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Philippines VAT Rates 2026
Philippines (Pilipinas) levies Value Added Tax as VAT (Value-Added Tax). The standard rate is 12%, applied to most goods and services. Philippines applies a single flat rate with no reduced rates.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 12% | Most goods and services |
| Zero-rated | 0% | Exports and export-oriented enterprises, international shipping and air transport |
Registration and filing
| Registration threshold | PHP 3,000,000Annual gross sales (~USD 52,000); below it a 3% percentage tax applies instead |
| Tax authority | Bureau of Internal Revenue (BIR) |
| Filing frequency | Quarterly returns (monthly filing abolished by the EOPT Act) |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/PH endpoint to get Philippines data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/PH
# No authentication required for rate lookups
# Response:
# { "country_code": "PH", "tax_type": "vat",
# "standard_rate": 12, "reduced_rates": [0],
# "currency": "PHP", "last_updated": "2026-06-12" }Fetching the rate in code
// Fetch current Philippines VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/PH').then(r => r.json());
// → { standard_rate: 12, reduced_rates: [0],
// currency: 'PHP' }
applyRate(rates.standard_rate);About Philippines VAT
The Philippines pushed VAT to 12% in 2006 — still the rate today — and in mid-2025 became one of Southeast Asia's latest adopters of VAT on foreign digital services, obliging non-resident platforms like streaming and cloud providers to register with the BIR. Businesses under PHP 3 million in sales escape VAT but pay a 3% percentage tax on gross receipts instead. The Ease of Paying Taxes Act recently shifted VAT filing from monthly to quarterly, a rare compliance simplification in the region.
VAT in Philippines is administered by the Bureau of Internal Revenue (BIR).
Sources: PwC Worldwide Tax Summaries · Bureau of Internal Revenue (accessed Jun 2026)
Rate history
- 2006Standard rate raised from 10% to 12%
- 202512% VAT extended to non-resident digital service providers
Frequently asked questions
What is the VAT rate in the Philippines in 2026?
12% standard; exports are zero-rated, and businesses under PHP 3 million in sales pay a 3% percentage tax instead of VAT.
Do foreign digital services pay Philippine VAT?
Yes — since 2025, non-resident digital service providers must register and charge 12% VAT on sales to Philippine consumers.
Related concepts and guides: