This free VAT calculator helps you quickly calculate value-added tax. Perfect for freelancers, contractors, and small businesses in the Philippines.
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.
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
| Rate | Applies to |
|---|---|
| 18% | Night clubs, bars, cabarets and so on |
| 12% | All other goods and services |
| 0% | Exports, renewable energy, and zero-rated sales |
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.
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
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
| Price excluding VAT | VAT amount | Price 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 |
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.
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.
– 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.
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
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
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.
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
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.
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
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?
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.