PH Value-added tax (VAT) Rates Philippines — Value-added tax (VAT)

General VAT Rate Other Rates Local Currency
12% 0% Peso (PHP)

Philippines's general VAT rate is 12%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Department of Finance’s Bureau of Internal Revenue (http://www.dof.gov.ph) in Manila.

The Phillipines exempts senior citizens 60 and above from VAT on certain ourchases including medicine, medical fees, admission fees, etc.

Philippines's consumption tax is called the Value-added tax (VAT), which was introduced in December 1969.


Philippines VAT rates for 2017

Standard
12%
Other
Zero-rated and exempt

Philippines VAT number format

Businesses in Philippines that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Department of Finance’s Bureau of Internal Revenue, and will follow a certain format. The VAT number format is .

VAT-registered person
Nine-digit tax identification number (TIN)
Branch office
Head office’s nine-digit TIN, plus a three-digit branch code

Philippines VAT return periods

Businesses in Philippines that are required to collect tax from consumers must file regular tax returns with the Department of Finance’s Bureau of Internal Revenue in Manila. Philippines's VAT return periods are:

Monthly VAT declarations, quarterly VAT returns and quarterly summary list of sales and purchases


Philippines Value-added tax (VAT) Thresholds

These are the revenue thresholds at which businesses in Philippines are required to start collecting and remitting tax.

Registration:

As a VAT taxpayer:

General

Gross sales or receipts in excess of PHP1,919,500 in a 12-month period

Radio or television broadcasting franchisees

Gross annual receipts for the preceding year in excess of PHP10 million

As a non-VAT taxpayer:

Individuals

Engaged in business with gross sales or receipts of PHP1,919,500 or less in a 12-month period

Nonstock and nonprofit organizations

Engaged in trade or business with gross sales or receipts in a 12-month period of PHP1,919,500 or less

Radio and television broadcasters

Gross receipts of PHP10 million or less


Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Philippines are not required to collect taxes from the consumer.


Philippines VAT Refunds

Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Philippines VAT refund program, more info can be obtained from the Department of Finance’s Bureau of Internal Revenue.


PH Value-added tax (VAT) Rates Philippines Tax Sources & Citations

  • EN: Philippines Value Added Tax
  • RU: НДС
  • CN: 增值税
Note: This page is intended to be a simple overview of Philippines's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the Philippines tax information on this page is incorrect or out of date.
Citations:
  1. Philippines Department of Finance’s Bureau of Internal Revenue (http://www.dof.gov.ph)
  2. Ernst & Young global VAT tax study, Philippines (updated 2017)

  3. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/ph-philippines