below:
- For new taxpayer
>>> BIR Certificate of Registration
>>> Registration Fee
- For old taxpayer – renewal, same requirements above and previous books of accounts with last entry.
C. How to secure the Authority to Print Receipts/Invoices (ATP)?
All taxpayers engaged in business are required to secure an Authority to print receipts/invoices before printing the same. Proceed to the RDO and accomplish Application for Permit to Print Receipts, Sales or Commercial Invoices (BIR Form 1906) together with the following:
- Printer’s Job Order
- Final and clear sample of receipts and/or invoices, containing the necessary information, including the name, business style, TIN, business address of the person or entity to use the same and word “VAT or Non-VAT” whichever is applicable;
- Photocopies of TIN Card and Proof of Payment of Registration Fee (BIR Form 0605) for both the printer and taxpayer and BIR Certificate of Registration;
- For subsequent application present the previous Authority to Print Receipts and invoices and last booklet printed together with other requirements in securing Authority to Print Receipts/Invoices (ATP) except TIN card.
Each establishment (head office or branch) Shall be covered by one application for permit to print receipts/invoices and be issued one and separate permit to print receipts/invoices with mention of name of printer, address, range of serial numbers and number of booklets.
D. How to register manually-printed receipts or sales/commercial invoices prior to their use?
After printing of receipts/invoices, a Printer’s Certificate of Delivery of Receipts and invoices (PCD) shall be issued by the printer.
- A PCD is a certificate issued by the printer to its client every time a delivery of the ordered receipts/invoices, is made. The printer shall have the PCD stamped “Registered” by the BIR office having jurisdiction over the taxpayer’s place of business.
- Within (30) days from issuance of the PCD, the taxpayer or printer, as the case may be, shall submit to the concerned BIR office that has jurisdiction over the taxpayer-user’s principal place of business the triplicate copy of the PCD, together with the certified photocopy of approved ATP and the taxpayer’s Sworn Statement enumerating responsibilities and commitments of the taxpayer-user. One copy thereof shall likewise be submitted to the BIR Revenue District Office that has jurisdiction over the principal place of business of the printer. (Quintuplicate Copy)
E. What are the responsibilities of a taxpayer while the business is in operation?
- Pay annually registration fee of P500.00 for every separate or distinct establishment or place of business on or before January 31 (BIR form 0605)
- Display the BIR Certificate of Registration, the Registration fee for the current year and the “Notice to the Public/Ask for Receipt” signage in such area conspicuous to the public view within the establishment.
- Use only registered cash register machines, point-of sale machines, and other similar devices (for those who opted to use these machines in lieu of the registered sales invoices/receipts).
- Issue registered invoices/receipts for sale of goods or services as required and secure ATP before printing of new receipts/invoices by presenting together with the other requirements, photocopy of previous ATP or photocopy of the last receipt/invoice;
- Register and maintain books accounts in the business permits at all times
- Preserve all books of accounts for audit purposes within 3 years from the last day prescribed by law for the filing of return or actual date of filing of return, whichever comes later;
- Withhold taxes on compensation of employees, and on payments subject to final and expanded withholding tax and remit the correct tax as withheld;
- File the necessary returns and pay the corresponding correct taxes at the time/s required by law.
F. Retirement/closure/cessation of business operation
Requirements in case of retirement of business operations
In case of retirement of business, there is a need to notify the RDO, by accomplishing BIR Form No. 1905 and submit together with the following requirements:
- Letter request for cessation of registration
- Existing BIR Certificate of Registration (for surrender)
- Inventory list of unused invoices and receipts
- Unused invoices and receipts for cancellation
- Dissolution papers (Board Resolution, bankruptcy declaration)
- Certificate of closure from Municipal Office
- Certificate of closure from Barangay
- Two (2) years latest income tax return
- List of “Open Cases” per BIR Case Monitoring System (CMS)
An audit or investigation is necessary to determine any delinquent or unpaid tax liabilities.
F. Who are those taxpayers required to Issue receipts?
All VAT Taxpayers shall issue receipts/invoices regardless of the amount of sale. However, non-VAT taxpayers are required to issue receipts/invoices for each sale or transfer of merchandise or for services rendered valued at P25.00 or more