VAT is due on all goods and services supplied domestically or imported. Exports are exempted.

The following VAT rates are in place:

The date on which VAT becomes due is known as the tax point or time of supply. In the Philippines this is the time of the transaction, including continuous supplies. For services, it is the time of payment. A prepayment or deposit will trigger a VAT liability.

For imports, the VAT liability occurs at the time of clearing customs.

The following information should be included on all VAT invoices to ensure the customer may reclaim the output VAT:

• Date
• Unique, sequential invoice number
• Vendor’s tax identification number (TIN) and details
• Customer’s TIN and details for invoices above PHP1,000
• Description of the goods (including quantities, units etc) or services
• Net, VAT and gross amounts

Invoices may be made out in foreign currencies, converted into pesos using a public exchange rate. There are no simplified invoices for B2C transactions.

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