Who is this for?
StoreHub merchants in the Philippines who need to configure their products and tax settings to comply with BIR regulations, including zero-rated and tax-exempt items.
Overview
This guide explains how to set up different tax codes in your StoreHub BackOffice, such as 'Zero Rated' and 'Tax Exempted', as required by the Bureau of Internal Revenue (BIR). You'll learn how to apply these tax codes to your products and how to mark specific retail products as eligible for special discounts like Senior Citizen (SC), Persons With Disability (PWD), or Solo Parent discounts.
Before You Begin
Your StoreHub account must have BIR compliance enabled (refer to: 'How to Enable BIR Compliance and Configure Receipt Details').
A clear understanding of which of your products are 'Zero Rated' or 'Tax Exempted' according to BIR guidelines. If unsure, please consult with BIR directly.
Step-by-Step Guide
Add a New Tax Code (Zero Rated or Tax Exempted)
You need to create specific tax codes in your BackOffice to correctly categorize products for BIR reporting.
1. In your BackOffice, go to 'Settings', then tap 'Tax Codes'.
2. Tap the 'Add Tax Code' button.
3. For a 'Zero Rated' Tax Code:
Enter a 'Tax Code Name' (e.g., 'Zero Rated').
Set the 'Tax Rate' to '0%'.
Leave the 'VAT Exemption' box unchecked.
Tap 'Save'.
4. For a 'Vat Exempted' Tax Code:
Enter a 'Tax Code Name' (e.g., 'Vat Exempted').
Set the 'Tax Rate' to '0%'.
Tick the 'VAT Exemption' box.
Tap 'Save'.
Edit an Existing Tax Code
1. In your BackOffice, go to 'Settings', then tap 'Tax Codes'.
2. From the list of tax codes, find the name of the tax code you wish to edit, and click on the 'Edit' button.
3. Make the necessary changes to the 'Tax Code Name', 'Tax Rate', or 'VAT Exemption' setting.
4. Tap 'Save' to apply your changes.
Delete an Existing Tax Code
1. In your BackOffice, go to 'Settings', then tap 'Tax Codes'.
2. From the list of tax codes, find the name of the tax code you wish to delete, and click on the 'Delete' button.
3. Confirm the deletion when prompted.
Note:
You cannot delete a tax code that is currently assigned to any products. You must first update those products to use a different tax code.
Set a Product as Tax Exempted or Zero Rated
After creating your BIR-compliant tax codes, you need to apply them to your products. Not sure how to add a product? Head over to this article for more information.
Notes:
Certain products such as books and donations are exempted from VAT. Please check with your BIR if you’re not sure whether your product(s) are taxable, tax exempted or zero-rated.
In your Z-Reading, products with 'VAT Exemption' enabled appear as VAT Exempted Sales, while items with 0% tax (but no exemption) appear as Zero Rated Sales.
1. In your BackOffice, go to 'Products'.
2. Find and tap on the product you want to modify, or add a new product.
3. On the product details page, scroll down to the 'Pricing' section. Go to the 'Tax' field for each price. From the dropdown menu, select the correct 'Tax Code' you created earlier (e.g., 'Zero Rated' or 'VAT Exempted').
4. Tap 'Save' to apply the changes.
5. After saving, perform a 'Sync' on your POS register to ensure these changes are applied to your POS app.
Note:
When a product is marked as 'Tax Exempted' or 'Zero Rated', customers will not be charged VAT for that specific product during a transaction.
BIR Discounts
StoreHub POS support discounts mandated by BIR Philippines.
The discount mechanism is different depending on your store setup.
You may select Retail / F&B when you enable BIR on Edit Store page.
Categories | Retail | F&B |
Senior Citizens/Persons with Disability (SC/PWD) |
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Medal of Valor |
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National Athletes |
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Diplomats |
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Solo Parent |
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Set Retail Products for Special Discounts (SC/PWD or Solo Parent)
This setting is specifically for retail businesses to mark products eligible for BIR-mandated special discounts.
Notes:
Visit the official website for more information on Basic Necessities and Prime Commodities (BNPC).
Visit the official website for more information on eligible products for Solo Parent.
1. In your BackOffice, go to 'Products'.
2. Find and tap on the product you want to modify, or add a new product.
3. On the product details page, scroll down to the 'BIR Section'.
4. Check the boxes next to 'Eligible for SC/PWD Discount' or 'Eligible for Solo Parent Discount' if the product meets the requirements for these special discounts.
5. Tap 'Save' to apply the changes.
Notes:
Always verify with official BIR guidelines or your accountant which products are eligible for these special discounts.
This discount type only applies to Retail Services.
If the products are tagged or categorized, you can first filter to view products with tag or category, then bulk edits the Special Discount settings.
Set and Remove Special Discount features cannot be done for child products as they will inherit their parent product's setting by default.
Troubleshooting
Issue | Solution |
Cannot find the correct tax code when setting up a product. | 1. Ensure you have created the 'Zero Rated' or 'Tax Exempted' tax code in 'Settings' > 'Tax'.
2. If created, try refreshing your browser or logging out and back into BackOffice. |
Tax exemption not applying on POS after product setup. | 1. Verify the product's tax code is correctly set in BackOffice ('Products' > 'Products' > [Product Name] > 'Tax' section).
2. Ensure you have performed a 'Sync' on your POS register after making changes in BackOffice.
3. Check that your POS app is updated to the latest version. |
FAQs
1. What is the difference between 'Zero Rated' and 'Tax Exempted' products?
Both mean no VAT is charged to the customer. However, 'Zero Rated' products (like certain exports) still allow the business to claim input VAT, while 'Tax Exempted' products (like basic necessities) do not. Always confirm with BIR for your specific products.
2. Why can't I delete a tax code?
You cannot delete a tax code if it is currently assigned to any products. You must first edit all products using that tax code and assign them a different tax code before you can delete the original one.
3. Do I need to mark all my products for SC/PWD or Solo Parent discounts?
No, only products that are specifically designated as eligible for these discounts by BIR regulations should be marked. This typically applies to basic necessities and prime commodities in retail. Consult official BIR guidelines.
Need Help?
Contact StoreHub Support via live chat in your StoreHub app or email [email protected].
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