What are the requirements for collection?
Requirements for Collection:
- BIR 2307 - For Withholding Tax Agents
- Collection Receipt
- to evidence that the merchant has withheld taxes in behalf of Lazada. All merchants that are eligible to withhold taxes (Withholding Tax Agents) required to submit this.
Withholding tax agent is any person or entity who is required to deduct and remit the taxes withheld to the government.
How do I know if I am required to deduct and remit the taxes withheld?
It is important that the BIR Form 2307 is correctly filled out, otherwise your next payout might be put on hold until corrected
Sample BIR 2307
- BIR form 2307 is downloadable at BIR Official Website or click here for the PDF link or here.
- Seller who is Tax Agent need BIR form 2307 because Lazada makes payment of CWT to BIR through you. WHT is added to your receivable. In turn, for Lazada to claim for WHT, we need a proof (the form 2307 from you) that Lazada paid for the CWT (Reimbursement).
- Seller will withheld WHT to BIR using 1601-E Form.
- To evidence cash transfer from Lazada to Merchant. Collection receipt should bear the name of the payee/ beneficiary indicated in the check. It should be BIR-registered and with valid ATP.
- Lazada will only accept Collection Receipt or Acknowledgement Receipt from the merchants claiming for checks. Documents such as Sales or Cash invoice and Official Receipts is not allowed as these documents evidence transactions of sale and/or services rendered. Since the claiming of check of the merchant is a mere transfer of collected cash from the customer, Collection Receipt or Acknowledgement Receipt is the only document accepted when claiming.
Sample Collection Receipt
Amount is from Net due to seller in the Statement of Accounts.
Statement of Accounts