VAT calculator for the Philippines
Add or remove VAT for the Philippines in PHP — preset with the current rates (12%).
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VAT rates in the Philippines (2026)
The standard rate of 12% applies to most goods and services. There is no reduced rate; certain supplies may be exempt or zero-rated. Locally, the tax is called Value-Added Tax (VAT). Registration / small-business threshold: PHP 3 million annual gross sales.
Good to know
- Under the Ease of Paying Taxes Act (2024), the sales invoice is the primary document for both goods and services; official receipts are now supplementary.
- VAT registration is required once gross sales exceed PHP 3 million a year; non-VAT businesses pay percentage tax instead and must not show VAT.
How it’s calculated
VAT is charged as a percentage of the net (pre-tax) price. To add it, multiply the net amount by the rate; to find the net amount inside a tax-inclusive price, divide the gross amount by 1 plus the rate.
A common mistake is to remove VAT by subtracting the rate from the gross price (e.g. 119 − 19% = 96.39). That is wrong — the correct net amount is 119 ÷ 1.19 = 100.
Gross = Net × (1 + rate ÷ 100)VAT = Net × rate ÷ 100Net = Gross ÷ (1 + rate ÷ 100)
Frequently asked questions
How do I add VAT to a price in the Philippines?
Multiply the net price by 1.12. For example, ₱100.00 plus 12% VAT is ₱100.00 × 1.12 = ₱112.00.
How do I remove VAT from a gross price in the Philippines?
Divide the gross price by 1.12: ₱112.00 ÷ 1.12 = ₱100.00. The VAT included is ₱12.00.
What VAT rates apply in the Philippines?
The Philippines uses a standard VAT rate of 12%.
Are these VAT rates for the Philippines up to date?
The rates were last reviewed in October 2026. Tax rates can change, so confirm with the tax authority before relying on them for filings.
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Results are estimates for general information only and are not tax, legal or financial advice.