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## How is 12 VAT calculated in the Philippines?

**Value Added Tax Payable is normally computed as follows:**

- Computing Net VAT Payable on VAT “exclusive” Sales/Receipts. Total Output Tax Due or Total Vatable Sales/Receipts x 12% …
- Computing Net VAT Payable on VAT “inclusive” Sales/Receipts. Total Output Tax Due or Total Vatable Sales / 1.12 x 12%

## What is the formula for VAT?

Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it **by 117.5**, if the VAT rate is 17.5 per cent. (If the rate is different, add 100 to the VAT percentage rate and divide by that number.)

## How do I calculate VAT on a standard amount?

To work out a price including the standard rate of VAT (20%), **multiply the price excluding VAT by 1.2**. To work out a price including the reduced rate of VAT (5%), multiply the price excluding VAT by 1.05.

## How do you calculate VAT on a sales invoice in the Philippines?

Determine the tax, in the form of Value-Added Tax (VAT), and the Vatable Sales.

…**Here’s how:**

- Vatable Sales = Total Sales/ 1.12.
- VAT = Vatable Sales x 1.12.
- Total Sales = Vatable Sales + VAT.

## How do I calculate net of VAT?

Deducting VAT

If you have a gross amount and want to determine the net value, then simply **divide the gross value by 1.20** to provide the net value.

## How do you add 15 VAT to a price?

Adding VAT to net amount:

Simply **multiply the net amount by 1 + VAT percentage** (i.e. multiply by 1.15 if VAT is 15%) and you’ll get the gross amount. Or multiply by VAT percentage to get the VAT value.

## What is VAT and how is it calculated?

VAT is commonly expressed as **a percentage of the total cost**. For example, if a product costs $100 and there is a 15% VAT, the consumer pays $115 to the merchant. The merchant keeps $100 and remits $15 to the government.

## How does VAT work in Philippines?

The VAT Rate in the Philippines is **12%**. The 12% VAT is applied on the taxable gross selling price of goods and properties and on the gross value of receipts from services and lease of properties. The 12% VAT on the importation of goods is based on the total cost of importation.

## How do you calculate VAT on a small business?

You must add 20% to the price you charge for the goods or service. You can do this by **multiplying the price you charge by 1.2**. For example, if your business sells sports equipment for £50, you multiply £50 by 1.2 for a total VAT inclusive price of £60.

## How is VAT calculated for retail?

**How to calculate your VAT**

- Calculate the total value of goods purchased for resale in the VAT period for each VAT rate.
- Divide the total of purchases for each VAT rate by the total for all purchases.
- Multiply the outcome by your total sales, divided by 6 for 20% rated goods, and divided by 21 for 5% rated goods.