BIR badge rule targets online sellers

The Bureau of Internal Revenue now requires online sellers and digital earners to display a Registration Seal Badge on their online platforms as proof that they are registered taxpayers.

The requirement is part of the BIR’s efforts to improve transparency, strengthen compliance and protect the tax base in the digital economy.

Under Revenue Memorandum Circular No. 038-2026, taxpayers engaged in online business activities must post the BIR-issued seal on their websites, e-commerce pages, e-marketplace seller pages or social media business accounts.

The circular covers online sellers, freelancers, professionals, vloggers, influencers and other persons earning income through digital platforms.

The BIR said the requirement applies not only to those selling goods online, but also to persons providing services through digital or electronic means or those with an online presence.

The Registration Seal Badge will replace the need to publicly post the full Certificate of Registration, or COR, addressing data privacy concerns while still allowing customers and regulators to verify a business’ legitimacy.

Both the Registration Seal Badge and the electronic COR will include a QR code that may be scanned to confirm the authenticity of a taxpayer’s registration.

The circular sets guidelines on where the seal should be displayed.

For websites and mobile applications, the seal may be posted in sections such as “About Us,” “About the Company,” “Government Compliance,” “Business Permits” or other similar areas easily accessible to the public.

For e-commerce platforms, mobile applications and marketplace accounts, the seal should be displayed on the seller’s or merchant’s page, profile, store, shop details, marketplace page or business page.

The Registration Seal Badge is issued free of charge.

Taxpayers may secure it electronically through the BIR’s Online Registration and Update System, or ORUS, or manually through the taxpayer’s Revenue District Office.

Taxpayers updating their registration online are required to pay the applicable PHP 30 Documentary Stamp Tax.

Existing taxpayers are not required to replace their current COR, but the BIR encouraged them to update their registration to obtain the seal and enable QR-based verification.

Commissioner Charlito Martin R. Mendoza said the initiative is part of the BIR’s broader push to strengthen compliance and accountability in the country’s fast-growing digital marketplace.

“Revenue base protection is not only about enforcement after violations happen. It is also about ensuring that businesses operating in the digital marketplace are properly registered, visible, and accountable from the start. The Registration Seal Badge helps protect legitimate online sellers who comply with the law, and it also protects online buyers by giving them a simple and reliable way to verify if the business they are dealing with is registered with the BIR,” he said.

The rule builds on the government’s continuing effort to regulate digital commerce, including earlier requirements for online businesses to display proof of tax registration and comply with withholding tax rules.

The BIR also implements tax measures affecting the digital economy, including the 1 percent withholding tax on certain gross remittances by electronic marketplace operators and digital financial services providers to online sellers.

Republic Act No. 12023, or the VAT on Digital Services Act, also imposes a 12 percent value-added tax on digital services consumed in the Philippines.