EXPLAINER: Why the BIR seal badge has become controversial

MANILA — Earlier this year, the Bureau of Internal Revenue announced that online sellers, content creators, basically people and businesses who make money from online activities, will need to display their BIR seal badge on their platforms.

According to the BIR, the seal badge was designed to establish digital transparency, replace the public posting of full Certificates of Registration (COR), and give consumers a quick way to verify legitimate online merchants. 

The BIR said online businesses—online sellers, freelancers, vloggers, and digital service providers— must post the BIR-issued seal on their websites, e-commerce pages like those on Shopee and Lazada, or social media accounts such as Facebook, Instagram, TikTok and others.

The seal badge includes a unique QR code that can be scanned, which will confirm that a business is legitimate and compliant with tax rules. The seal badge also protects businesses from unfair competition from other firms or sellers who are not registered with the BIR, according to the agency.

The deadline for displaying the seal badges was supposed to be Oct. 31 this year. But due to widespread criticism of the measure, the BIR has suspended its implementation.

Critics of the measure have pointed out four major concerns.

Although the seal badge was intended to protect sensitive data on full registration certificates (such as TINs and home addresses), scanning the mandatory QR code publicly revealed taxpayers’ full legal names and middle names. 

Critics said that posting unredacted personal identities on public social media and digital channels exposes individual sellers to doxxing, stalking, harassment, targeted scams, and identity theft.

Critics also said that casual vendors, students, and small-scale online earners—many operating with minimal daily revenue—faced the same digital compliance, paperwork, and filing demands as bigger, more established enterprises. The added administrative overhead creates friction for micro-entrepreneurs earning low margins.

Critics said the BIR’s guidelines were vague on how to display static QR image badges across multi-platform presences or channels that do not support custom “About Us” pages. They asked how the seal badge is supposed to work with image overlays, or hyperlinked badges (such as profile-restricted social platforms, asset marketplaces, or community forums).

Many critics have also said that while the government was being strict about compelling small online sellers and content creators to comply with tax rules and pay taxes, it was not doing enough to run after corrupt officials who were stealing public funds.

In response to widespread public backlash and privacy concerns, the BIR indefinitely suspended the mandatory display of the Registration Seal Badge.

Online sellers and content creators are not required to post the seal for now, and no fines or penalties will be levied for non-display.

Taxpayers who have already obtained their seal badge may display it voluntarily, the BIR said.

Meanwhile, the National Privacy Commission (NPC) has also asked the BIR to explain the basis and reasoning behind the need to include an individual’s full name in the badge, as it recognized concerns about potential issues, including identity theft.

The BIR is coordinating with the NPC and industry stakeholders to refine data protection protocols and resolve technical implementation issues before reinstating any requirements.