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