Philippines VAT Calculator
How Much Is VAT in the Philippines?
The standard VAT rate in the Philippines is 12% in 2026. Other rates: 0% — Exports, sales to export-oriented and ecozone-registered enterprises directly attributable to their registered activity, international transport. Locally the tax is called Value-Added Tax (VAT). Standard VAT/GST rates worldwide range from around 5% to 27%.
Registration is compulsory once gross sales exceed PHP 3,000,000 in any 12-month period. Smaller businesses fall under percentage tax instead, and senior citizens and persons with disability are entitled to a VAT exemption on qualifying purchases.
How to calculate Philippines VAT
To add 12% VAT to a net (tax-exclusive) price, multiply it by 1.12. To remove VAT from a gross (tax-inclusive) price, divide it by 1.12.
- Add VAT: PHP 100 net × 1.12 = PHP 112 gross (that is PHP 12 of VAT)
- Remove VAT: PHP 112 gross ÷ 1.12 = PHP 100 net (that is PHP 12 of VAT)
Use the Philippines VAT calculator above for any amount, or compare the Philippines with every other country in our VAT rates by country table.
Philippines VAT Rates Overview
Every VAT rate currently in force in the Philippines
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 12% | Sale, barter or exchange of goods and services, imports, lease of property and digital services consumed in the Philippines |
| Zero rate | 0% | Exports, sales to export-oriented and ecozone-registered enterprises directly attributable to their registered activity, international transport |
VAT History and Local Rules in the Philippines
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2025: 12% VAT on digital services by foreign providers took effect on 2 June 2025 (RA 12023)
- 2024: CREATE MORE Act (RA 12066) redefined VAT zero-rating for export enterprises; VAT refund for tourists law (RA 12079) signed
- 2018: TRAIN Law raised the VAT registration threshold to PHP 3 million
- 2006: Rate raised from 10% to 12% on 1 February 2006 under the Expanded VAT law (RA 9337)
- 1988: VAT introduced at 10% on 1 January 1988 (Executive Order 273)
Is the VAT rate the same everywhere in the Philippines?
The same 12% VAT applies nationwide, including the Bangsamoro region. Enterprises in ecozones and freeports registered with PEZA or other investment promotion agencies can buy goods and services at 0% for their registered export activities.
Good to know
Senior citizens and persons with disabilities are exempt from VAT (and get a 20% discount) on specified purchases such as medicines, restaurant meals, hotel stays, transport and medical services.
Businesses below the PHP 3 million threshold that are not VAT-registered generally pay a 3% percentage tax on gross sales instead of VAT.
BIR Revenue Memorandum Circular 59-2026 issued further guidance on VAT on digital services in June 2026.
Zero-Rated and Exempt Supplies in the Philippines
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Export sales of goods
- Services paid for in foreign currency and rendered to non-residents doing business outside the Philippines
- Sales to PEZA and other ecozone or freeport enterprises, directly attributable to registered export activities
- Local purchases of qualifying export-oriented enterprises under CREATE MORE
- International air and sea transport services
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Agricultural and marine food products in their original state
- Educational services by accredited private and public institutions
- Medical, dental and hospital services (excluding those of professionals)
- Prescription medicines for diabetes, high cholesterol, hypertension, cancer, mental illness, tuberculosis and kidney disease
- Residential lease not exceeding PHP 15,000 per month per unit
- Sales by non-VAT-registered persons with annual gross sales up to PHP 3 million
Philippines VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in the Philippines.
| Local name | Value-Added Tax (VAT) |
|---|---|
| VAT number format | Taxpayer Identification Number (TIN): 9 digits plus a branch code (e.g. 123-456-789-00000) |
| Registration threshold | Annual gross sales or receipts above PHP 3 million |
| Non-resident businesses | Non-resident digital service providers must register once gross sales to Philippine consumers exceed PHP 3 million in 12 months; other non-residents supplying services in the Philippines are generally taxed via withholding by the local payer |
| Filing frequency | Quarterly VAT return (BIR Form 2550Q); monthly VAT returns (2550M) abolished from 1 January 2023 |
| Filing and payment deadline | Within 25 days after the close of each taxable quarter |
| E-invoicing / reporting | Electronic invoicing through the BIR Electronic Invoicing System is being phased in for large taxpayers, exporters and e-commerce businesses under the Ease of Paying Taxes Act; not yet universal |
| Tax authority | Bureau of Internal Revenue (BIR) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Bureau of Internal Revenue (BIR) before relying on them.
Cross-Border Sales and Refunds in the Philippines
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Since 2 June 2025, non-resident digital service providers (streaming, SaaS, online ads, marketplaces) with Philippine B2C sales above PHP 3 million must register and charge 12% VAT; B2B customers account for VAT by reverse charge.
Tourist VAT refunds: Yes: RA 12079 lets non-resident foreign tourists claim VAT refunds on goods of at least PHP 3,000 bought at accredited stores and taken out of the country within 60 days.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇦🇺 Australia
Standard Rate: 10%
🇳🇿 New Zealand
Standard Rate: 15%
🇯🇵 Japan
Standard Rate: 10%
🇰🇷 South Korea
Standard Rate: 10%
Frequently Asked Questions
Common questions about VAT in the Philippines
What is the current VAT rate in the Philippines?
The standard VAT rate in the Philippines is 12% in 2026. Other rates in force: 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in the Philippines?
To add 12% VAT, multiply the net price by 1.12. To remove it from a VAT-inclusive price, divide by 1.12; the difference is the VAT. The calculator at the top of this page does both.
Do foreign digital services like Netflix charge VAT in the Philippines?
Yes. Since 2 June 2025, non-resident digital service providers with Philippine sales above PHP 3 million must register with the BIR and charge 12% VAT to consumers.
Can tourists get a VAT refund in the Philippines?
Yes. Under RA 12079 foreign non-resident tourists can claim VAT back on goods worth at least PHP 3,000 bought from accredited stores, provided the goods leave the country within 60 days.
Who needs to register for VAT in the Philippines?
Registration threshold: Annual gross sales or receipts above PHP 3 million. Foreign businesses: Non-resident digital service providers must register once gross sales to Philippine consumers exceed PHP 3 million in 12 months; other non-residents supplying services in the Philippines are generally taxed via withholding by the local payer.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.