Philippines Value Added Tax (VAT) | Frequently asked questions

Please note: this article has been prepared for informational purposes only. It is not intended to provide, and should not be relied on as tax advice. For any questions you should consult your own tax and/or legal advisors.

If your business is located in the Philippines, learn how HubSpot handles VAT and how you can update HubSpot with your VAT-related information.

Value Added Tax (VAT) is generally due when goods and/or services are sold and supplied. VAT applies to most goods and services that are bought and sold for use or consumption in the Philippines. Generally, VAT is invoiced by the supplier of goods or services, then collected from the customer. The supplier then reports and remits the collected VAT to the tax authorities.

Below are frequently asked questions related to VAT for customers in the Philippines. 

Why am I being charged VAT?

HubSpot is registered for VAT in the Philippines as it supplies electronic services to customers. HubSpot is therefore required to charge and collect VAT at the prevailing rate to all customers who are not registered for VAT. 

How does HubSpot determine which customers in the Philippines VAT applies to?

If your primary shipping address is located in the Philippines, and you are not VAT registered, then you will be charged VAT. Learn how to check what your primary company address is set to in HubSpot.

Which HubSpot services are liable for VAT? 

All HubSpot’s services are subject to VAT.

How do I prove that I am a VAT-registered business customer? 

All businesses registered for VAT purposes with the Philippines tax office must add their TIN number to their HubSpot billing account. Only users with Account Access permissions can add a VAT information to their HubSpot account. To update your TIN information:

• In your HubSpot account, click your account name in the top right corner, then click Account & Billing.
• In the Company Info tab, update your TIN number.

Once a valid TIN number is added to your account, HubSpot will not add a VAT charge to your invoice.

Please note: you may be required to self-account for VAT through the reverse charge mechanism.

I am VAT registered in the Philippines, will I still be charged VAT?

If you have added your valid TIN number to your HubSpot account, your company will not be charged VAT. You may be required to self-account for VAT on the reverse charge basis.

Are there any exemptions under which VAT may not be charged?

If your company is exempt from being charged VAT, you will need to send HubSpot a valid exemption certificate and ensure that your company meets all the exemption criteria. Exemption certificates should be sent to billing@hubspot.com for processing.