How much is 12% RVAT in the Philippines?
- Price excl. RVAT:
- ₱0.00
- RVAT 12%
- ₱0.00
- Total incl. RVAT:
- ₱0.00
Calculating RVAT is a simple and quick operation that can be done in a few seconds. But not everyone knows how to add and subtract percentages for this. The mistakes that are made when calculating a RVAT are always the same, although these are easy to avoid with the right formulas.
It is essential to clarify certain points, so as not to fall into avoidable mistakes when calculating the total amount of an account. These are the data to know in order to calculate the RVAT correctly and simply.
How much is RVAT in the Philippines?
Value Added Tax or RVAT is a tax levied on the sale of goods or services. RVAT is charged through the production and distribution chain, so that at the end of the chain, consumers are the ones who pay it.
To determine the RVAT it is necessary to consider the selling price of the product or service offered, and also a specific percentage to obtain the final RVAT cost. The percentage to be charged varies depending on the product or service in question. It also depends on the social demands of the countries involved.
The standard rates are usually imposed on the purchase of general goods and services, while the lower rates are usually for basic necessities or foodstuffs. For example, a smartphone may have a RVAT of 12%, which would be the standard RVAT;
How to calculate the RVAT included?
In some stores or web portals you will see prices with the comment "RVAT not included". This means that this is not the final price, and that to this price you will have to add the RVAT cost to obtain the total to be paid.
The following formula should be used to calculate the RVAT in this case:
That is, if you have a microphone worth ₱9,000 without RVAT and with 12% RVAT, the formula would look like this:
The price of the item should be multiplied by the RVAT percentage, and that number divided by 100. In this case it would give ₱1,080. So the RVAT amount would be ₱1,080.
Another alternative would be to divide 12% by 100, resulting in 0.12 and multiply this by the ₱9,000, resulting in ₱1,080 in the same way.
To finish, the ₱9,000 microphone price plus the calculated RVAT must be added, giving a final result of ₱10,080.
How to calculate a price without RVAT included?
The opposite situation can also arise, where you want to remove the RVAT. This happens when on the price tag one is given, but with the comment that RVAT is included. Knowing the net price of the product could be a totally valid question to have.
This can be answered by applying the formula of:
In this case the ₱10,080 total price of the microphone would be divided by 1.12. Resulting in the following: ₱9,000
The best formula for calculating RVAT in the Philippines
In summary, if you have a RVAT of 12%, these are the operations to perform:
- ₱9,000 x 0.12 = ₱1,080 (To calculate RVAT on prices without RVAT)
- ₱9,000 x 1.12 = ₱10,080 (To calculate the total price including RVAT)
- ₱10,080 ÷ 1.12 = ₱9,000 (To calculate the price without RVAT)
Although learning how to calculate the RVAT is a great help, when dealing with more complex figures and needing maximum security in the results, a RVAT calculator will be the best option to use.
Use our RVAT calculator to get instant results and simplify your calculations even more. You don't need to complicate mathematical operations when you can do them in an automated way with this calculator.