Vat Calculator

Calculate VAT inclusive and exclusive amounts

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%

VAT Breakdown

VAT Amount₱0.00
Total (Inc. VAT)₱0.00
Total (Exc. VAT)₱10,000.00

Important Information

VAT Rates in the Philippines

  • Standard VAT rate: 12% of the selling price of goods or services
  • Zero-rated VAT: 0% for certain exports and qualified transactions
  • Exempt transactions: Certain goods and services are exempt from VAT (e.g., educational services, health services, agricultural products)

VAT Calculation Guidelines

  • VAT Amount = Selling Price × 12% (for standard-rated goods/services)
  • Total Price with VAT = Selling Price + VAT Amount
  • VAT-registered businesses are required to issue VAT invoices or official receipts
  • Input VAT (paid on purchases) can be credited against Output VAT (collected on sales)

Important Notes

  • VAT-registered businesses must file VAT returns regularly with the BIR
  • Failing to remit VAT can result in penalties and interest
  • VAT rules are subject to change based on BIR regulations

Note: This calculator provides an estimate of VAT payable based on current Philippine VAT laws. For official computation and updates, please visit the Bureau of Internal Revenue (BIR) website or consult a tax professional.

Related Links & Resources

BIR Official Website

Visit the Bureau of Internal Revenue for official VAT guidelines

BIR Forms and Filing

List of VAT-related forms

VAT Guide

Learn more about VAT-registered businesses, returns, and exemptions

Frequently Asked Questions

What is VAT?▼
Value-Added Tax (VAT) is a consumption tax imposed on the sale of goods, properties, or services in the Philippines. It is generally 12% of the selling price for standard-rated transactions.
How is VAT computed?▼
VAT is calculated by multiplying the selling price by 12% for standard-rated goods or services. For example, if the selling price is ₱1,000, VAT = ₱1,000 × 12% = ₱120.
What is the difference between output VAT and input VAT?▼
Output VAT is the VAT you collect from your customers on sales. Input VAT is the VAT you pay on purchases of goods or services. Businesses can credit input VAT against output VAT to determine the net VAT payable to the BIR.
Who needs to register for VAT?▼
Businesses exceeding the VAT threshold (currently ₱3,000,000 annual gross sales) or engaged in VATable transactions must register for VAT with the BIR.
Are all goods and services subject to VAT?▼
No. Certain goods and services are zero-rated or exempt from VAT, such as exports, agricultural products, educational services, and medical services. Consult the BIR for a complete list of exemptions.
Can VAT be included in the price of goods/services?▼
Yes. The selling price may either be VAT-inclusive (the VAT is part of the total price) or VAT-exclusive (VAT is added on top of the price). Proper invoicing is required for accounting and tax reporting.