Philippines VAT calculator
Calculate VAT on any amount in the Philippines, whether you need to add it to a price or find it inside a total.
Add VAT on top of a price that does not yet include it.
Almost everything sold domestically is 12 percent. Zero-rated covers exports and certain sales to non-residents. VAT-exempt sales carry no VAT at all.
Your total sales over the last 12 months. We check it against the PHP 3 million point where VAT registration becomes mandatory.
VAT computation
How the VAT is worked out on your amount.
| Price before VAT | 1,000.00 |
| VAT at 12%1,000 × 0.12 | + 120.00 |
| Total including VAT | 1,120.00 |
Disclaimer
This is an estimate based on the standard 12 percent rate and the PHP 3 million VAT threshold. Whether a specific sale is standard-rated, zero-rated, or exempt depends on the transaction and the rules in force, most recently Revenue Regulations No. 1-2026. Confirm your treatment with a tax professional before invoicing.
What is VAT in the Philippines?
Value Added Tax (VAT) is a consumption tax of 12 percent on the sale of goods, services, and the importation of goods in the Philippines. It is an indirect tax, which means the business adds it to the price and the buyer ultimately pays it, while the business collects it and passes it to the Bureau of Internal Revenue (BIR).
VAT-registered businesses charge VAT on their sales (output VAT) and claim back the VAT they paid on their own purchases (input VAT). You remit the difference to the BIR, so VAT is really a tax on the value you add, not on your full revenue.
How to compute VAT
There are two everyday calculations, and the calculator above does both. Use the first when you have a price and need to add VAT, and the second when you have a VAT-inclusive total and need to find the VAT inside it.
Who needs to register for VAT?
VAT registration with the BIR is mandatory once your gross sales or receipts exceed PHP 3 million over any 12-month period. It runs against the registered entity behind your business, so you need a registered company in the Philippines first. Importers must register regardless of turnover, and non-resident digital service providers must register once their Philippine sales cross the same PHP 3 million threshold. You can also register voluntarily below the threshold, which lets you claim input VAT but commits you to charging 12 percent and filing returns.
Below PHP 3 million, a business is generally non-VAT and instead pays a 3 percent percentage tax on gross sales, unless it has opted into the 8 percent income tax regime that replaces percentage tax. Non-VAT businesses do not charge the 12 percent VAT.
Crossing the threshold, or unsure which regime fits you? Our Manila team handles the BIR registration and the monthly and quarterly filings that come with it.
VAT rates at a glance
The four treatments under the NIRC, summarised.
| Treatment | Applies to |
|---|---|
| 12% | Most domestic sales of goods and services, and imports |
| 0% | Exports and certain sales to non-residents and registered export enterprises |
| Exempt | Specific goods and services such as basic agricultural products, education, prescription medicines for listed conditions, and residential leases below the cap |
| 3% percentage tax | Non-VAT businesses below the PHP 3 million threshold, in place of VAT |
Philippines VAT questions
What businesses ask before they register.
What is the VAT rate in the Philippines?
The standard rate is 12 percent on most goods and services. Exports and certain cross-border sales are zero-rated, and a separate group of supplies is exempt.
What is the VAT registration threshold?
PHP 3 million in gross sales or receipts over any 12-month period. Once you cross it, you must register with the BIR as a VAT taxpayer.
What if I am below PHP 3 million?
You are non-VAT and pay the 3 percent percentage tax on gross sales instead, unless you have opted into the 8 percent income tax regime that replaces percentage tax. You can register for VAT voluntarily.
How do I add VAT to a price?
Multiply the price by 1.12. A PHP 1,000 price becomes PHP 1,120, of which PHP 120 is VAT.
How do I find the VAT inside a total?
Divide the total by 1.12 to get the price before VAT. A PHP 1,120 total breaks down to PHP 1,000 net and PHP 120 VAT.
What is the difference between zero-rated and exempt?
Zero-rated sales are taxable at 0 percent, so you charge no VAT but can still claim back input VAT on related purchases. Exempt sales sit outside VAT entirely, so you charge no VAT and cannot claim related input VAT either.
When are VAT returns due?
Monthly returns (BIR Form 2550M) are due on the 20th of the following month, and quarterly returns (BIR Form 2550Q) are due within 25 days after the close of each quarter.
Do non-resident digital service providers register?
Yes. Foreign providers of digital services to consumers in the Philippines must register once their Philippine sales cross PHP 3 million, under the digital services VAT rules.
Talk to our Manila team
Setting up or registering for VAT in the Philippines? We handle BIR registration, the shift to VAT-registered invoicing, PEZA and BOI incentive applications for zero-rating, and your monthly and quarterly VAT returns.
2 26th St, Taguig
1634 Metro Manila, Philippines