Legal FAQ for “online” earners: a) Influencers, Bloggers, Vloggers, Live-Streamers; b) Online sellers

I’m earning some money online as a social media influencer and online seller, do I need to register?

Yes.  Technically, you need to register with the local government and with the Bureau of Internal Revenue.

My income is growing, what are my liabilities to the government?

In addition to registration, you are required to issue official receipts, and file an income tax return every year, as well as pay income tax.  Depending on the level of income and the type of income, you may also be required to register with the BIR’s Value Added Tax (VAT)system.

What is the consequence of non-registration and non-payment of income tax and VAT?

Non-registration will result in penalties.  Non-payment of income tax is tax evasion.  It is a crime punishable by imprisonment.

What is the effect of being VAT registered?

All your gross receipts will be subject to 12% VAT.

Who is required to be VAT registered?

Importers, and individuals or businesses engaged in selling, exchanging, leasing of goods or properties, and rendering services, if the actual gross sales or receipts accumulate up to Php 3,000,000.00;

Where do I get official receipts?

You can apply for official receipts when you register with the BIR.

What is the consequence if I don’t issue receipts?

Non-issuance of receipts is a criminal offense subject to imprisonment and penalties.

YouTube pays me some money, but I was informed by YouTube that Tax has been deducted and paid to the United States Internal Revenue Service (IRS). Do I have to pay the US – IRS and the PH – BIR? Will I have to pay tax twice?

No. The Philippines and the U.S. have a tax treaty to avoid double taxation.  You will just need to submit some forms to the BIR to prove that tax has already been paid on the income from YouTube.

Online, I’m selling food products that I cook and pack. I also re-sell some package food products online. Aside from the local government and BIR, do I need other registrations?

Generally, food producers and sellers are required to register with the Food and Drug Administration of the Philippines.  You may be required to obtain a license to operate.