10/03/2026
Isa sa mga common questions ng mga new entrepreneurs during BIR registration in the Philippines ay kung ano ang mas bagay sa kanilang negosyo: VAT or Non-VAT taxpayer.
Ang pagpili ng tamang tax type ay mahalaga dahil ito ay makakaapekto sa tax filing, invoicing, at compliance requirements ng business.
Non-VAT (Percentage Tax)
Karaniwang applicable ito sa small businesses na may annual gross sales na hindi lalampas sa β±3,000,000.
β Mas simple ang tax compliance
β Percentage tax ang binabayaran (usually 3% of gross sales)
β Common sa small businesses, freelancers, at startups
VAT (Value Added Tax)
Applicable ito sa businesses na lumalagpas sa β±3,000,000 annual sales, o sa mga negosyo na voluntarily nag-register as VAT.
β 12% VAT ang charge sa sales
β Mas structured ang tax compliance
β May benefit na tinatawag na Input Tax Credit
What is Input Tax Credit?
Input Tax = VAT you pay on purchases
Output Tax = VAT you charge customers
VAT payable = Output VAT β Input VAT
Simpleng example:
Sales: β±10,000 + β±1,200 VAT
Purchases: β±5,000 + β±600 VAT
β±1,200 β β±600 = β±600 VAT payable
Kaya ang VAT system ay parang VAT in minus VAT out.
So which one is better?
β Non-VAT β mas simple, bagay sa small or starting businesses
β VAT β mas bagay sa growing businesses o companies na may VAT clients
Ang tamang tax type ay depende sa nature, size, at growth plan ng inyong negosyo.
Not sure whether your business should register as VAT or Non-VAT?
Feel free to send us a message. Weβre happy to guide you.
π Assisting businesses with BIR registration, VAT registration, and tax compliance in Bulacan, Rizal, Cavite, and Pampanga
π¬ If you are starting a business today, would you choose VAT or Non-VAT?