VAT Calculator Philippines

VAT Calculator Philippines | Compute Your VAT at PH 12% Rate Now

Are you looking to calculate Value Added tax (VAT) within the Philippines? Make use of our simple Philippines VAT calculator to quickly calculate the 12% VAT depending on regardless of whether it’s including tax to a base cost or taking VAT from the total.

Understanding VAT in the Philippines

The normal rate of VAT for the Philippines is 12percent. But, based on the kind of product or services offered, different rates or exemptions could be applicable.

How to Use the Philippines VAT Calculator

Choose “Philippines” in the calculator (auto-detects VAT rate of 12%)
Input the value
Select to add or Remove VAT or Eliminate VAT
Click the Calculate button to receive your results immediately

How to Calculate 12% VAT in the Philippines (Manually)

Formula:

Add VAT

Formula: VAT Amount = (Original Cost x 12%) / 100 Net Price = Original Cost + VAT Amount

Remove VAT

Formula: VAT Amount = Original Cost – (Original Cost x (100 / (100 + 12))) Net Price = Original Cost – VAT Amount

See also Vat Calculator Namibia – Simplify Your Tax Calculations

Net Price = Original Cost – Tax Amount

Example: VAT Computation in the Philippines

Add VAT

Amount: P30,000
VAT: 12%

VAT = (30,000 x 12%) = P3,600 Net Price = 30,000 + 3,600 = P33,600

Remove VAT

Amount: P30,000
VAT: 12%

VAT = 30,000 - (30,000 x (100 / 112)) = P3,600 Net Price = 30,000 - 3,600 = P26,400

What’s Subject to VAT in the Philippines?

VAT is applicable to the following:

Barter, lease, sale or exchange of goods/services
Importation of products
Exchange or sale in real property (with terms)
Lease or use of property for trade or business

Goods & Services Exempted from VAT

Certain items are VAT-exempt for example:

Education services (e.g. tuition costs)
Services offered by banks (e.g., ATM fees)
Import and export of agricultural products (e.g. corn grits, rice, fertilizers, seeds)
Leases and sales of residential property (with the conditions)
Newspapers and books
Imports of fuel
Employment services

VAT History in the Philippines

The first time VAT was implemented was at the beginning of 1998 in accordance with Executive Order 273. At first, only a small selection of goods and services were included, but as time passed the VAT system grew considerably.

Also visit VAT Calculator South Africa

FAQs – VAT Philippines

Q What year was the VAT introduction to the Philippines?
A: VAT was introduced in 1988 by the Executive Order 273.

Q Do you know if rice is VAT free within the Philippines?
A: Yes, rice along with other selected crops can be free from VAT.

Which party pays for VAT either the buyer or seller A: It is the buyer who pays for VAT however, the seller collects it and then remits it towards the federal government.

Q Is it exist that the Philippines have a lower VAT rate? A: There is no official reduced VAT rate is available however there is a zero-rated VAT rate for certain sectors, and a higher rate (18 percent) in the entertainment industry.

Why Use the VAT Calculator Philippines?

Rapid and reliable
It is useful for businesses as well as consumers as well.
Tax inclusion and exclusion is supported.
Ideal for bookkeeping, invoices and for accounting

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