Hi Dee! Some of your suppliers may be registered as a Non-Vat entity, that’s why they don’t have VAT. If your suppliers are VAT, essentially, they are adding VAT to prices so parang you’re advancing the VAT payments na to BIR through them. So long story short, it doesn’t really matter. 🙂

Should we add extra fees to our retail price?

And how will we add it unto our vat ex shop that has vat ex sales invoice most esp if our customers are vat inc company?

Hello Gie,

Good day!

Yes you can still try and register your business under the BMBE category. But do note that you need to have it registered in DTI first and obtain certification from both DTI and BIR in order for you to be able to use the BMBE rate. 🙂

Hi Jaireh,

Good day!

The OPC is only exempted of Income Tax as they are in BMBE category. They should still file and pay the business tax of 3% using the percentage tax form (2551Q). 🙂

I want to register my online shop to the BMBE. My place of residence is in a condominium which is registered as residential. Can I still register my business using my residential address since I do not have a physical store and my business is purely selling goods in the online platform? Thanks.

Hi RDA! Maybe check with your RDO. Usually, BMBE registered businesses only pay percentage or VAT and the annual income tax form (zero tax dues). They are exempted from paying income taxes and 0605 this year need not be paid anymore 🙂

Hi A! As a registered BMBE business, your deduction method should always be itemized standard deduction when it comes to computing income tax. With this, all declared expenses SHOULD be substantiated by an official sales invoice or official receipt. For local businesses that do not issue receipts, unfortunately, you cannot declare these as expenses. Stay tuned for our Facebook live video with the BIR on March 23, 2024. We’ll discuss your question further with the BIR.