- Most Filipinos never look past the total on their receipt. But if you are shopping at a VAT-registered store, there is one line that tells you exactly how much tax you are paying and whether you are being charged correctly.
- Here is what to look for:
- Since April 27, 2024, VAT-registered businesses are required by law to show VAT as a separate line item on every sales invoice. Not buried in the total. Not hidden. Separate.
Most Filipinos never look past the total on their receipt. But if you are shopping at a VAT-registered store, there is one line that tells you exactly how much tax you are paying and whether you are being charged correctly.
Here is what to look for:
Since April 27, 2024, VAT-registered businesses are required by law to show VAT as a separate line item on every sales invoice. Not buried in the total. Not hidden. Separate.
A compliant receipt looks like this:
✅ VATable Sales: ₱1,000.00
✅ VAT (12%): ₱120.00
✅ Total Amount Due: ₱1,120.00
If you see just "Total: ₱1,120.00" with no breakdown and the store is VAT-registered that is worth flagging.
How to know if the store is VAT-registered:
Look for "VAT-Registered" and a TIN number printed on the receipt. If those are there, the breakdown must be there too.
Small stores marked "NON-VAT" or "EXEMPT" are not covered by this rule. That is perfectly normal for businesses with annual sales under ₱3 million.
If you think a VAT-registered store is not complying, report it to the BIR at 8538-3200 or via www.bir.gov.ph.
Share this so every Buddy knows what to check on their next receipt. 👇
Source: RA 11976 (Ease of Paying Taxes Act), BIR RR 7-2024, effective April 27, 2024.