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Duty and Taxation
Overview
Taxation
Buyandship established a network of self-operating(US, JP) and dedicated(UK, KR, CN, TW, AU, IT, TH) warehouses for users to ensure fast and efficient delivery services. But every country has different taxation that has to be considered. Find the taxation for Philippines below.
Custom Duty
When importing goods into the Philippines, there will be an import duty and tax charge, no matter if imported by a private individual or a commercial entity.
This is Import Tax & Custom Fees. But, the Tax Threshold is PHP 10,000, it means it is tax free under PHP 10,000.
What is the meaning of Import Tax & Custom Fees?
Customers should have to pay for the duty of the shipment (if any), and also VAT (Value Added Tax) of the total value of shipments. This is represented with the calculation of Duty Tax + VAT.
Percentage of Duty Tax & VAT
Philippines customs will charge duty fees for all personal shipments. The average duty fee has a range of 3-30% (normally at around 15%), wherein the shipments will be cleared after clients have settled the duty.
VAT stands for Value Added Tax. VAT is a type of sales tax which is levied on consumption on the sale of goods, services or properties, as well as importation in the Philippines. The tax rate is 12%.
Calculation of Import Tax & Custom Fees
Taxation
CIF is the valuation method the customs use to define a shipment's value and use this value to calculate tax.
  • CIF = Product price + Cost of Shipping (Freight) + Cost of Insurance
  • Duty Tax = Duty % x CIF
  • VAT = 12% x (CIF + Duty + excise taxes if any)
  • Import Tax & Custom Fees = Duty Tax + VAT
Example
Purchased a luggage in PHP 15,000, and the weight is 5lbs
  • Tax Threshold: PHP 10,000
  • Product price = PHP 15,000
  • Cost of Shipping = PHP 300 x 5lbs = PHP 1,500
  • Cost of Insurance = 0
  • CIF = 15,000 + 1,500 + 0 = PHP 16,500
Calculation
If the the total CIF value is PHP 16,500, and the duty rate of the luggage is 15%
  • Duty Tax = 15% x 16,500 = PHP 2,475
  • VAT = 12% x (16,500 + 2475) = PHP 2,277
  • Import Tax & Custom Fees = 2,475 + 2,277 = PHP 4,752
Most Popular Duty Product Categories
The following information is subject to change at any time.
  • Accessories(W/WO Battery) 15%
  • Health & Beauty 3%
  • Fashion 15%
  • Supplements 15 %
  • Toys 3%
  • Sports 5%
  • Luggage 15%
  • Gaming 0%
  • Books & Collectibles 0%