VAT Calculator Philippines
Add 12% VAT to a net price, take VAT out of a VAT-inclusive amount, or work out the output VAT less input VAT you owe for the quarter. Every figure is in pesos, to the centavo.
Zero-rated sales (mostly exports and sales to registered export enterprises) carry no VAT but still let you claim input VAT. Exempt sales carry no VAT and the input VAT on them cannot be claimed.
Sales for the quarter, before VAT
Purchases and credits
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How to calculate VAT in the Philippines
The standard VAT rate is 12% on sales of goods (Section 106 of the Tax Code) and services (Section 108). To add VAT, multiply the net price by 1.12. To take it out of a VAT-inclusive price, multiply by 12/112. What you pay the BIR each quarter is output VAT on your sales less the input VAT on your purchases.
12% of your VATable sales before VAT. Take the total from your sales journal or the VAT line on the invoices you issued.
Example: ₱5,000,000 sales × 12% = ₱600,000The VAT shown on supplier invoices for goods and services you use in the business. Take it from the purchase journal, backed by VAT invoices in your TIN.
Example: ₱3,000,000 purchases × 12% = ₱360,000Input VAT left over when last quarter's credits were bigger than output VAT. Read it from the carry-over line of your previous 2550Q.
Example: ₱20,000 unused from Q2| VATable sales | ₱5,000,000.00 |
| Output VAT at 12% | ₱600,000.00 |
| Input VAT on ₱3,000,000 purchases | ₱360,000.00 |
| Carried over from last quarter | ₱20,000.00 |
| VAT payable on 2550Q | ₱220,000.00 |
- Total your VATable, zero-rated and exempt sales for the quarter, all before VAT
- Multiply VATable sales by 12% to get output VAT: 5,000,000 × 0.12 = ₱600,000
- Add up input VAT from valid supplier invoices: ₱360,000. If you also have exempt sales, keep only the share that relates to taxable sales
- Subtract input VAT and last quarter's excess: 600,000 − 360,000 − 20,000 = ₱220,000
- Deduct any VAT withheld by government customers and pay the rest with BIR Form 2550Q by the 25th day after the quarter ends
Philippine VAT rates and rules
Most businesses only ever deal with a handful of rates. These are the ones that change how much you charge, claim or pay.
| Situation | Rate | How it works |
|---|---|---|
| Sale of goods or services (Sections 106 and 108) | 12% | On the gross selling price or gross receipts, before VAT |
| Export sales and other zero-rated sales | 0% | No VAT charged, but input VAT can be claimed or refunded |
| Exempt sales (Section 109) | None | No VAT charged and the related input VAT is not creditable |
| Sales to government offices and GOCCs (Section 114(C)) | 5% withheld | The agency withholds 5% of the price before VAT and pays you the rest. You credit it against VAT due |
| VAT registration threshold | ₱3,000,000 | Gross sales over any 12 months. Above it you must register for VAT |
| Non-VAT businesses (Section 116) | 3% | Percentage tax on gross sales, filed on BIR Form 2551Q |
| Digital services from non-resident providers (RA 12023) | 12% | Charged by the provider for consumers, or withheld by a VAT-registered business buyer |
| Quarterly VAT return | 2550Q | Due on or before the 25th day after the quarter ends |
Based on Sections 106, 108, 109, 110, 114 and 116 of the National Internal Revenue Code as amended by RA 11976 (Ease of Paying Taxes Act) and RA 12023, and BIR revenue issuances. Check bir.gov.ph for the latest rules before you file.
Get a one-page summary of output VAT, input VAT, carry-over and the amount due for this quarter.
How to get your VAT return right every quarter
Most VAT assessments come from input VAT that cannot be supported, not from the 12% maths. A few habits keep the 2550Q clean.
Match output VAT in the sales ledger and input VAT in the purchase ledger to the general ledger before the 25th. Finance teams that automate this tie-out with Bluecopa spot missing invoices before they reach the return.
Input VAT only counts if the invoice shows the supplier's TIN, your name and TIN, and the VAT shown separately. Chase corrections in the same quarter.
Code each customer and item as VATable, zero-rated or exempt in your billing system so the quarter-end split is a report, not a hunt.
Ask government customers for BIR Form 2307 for the 5% they withheld. Without it you cannot credit the amount against VAT due.
If you are a non-VAT business, track rolling 12-month sales. Once they pass ₱3,000,000 you must register for VAT and start charging 12%.
Keep a running schedule of excess input VAT so the carry-over on each 2550Q agrees with the one before it.
Frequently asked questions
Multiply the price before VAT by 12% to get the VAT, or by 1.12 to get the VAT-inclusive total. A ₱1,000,000 sale carries ₱120,000 of VAT, so the customer pays ₱1,120,000.
Divide the VAT-inclusive amount by 1.12 to get the price before VAT. The VAT is the inclusive amount times 12/112. For ₱1,120,000, the net price is ₱1,000,000 and the VAT is ₱120,000.
Any business whose gross sales or receipts go over ₱3,000,000 in a 12-month period. Smaller businesses can stay non-VAT and pay 3% percentage tax under Section 116, or register for VAT voluntarily.
No. Since January 2023, VAT taxpayers only have to file the quarterly 2550Q, due on the 25th day after each quarter. The BIR later allowed businesses to keep filing 2550M monthly if they want to, but it is optional.
Government offices and GOCCs withhold 5% of the price before VAT when they pay a VAT-registered supplier. The supplier reports the full 12% output VAT and credits the 5% against VAT due, using BIR Form 2307 as proof.
Yes. RA 12023 puts 12% VAT on digital services consumed in the Philippines, such as streaming, online ads and cloud software, even when the provider is abroad. For business buyers, the VAT-registered Philippine company withholds and remits it.
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