Brand New Automobile

Question 1

The following are NOT considered as automobile and therefore
exempted from the payment of ad valorem tax:

Answer 1

a. Buses
b. Trucks
c. Cargo Vans
d. Jeeps/Jeepneys
e. Single Cab Chassis
f. Special Purpose Vehicles (FIRE TRUCK
MOBILE DRILLING DERRICK
HEARSE
CONCRETE MIXER TRUCK
AMBULANCE
MOBILE RADIOLOGICAL UNIT)

Question 2

SPARK-IGNITION INTERNAL COMBUSTION
RECIPROCATING PISTON ENGINE is also known as?

Answer 2

Gasoline run engine

Question 3

COMPRESSION-IGNITION INTERNAL
COMBUSTION RECIPROCATING PISTON
ENGINE is also known as?

Answer 3

(DIESEL OR SEMI-DIESEL)

Question 4

Are Purely electric vehicles exempt from the Excise Tax on Automobiles?

Answer 4

True

Question 5

Rate of Duty: Automobiles for the transport
of 10 or more persons,
including the driver.

Answer 5

20%

Question 6

Rate of Duty: Automobiles for the transport

of 9 persons and below.

Answer 6

30%

Question 7

It is considered brand new car if?

Answer 7

• A Mileage not more than 200 KM or 125miles
• Acquired by imported from dealer as first owner

Question 8

Formula for Net ISP

Answer 8

A. Gross Importer’s Selling Price
NET ISP = GISP – ET & VAT

B. 80% of Dealer’s Suggested Retail Price
NET ISP = (D.SRP – ET & VAT) x 0.80

C. Cost of Importation + 10% Profit Margin
NET ISP = Import Cost ÷ 0.90

Question 9

TRADITIONAL AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)
SCHEDULE OF AVT RATES

Answer 9

NET ISP AVT RATE

1. Up to P600,000.00 4%
2. Over P600,000.00 to P1,000,000.00 10%
3. Over P1,000,000.00 to P4,000,000.00 20%
4. Over P4,000,000.00 50%

Question 10

TRADITIONAL AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)
DETERMINATION OF AD VALOREM TAX (AVT)

Answer 10

1. NET ISP Up to P600,000.00
   AVT/unit = NET ISP x 0.04
2. NET ISP Over P600,000.00 to P1,000,000.00
   AVT/unit = NET ISP x 0.10
3. NET ISP Over P1,000,000.00 to P4,000,000.00
   AVT/unit = NET ISP x 0.20
4. NET ISP Over P4,000,000.00
   AVT/unit = NET ISP x 0.50

Question 11

HYBRID AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)
SCHEDULE OF AVT RATES

Answer 11

NET ISP AVT RATE

1. Up to P600,000.00 2%
2. Over P600,000.00 to P1,000,000.00 5%
3. Over P1,000,000.00 to P4,000,000.00 10%
4. Over P4,000,000.00 25%

Question 12

HYBRID AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)
DETERMINATION OF AD VALOREM TAX (AVT)

Answer 12

1. NET ISP Up to P600,000.00
   AVT/unit = NET ISP x 0.02
2. NET ISP Over P600,000.00 to P1,000,000.00
   AVT/unit = NET ISP x 0.05
3. NET ISP Over P1,000,000.00 to P4,000,000.00
   AVT/unit = NET ISP x 0.10
4. NET ISP Over P4,000,000.00
   AVT/unit = NET ISP x 0.25

Question 13

BRAND NEW AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)

FINDING TLC, VAT

Answer 13

Dutiable Value P
Customs Duty
Bank Charge
Brokerage Fee
Arrastre Charge
Wharfage Due
Import Processing Fee
Documentary Stamps

Total Landed Cost
Add: Total Ad Valorem Tax
VAT BASE
VAT RATE x 12%
VAT

Question 14

BRAND NEW AUTOMOBILES
(A.1 MANUFACTURER OR DEALER)

SUMMARY OF PAYMENTS:

Answer 14

Customs Duty
Value – Added Tax
Ad Valorem Tax
Import Processing Fee
Documentary Stamps P280.00 (FIXED)

Total Duties, Taxes and Other Charges

Question 15

What is the basis for brand new car by individual of getting AVT?

Answer 15

TLC

NOTE:
In Manufacturers or dealer it was NET ISP

Question 16

BRAND NEW AUTOMOBILES
(A.2 INDIVIDUAL OR NATURAL PERSONS)

COMPUTE TLC AND VAT

Answer 16

Dutiable Value P
Customs Duty
Brokerage Fee
Arrastre Charge
Wharfage Due
Import Processing Fee
Documentary Stamps

Total Landed Cost
Add: Total Ad Valorem Tax
VAT BASE
VAT RATE x 12%
Value – Added Tax

Question 17

BRAND NEW AUTOMOBILES
(A.2 INDIVIDUAL OR NATURAL PERSONS)

SOLVE SOP

Answer 17

Customs Duty
Value – Added Tax
Ad Valorem Tax
Import Processing Fee
Documentary Stamps P280.00 (FIXED)
CP Fee P100.00 (FIXED)
Total Duties, Taxes and Other Charges