Philippines VAT Calculator 2026
Philippines applies a single VAT rate of 12% to all taxable supplies.
Figures last reviewed
Philippines VAT at a glance
- Standard VAT rate
- 12% — ranked 25 of 36 covered here
- Compared with the average
- -4.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 3,000,000 PHP — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in Philippines
VAT 12%, Registration threshold PHP 3 million
Calculating Philippines VAT
Start from the price excluding tax
VAT is charged on the net price. At 12%, a net PHP 100 becomes PHP 112.00 once VAT of PHP 12.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.1200, not subtracting 12%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Registration is threshold-based
Businesses with taxable turnover above PHP 3,000,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 12%
Adding and removing VAT at 12%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | PHP 100.00 | PHP 1,000.00 |
| VAT at 12% | (PHP 12.00) | (PHP 107.14) |
| Result | PHP 112.00 | PHP 892.86 |
So a net price of PHP 100.00 in Philippines costs PHP 112.00 once VAT is added. Working the other way, a gross price of PHP 1,000.00 contains PHP 107.14 of VAT, leaving PHP 892.86 net.
Computed from the same 12% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Philippines VAT questions
What is the VAT rate in Philippines?
The standard rate is 12%, and it applies to all taxable supplies — Philippines has no reduced rate. That places Philippines 25 of 36 of the countries covered here, 4.99 points below the 16.99% average.
How do I remove VAT from a price in Philippines?
Divide the gross amount by 1.1200. At 12%, a gross PHP 1,000 works back to PHP 892.86 net with PHP 107.14 of VAT. Subtracting 12% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in Philippines?
Once taxable turnover passes PHP 3,000,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than Philippines?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Philippines sits at 12%.