{{ currentCountryName }} - {{ $languageData.currentLanguageName }}
{{ avatarText }}
Duty and Taxation
banner
Overview
Taxation
Buyandship established a network of self-operating(US, JP, CA and UK) and dedicated(KR, CN, TW, AU, IT, TH and ID) 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.

De Minimis Value
De minimis is the value of goods for which no duty or tax is collected, the de minimis threshold is PHP 10,000. Shipment with de minimis value (PHP 10,000 or below) are considered importations with negligible amount and are entitled to immediate release.
“Shipments covered by one Master Bill of Lading (MBL) or Master Airway Bill of Lading (MAWB) but with several House Bill of Ladings (HBLs) or House Airway Bills (HAWBs) with single or multiple invoices with the same consignee and shipper is considered as a single consignment and subject to duties and taxes should the total value exceed the De Minimis value.”

How can you be eligible for under PHP 10,000 no duty and tax with DDU (Delivered Duty Unpaid) Option?
For the under PHP 10,000 of no duty and tax rule, it is the combined shipment value on the same day when it passes through Philippines Customs. Even if you created separate shipment orders, Customs will combine the value of all orders that sent to the same consignee or address on the same day to assess de minimis value. To be eligible of the no duty and tax rule, make sure the total value of your shipments will not exceed PHP 10,000 to be arrived in Philippines Customs in one day. Even if you have created separate shipment orders, Philippines Customs will combine the value of all orders that is sent to the same consignee on the same day to assess de minimis value.

To be eligible of the no duty and tax rule, please make sure the total value of your shipments will not exceed PHP 10,000. You are strongly advised to track your shipments and wait until the shipments pass the Philippines Customs, then send the next batch of shipment(s). That is also given that your declaration is correct and approved by Philippines Customs valuation. Philippines Customs has final decision on taxation and Buyandship is not liable for any taxation problem or government policy changes.

How can you be eligible for no duty and tax upto PHP 95,000 per consolidated order using DDP (Delivered Duty Paid) Option?
DDP is only applicable for a shipment with a declared value of PHP 95,000 or below. If it is above PHP 95,000, you will not be able to choose DDP when checking out and instead can only choose DDU. Please note that the foreign currency may vary which could affect the availability of choosing the DDP option.

Reminder
Kindly remember that you have to declare your shipments properly based on your invoice and receipt. Please ensure you declare according to the warehouse currency you shipped to and that the unit price per item is as is in your invoice and receipt. For more information, please refer to "How to declare your shipment in Buyandship Philippines".

Please note if you are using DDP, you do not have to wait until goods have passed PH customs before sending the other. If you have two orders, one is DDP and one is DDU, there is no effect of DDP to the DDU total value at the time of assessment of PH customs.
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
* There may be a processing fee by the local courier and Philippines Customs storage fee. Buyandship is not responsible for these charges incurred.
Example
Purchased a luggage in PHP 15,000, and the weight is 5lb. The pricing plan is DDU.
  • Tax Threshold: PHP 10,000
  • Product price = PHP 15,000
  • Cost of Shipping = PHP 620 + PHP 380 x 4lb = PHP 2,140
  • Cost of Insurance = 0
  • CIF = 15,000 + 2,140 + 0 = PHP 17,140
Calculation
If the the total CIF value is PHP 17,140, and the duty rate of the luggage is 15%
  • Duty Tax = 15% x 17,140 = PHP 2,571
  • VAT = 12% x (17,140 + 2,571) = PHP 2,365.3
  • Import Tax & Custom Fees = 2,571 + 2,365.3 = PHP 4,936.3
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%