Parties

to Transaction Merchant/Retailer A. ONLINE SHOPPING (Without intermediary) 1. If payment received thru credit card companies: (a) Issue electronically the BIR registered Invoice/OR for the full amount of the sale to the buyer; (b) issue acknowledgement receipt to the credit card company for the amount received; (c) pay the commission of credit card company net of 10% EWT 2. If payment received thru the banks: (a) issue Invoice/OR to the buyer for the payment of the goods/services; (b) issue acknowledgement receipt to the bank for the amount received 3. If buyers payment is cash on delivery or in the office of merchant (pick-up): Issue either electronically or manually the BIR registered Invoice/OR for the full amount of the sale to the buyer Pay the price of the goods/service thru: 1. Credit Card- (a) receive the Payment Confirmation, under the name of the merchant, for the purchase price charged by credit card company; (b) receive Invoice/OR from the merchant upon delivery of the goods or rendering of service 2. Banks (a) receive validated copy of the deposit slips made in the name of the merchant; (b) receive Invoice/OR from the merchant upon delivery of the goods or rendering of service 3. Cash on delivery or in the office of merchant (pick-up): Receive either the electronic or manual registered Invoice/OR for the full amount of payment made to merchant/retailer 1. Credit Cards: (a) Issue Payment Confirmation (in the name of the merchant-seller) for the purchase price charged to buyer; (b) Remit to merchant-seller the price amount less EWT of of 1%; (c) receive agreed commission from merchant, net of EWT of 10% 2. Banks (over the counter): (a) Issue validated bank deposit slips in the name of merchant to the depositor-buyer; (b) remit the amount to the merchant 3. Cash whether on delivery or in the office of merchant (pick-up): merchant to issue invoice /OR to buyer Issue OR for the service fee paid by the merchant

ANNEX A

Buyer/Customer

Payment Gateways

Freight Forwarders

Online Website Issue OR for the service fee paid by the merchant administrators (if third party) Parties to Transaction Merchant/Retailer Intermediary-Seller B. ONLINE INTERMEDIARY SERVICE (With Intermediary Commission Basis) (a) Issue Invoice/OR to intermediary for the amount of sale to intermediary; (b) pay intermediarys commission of 30-40% (according to industry insider) net of 10% EWT on the commission 1. If payment received thru credit card companies: (a) Issue electronically or manually the BIR registered Invoice/OR to the buyer for the purchase amount charged (b) issue acknowledgement receipt to the credit card company for the amount received; (c) pay the commission of credit card company net of 10% EWT 2. If payment received thru the banks- (a) issue Invoice/OR to the depositor-buyer for the payment of the goods/services; (b) issue acknowledgement receipt to the bank for the amount received 3. If buyers payment is cash on delivery or in the office of merchant (pick-up): Issue either electronically or manually the BIR registered Invoice/OR for the full amount of the sale to the buyer Pay the price of the goods/service thru: 1. Credit Card- (a) receive the Payment Confirmation credit card company, under the name of the intermediary, for the purchase price charged; (b) receive Invoice/OR from the intermediary-seller upon delivery of the goods or rendering of service 2. Banks (a) receive validated copy of the deposit slips made in the name of the intermediary; (b) receive Invoice/OR from the intermediary upon delivery of the goods or rendering of service 3. Cash on delivery or in the office of intermediary (pick-up): Receive either the electronic or manual registered Invoice/OR for the full amount of payment made to intermediary 1. Credit Cards: (a) Issue Payment Confirmation, in the name of the intermediary-seller, for the price charged to buyer; (b) Remit to intermediary-seller the price amount less EWT of of 1%; (c) receive

Buyer/Customer

Payment Gateways

agreed commission from intermediary-seller, net of 10% EWT 2. Banks (over the counter): (a) Issue validated bank deposit slips in the name of intermediary to the depositor-buyer; (b) remit the amount to the intermediary 3. Cash whether on delivery or in the office of intermediary (pick-up): intermediary to issue invoice /OR to buyer Freight Forwarders Issue OR for the service fee paid by the intermediary-seller Online Website Issue OR for the service fee paid by the intermediary-seller administrators (if third party) Parties to C. ONLINE ADVERTISEMENT Transaction (Transactional Fee) Merchant/Retailer A. As Online Advertiser: (a) Pay the online advertising entity for the advertising fee, net of 2% EWT; (b) receive from said entity the BIR registered electronic copy or original copy of manually issued OR for the amount of advertising fee paid; (c) remit to BIR the EWT from the advertising entity

Advertising Entity

B. As Merchant/ Retailer: 1. If payment received thru credit card company: (a) Issue electronically the BIR registered Invoice/OR for the full amount of the sale to the buyer; (b) issue acknowledgement receipt to the credit card company for the amount received; (c) pay the commission of credit card company net of 10% EWT 2. If payment received thru the banks: (a) issue acknowledgement receipt to the bank for the amount received; (b) issue Invoice/OR to the buyer for the payment of the goods/services 3. If buyers payment is cash on delivery or in the office of merchant (pick-up): Issue either electronically or manually the BIR registered Invoice/OR for the full amount of the sale to the buyer (a) Issue OR to advertiser/merchant for the full amount of advertising fee (amount received is net of 2% EWT); (b) receive from advertiser/merchant at prescribed time a Certificate of Creditable Tax Withheld at Source (Form 2307) for the amount of tax withheld

Buyer/Customer

Pay the price of the goods/service thru: 1. Credit Card- (a) receive Payment Confirmation, under the name of the merchant, for the purchase price charged by credit card company; (b) receive Invoice/OR from the merchant upon delivery of the goods or rendering of service 2. Banks (a) receive validated copy of the deposit slips made in the name of the merchant; (b) receive Invoice/OR from the merchant upon delivery of the goods or rendering of service 3. Cash on delivery or in the office of merchant (pick-up): Receive either the electronic or manual registered Invoice/OR for the full amount of payment made to merchant/retailer Payment Gateways 1. Credit Cards: (a) Issue Payment Confirmation (in the name of the merchant-seller) for the price amount charged to the buyer; (b) Remit to merchant the price amount less EWT of of 1%; (c) receive agreed commission from merchant, net of 10% EWT 2. Banks (over the counter): (a) Issue validated bank deposit slips in the name of merchant to the depositor-buyer; (b) remit the amount to the merchant 3. Cash whether on delivery or in the office of merchant (pick-up): merchant to issue invoice /OR to buyer Freight Forwarders Issue OR for the service fee paid by the merchant Online Website Issue OR for the service fee paid by the advertising entity administrators (if third party) Parties to D. Online Auction Transaction Merchant/Retailer Regular transaction of merchant/retailer- issue invoice/OR Auction Webstore A. Payment for voucher/coupon/bid packs received thru: 1. credit card companies: (a) Issue electronically the BIR registered Invoice/OR to the buyer for the purchase price of bid packs; (b) issue acknowledgement receipt to the credit card company for the amount received; (c) pay the commission of credit card company net of 10% WT 2. banks: (a) issue Invoice/OR to the depositor-buyer for the payment of the bid packs; (b) issue acknowledgement receipt to the bank for the amount received

B. Sale of Auctioned Item to the highest bidder: Issue either electronically or manually the BIR registered Invoice/OR for the winning bid price to the buyer/bid winner [the above (A) shall apply for payments received thru the modes discussed] Buyer/Customer Pay the price of the bid packs to designated payment gateway: (a) receive Payment Confirmation from the payment gateway for the amount paid for the bid packs; (b) receive from the auction webstore the BIR registered electronic copy or original copy of manually issued OR for the purchase of bid packs; (c) if winning bidder, receive the goods/service together with the invoice/OR for the bid price of goods/service Payment Gateways 1. Credit Cards: (a) Issue Payment Confirmation (under the name of the auction webstore-seller) for the price charged to the buyer of bid packs or to winning bidder; (b)remit to auction webstore-seller the price amount less EWT of of 1%; (c) receive agreed commission, net of EWT of 10% 2. Banks (over the counter): (a) Issue validated bank deposit slips in the name of auction webstore-seller to the depositor-buyer; (b) remit the amount to the auction webstore-seller Freight Forwarders Issue OR for the service fee paid by auction webstore Online Website Issue OR for the service fee paid by the auction webstore administrators (if third party)