Add or remove VAT at Philippines's standard rate of 12%. Pre-set to PHP — switch modes to work forwards from a net price or backwards from a VAT-inclusive total.
₱2,500.00 × 1.12 = ₱2,800.00
Adding 12% VAT to a phone accessory priced at ₱2,500.00 (net) gives ₱2,800.00 gross — that's ₱300.00 of VAT.
₱800.00 ÷ 1.12 = ₱714.29
Removing 12% VAT from a family meal marked ₱800.00 (gross) leaves ₱714.29 net — the VAT portion is ₱85.71.
| Rate | Applies to |
|---|---|
| 12% standard | Most goods and services |
| 0% | Zero-rated exports & certain sales; some goods are VAT-exempt rather than reduced |
Businesses in Philippines generally must register for VAT once taxable turnover reaches ₱3,000,000 gross sales. VAT registration and returns are administered by Bureau of Internal Revenue (BIR).
The standard VAT rate in Philippines is 12%. Reduced rates of 0% apply to items such as zero-rated exports & certain sales; some goods are vat-exempt rather than reduced. (Rates as of 2026-07-13.)
Divide the VAT-inclusive price by 1.12 (that is, 1 + 12%). Removing 12% VAT from a family meal marked ₱800.00 (gross) leaves ₱714.29 net — the VAT portion is ₱85.71.
Multiply the net price by 1.12. Adding 12% VAT to a phone accessory priced at ₱2,500.00 (net) gives ₱2,800.00 gross — that's ₱300.00 of VAT.
You must register for VAT in Philippines once your taxable turnover reaches ₱3,000,000 gross sales. Registration is handled by Bureau of Internal Revenue (BIR).
Rates and thresholds shown as of 2026-07-13. Tax rules change — confirm current figures with Bureau of Internal Revenue (BIR) before relying on them.