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Same permits apply to: online seller.
A dropshipper is an online merchant under the Internet Transactions Act, even if you never touch the stock. Platforms must check your ID before you list, and your own store must show your business name, address and contact details. Many owners overlook the payout tax: e-marketplaces and e-wallets withhold 1% on half of what they remit unless you give them a sworn declaration, received by BIR, that you will stay at or under ₱500,000.[1,2,3,4]
You are the seller, even without stock
The rules on this page do not name dropshipping. The rules apply because a dropshipper sells goods online, which makes you an online merchant or e-retailer under RA 11967. Customers will hold you responsible for delays and defects, so pick suppliers with tracking and clear return terms.
Running your own store website
RA 11967 Sec. 23(f) requires e-retailers to publish their business name, address and contact details and submit them to the DTI E-Commerce Bureau with a government ID or registration document. The law directs the Bureau to enforce registration of online merchants.[1]
On Shopee, Lazada or TikTok Shop, the platform asks for your name and a valid government ID, or business registration documents, before listing.[1]
Ask the E-Commerce Bureau for its current procedure and fee. Put your DTI business name, address and contact number in your site footer now.
Payouts and the 1% withholding
Under RR 16-2023, e-marketplaces and digital payment providers such as GCash and Maya withhold 1% on one-half of gross remittances to sellers. You register with BIR and give them your Certificate of Registration first.[2,4]
If your gross remittances for the year will not go over ₱500,000, you can stop the withholding with a sworn declaration. RMC 8-2024 says you have it received by BIR, using the Annex A form, then submit it to each e-marketplace or e-wallet. You submit it again on or before 20 January each year. Without it, the 1% is deducted.[3,4]
See BIR rules for online sellers and online business registration.
Before you launch your store
- Register your business name with DTI.
- Register with BIR and save a PDF of your Certificate of Registration.
- Upload your ID or business papers to each platform.
- Add your business name, address and contact details to your website footer.
- If you expect ₱500,000 or less in remittances, have the sworn declaration received by BIR and give it to each platform.
- Check that each product category does not need FDA registration.
Questions people ask
- Do dropshippers need to register their business?
- RA 11967 treats online merchants as subject to E-Commerce Bureau registration, and RR 16-2023 requires online sellers to register with BIR. No source names dropshipping, but both apply to online merchants.
- Why is 1% being deducted from my payouts?
- Under RR 16-2023, e-marketplaces and digital payment providers withhold 1% on half of gross remittances to sellers.
- Can I avoid the withholding?
- Yes, if your gross remittances will not go over ₱500,000 for the year. Under RMC 8-2024, you have a sworn declaration received by BIR and submit it to the platform and e-wallet, then again by 20 January each year.
- Do I need FDA approval for what I sell?
- Cosmetics, food and supplements have their own FDA rules that we did not research here. Check before listing them.
Sources
Checked 13 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Republic Act No. 11967 (Internet Transactions Act of 2023) · Congress of the Philippines (via Lawphil) · 5 December 2023
- BIR: Online sellers must now pay withholding tax · Philippine Daily Inquirer · 17 July 2024
- Revenue Memorandum Circular No. 8-2024 · Bureau of Internal Revenue · 15 January 2024
- Revenue Regulations No. 16-2023 · Bureau of Internal Revenue · 21 December 2023
The extra permits, in one table
| Permit or registration | Agency | When it applies | Fee |
|---|---|---|---|
| BIR registration; give Certificate of Registration to the e-marketplace…[2] | BIR (RR 16-2023) | if selling through e-marketplaces or collecting via DFSPs | Not published |
| 1% creditable withholding tax on one-half of gross remittances by e-marketplaces / DFSPs[2] | BIR (RR 16-2023) | sales through e-marketplaces or paid via DFSPs (in effect from 15 July 2024) | Not published |
| Sworn declaration (BIR-received, Annex A of RMC 8-2024) that gross remittances will not exceed PHP 500,000, submitted to the e-marketplace or e-wallet[3] | BIR (RR 16-2023) | if annual gross remittances will not exceed PHP 500,000 | Not published |
If it's an online seller: the withholding on your payouts
Under RR 16-2023, e-marketplace operators and digital financial services providers like GCash and Maya withhold 1% on one-half of the gross remittances they pay sellers.[2]
If your total gross remittances for the year will not go over ₱500,000, RMC 8-2024 lets you stop the withholding with a sworn declaration. You have it received by BIR, using the Annex A form, and submit it to the platform and the e-wallet. You submit it again on or before 20 January each year. Without it, the 1% is deducted.[3]
Keep the withholding certificates the platform gives you. You will need them when you file your income tax. See our BIR guide for online sellers.
Rules and exemptions
Selling rules that apply
- Submit name + valid ID or business registration documents, address…[1]
- Publish business name, address, contact details on homepage and submit…: RA 11967 Sec. 23(f): e-retailers publish their business name, address and contact details and submit them to the Bureau with a government ID or registration document[1]
- Registration of online merchants with the E-Commerce Bureau: RA 11967 directs the E-Commerce Bureau to enforce the registration of digital platforms and online merchants with the Bureau[1]