The Philippines has the highest value-added tax (VAT) rate in Southeast Asia, a study shows.
The study listed 10 countries in Southeast Asia, estimating their VAT from December 2023 to March 2024.
Value-added tax (VAT) is a consumption tax applied to goods and services at every stage of production where value is added. This is applied to all goods or products and services in a country, including imported goods.
According to estimates by PricewaterhouseCoopers (PWC), the Philippines has a 12% VAT on goods and services, making it the country with the highest VAT rate in Southeast Asia.
This high VAT rate allows the country to generate sufficient funds for its public services, with citizens contributing significantly to the national budget and aligning with international standards for indirect taxation.
The Philippines tops the list with a 12% VAT, followed by Indonesia at 11%, Cambodia at 10%, Vietnam at 10%, and Singapore (goods and services tax) at 9% in the fifth place.
Meanwhile, Thailand and Laos share the sixth and seventh spots with a 7% VAT rate, followed by Malaysia at 6% in eighth place. Myanmar ranks ninth with a 5% VAT (service tax), while Timor-Leste rounds out the top 10 at 2.5% (import sales tax).
See the complete list here:
- Philippines: 12%
- Indonesia: 11%
- Cambodia: 10%
- Vietnam: 10%
- Singapore: 9% (goods and services tax)
- Thailand: 7%
- Laos: 7%
- Malaysia: 6%
- Myanmar: 5% (service tax)
- Timor-Leste: 2.5% (import sales tax)
The Philippines’ VAT rate has been at 12% since 2006 after RA 933710 RA 9337 or the Reformed VAT (RVAT) Law amended the VAT Law. Before 2006, the Filipinos only had 10%.
