VAT Calculator Philippines
Add or remove VAT from any amount. Get the VAT-exclusive price, VAT amount, and total instantly.
Issue VAT invoices in seconds
Send professional, VAT-ready invoices and get paid online with PayMongo Invoices — no code required.
How to compute VAT in the Philippines
The VAT formula is simple: multiply the VAT-exclusive amount by 12%. So ₱1,000 × 12% = ₱120 VAT, for a VAT-inclusive total of ₱1,120. To get the net of VAT from a VAT-inclusive price, divide it by 1.12.
Businesses in the Philippines with annual gross sales or receipts of ₱3,000,000.00 or less are generally VAT-exempt. Businesses above the VAT threshold are generally subject to 12% VAT, while qualifying non-VAT-registered businesses below the threshold may be subject to a 3% percentage tax.
The 12% VAT rate and ₱3,000,000.00 VAT threshold are based on the National Internal Revenue Code, as amended by the TRAIN Law (Republic Act No. 10963) and the Ease of Paying Taxes Act (Republic Act No. 11976). The figures provided are estimates for guidance only and do not account for zero-rated or VAT-exempt transactions, input VAT credits, or special tax rates. For the tax treatment of a specific transaction, consult the BIR or a qualified tax professional.
