Overview of Panama Customs Taxes and Fees
Summary:This article provides an overview of Panama's customs taxes and fees. Imports are subject to import duties, VAT, and consumption tax, calculated based on the CIF price. The standard VAT rate is 7% with higher rates for some goods. There is a tax threshold of $50 (FOB) for customs duties, but VAT and consumption tax may still apply. Consumption tax varies from 0% - 25% based on price and tariffs.
[Overview]
Whether individuals or business entities are engaged in the importation of goods into Panama, they must pay import duties and other taxes. All import duties and fees are calculated based on the freight value, i.e. the CIF price. At the same time, imported goods are also subject to VAT and consumption tax.
[VAT]
The standard VAT rate in Panama is 7%, and the VAT rate for certain goods is higher, at 10% or 15%. Panama VAT = VAT rate × (CIF price + applicable tariff).
[Tax threshold]
Goods imported into Panama with a value (FOB) of no more than US$50 are exempt from customs duties. However, VAT and consumption tax may still be levied.
[Others]
Consumption tax is a tax of 0%-25% on certain goods, based on the sum of the CIF price and applicable tariffs. Panama's tax overview is not included for the time being, please pay attention to it later.