VAT on
Importation
of Goods
GROUP 3
CONTENT
DEFINITION
TRANSACTION SUBJECT
TAX RATE AND TAX BASE
Transfer of goods by tax
exempt persons
INTRODUCTION
DEFINITION
Importation is the act of bringing goods and merchandise
into a country from a foreign country.
Importers refers to any persons who brings goods in 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 persons,
entities or agencies.
TRANSACTIONS SUBJECT
There shall be levied, assessed and
collected in 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 TAX BASE
The tax to be imposed shall be twelve percent
(12%) 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.
The payment of tax shall be made by the
importer prior to the release of such goods
from customs custody.
TAX RATE AND TAX BASE
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 imported are subject to
excise tax, the excise tax shail form part of the
tax base.
ILLUSTRATION 1
Joice imported goods from Japan. The following are the data relative to such
importations:
Note: After 20
days, the
goods
intended for
sale were
sold to Robin
for P812,000.
COMPUTE for the VAT Payable on the -
1. Importation if the tariff and customs duties were based on volume or quantity.
2. Sale if the input tax is based on quantity of goods imported.
COMPUTATION:
COMPUTATION:
Transfer of goods by
tax exempt persons
In the case of goods imported into the
Philippines by VAT-exempt persons, entities or
agencies which are subsequently sold,
transferred or exchange in the Philippines to
the non-exempt persons or entities, the latter
shall be considered the importers thereof and
shall be liable for the VAT due on such
importation
thank
you
