Taxes
Philippines — Tax: Vat
The Philippines levies 12% VAT on the gross selling price of goods and properties sold in the country, with a PHP 3 million threshold for non-VAT sellers in BIR regulations.
VerifiedGovernment / official sourceBureau of Internal Revenue — Revenue Regulations 13-2018 and VAT issuancesLast reviewed: 2026-10-23
Why this matters
Relocating individuals should care about VAT in the Philippines as it may impact their household expenses and financial planning.
Key facts
- VAT is 12% of the gross selling price of goods or properties sold, bartered or exchanged in the Philippines (BIR circular, effective 1 February 2006).
- RR 13-2018 ties the PHP 3,000,000 figure to the threshold below which sellers are non-VAT; sales of real property not held primarily for sale are VAT-exempt unless used in the seller trade or business.
- The reviewed BIR materials are older or archived, so confirm the current rate and threshold on bir.gov.ph.
Steps
- Determining VAT-exempt goods and services — VAT-exempt goods and services include basic necessities and prime commodities, such as rice, corn, fish, and vegetables. Additionally, certain services like education, healthcare, and transportation may also be exempt.
- Applying for VAT refunds — Foreign nationals and tourists may be eligible for VAT refunds on certain goods and services purchased in the Philippines. To apply for a VAT refund, individuals must obtain a Tax Refund Certificate from the Bureau of Internal Revenue (BIR) and submit it to the VAT Refund Center along with the required documents and payment.