Reference: Taxes on Import Business
I am the owner of a food manufacturing facility and we’re currently thinking of importing raw materials instead of sourcing them locally. Do I need to apply as an importer with the Bureau of Internal Revenue (BIR)? What are the taxes that I will have to pay? To become an importer, taxpayers need to have an Importer's Clearance Certificate. However, this application no longer needs to pass through the BIR. Previously, the application was a two-part process – first with the BIR, then with the Bureau of Customs (BOC). Under the Department of Finance's Department Order No. 11-2018, the BOC will have the sole authority to accredit customs brokers and importers. Imported goods are subject to tariffs, but this amount will differ based on the source of the imported goods. For revenue taxes, imported goods are subjected to an additional 12% value-added tax (VAT). The VAT will be based on the total value to be determined by the BOC. Am I liable to pay the VAT on impor...