For Bureau of Internal Revenue (BIR) compliance in selling gasoline in the Philippines, you

need to fulfill the following tax and registration requirements:

1. Business Registration with BIR
 BIR Form 1903 (Corporation/Partnership) or Form 1901 (Sole Proprietor) –
Register your business with the BIR.
 BIR Certificate of Registration (COR - Form 2303) – This document will specify
your tax obligations, including Value-Added Tax (VAT) or Percentage Tax.
 BIR-Registered Books of Accounts – Maintain and register books for recording
sales, purchases, and expenses.
 Authority to Print (ATP) Invoices/Receipts – Secure BIR approval to print Official
Receipts (OR) and Sales Invoices (SI).
 Taxpayer Identification Number (TIN) – Ensure the business has its own
registered TIN.
2. Excise Tax Compliance
 Excise Tax on Petroleum Products – As a fuel retailer, you are required to sell
petroleum products that have already been subject to excise tax at the refinery or
importer level. However, you must maintain proper documentation to prove
compliance.
 Fuel Marking Program Compliance – Gasoline stations must ensure that the fuel
they sell contains the required government fuel marker, per the Philippine Fuel
Marking Program.
3. VAT or Percentage Tax Compliance
 VAT (Value-Added Tax) – 12%
o If annual gross sales exceed ₱3 million, your business must be VAT-registered
and collect 12% VAT on sales.
o File BIR Form 2550M (Monthly VAT Return) and 2550Q (Quarterly VAT
Return).
 Percentage Tax – 3%
o If annual gross sales are below ₱3 million, you may opt for 3% Percentage
Tax instead of VAT.
o File BIR Form 2551Q (Quarterly Percentage Tax Return).
4. Monthly and Annual Tax Filing
 Withholding Tax on Compensation (BIR Form 1601-C) – For employee salaries.
 Expanded Withholding Tax (BIR Form 1601-EQ) – For certain business expenses.
 Annual Income Tax Return (BIR Form 1702 or 1701, depending on business
type) – Submit yearly.
 SLSP (Summary List of Sales & Purchases) – Required for VAT-registered
businesses.
 Financial Statements (FS) & Annual Information Return (BIR Form 1702-AIF)
– For corporations.
5. Point-of-Sale (POS) System Registration
 BIR Accreditation of POS Machines or Cash Register Machines (CRM)
o If you use POS machines for recording sales, these must be registered with
the BIR.
6. Compliance with Invoicing Requirements
 Issue BIR-registered Official Receipts (OR) and Sales Invoices (SI) for every
sale.
 Maintain copies of receipts for at least 10 years, as required by the Tax Code.
Would you like a checklist or step-by-step guide for BIR registration?
Excise Tax Compliance for Selling Gasoline in the
Philippines
Excise tax is an indirect tax imposed on certain goods, including petroleum products,
manufactured or imported in the Philippines. The Bureau of Internal Revenue (BIR) enforces
tax compliance through regulations and monitoring mechanisms. Here’s a breakdown of
excise tax requirements for gasoline station owners:

1. Understanding Excise Tax on Petroleum Products

 Excise tax is already imposed at the refinery or importation level (by
petroleum refiners, importers, or manufacturers).
 Gasoline station owners do not directly pay excise tax but must ensure that
the fuel they sell has been properly taxed.
 Retailers must source fuel from BIR-registered suppliers who have complied with
excise tax requirements.
Current Excise Tax Rates on Fuel (as per TRAIN Law - Republic Act No. 10963)
The excise tax per liter on petroleum products (effective since January 1, 2020) is:
Excise Tax per
Fuel Type
Liter (₱)
Unleaded
₱10.00
Gasoline
Premium
₱10.00
Gasoline
Diesel ₱6.00
Kerosene ₱5.00
LPG (Auto) ₱3.00
These rates may change depending on future tax reforms or government policies.

2. Fuel Marking Program Compliance

To prevent fuel smuggling and tax evasion, the government requires all fuel sold in the
market to undergo fuel marking, ensuring it has been taxed correctly.
How the Fuel Marking Program Works:
 All fuel importers, refiners, and distributors must add a chemical marker to their
fuel products upon importation or production.
 This invisible chemical marker helps authorities identify whether the fuel has paid
the proper excise taxes.
 The Bureau of Customs (BOC) and BIR conduct random field tests at gas stations
to check if the fuel contains the proper marker.
 If fuel is found without the marker, it indicates tax evasion, and penalties will
apply.
Responsibilities of Gasoline Stations under the Fuel Marking Program:
✔ Ensure fuel is sourced only from BIR-compliant suppliers.
✔ Cooperate with BIR and BOC inspections and testing.
✔ Maintain proper documentation (purchase invoices, receipts) proving compliance.

3. Documentary Requirements for Excise Tax Compliance

Even though excise tax is paid at the supply level, gas station owners must keep proper
records to prove they are selling tax-paid fuel. Required documents include:
✅ Purchase Invoices from Fuel Suppliers – These should indicate excise tax was
already included.
✅ BIR-registered Sales Invoices – To document transactions properly.
✅ Stock Inventory Records – To monitor fuel purchases and sales.
✅ Fuel Marking Compliance Reports (if required by authorities).

4. Penalties for Non-Compliance

Failure to comply with excise tax regulations can result in severe penalties:
🚨 Selling Fuel Without the Proper Tax Markers:
 Confiscation of fuel and possible closure of the gas station.
 Heavy fines and penalties imposed by BIR and BOC.
🚨 Failure to Present Proper Documentation:
 Risk of being audited or fined by the BIR for tax evasion.
🚨 Underreporting of Sales (to Avoid VAT/Percentage Tax):
 Can lead to tax fraud charges, additional surcharges, and interests.

5. How to Stay Compliant with Excise Tax Regulations

✔ Register the business properly with BIR.
✔ Buy only from legitimate suppliers who pay excise taxes.
✔ Keep copies of invoices and fuel purchase records.
✔ Ensure fuel passes the government’s fuel marking tests.
✔ File taxes correctly and declare accurate sales figures.

1. Check if the Supplier is BIR-Registered

✅ Ask for their BIR Certificate of Registration (BIR Form 2303)
 This document confirms they are legally registered taxpayers and excise tax
payer.
✅ Verify their TIN (Taxpayer Identification Number)
 Ensure that their TIN is valid and matches the records at BIR.

2. Request Proof of Excise Tax Payment

✅ Ask for BIR-Registered Invoices & Receipts
 Suppliers must provide official Sales Invoices (SI) or Official Receipts (OR)
indicating that excise tax has been paid.
✅ Check for Excise Tax Breakdown in the Invoice
 The invoice should show the fuel price per liter and state that the excise tax is
already included in the total cost.

3. Verify Compliance with the Fuel Marking Program

✅ Ensure the Fuel Has the Official BIR Fuel Marker
 All fuel legally sold in the Philippines must contain a chemical marker to prove it
has passed excise tax compliance.
✅ Request a Certificate of Compliance (if applicable)
  Some suppliers may provide a certification that their fuel meets BIR and Bureau of
Customs (BOC) regulations.

4. Cross-Check with the Department of Energy (DOE) & BIR

✅ Check if the Supplier is DOE-Accredited
 The Department of Energy (DOE) has a list of licensed petroleum importers
and refiners. Ensure your supplier is on this list.
✅ Verify Supplier Compliance with BIR & BOC
 You can inquire with the BIR Excise Large Taxpayer Division or BOC Fuel
Marking Team if a supplier is under investigation for tax evasion.

5. Conduct Spot Fuel Testing (If Necessary)

✅ Use a Fuel Marker Test Kit (Provided by BIR/BOC)
 If you suspect untaxed fuel, you can request a fuel marker test from the BIR or
BOC.
✅ Observe Fuel Delivery and Storage
 Ensure that fuel is delivered properly, with proper documentation and transport
compliance.

6. Be Aware of Warning Signs of Non-Compliant Suppliers

❌ Selling Fuel at a Much Lower Price than Market Rates – This could indicate
smuggled or untaxed fuel.
❌ No Excise Tax Breakdown on Invoice – Properly registered suppliers must indicate
excise tax.
❌ Unregistered or Fake Receipts – Always check if the invoices are BIR-accredited.

7. Report Non-Compliant Suppliers to Authorities

 If you suspect a supplier is selling untaxed or smuggled fuel, report it to:
o BIR Excise Tax Division – (02) 981-7000
o Bureau of Customs Fuel Marking Team – (02) 705-6000
o Department of Energy (DOE) – (02) 479-2900