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Value Added Tax VAT in the Philippines is a broad based consumption tax imposed on the sale barter exchange

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To properly compute VAT exempt sales a practitioner must first distinguish them from zero rated sales While both

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Clear 2025 guide comparing zero rated VAT and VAT exempt transactions in the Philippines to help businesses

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The standard VAT rate in the Philippines is 12 However certain transactions are classified as zero rated

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Gross sales of international air or shipping carriers doing business in the Philippines derived from transport of passengers and cargo

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For this reason the value added tax rules in the Philippines provide for exemptions from value added tax applications Under Section

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The Philippines levies VAT at a flat rate of 12 on the sale of goods and services Exempt transactions include sales of agricultural

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Calculate VAT in the Philippines for 12 0 and VAT exempt transactions Updated 2026 rates for businesses and individuals

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Under the VAT framework in the Philippines certain sales can be classified as zero rated or 0 VAT sales Such