Find out whether VAT registration is mandatory or still optional for you. Enter your trailing and expected 12-month gross sales/receipts and we'll test them against the ₱3,000,000 threshold instantly.
VAT registration becomes mandatory once either figure exceeds ₱3,000,000 — the larger of the two is tested against the threshold.
Result
₱1,500,000 of headroom remaining before VAT becomes mandatory.
VAT registration becomes mandatory once your gross sales or receipts exceed ₱3,000,000 in any 12-month period (NIRC §236(G), as amended by RA 10963 / TRAIN). The test is met if either your actual trailing-12-month gross has crossed ₱3,000,000, or you reasonably expect to exceed it over the next 12 months.
The line is “exceed” — not merely reach. Gross of exactly ₱3,000,000 keeps you below the mandatory line; you become liable only above it. Below the threshold you have a choice:
Once you are VAT-registered, use the 12% VAT calculator to add or extract VAT on your invoices.
VAT registration is mandatory once your gross sales or receipts exceed ₱3,000,000 in any 12-month period, under Section 236(G) of the National Internal Revenue Code (as amended by RA 10963 / TRAIN). Below ₱3,000,000 you may stay non-VAT or register voluntarily.
Either. Registration becomes mandatory if your actual gross for the trailing 12 months has exceeded ₱3,000,000, OR if there are reasonable grounds to believe your gross will exceed ₱3,000,000 in the next 12 months. The forward-looking test means you should register before you cross the line, not after.
Registration stays optional. The law requires gross sales/receipts to EXCEED ₱3,000,000 — exactly ₱3,000,000 does not trigger mandatory VAT registration. You become liable only when you go above it (e.g. ₱3,000,001).
If you stay non-VAT you generally pay the 3% percentage tax under §116 on your quarterly gross, or you may elect the 8% income tax option (in lieu of graduated income tax and percentage tax) if your gross is ₱3,000,000 or less and you are not VAT-registered.
It can be if your buyers are themselves VAT-registered (they can claim your output VAT as input tax) or if you have large input VAT on purchases you want to credit. But optional VAT registration locks you in as a VAT taxpayer for the next 3 years, so weigh it carefully before opting in.
Informational only — not tax advice. This checker is a general guide to the Philippine VAT registration threshold and does not account for every special rule or transitional case. Verify with the Bureau of Internal Revenue (BIR) or a qualified Philippine tax professional. See our full disclaimer.
Source: NIRC §236(G)/§109(BB) (RA 10963 / TRAIN); PwC Worldwide Tax Summaries — Philippines. As of June 2026.