Freelance rate calculator image

Free VAT calculator

This free VAT calculator helps you quickly calculate
value-added tax. Perfect for freelancers,
contractors, and small businesses in the Philippines.

VAT: ₱00.00
Total: ₱00.00
What is value-added tax (VAT)?

VAT, or value-added tax, is a consumption tax that you have to add to your invoices if you’re registered for VAT.

The standard VAT rate is 12%, and VAT applies whether you live in Malina, Cebu City, Davao City, Quezon City, or anywhere in else in the Philippines.

What is value-added tax (VAT)?
Who has to register for VAT?

You have to register for VAT with the Bureau of Internal Revenue (BIR) if your sales exceed PHP 3million in the past 12 months, or you expect to reach that threshold in the coming 12 months.

Once you’re registered for VAT, you have to

  • issue VAT invoices and VAT receipts
  • collect VAT from clients
  • file quarterly VAT returns
  • bookkeep all transactions
Who has to register for VAT?

The different VAT rates

RateApplies to
18%Night clubs, bars, cabarets and so on
12%All other goods and services
0%Exports, renewable energy, and zero-rated sales
Source: Bir.gov.ph

What is a VAT calculator?

A VAT calculator is a tool that helps you calculate value-added tax (VAT) for your products or services. If you’re registered for VAT, you have to include VAT on your invoices, unless you sell zero rated goods or services.

The calculator helps you work out the price including or excluding VAT, and to comply with the rules and regulations in the Philippines.

Why use the VAT calculator? ⚖️

  • Accurate VAT calculations
  • Easy to use
  • Save time and work out VAT in seconds
  • Work out the price both including and excluding VAT
  • Completely free to use

How do I work out the VAT?

For prices excluding VAT

Add VAT to the price

To figure out the total price with VAT, simply multiply the original price by 1.12.

₱1,000 x 1.12 = ₱1,120

Work out the VAT amount to add

To figure out how much VAT you’ll be charging, simply multiply the original price by 0.12.

₱1000 x 0.12 = ₱120

For prices including VAT

Exclude VAT from the price

If you want the price without VAT, divide by 1.12.

₱1,120 / 1.12 = ₱1000

Work out the VAT amount that was added

To figure out how much VAT was included in the price you can take the price with VAT minus the price without VAT.

₱1,120 – ₱1,000 = ₱120

How do I work out the VAT?

VAT on different prices in the Philippines

Price excluding VATVAT amountPrice including VAT
₱1,000₱120₱1,120
₱2,000₱240₱2,240
₱3,000₱360₱3,360
₱4,000₱480₱4,480
₱5,000₱600₱5,600
₱6,000₱720₱6,720
₱7,000₱840₱7,840
₱8,000₱960₱8,960
₱9,000₱1,080₱10,080
₱10,000₱1,200₱11,200

FAQ

Frequently asked questions about the VAT calculator

How does the VAT calculator work?

With the VAT calculator, you simply enter the sum and choose whether it included VAT or excludes VAT. The VAT rate is set to the standard 12% by default.

You’ll then immediately see the VAT amount and the total price including VAT.

Try the free VAT calculator now.

What happens if I don’t register for VAT?

If you meet the VAT threshold of ₱3,000,000 in 12 months, but don’t register for VAT, you’ll have to pay the output tax for the period where you didn’t register.

You also won’t be able to get input tax credits for this period.

What has to be included in a VAT invoice?

– Name of seller
– A statement that the seller is VAT-registered, and their TIN
– The business address of the seller
– The business style of the seller
– Description of the goods or services
– The unit price
– The quantity
– The date of the sale
– The TIN of the buyer, if they’re VAT registered and the amount exceeds ₱1,000
– The buyer’s address
– The business style of the buyer
– The name of the buyer
– Purchase price plus VAT. VAT should be a shown as a separate item on the invoice
– Invoice number

If the sale is VAT-exempt, “VAT-EXEMPT SALE” has to be written or printed on the invoice.
If the sale is zero-rated, “ZERO-RATED SALE” has to be written or printed on the invoice.

How should VAT be presented on the invoice?

The tax rate and the amount of tax should be shown as a separate item on the invoice. For example:
Sales price ₱100,000.00
VAT (12%) ₱12,000.00
Invoice amount ₱112,000.000

How to properly calculate VAT?

To calculate VAT, you multiply the price with 1.12. For example if the price is ₱100,000, the price including VAT would be ₱100,000 x 1.12 = ₱112,000

If you want to work out how much VAT was added, you can take the price including VAT minus the price excluding VAT:
₱112,000 – ₱100,000 = ₱12,000

What does VAT stand for?

VAT stands for value-added tax. VAT is sometimes referred to as sales tax. It’s used by more than 170 countries in the world.

How to compute for 12% VAT?

To calculate 12% VAT, which is the standard rate in the Philippines, you multiple the price with 1.12. For example, if you’re selling something for ₱100,000, then the price including VAT will be:
₱100,000 x 1.12 = ₱112,000

How to register for VAT?

If you’re a sole proprietor or self-employed, you fill out BIR form no. 1901 to register for VAT. If you run a business, you fill out BIR form no. 1903 or 1905.

The forms should be submitted to your local Revenue District Office.

What does VAT inclusive mean?

VAT inclusive means that the price includes VAT. If you want to work out how much the price is without VAT, you can divide the price with 1.12. For example
₱140,000 / 1.12 = ₱125,000

To figure out how much VAT was added, you take the price including VAT minus the price excluding VAT:
₱140,000 – ₱125,000 = ₱15,000

What does VAT exclusive mean?

VAT exclusive means that the price does not include VAT. If for example the price is ₱100,000, 12% VAT will be added on top. To work out the price including VAT, you can multiply the price by 1.12:
₱100,000 x 1.12 = ₱112,000

What are you waiting for?

Get started with free VAT invoicing

Conta is a user-friendly billing software tailored to the needs of businesses, freelancers, and contractors in the Philippines. Spend less time on admin and more time on the work that matters.