The standard rate in the Philippines is 12%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
VAT registration is compulsory once gross sales exceed ₱3 million a year; below that you pay 3% percentage tax or opt for the 8% flat income tax.
Filing and paying
Registered and filed with Bureau of Internal Revenue (BIR).
Quarterly VAT return (Form 2550Q) due within 25 days after the quarter ends; monthly filing ended in 2023.
Written from published tax-authority guidance and reviewed on 2026-10-11. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Bureau of Internal Revenue (BIR) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Bureau of Internal Revenue (BIR).