VAT FROM NON-VAT
CHANGING TO
WHEN DO YOU NEED TO UPDATE?
NON - VAT
Non-VAT (Non-Value Added Tax) refers to a type of taxpayer or business that is not registered under the VAT system with the Bureau of Internal Revenue (BIR). Instead of charging 12% VAT on sales, Non-VAT registered businesses pay a fixed percentage tax, commonly 3% of gross sales or receipts.
Non-VAT status is generally applicable to:
Individuals or businesses with annual gross sales or receipts of ₱3,000,000 or below
Professionals, freelancers, and small business owners who choose not to register for VAT
VAT (Value-Added Tax) is a 12% indirect tax imposed on the sale of goods, properties, and services in the Philippines. It is collected by VAT-registered businesses and passed on to the government through the Bureau of Internal Revenue (BIR).
Who Needs to Register as VAT?
Businesses with annual gross sales or receipts exceeding ₱3,000,000
Professionals or companies that voluntarily opt to register for VAT
Importers and certain service providers regardless of income
