Philippines — Value-added tax (VAT)
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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 2020
- 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.
As a VAT taxpayer:
Gross sales or receipts in excess of PHP1,919,500 in a 12-month period
Gross annual receipts for the preceding year in excess of PHP10 million
As a non-VAT taxpayer:
Engaged in business with gross sales or receipts of PHP1,919,500 or less in a 12-month period
Engaged in trade or business with gross sales or receipts in a 12-month period of PHP1,919,500 or less
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.
Philippines Tax Sources & Citations
- EN: Philippines Value Added Tax
- RU: НДС
- CN: 增值税
- Philippines Department of Finance’s Bureau of Internal Revenue (http://www.dof.gov.ph)
- Ernst & Young global VAT tax study, Philippines (updated 2020)
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