VAT Calculator Philippines 2022 | Standard rate of Vat in Philippines is 12%

At present, the standard rate of Value-Added-Tax (VAT) in the Philippines is 12%. The Philippines currently has 3 rates of VAT: A standard rate of 12%, a higher percentage of 18%, and zero-rated VAT. Some products and services are also exempted from VAT, for instance, educational services, bank services, imports, some residential sales and leases, Sale of Agricultural goods such as rice, seeds, corn grits, and fertilizers, etc. Philippines got introduced to VAT in 1988 through Executive Order 273. But at that time, only a limited number of goods and services were covered by it.

Vat Calculator Philippines (2022)

Vat Calculator

Different VAT Tariffs in the Philippines:

The Different VAT Tariffs that are currently applicable in the Philippines are:

The standard rate of 12%:

This is applied to all products and services that are taxable. Some of the supplies that are liable to this 12% VAT rate are:

• Barter
• Sale
• Lease or Use of Properties in the course of business or trade-in Philippines and other sales of services
• Imports
• Exchange of Properties or Goods in the course of business or trade-in Philippines

The Higher rate of 18%:

This is applied as an “Amusement Tax” on bars, night clubs, cabarets, etc.

Zero-Rated VAT:

Zero-rated VAT is applied to some services, for instance:

• Exports
• Sale of some agricultural goods in addition to their import
• Domestic Gas
• Passenger Transport
• Water
• Insurance
• Financial Services
• Real Estate
• Books
• Medical Supplies
• Newspapers
• Renewable Energy
• Passenger Transport
• International Shipping

Goods and Services Exempted from VAT in the Philippines:

Some several products and services are exempted from VAT in the Philippines, for instance:

• Some Residential Sales
• Certain Residential Leases
• Employment
• Educational Services
• Sale of Agricultural goods such as rice, seeds, corn grits, fertilizers, etc.
• Import of Agricultural goods such as rice, seeds, corn grits, fertilizers.
• Books’ Sale
• Newspapers’ Sale
• Fuel Imports
• Bank Services

Also visit VAT Calculator Netherlands .

FAQs:

Q: Does the Philippines charge VAT?

Yes, VAT is charged in the Philippines. At present, the standard rate of VAT is 12%. There is also a higher rate of 18% along with zero-rated VAT. Furthermore, some products and services are exempted from VAT.

Q: When was VAT introduced in the Philippines?

Philippines got introduced to VAT in 1988 through Executive Order 273. But at that time, only a limited number of goods and services were covered by it.

Q: Is Rice VAT exempt in the Philippines?

Yes, Rice is exempted from VAT in the Philippines. There are also other exemptions, for instance, agricultural goods’ imports and sales, educational services, books’ sales, Newspapers’ sale, Fuel Imports, Bank services, etc.

Q: Who pays VAT in the Philippines, the seller or the buyer?

The Seller charges the VAT while the buyer pays the VAT. The Seller then collects the VAT, paid by the buyer, and pays it to the Government.

Q: Do the Philippines have a reduced VAT Rate?

No, the Philippines doesn’t have a reduced VAT rate. But it does have a higher vat rate of 18%. Additionally, some products and services are charged zero-rated VAT, while some are exempted from VAT.