How the calculation works

VAT-inclusive prices — if the price already includes VAT, it's first divided by 1.12 to get the VAT-exclusive base.
Discount — your percentage is taken off that base amount.
VAT — 12% is added back on the discounted amount to give the final price.
Senior Citizen / PWD — a fixed 20% discount on the VAT-exclusive price and no VAT, under RA 9994 and RA 10754.

A worked example

Take a ₱1,000 VAT-exclusive price with a 10% discount. The discount of ₱100 comes off first, leaving a net of ₱900. VAT at 12% adds ₱108, so the final price is ₱1,008.

Now apply the Senior Citizen / PWD rule to the same ₱1,000. The statutory 20% discount removes ₱200, and because the sale is VAT-exempt no 12% is added — the total is ₱800. That's why the senior/PWD price is noticeably lower than a plain 20% discount on a VAT-inclusive tag.

Frequently asked questions

How is the Senior Citizen / PWD discount different?

It's a statutory 20% discount and the purchase is VAT-exempt. The 20% is applied to the price net of VAT, and no 12% VAT is added on top.

What does “price already includes 12% VAT” do?

It tells the calculator to strip the VAT out first, so the discount is applied to the true selling price rather than to the VAT as well.

Why divide by 1.12 to remove VAT instead of subtracting 12%?

Because the 12% was added onto the base, so it's 12% of the smaller pre-VAT amount, not of the final tag. Dividing the VAT-inclusive price by 1.12 recovers that base exactly; subtracting 12% would take too much off.

Is the discount applied before or after VAT?

Before. The discount comes off the VAT-exclusive base, then VAT is charged on the discounted amount — the standard order under Philippine rules.

Does the 20% discount apply to everything?

No. It applies to qualified purchases for eligible seniors and PWDs (such as medicines, basic necessities, and certain services). Check eligibility and current rules with the BIR.

Is my information uploaded?

No. The calculation runs entirely in your browser. Nothing you enter is stored or sent to a server.