VAT Calculator PH
Add or remove consumption tax and see the net and gross amounts.
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How it works
Adding tax multiplies the net price by the rate and adds it on. Removing tax works backwards from a tax-inclusive price to find the original net amount.
Gross = Net × (1 + rate); Net = Gross ÷ (1 + rate)Frequently asked questions
What is the VAT rate in the Philippines?
The standard rate is 12%. The Philippines charges VAT at 12% on most goods and services. Some sales are zero-rated (such as exports) and others are VAT-exempt, including certain small businesses and basic agricultural products.
How do I add VAT to a price?
Multiply the net amount by 1.12. For example, ₱100 plus 12% VAT is ₱112.
How do I remove VAT from a total?
Divide the tax-inclusive total by 1.12. So ₱112 ÷ 1.12 = ₱100 before tax, and the VAT portion is ₱12.
Who has to register for VAT?
VAT registration is required once annual gross sales exceed ₱3 million; smaller businesses may instead pay the simpler percentage tax.
What is the VAT registration threshold in the Philippines?
Annual gross sales above ₱3 million require VAT registration; below that, a business may use the simpler percentage tax.
Are small businesses always charged VAT?
No. Businesses below the ₱3 million threshold and certain exempt sectors may fall outside VAT and use the percentage tax instead.
How VAT works in the Philippines
the Philippines charges VAT at a standard rate of 12% on most goods and services. It is a consumption tax collected in stages: businesses add it to their sales and reclaim the VAT they pay on purchases, so the cost ultimately falls on the final consumer.
Adding and removing VAT
To add 12% VAT, multiply the net price by 1.12 — so ₱100 becomes ₱112, of which ₱12 is tax. To remove it from a tax-inclusive total, divide by 1.12: ₱112 ÷ 1.12 = ₱100 before tax.
Rates and registration
The Philippines charges VAT at 12% on most goods and services. Some sales are zero-rated (such as exports) and others are VAT-exempt, including certain small businesses and basic agricultural products. VAT registration is required once annual gross sales exceed ₱3 million; smaller businesses may instead pay the simpler percentage tax.
VAT is administered by the Bureau of Internal Revenue (BIR). Businesses above the threshold charge 12% output VAT, credit input VAT on purchases, and file periodic returns; those below it can opt for the percentage-tax regime instead.
Results are estimates for general guidance in Philippines and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.