Philippines VAT / Sales Tax

Detailed vat / sales tax rates and rules for Philippines in 2026.

VAT / Sales TaxPHP

The Philippines levies VAT at a flat rate of 12% on the sale of goods and services. Exempt transactions include sales of agricultural food products, educational services, healthcare services, residential rentals not exceeding PHP 15,000 per month, and financial services. Small businesses with annual gross sales below PHP 3 million are VAT-exempt (subject to 3% percentage tax or the 8% flat rate option).

Standard Rate

12%

Registration Threshold

PHP 3,000,000 annual gross sales or receipts

Reduced Rates

0% — Exports, foreign currency denominated sales, and services rendered to entities in special economic zones

How Philippines VAT / Sales Tax compares

Philippines’s standard VAT / sales tax rate of 12% is the 132nd highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.