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VAT Calculator Philippines (12%)

Add 12% VAT to a price or remove VAT from a receipt total. Useful for invoices, quotations, reimbursements and checking official receipts.

Last updated: October 30, 2026 · Standard VAT rate 12%

Estimates only — not official tax, payroll, or legal advice. Always verify with BIR, SSS, PhilHealth, Pag-IBIG, or a licensed professional.

How to use the VAT calculator

  1. Type the peso amount from your price list, quotation or receipt.
  2. Choose VAT-inclusive if the amount already includes VAT (most retail prices and receipts), or VAT-exclusive if it is a net price before tax.
  3. Keep the rate at 12% unless you are testing another rate.
  4. Press Calculate to see the net amount, the VAT, and the gross total.

VAT formulas

Add VAT: VAT = Net × 0.12 · Total = Net × 1.12
Remove VAT: Net = Total ÷ 1.12 · VAT = Total × 12/112 (≈ 10.714%)

A common mistake is taking 12% of a VAT-inclusive total. That overstates the tax: 12% of ₱1,120 is ₱134.40, but the VAT actually included is only ₱120. Always divide by 1.12 first.

Peso examples

  • Quotation: a supplier quotes ₱50,000 VAT-exclusive. VAT = ₱6,000; total invoice = ₱56,000.
  • Receipt: your grocery receipt shows ₱2,240 VAT-inclusive. Net = ₱2,000; VAT = ₱240.
  • Senior citizen purchase: medicine priced ₱560 VAT-inclusive. Remove VAT → ₱500; less 20% discount → ₱400 payable.
  • Freelancer billing a VAT-registered client: professional fee ₱80,000 + 12% VAT ₱9,600 = ₱89,600 gross. Note that the client may also withhold creditable income tax.

2026 VAT rules to remember

  • Standard rate: 12% on sale of goods, services and importations.
  • VAT registration threshold: gross sales above ₱3,000,000 in 12 months.
  • Non-VAT taxpayers: generally 3% percentage tax, or the 8% income tax option for qualified individuals.
  • VAT returns are filed quarterly (BIR Form 2550Q) under the Ease of Paying Taxes Act.
  • Digital services from foreign providers are subject to 12% VAT (RA 12023).

Reading VAT on an official receipt or invoice

Since the Ease of Paying Taxes Act, VAT-registered sellers issue a VAT invoice for both goods and services. The invoice should show the VATable sales, the 12% VAT amount, VAT-exempt sales and zero-rated sales as separate lines, plus the seller's TIN. If you are a VAT-registered buyer, keep these invoices because the VAT shown is your input tax, which you can credit against the output VAT you collect from your own customers. When filing BIR Form 2550Q, you pay only the difference: output VAT minus allowable input VAT. Non-VAT businesses cannot claim input VAT, so for them the VAT paid on purchases simply becomes part of cost.

Official sources

FAQ

What is the VAT rate in the Philippines in 2026?+

The standard value-added tax rate is 12% under the National Internal Revenue Code as amended by the TRAIN Law. Certain sales are zero-rated (such as qualified export sales) or VAT-exempt (such as sales of basic agricultural food products and qualified senior citizen and PWD purchases).

How do I compute VAT from a VAT-inclusive price?+

Divide the VAT-inclusive amount by 1.12 to get the VAT-exclusive (net) price, then subtract it from the total, or multiply the inclusive amount by 12/112. For ₱1,120, the net price is ₱1,000 and VAT is ₱120.

Who must register for VAT?+

Businesses and self-employed individuals whose gross sales or receipts exceed ₱3,000,000 in any 12-month period must register as VAT taxpayers. Those below the threshold usually pay 3% percentage tax or may choose the 8% income tax option.

How are senior citizen and PWD discounts computed with VAT?+

For qualified purchases, seniors and PWDs are VAT-exempt and get a 20% discount. First remove VAT by dividing the price by 1.12, then deduct 20% from the VAT-exclusive amount.

Is the online VAT on digital services the same 12%?+

Yes. Under Republic Act 12023, digital services such as streaming and app subscriptions consumed in the Philippines are subject to 12% VAT, usually already included in the price you see.

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