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Origin and trade agreements

Importing into the Philippines

The Philippines' PHP 10,000 de minimis for duty and tax, 12% VAT on imports above it, prohibited and regulated goods, and VAT on digital services since 2025.

Updated · 5 official sources

The Philippines collects no duty or tax on imported goods with an FOB or FCA value of PHP 10,000 or less, under Section 423 of the Customs Modernization and Tariff Act (CMTA). Above that, a parcel pays duty at the tariff rate and 12% VAT before the Bureau of Customs (BOC) releases it. Tobacco, wines and spirits still pay excise tax below the threshold, and regulated goods need their permits at any value.

Rules as of 30 October 2026.

What does a parcel to the Philippines pay?#

A parcel to the Philippines pays according to its FOB or FCA value, the value of the goods before international freight and insurance. At PHP 10,000 or less, no duty or tax is collected. Above PHP 10,000, the importer pays customs duty at the tariff rate and 12% VAT on the duty-inclusive value before release.

FOB or FCA value Customs duty VAT Excise tax
PHP 10,000 or less None None Still due on tobacco, wines and spirits
Over PHP 10,000 Tariff rate for the HS code 12% Where the goods are excisable

The Secretary of Finance can adjust the PHP 10,000 figure every three years in line with the consumer price index published by the Philippine Statistics Authority. Check the current BOC figure if you're pricing close to it.

De minimis thresholds in Southeast Asia, Japan and Australasia

Country Duty-free up to Tax-free up to Currency Value counted Official source
Philippines No live data
Indonesia No live data
Malaysia No live data
Singapore 400 SGD customs value customs.gov.sg
Japan 10,000 JPY customs value customs.go.jp
Australia 1,000 AUD customs value abf.gov.au
New Zealand No live data

border.bot live data from each country's official publications, updated 2026-10-11

The Philippines country page shows the live VAT rate, and the de minimis guide compares the PHP 10,000 line with other countries.

How is VAT on imports calculated?#

VAT on goods imported into the Philippines is 12% of the value the Bureau of Customs uses for customs duties, plus those duties, any excise taxes and other charges, paid before the goods leave customs custody. Where duty is charged on quantity or volume rather than value, VAT is based on landed cost plus excise taxes.

Here's how it works on an order over the threshold. A buyer in Manila orders an espresso machine, and suppose customs values it at PHP 30,000 and its tariff line carries 10% duty.

Line Calculation Amount
Customs duty 10% of PHP 30,000 PHP 3,000
VAT base PHP 30,000 + PHP 3,000 PHP 33,000
VAT 12% of PHP 33,000 PHP 3,960
Duty and VAT PHP 6,960

The courier's brokerage and handling fees come on top, and any other charges customs adds go into the VAT base too. An order with an FOB value of PHP 9,000 pays none of this. The landed cost calculator runs the numbers for a real product and address.

Which goods don't get the de minimis?#

The PHP 10,000 de minimis removes duty and tax, but it doesn't remove the rules on what can be imported. Under the BOC order implementing it, some low-value goods are excluded from immediate release even when they're under the threshold, and small-value imports can be X-rayed or inspected at random under the BOC's risk management.

Goods excluded from immediate release, even within the de minimis
  • goods declared as "no commercial value", or with a specific amount qualified by "for customs purposes"
  • goods subject to requirements or conditions set by regulatory agencies, unless they're for personal use and within the allowed limits
  • prohibited and restricted goods
  • goods entered conditionally free, for warehousing, for transit or for a free zone
  • tobacco and liquor carried by travelers above their allowances

Declaring a real value on the commercial invoice is the simplest way to keep a parcel moving.

Which goods are prohibited or restricted?#

The Philippines prohibits some goods outright and restricts others unless a law or regulation authorizes their import. The prohibited list includes adulterated or misbranded food and goods, obscene or immoral material, printed matter inciting treason, rebellion or sedition, infringing goods under the Intellectual Property Code, and precious-metal articles whose marks don't show their true fineness.

Restricted goods, which are banned unless authorized, include narcotic drugs and illegal substances, opium pipes, dynamite, firearms, gunpowder, ammunition and other weapons of war, gambling devices including loaded dice and marked cards, jackpot and pinball machines, and lottery and sweepstakes tickets other than advertisements and lists of draws. The restriction covers goods in transit too. border.bot Restrict checks a product against these lists before you sell it.

How does VAT on digital services work?#

The Philippines charges 12% VAT on digital services consumed in the country under Republic Act No. 12023 and the Bureau of Internal Revenue's (BIR) Revenue Regulations No. 3-2025. Nonresident providers have been liable since 2 June 2025. Digital services are essentially automated services supplied over the internet, such as online marketplaces, search engines, cloud services, advertising and digital goods.

Physical goods are left out, because they already pay customs duties and taxes through the BOC. The separate service fee a marketplace charges a buyer in the Philippines for using it is a digital service, though, and carries VAT.

A nonresident digital service provider registers with the BIR through the VAT on Digital Services (VDS) portal and doesn't need a local representative, although it may appoint a resident third party and must tell the BIR within 30 days. For sales to consumers, it files and pays the VAT itself within 25 days after each quarter closes. For sales to Philippine businesses, the buyer withholds the 12% and remits it. Its invoices can be electronic and must show the date, a transaction reference, the buyer's identity and TIN if any, a description and a total marked as including VAT.

A service counts as consumed in the Philippines when the buyer is located there, judged from payment, residence or access information; when those conflict, the provider needs two pieces of evidence that agree. Providers that don't register can have their services blocked. The EU digital services VAT guide covers the European version of the same idea.

Tips for sellers shipping to the Philippines#

The Philippines is easy on small parcels and strict on paperwork and regulated goods. Most delays for sellers come from vague or nominal declared values, from goods that need an agency permit before they can be released, and from orders whose value sits close to PHP 10,000 once converted to pesos.

Common questions#

What is the de minimis value in the Philippines?#

PHP 10,000 FOB or FCA. Goods at or below it pay no duty or tax, except excise on tobacco, wines and spirits.

What is the VAT rate on imports into the Philippines?#

12%, charged on the customs value plus duties, excise taxes and other charges, before the goods are released.

Does the Philippines' VAT on digital services apply to physical products sold online?#

No. Physical goods are taxed by the Bureau of Customs on import. A marketplace's separate service fee to a Philippine buyer does carry VAT.

Sources#