VAT Calculator (Philippines)

How VAT works in the Philippines

Value-Added Tax (VAT) in the Philippines is charged at 12% on most goods and services. This calculator does the two things people actually need: add 12% VAT to a price that doesn't include it yet, or remove VAT from a price that already includes it to find the net amount and the VAT portion.

Adding VAT

If a price is VAT-exclusive (net), you add 12%:

VAT = net × 0.12 · gross = net × 1.12

So a ₱1,000 net price becomes ₱120 of VAT and a ₱1,120 gross price.

Removing VAT (the part people get wrong)

If a price already includes VAT, you can't just subtract 12% — because the 12% was added to the smaller net amount, not the larger gross. Instead you divide:

net = gross ÷ 1.12 · VAT = gross − net

So a ₱1,120 VAT-inclusive price is ₱1,000 net plus ₱120 VAT. Subtracting 12% of ₱1,120 (₱134.40) would be wrong — this division is the correct way to back out VAT, and it's what appears on a proper VAT receipt.

Common uses

• Quoting a client a VAT-inclusive price from your net rate.
• Splitting a receipt total into net sales and the VAT portion for bookkeeping.
• Checking whether a supplier's "plus VAT" price matches what you expected.

FAQ

Are all goods subject to 12% VAT?

No. Some goods and services are VAT-exempt or zero-rated (for example, certain agricultural products, specific senior-citizen and PWD purchases, and some exports). For those, the 12% rate doesn't apply — check the BIR rules for your specific case.

Who has to charge VAT?

Businesses whose annual sales exceed the VAT threshold must register for VAT. Smaller businesses may instead pay percentage tax. This calculator simply computes the 12% VAT math.

Why can't I just subtract 12% to remove VAT?

Because the 12% was added to the smaller net amount, not the larger gross. To back out VAT correctly you divide the gross by 1.12 to get the net, then subtract to find the VAT, which is what a proper VAT receipt shows.

Is the result an exact figure for filing?

It computes the standard 12% VAT math accurately, but it is a general estimate rather than tax advice. Rates, exemptions, and rules can change, so confirm your specific situation with the BIR or an accountant before filing.

Is the VAT calculator free, private, and mobile-friendly?

Yes, it is free with no sign-up, the calculation runs in your browser so your prices are never uploaded, and it works on phones and tablets for quick quotes or receipt checks.