Time of Import

When is the PGST on imports due and payable?

In line with RPPL 11-11, import taxes are collected at the time of import. The value of the import, due date and collection of the PGST must be collected by customs.

Subchapter II

Imposition of Palau Goods and Services Tax

• 1214. Imposition of PGST on taxable imports.

Palau Goods and Services Tax is imposed at the rate of ten percent (10%) on the value of a taxable import made by an importer. The liability for PGST imposed on a taxable import arises at the time of import and must be paid by the importer in accordance with Section 1282.

Subchapter IV

Supplies and Imports

• 1238. Time of import.

An import occurs:

(1) if the goods entered into the Republic under the Customs legislation, on the date on which they are so entered; or

(2) in any other case, on the date the goods are brought into the Republic.

• 1239. Value of import.

(a) Subject to Subsection (b), the value of an import of goods is the sum of the following amounts:

(1) the value of the goods for the purposes of the import tax imposed under the Customs legislation, whether or not any import tax is payable on the import;

(2) to the extent not included under Subsection (a)(1), the cost of services treated as part of the import of the goods under Section 1231(a)(2);

(3) the amount of any import tax, excise tax, levy, or other fiscal charge, other than PGST, or any fee or other charge payable in respect of the import; 17 II and 18 II

( 4) the cost of all freight, insurance, and other charges associated with the cost of shipment of the goods.

(b) If goods are re-imported after being exported for the purpose of undergoing repair, renovation, or improvement, then the value of the import is the amount of the increase in value of the goods as a result of the repair, renovation, or improvement provided there has been no change in:

(1) the form or character of the goods; and

(2) the ownership of the goods since the goods were exported.

• 1282. Due date for payment of PGST.

(b) The PGST payable by an importer in respect of a taxable import is payable at the time of import.

• 1283. Collection of PGST on imports.

(a) The Director:

(1) must collect PGST payable under this chapter on a taxable import at the time of import and must, at that time, obtain the name and tax identification number, if any, of the importer, the customs declaration, and invoice values in respect of the import; and

(2) may make arrangements for the function referred to in Subsection (a)(1) to be performed on behalf of the Director by the Postmaster in respect of imports made through the postal service.

(b) Except when a contrary intention appears, the provisions of the Customs legislation relating to the import, transit, coastwise carriage, clearance of imported goods, forfeiture of goods, review of assessment of import tax, and the payment and recovery of import tax, in so far as relevant and with such exceptions and modifications as necessary, apply in relation to the PGST payable on a taxable import.

(c) For the purposes of this section, the Director may exercise any power conferred on the Director by the Customs legislation as if the reference to import tax in that legislation included a reference to PGST payable on a taxable import under this chapter.