Philippines VAT

The Philippines implemented a Value Added Tax (VAT) regime on 1 January 1988, replacing a range of sales and turnover taxes. The VAT system follows the OECD-model, with tax due and reclaimable throughout the production chain until the final consumer.

VAT in the Philippines is administered by the Bureau of Internal Revenue.

VAT liability and obligation to register

VAT is due on the sale, exchange or lease of goods, property or services by a taxable person. This includes the use or other transfer of intangible assets. It is generally the responsibility of the vendor to determine, collect and remit to the Bureau of Internal Revenue the correct VAT. The exceptions are non-resident sellers or supplies to government institutions, where a withholding VAT scheme applies.

Latest Filipino news

Philippines hikes VAT registration threshold

January 11, 2018

The Philippines introduced a number of VAT changes on 1 January 2018 as part of a wider tax overhaul...

Philippines mulls 15% VAT

August 16, 2016

The Philippines is considering raising VAT from 12% to 15% to fund a raise in government expenditure and fund a cut to 25% in the...

Philippines 14% VAT proposal

May 26, 2016

The Philippines has proposed raising its VAT rate from 12% to 14%. In addition, the government is proposing to widen the goods and services which...