For the longest time, the digital marketplace in the Philippines felt a bit like the Wild West. You could buy a custom cake, hire a freelance graphic designer, or snag a vintage jacket through a social media comment — all without ever knowing if the business was “official” in the eyes of the law. Meanwhile, traditional shop owners had to frame their Certificates of Registration (CoR) issued by the Bureau of Internal Revenue (BIR) and hang them on a wall for all to see.
Enter Revenue Memorandum Circular (RMC) No. 38-2026. Issued in April 2026, this RMC is the BIR’s way of modernizing that once-dusty, framed certificate for the digital age. It introduces the “BIR Registration Seal,” a digital marker designed specifically for online sellers, freelancers, and other taxpayers who make their living in the cloud.
WHAT IS THE REGISTRATION SEAL?
Think of the Registration Seal as a “verified” badge for taxpayers — the BIR’s version of the “blue check” of social media platforms.
It is a standardized digital image that features a QR Code. When a customer scans that code, it links directly to the BIR’s official verification system, confirming that the seller is a registered taxpayer without splashing their private details — like their home address or Taxpayer Identification Number (TIN) — all over the internet.
This marks a significant shift in regulatory approach. In the past, if you wanted to prove you were registered online, you might have had to upload a photo of your actual CoR. Not only was that clunky, it was also a serious privacy nightmare.
RMC 38-2026 acknowledges that the internet is a public space, and that sellers deserve meaningful data protection. As such, taxpayers are explicitly required to post only the Registration Seal and not the full CoR, thereby reducing the risk of exposing sensitive personal information.
WHO NEEDS TO POST IT?
The net is cast deliberately wide. If you earn money through digital or electronic means, RMC 38-2026 generally applies to you. The list includes:
Online Sellers: Whether you operate on Shopee, Lazada, TikTok Shop, or similar e-commerce platforms.
Service Providers: Freelancers, virtual assistants, and other independent professionals offering services online.
Digital Content Creators: Vloggers, influencers, streamers, and anyone earning income from livestreams, advertisements, sponsorships, or affiliate links.
Platform Merchants: Any individual or entity using a website, marketplace account, or social media page to conduct business.
The rule is straightforward: if you have a digital “storefront,” you need the Registration Seal and it should be posted in a conspicuous spot. In the digital marketplace, this typically means displaying the badge in visible sections such as the “About Us,” profile headers, or “Business Info/Permit” sections of websites or online pages/platforms.
HOW DO YOU GET ONE?
The process is surprisingly modern. Most sellers can generate the badge through the Online Registration and Update System (ORUS). If you aren’t a fan of doing things digitally, you can still visit your local Revenue District Office (RDO) for assistance.
The badge itself is free. However, there is a small catch: if you need to update your registration details to get the badge (like changing your business classification), you will need to pay a P30 Documentary Stamp Tax (DST). It’s a small price to pay for a “digital seal of approval” that assures your customers that you are a legitimate, law-abiding business.
Notably, taxpayers are not required to replace their existing CoR that does not contain a QR code. However, they are encouraged to do so for purposes of securing the Registration Seal. Considering that the QR allows buyers to verify the seller’s BIR registration, having a CoR with a QR may help better establish a seller’s credibility.
IS THIS FAIR?
Whenever the BIR introduces a new rule for online sellers, the reaction is often a collective sigh. “Another requirement?” “Why us?” But if we step back and look at the bigger picture, RMC 38-2026 is actually a step toward fairness, balance, and plain common sense.
LEVELING THE PLAYING FIELD
For years, bricks-and-mortar stores have argued that online sellers have an unfair advantage because they are “invisible.” By making registration visible through a standardized badge, the BIR is ensuring that everyone plays by the same rules. If a physical bakery is required to display its registration, why shouldn’t a Facebook-based bakery do the same? Only the medium has changed, not the obligation.
BUILDING CONSUMER TRUST
As a shopper, have you ever hesitated before sending a GCash payment to a stranger on Instagram? Most people have. The Registration Seal acts as a visible bridge of trust. When a buyer sees that QR code, they know they aren’t dealing with a fly-by-night operation. It protects legitimate sellers from being lumped in with scammers and fraudulent accounts.
RESPECTING PRIVACY
One of the most sensitive realities of being an online entrepreneur is that your “office” is often your living room or bedroom — spaces that are inherently personal and private. The BIR deserves credit for not forcing sellers to post their full CoRs online. By adopting a QR code, they have balanced the need for government transparency with the taxpayer’s right to privacy.
THE MYTH OF IDENTICAL TREATMENT
Critics might argue that online sellers are getting “easier” treatment because they only have to post a badge instead of a full certificate. However, uniformity in taxation does not mean rigid sameness.
A physical store is a controlled, location-specific environment; the internet is not. Requiring a vlogger to publicly display their home address (often reflected in the CoR) would be unsafe and impractical. RMC 38-2026 proves that the tax authority can be pragmatic and adaptive. It shows they are willing to adapt the mechanics of the law to fit the reality of the digital world.
FINAL THOUGHTS
Taxation is rarely described as “light” or “easy,” but RMC 38-2026 feels like a measured compromise. It brings the digital economy into the regulatory fold without being overly heavy-handed. For sellers, it’s a way to establish legitimacy. For buyers, it’s a tool for peace of mind. And for the BIR, it’s a way to ensure that the once-”invisible” digital economy is finally seen and verifiable.
If you’re an online seller, don’t view this as another hurdle. Instead, think of it as your digital business permit — one that finally fits the modern way you operate. It’s time to grab your badge and wear it with pride.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
Dorothy Jane Puguon is a senior manager at the Tax Services Department of Isla Lipana & Co., a Philippine member firm of PricewaterhouseCoopers global network.
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