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Philippines Tax Information

12% VAT

VAT is 12%. Registration required above PHP 3 million annual gross sales. BIR registration mandatory.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Philippines

TIN
BIR registration
Client TIN
VAT (12%)
Total in PHP

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Cash15 days30 days45 days

Payment Methods in Philippines

Bank TransferGCashMayaCredit CardCheck

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Philippines?

Philippines has 12% VAT. VAT is 12%. Registration required above PHP 3 million annual gross sales. BIR registration mandatory.

What payment methods are common for contractors in Philippines?

Common payment methods in Philippines include: Bank Transfer, GCash, Maya, Credit Card, Check. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Philippines?

Your invoice should include: TIN, BIR registration, Client TIN, VAT (12%). For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Philippines VAT rate?

12% on most goods and services. Exports are zero-rated.