VAT on imported goods

Requirement

In the Philippines, as a general rule, imports are subject to customs duties and taxes unless there is a specific legal basis for tax exemption. VAT is charged on imported goods based on their value. The customs invoice include VAT.

Donated goods from abroad that are imported in the Philippines are only exempt from customs duties under certain circumstances.

M3 solution

This requirement is handled with configured VAT codes in M3.

Configuration guidelines

Program ID	Program name	Description or comment
CRS030	VAT Code. Open	Define the VAT codes for the VAT rules.
TXS020	VAT Exception. Open	Set up VAT exceptions for specific cases such as combined VAT or VAT reverse charge.