Top 5 Tax Mistakes of E-Commerce Sellers (And How to Avoid Them)
Increasingly, Filipinos are starting online businesses selling on platforms like Shopee, Lazada, TikTok Shop, or their websites. But while e-commerce opens up income opportunities, it also comes with serious tax compliance responsibilities.
Whether you’re a startup, a side hustler, or a full-time online entrepreneur, these are the most common tax mistakes online sellers make in the Philippines and how to avoid them.
Quick Summary: Tax Mistakes and How to Stay Compliant
| Mistake | Risk | How to Avoid It |
| Not registering with BIR. | Penalties, shutdown | Register with DTI/SEC, LGU, and BIR |
| Relying only on platform receipts | Invalid documentation | Issue BIR-approved ORs or e-invoices |
| No sales reconciliation | Underreported income | Match platform reports with bank credits |
| Missing tax deadlines | Penalties & surcharges | Track due dates and file via eFPS or eBIRForms |
| Poor bookkeeping | Audit exposure | Maintain BIR-registered books with support from UNA |
Mistake #1: Not Registering with the BIR
Many online sellers assume that if their business is small or informal, registration isn’t necessary. This is false.
RMC No. 60-2020 states:
“Persons doing business and earning income in any manner or form… including those who are into digital transactions… are required to register their business.”
How to comply:
Register your online business with DTI or SEC, secure your local business permit, and register with the BIR to obtain:
- Certificate of Registration (Form 2303)
- Books of accounts
- ATP or POS/e-receipt registration
UNA offers full BIR registration assistance for online sellers and small businesses.
Mistake #2: Relying on Marketplace Receipts (Shopee, Lazada, TikTok)
Platform-generated receipts do not meet the BIR’s standards for official receipts.
You are required to issue:
- Manual Official Receipts (with ATP), or
- POS Receipts (with BIR registration), or
- E-invoices under the BIR Electronic Invoicing System (EIS) are covered
How to comply:
Use only BIR-approved official receipts.
UNA can help you register for ATP, set up POS, or comply with e-invoicing for e-commerce in the Philippines.
Mistake #3: Not Reconciling Platform Sales with Bank Deposits
Many sellers report only what’s credited to their bank, not the full gross sales recorded by the platforms.
The BIR can verify data using:
- Platform reports
- Courier tracking
- Bank transfers
- GCash/payment gateway logs
How to comply:
Reconcile gross sales, shipping fees, platform commissions, and net payouts every month.
UNA offers e-commerce bookkeeping and sales reconciliation services in the Philippines.
Mistake #4: Missing Tax Filing Deadlines
Failing to file BIR forms on time leads to automatic penalties—even if your business is small.
Late filings result in:
- 25% surcharge
- 12% annual interest
- ₱1,000 per return late filing fee
How to comply:
Utilize a tax calendar and set up automated reminders—file using eFPS, eBIRForms, or ORUS.
UNA helps online sellers file returns accurately and on time.
Mistake #5: Poor or No Bookkeeping
Keeping records is a legal requirement and your best defense in a BIR audit.
The BIR requires:
- BIR-registered books (manual, loose-leaf, computerized)
- Records stored for 10 years
- Accessible documentation for all declared income and expenses
How to comply:
Keep updated ledgers and reconcile regularly with your platforms.
UNA offers full-service bookkeeping for online sellers and small businesses in the Philippines.
BONUS: What are the Tax Requirements for Online Businesses?
Even online businesses are required to:
- Register with the BIR
- Issue valid BIR-authorized receipts
- Maintain books of accounts
- File monthly, quarterly, and annual tax returns
- Pay applicable income, VAT, or percentage, and withholding taxes
Non-compliance can result in penalties or even a BIR audit investigation.
What UNA Can Do for You
| Problem | UNA’s Solution |
| Unregistered business | Complete BIR registration for online sellers. |
| No official receipts | Assistance with ATP, POS, or EIS setup |
| Platform mismatches | Monthly platform reconciliation |
| Late filings | Tax calendar and return filing support |
| No books | E-commerce bookkeeping and compliance documentation |
Protect Your Business from BIR Penalties
The BIR now utilizes technology and data-sharing tools to verify the income of online sellers. Even informal and small sellers may receive Letters of Authority (LOAs) or audit notices.
Don’t wait until you’re flagged.
Get registered, stay organized, and file on time—with UNA’s expert help.
Book Your FREE 15-Minute Tax Compliance Consultation
We’ll help you:
- Register your online business
- Issue valid receipts or e-invoices
- Reconcile platform sales
- File taxes and maintain your books
Email: sales@una-acctg.com
UNA Tax and Accounting Services – Smart, Strategic Compliance Solutions.
About UNA
UNA Tax and Accounting Services is a specialized compliance-focused division under Nicolasora, Nicolasora and Associates Co. As a trusted accounting firm in Pasig, we help e-commerce businesses, freelancers, and SMEs register, comply, and grow with confidence.
