BIR Ruling [DA-228-97]

June 23, 1997 BIR RULING [DA-228-97] Hon. Julio C. Dery Consul Acting Head of Post Philippine Consulate General Osaka Kobe, Japan Dear Hon. Dery, This refers to your faxed letters dated June 3 and June 18, 1997 regarding the inquiry posed by A. Kojima of Auto Bahn Morioka Co. about the tax consequence of sending five sets of stone garden lanterns to the Philippines. prcd In reply thereto, please be informed that in addition to customs duties imposed by the Bureau of Customs, the said transaction is subject to the value-added tax (VAT) pursuant to Section 101(a) of the Tax Code, as amended, reading as follows: "Sec. 101. Value-added tax on importation of goods . (a) In general . There shall be levied, assessed and collected on every importation of goods a value-added tax equivalent to 10% 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 tax to be paid by the importer prior to the release of such goods from customs custody: Provided, That 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." We hope we have enlightened you on this matter. LexLib Very truly yours, SIXTO S. ESQUIVIAS IV OIC Asst. Commissioner (Legal Service)