BIR Form 2200-AN and 2200-C: Excise Tax on Jewelry, Perfume, Yachts, and Cosmetic Procedures

Two separate excise taxes apply to spending the TRAIN Law treats as “non-essential”: a 20% tax on jewelry, perfume, and yachts under NIRC Section 150, reported on BIR Form 2200-AN, and a 5% tax on invasive cosmetic procedures under NIRC Section 150-A, reported on a separate form, BIR Form 2200-C. They’re often confused because both stem from the same “non-essential” concept introduced by Republic Act No. 10963 — but they have different tax bases, different rates, and different filing forms.

This guide explains what each form covers, who files it, and how the rates are computed — including how BIR Form 2200-AN also covers automobiles (see Excise Tax on Cars in the Philippines for that side of the form) separately from the non-essential-goods items covered here.

BIR Form 2200-AN: 20% excise tax on jewelry, perfume, and yachts #

NIRC Section 150 imposes a 20% excise tax on three categories of “non-essential goods”: jewelry, perfumes and toilet waters, and yachts and other vessels intended for pleasure or sports. These predate the TRAIN Law — they were carried over from the shift to the VAT system as one of the few remaining excise categories on finished consumer goods rather than raw materials like alcohol, tobacco, or petroleum.

The 20% rate applies to the wholesale price, net of excise tax and VAT, for locally manufactured goods, or to the value of importation used by the Bureau of Customs for imported goods. Manufacturers and importers of these goods file BIR Form No. 2200-AN — Excise Tax Return for Automobiles and Non-Essential Goods — the same form used for excise tax on automobiles, though the rate schedule and tax base for automobiles run on a separate bracket structure from the flat 20% on jewelry, perfume, and yachts.

BIR Form 2200-C: 5% excise tax on invasive cosmetic procedures #

NIRC Section 150-A, inserted by the TRAIN Law, extends the “non-essential” excise concept from goods to a category of services: invasive cosmetic procedures performed purely to alter appearance. Revenue Regulations (RR) No. 2-2019, which implements the provision, describes the coverage this way:

“…invasive cosmetic procedures, surgeries, and body enhancements… directed solely towards improving, altering, or enhancing the patient’s appearance and do not meaningfully promote the proper function of the body or prevent or treat illness or disease.”

That framing is the whole test: a procedure is taxed if its purpose is purely cosmetic, and excluded if it treats or corrects a medical condition.

What’s excluded from the 5% tax:

• Procedures necessary to correct a deformity from a congenital or developmental defect
• Procedures addressing a personal injury from an accident or trauma
• Procedures treating a disfiguring disease, tumor, virus, or infection
• Non-invasive cosmetic procedures — facials, peeling, laser hair or skin treatments, and similar non-surgical services
• Cases and treatments covered by the National Health Insurance Program (PhilHealth)

BIR Form 2200-AN vs 2200-C at a glance #

Worked example: an imported luxury watch-and-jewelry set #

A jewelry importer brings in a shipment of imitation-diamond jewelry with a Bureau of Customs-determined value of importation of ₱500,000.

The importer pays the ₱100,000 excise tax before the goods are released from customs custody, reported on BIR Form 2200-AN under the non-essential-goods schedule for jewelry — separate from any customs duties or import VAT also due on the same shipment.

Frequently asked questions #

What is the excise tax rate on jewelry, perfume, and yachts? #

NIRC Section 150 imposes a 20% excise tax on jewelry, perfumes and toilet waters, and yachts and other vessels intended for pleasure or sports — based on wholesale price (net of excise and VAT) for locally manufactured goods, or the value of importation used by the Bureau of Customs for imported goods.

Which BIR form reports excise tax on non-essential goods like jewelry or perfume? #

BIR Form No. 2200-AN, the Excise Tax Return for Automobiles and Non-Essential Goods. The same form also covers excise tax on automobiles, but the applicable rate schedule and tax base differ between automobiles and non-essential goods like jewelry, perfume, and yachts.

What is the excise tax rate on invasive cosmetic procedures? #

NIRC Section 150-A, inserted by the TRAIN Law (RA No. 10963), imposes a 5% excise tax on gross receipts from invasive cosmetic procedures, surgeries, and body enhancements performed solely to improve, alter, or enhance a patient’s appearance rather than to treat a medical condition.

Which BIR form reports excise tax on cosmetic procedures? #

BIR Form No. 2200-C, the Excise Tax Return on Invasive Cosmetic Procedures, filed monthly together with a Monthly Summary of Cosmetic Procedures Performed, within ten days following the close of the month, under Revenue Regulations No. 2-2019.

Are reconstructive or medically necessary procedures subject to the cosmetic procedures excise tax? #

No. Procedures necessary to correct a deformity from a congenital defect, a personal injury from an accident or trauma, or a disfiguring disease, tumor, virus, or infection are excluded, as are non-invasive procedures such as facials, peeling, and laser treatments, and cases covered by PhilHealth.

Summary #

“Non-essential” excise tax under the TRAIN Law splits into two separate filings: BIR Form 2200-AN at 20% for jewelry, perfume, and yachts (alongside automobiles), and BIR Form 2200-C at 5% for invasive cosmetic procedures, filed monthly within 10 days of month-end. Confirm which category a transaction falls into before filing, since the two forms, rates, and tax bases are not interchangeable. For the automobile side of BIR Form 2200-AN, see Excise Tax on Cars in the Philippines, and for how this form fits among the other excise returns, see BIR Excise Tax Returns Compared.