VAT calculator (Philippines)
Add or remove the Philippines’ 12% VAT in one step: ₱1,000 plus VAT is ₱1,120. For a senior citizen or PWD, take the VAT out first and then 20% off: a ₱112 item costs them ₱80.
Updated:
With VAT
₱1,120.00
VAT
₱120.00
Without VAT
₱1,000.00
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How to compute VAT
- Add VAT: VAT = price without VAT × 12%; VAT-inclusive price = price × 1.12.
- Remove VAT: price without VAT = VAT-inclusive price ÷ 1.12; VAT = the difference, or the price × 12 ÷ 112.
- Amounts are rounded to the centavo. When VAT is taken out of a price, the price without VAT and the VAT always add up to the price.
₱560.00 VAT-inclusive: 560.00 ÷ 1.12 = ₱500.00 without VAT VAT: 560.00 − 500.00 = ₱60.00
VAT is not 12% of the VAT-inclusive price. 12% of ₱1,120 is ₱134.40, but the VAT inside ₱1,120 is ₱120: 1,120 × 12 ÷ 112.
Senior citizen and PWD discount: no VAT, then 20% off
On the goods and services the law covers, such as medicines, and food and drinks in restaurants, a sale to a senior citizen or a person with disability (PWD) is VAT-exempt and gets a 20% discount. The BIR’s rule is that the price charged must be net of VAT, so the VAT comes out first and the 20% is taken from what is left.
A restaurant meal at ₱112.00, VAT included, for a senior citizen: 112.00 ÷ 1.12 = ₱100.00 without VAT 20% discount: 100.00 × 20% = ₱20.00 The senior citizen pays ₱80.00
- A customer who is both a senior citizen and a PWD gets one 20% discount, not two.
- Food bought from a store that is not a restaurant does not get the 20% (BIR Revenue Regulations No. 7-2010).
- Basic necessities and prime commodities, such as rice, bread, instant noodles, coffee, sugar, cooking oil and soap, carry a separate 5% special discount for senior citizens and PWDs, within a weekly purchase limit set by the DTI.
- If you are not VAT-registered, your price has no VAT in it, so the 20% comes off the price itself.
Not VAT-registered: percentage tax instead
A business that is not VAT-registered and whose gross sales are ₱3,000,000 a year or less does not add VAT. It pays a percentage tax of 3% of its gross quarterly sales instead; the rate went back to 3% on 1 July 2023. Cooperatives, and self-employed people who chose the 8% income tax rate, do not pay it.
Gross sales of ₱450,000 in a quarter, not VAT-registered: Percentage tax: 450,000 × 3% = ₱13,500 for the quarter
VAT and your utang book
Write a sale on credit (utang) at what the customer will pay: with VAT if you charge it, and after any senior citizen or PWD discount. Baki Fast is a credit book, not invoicing software: it does not issue VAT invoices, so keep issuing your invoices as the BIR requires. More: credit tracking.
Sources
- BIR: Revenue Regulations No. 13-2018: VAT provisions of the TRAIN Law (12% VAT, ₱3,000,000 threshold, percentage tax under Section 116) (checked 3 Nov 2026)
- BIR: Republic Act No. 12023: Tax Code Section 108 as amended, 12% VAT on services including digital services (checked 3 Nov 2026)
- BIR: Revenue Memorandum Circular No. 69-2023: percentage tax back to 3% from 1 July 2023 (checked 3 Nov 2026)
- BIR: Revenue Memorandum Circular No. 71-2022: 20% discount and VAT exemption for senior citizens and persons with disability (checked 3 Nov 2026)
- Supreme Court E-Library: BIR Revenue Regulations No. 7-2010: tax privileges of the Expanded Senior Citizens Act (the price charged is net of VAT) (checked 3 Nov 2026)
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This page is general information, not legal, tax or financial advice. Rules differ by country and change over time; check with an accountant or a lawyer before you decide.
Questions
How do you compute VAT with a senior citizen discount?
Take out the VAT first, then the 20%. ₱224 ÷ 1.12 = ₱200 without VAT; 20% of ₱200 is ₱40, so the senior citizen pays ₱160. No VAT is charged, and the 20% is not taken from the VAT-inclusive price.
How do I compute the VAT in a VAT-inclusive price?
Multiply the price by 12 and divide by 112, or divide it by 1.12 for the price without VAT. ₱2,240 × 12 ÷ 112 = ₱240 of VAT, and ₱2,000 without VAT.
Is VAT still 12% in 2026?
Yes. Republic Act No. 12023 of 2024, which brought digital services from foreign providers into VAT, keeps services at 12%, and goods are at 12% too.