VAT Calculator Philippines (12%)

The VAT rate is 12% on the sale of goods and on the sale of services, including the use or lease of property (Sections 106 and 108 of the Tax Code, as amended by Republic Act 11976). Republic Act 12023, approved on 2 October 2024, extends it to digital services, including those delivered by non-resident providers and consumed in the Philippines.

Exempt transactions under Section 109 include services rendered by employees under an employer-employee relationship, medical, dental, hospital and veterinary services (except those rendered by professionals), educational services of accredited schools, and sales by registered cooperatives. Section 109(CC) also exempts any seller whose gross annual sales do not exceed ₱3,000,000 and who is not VAT-registered; that amount is adjusted every three years by the consumer price index.

The VAT invoice must show that the seller is VAT-registered with its TIN, the total amount with a statement that it includes VAT, and the VAT as a separate item. Exempt sales carry the words VAT-exempt sale and zero-rated sales the words zero-rated sale; mixed invoices show the taxable, exempt and zero-rated parts separately (Section 113(B)).