Philippines VAT Calculator 2025
Calculate Value Added Tax (VAT) for the Philippines
Use Of This Calculator
- Enter the net or gross figure.
- Check the VAT rate. It’s preset to 12%.
- Select either “Deduct VAT” to calculate an amount excluding VAT from figure or “Add VAT” to calculate an amount including VAT.
- The calculation automatically updates.
Table Of Contents
Background
VAT (value added tax) is a tax which is payable on the purchase of goods or services.
How much is VAT? In the Republic of the Philippines, the current standard VAT rate is 12%.
Generally, all Philippines businesses that provide “taxable” goods and services and whose taxable turnover exceeds the threshold must register for VAT.
How To Compute VAT
Value-added tax (VAT) is a tax that is added to the price of goods and services sold in many countries. If you are a business owner or consumer, it is important to know how to calculate VAT in order to ensure that you are charging or paying the correct amount.
To compute VAT, you will need to follow a few simple steps. First, you will need to determine the VAT rate that applies to the product or service you are dealing with.
Once you have determined the VAT rate, you can compute the VAT amount. Immediately below we explain how to do the computation.
How to Add VAT
If you want to add Philippines VAT to a price or a sales invoice, you just need to divide the amount by 100 and then multiply by 112. You will have computed the amount including VAT which is known as the Gross Amount.
How to Remove VAT
If you want to subtract Philippines VAT from the amount, you need to divide the amount by 112 and then multiply by 100. You will have computed the amount excluding VAT which is known as the Net Amount.
It is important to note that not all products and services are subject to the standard VAT rate. Some products and services may be subject to a reduced rate or zero rate, while others may be exempt from VAT altogether.
If you are unsure about how to compute VAT, you may wish to seek professional advice.
Frequent VAT Calculations
| Quote | Net Amount | VAT at 12% | Gross Amount |
|---|---|---|---|
| PHP2500 plus VAT | PHP2500 | PHP300 | PHP2800 |
| PHP5000 plus VAT | PHP5000 | PHP600 | PHP5600 |
| PHP7500 plus VAT | PHP7500 | PHP900 | PHP8400 |
| PHP10000 plus VAT | PHP10000 | PHP1200 | PHP11200 |
| PHP12500 plus VAT | PHP12500 | PHP1500 | PHP14000 |
| PHP15000 plus VAT | PHP15000 | PHP1800 | PHP16800 |
| PHP25000 plus VAT | PHP25000 | PHP3000 | PHP28000 |
| PHP37500 plus VAT | PHP37500 | PHP4500 | PHP42000 |
| PHP40000 plus VAT | PHP40000 | PHP4800 | PHP44800 |
Benefits of Online VAT Calculators
The Philippines VAT calculator is a must-have resource for anyone running a Philippines business. VAT is one of the biggest expenses faced by any business. Many people find VAT complicated and time consuming to work out, but with VAT calculators now readily available, VAT can be calculated in a matter of minutes.
VAT calculators are an essential tool when running VAT-registered businesses, whether you use them in your VAT return, when working out VAT payable on new purchases or VAT recoverable on VAT paid for goods bought.
VAT calculators are available online and can help make VAT accounting simpler, getting rid of the need for manual calculations.
VAT calculators can be used to support VAT calculations and VAT accounting in a VAT return for your business. VAT accountants, VAT support services and other VAT related services are able to buy the most up-to-date VAT calculators from their suppliers or download VAT calculator software from the internet. You can use VAT calculators to check VAT calculations from an invoice before submitting a VAT return. VAT calculators show VAT payable on goods you buy and sell including the VAT rate, so you don’t have to calculate these figures manually.
Every VAT-registered business needs to record every sale they make within their VAT return. It’s then down to you that each sale has VAT calculated correctly, so VAT calculators are vital for VAT-registered businesses.
To use a VAT calculator, simply enter the appropriate figures into the VAT calculator and the results will be calculated automatically.
Frequently Asked Questions
What does VAT stand for?
The abbreviation VAT stands for Value Added Tax.
How To Register For VAT
A business can apply to register for Philippines VAT using BIR Form No. 0605 here.
What is the VAT Threshold?
A business must register for VAT with the Bureau of Internal Revenue if its annual VAT taxable turnover is more than PHP3,000,000.
What does VAT inclusive mean?
The term VAT inclusive means that VAT has been built into the price (or invoice).
What does VAT exclusive mean?
The term VAT exclusive means that VAT has NOT been included in the price (or invoice).
What does net of VAT mean?
The term net of VAT has the same meaning as VAT exclusive (see immediately above).
Further Research
The VAT system in the Philippines is administered by the Bureau of Internal Revenue.
Visit the Bureau of Internal Revenue websitePeter Doherty
