Scribd
Upload
6 views1 page

Understanding Importation and VAT in the Philippines

Importation refers to bringing goods into a country, completed when duties are paid and legal permits are granted. In the Philippines, all importations are subject to a 12% value-added tax based on the total value determined by the Bureau of Customs, including customs duties and other charges. The tax applies regardless of whether the goods are for sale, business use, or personal use.

Uploaded by

bagaynovi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
6 views1 page

Understanding Importation and VAT in the Philippines

Importation refers to bringing goods into a country, completed when duties are paid and legal permits are granted. In the Philippines, all importations are subject to a 12% value-added tax based on the total value determined by the Bureau of Customs, including customs duties and other charges. The tax applies regardless of whether the goods are for sale, business use, or personal use.

Uploaded by

bagaynovi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

IMPORTATION

Definition
Importation is the act of bringing goods and merchandise into a country from a foreign country. It is
deemed complete when the duties upon the merchandise have been paid or returned to be paid at
a port of entry and the legal permit for withdrawal shall have been granted or in case said
merchandise is free of duty, until it has left the jurisdiction of customs. Importer refers to any
person to any person who brings goods into the Philippines, whether or not made in the course of
trade or business. It includes non-exempt persons or entities who acquire tax-free imported goods
from exempt person, entities or agencies.

Transaction Subject to VAT There shall be levied, assessed and collected on every importation of
goods a value-added tax whether the importation is for (1) sale, (2) for use in business, or (3) for
personal use. Tax Rate and Base 12% tax is to be imposed based on the total value used by the
Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if
any, and other charges, such as postage, commission and similar charges prior to the release of
the goods from customs custody. Where the customs duties are determined on the basis of the
quantity or volume of the goods, the value-added tax shall be based on the landed cost plus excise
taxes, if any. Landed cost consists of invoice amount, customs duties, freight insurance and other
charges, if the goods if the goods imported are subject to excise tax, the excise tax shall form part
of the tax base

You might also like