How to Process the Sworn Declaration Required by BIR for Electronic Marketplace Sellers

Are you selling goods or services through online platforms like Lazada, Shopee, Facebook Marketplace, or other digital marketplaces in the Philippines?

If so, you must comply with the tax requirements established by the Bureau of Internal Revenue (BIR) under the provisions of RR 16-2023. One of the key obligations is to submit a sworn declaration (SD) duly received by the BIR on the online platform where you sell your products.

The purpose of the SD is to declare your expected annual gross revenue from e-commerce sales. Based on the amount you declare; the BIR will determine whether tax should be withheld from the payments you receive through online marketplaces.

Here are the steps to properly process SD for e-marketplace sellers in the Philippines:

1. Download the Official Sworn Declaration Form

Your first step is to get a copy of BIR’s Sworn Declaration of Gross Remittance Form. You can download this form from the RMC 08-2024, Annex A or you may click this link.

2. Carefully Complete the Form

Next, accurately fill out all required information fields on the form. This includes:

Your BIR-registered name, business address and Tax Identification Number (TIN);
The specific online marketplace platforms you sell goods/services through (e.g. Lazada, Shopee, FB Marketplace, etc.);
An estimate of your gross remittances at a given period – Do not exceed Five Hundred Thousand Pesos (P500,000) or Exceed Five Hundred Thousand Pesos (P500,000)

Read the remaining provisions and double-check that all entries are complete and correct before signing and notarizing the declaration. Providing inaccurate information can result in penalties from the BIR.

3. Submit the Notarized SD

After getting your SD form notarized, you also need to pay for a documentary stamp and attach it to your sworn declaration before submitting it to the Revenue District Office (RDO) where you are registered.

Authorized personnel at the RDO will stamp “Received” on your sworn declaration. Then, you need to provide this BIR-received SD to the operator of the electronic marketplace platform(s) you sell through. This must be done on or before the 20th day of the first month of the taxable year.

This allows the e-commerce marketplace to determine if they need to withhold percentage tax from the sales payments remitted to you based on the anticipated receipts you declared.

4. Other Requirements

In addition to submitting the sworn declaration, you also have the responsibility as an e-commerce seller to register your online business with the BIR. You must then provide a copy of your Certificate of Registration to the e-marketplace operator as part of their documentary requirements before you can start selling on their platform.

By properly submitting the sworn declaration and providing proof of BIR business registration to the e-marketplace, as well as following all other BIR requirements, you can ensure you are fully tax-compliant as an online seller.

Staying up to date on evolving tax regulations for the digital economy is essential for all e-commerce entrepreneurs. If you need assistance with registering your online business, our team can help make this process seamless.

Just email us at info@djkaaccounting.com to request for a quote.