Guides/Payment

How to Pay Customs Duties & VAT

If your imported order's goods value is above ₱10,000, you'll owe customs duty plus 12% VAT before it's released. Here's how payment actually works in practice.

Who collects the payment

Couriers (DHL, FedEx, UPS, LBC, and similar)

Most operate delivered duty unpaid (DDU): the courier advances the duties and taxes to customs, then bills you — usually on delivery or before — for the duty, the VAT, and their own processing or handling fee. Some sellers instead offer delivered duty paid (DDP), where you pay the estimated taxes at checkout and nothing is due on arrival.

Postal mail / PHLPOST (regular post and EMS)

For postal parcels, you'll typically receive a notice that your package is being held for duties and taxes. You pay the assessed amount plus postal handling at the post office or customs counter when you claim it.

What you'll actually pay

ChargeHow it's calculated
Customs dutyDuty rate × CIF value (item + shipping + insurance in PHP)
12% VAT12% × (CIF value + customs duty)
Other chargesImport processing fee, documentary stamp tax, courier/storage handling fees

Note: even tax-exempt parcels (goods value ≤ ₱10,000) can still carry small courier processing or handling fees.

Documents to have ready

  • Order invoice or receipt (proof of the price you actually paid)
  • Valid government-issued ID
  • Tracking number or the postal notice card

Proof of the real value helps contest an assessment that looks too high.

Practical tips

  • Pay promptly — held packages can accrue storage fees the longer they sit.
  • Keep proof of price to contest an assessment that looks too high.
  • Estimate first so the bill isn't a surprise.

Estimate duty and VAT before you buy

Our free calculator shows the full breakdown — duty, 12% VAT, and landed cost — so the bill on arrival is never a surprise.

Open the calculator →

Related guides

Why is my package held by customs? →

Share this page

This is general guidance, not official customs or legal advice. Exact procedures and fees vary by courier and by the Bureau of Customs.