We may be aware of VAT(Value Added Tax), which is a part of our life, we are paying it regularly. VAT is mostly on the goods and services we purchase.

In this article, we will see the basics you need to learn about the Philippines VAT.

What is Value Added Tax (VAT)?

Value Added Tax is a type of Sales Tax that is imposed on composition on the sale of goods and services or properties, as well as importation in the Philippines.

In simple terms, it means that a specific tax rate (0% to 12%) is added to the selling price of goods and services sold. It has also imposed on goods imported from other countries.

Who is required to register?

- Any person/entity who, is in the course of his trade/business, sells, barters,  leases goods or properties and renders services subject to tax, exchanges, and if the aggregate amount of total gross sales or receipts exceed Php(3,000,000.00)

- A person who is  required to register as VAT taxpayer but failed to register

- Any person imports goods, whether or not made in the course of his trade or business.


Reconciliation of Listing of Enforcement (RELIEF) is a BIR program or system used to submit Quarterly Summary List of Sales and Purchase (SLSP), which is required attachment to BIR Form 2550Q- Quarterly VAT.

When is the deadline for filing and making Payment of Value added tax (VAT)?

For the Monthly VAT return, the deadline is the 20th of the following month of the applicable month. E.g., For July VAT return deadline is August 20.

For Quarterly VAT return, the deadline is every 25th of the next month of the applicable quarter. E.g., For the second quarter ending June 30, the deadline is July 25

What are the penalties for non-filing and late filing?

For failure to file the tax on a specific date, the penalty of Pesos (P1,000.00) is imposed for each failure. Unless it shows that this failure is due to some reasonable cause and not to willful neglect.

An aggregate amount to be levied for all such failures during a taxable year shall not exceed Twenty-Five Thousand Pesos (P25,000.00).