VATITBMS Calculator for Panama
ITBMS in Panama: add or remove 7% from any amount in PAB, with the result shown instantly.
Panama ITBMS
How to calculate ITBMS in Panama
Adding ITBMS to a net price
ITBMS = net × 7 / 100
Gross = net × 1.07
Removing ITBMS from a gross price
Net = gross / 1.07
ITBMS = gross − net
Do not subtract 7% from the total to find the net price — divide by 1.07 instead. Subtracting the percentage removes too much, because ITBMS is only 6.54% of the gross amount.
ITBMS rates in Panama
Panama uses 3 ITBMS rates: a standard rate of 7% and a higher rates of 15%, 10% for specific goods or services. The standard rate is below the Americas average of 14.2% and shared with 1 other country in our list.
Official source: dgi.mef.gob.pa. Rates checked October 2026.
ITBMS examples in PAB
Common amounts with 7% ITBMS added:
| Net | ITBMS 7% | Gross |
|---|---|---|
| 10.00 PAB | 0.70 PAB | 10.70 PAB |
| 50.00 PAB | 3.50 PAB | 53.50 PAB |
| 100.00 PAB | 7.00 PAB | 107.00 PAB |
| 500.00 PAB | 35.00 PAB | 535.00 PAB |
| 1,000.00 PAB | 70.00 PAB | 1,070.00 PAB |
| 10,000.00 PAB | 700.00 PAB | 10,700.00 PAB |
Removing ITBMS from gross prices
| Gross | Net | ITBMS |
|---|---|---|
| 53.50 PAB | 50.00 PAB | 3.50 PAB |
| 107.00 PAB | 100.00 PAB | 7.00 PAB |
| 535.00 PAB | 500.00 PAB | 35.00 PAB |
| 1,070.00 PAB | 1,000.00 PAB | 70.00 PAB |
Questions about ITBMS in Panama
What is the ITBMS rate in Panama?
The standard ITBMS rate in Panama is 7%, and a higher rate of 15%, 10% applies in specific cases.
How do I add 7% ITBMS to a price?
Multiply the net price by 1.07. For example 500.00 PAB × 1.07 = 535.00 PAB.
How do I remove ITBMS from a gross price in Panama?
Divide the gross price by 1.07. For example 535.00 PAB ÷ 1.07 = 500.00 PAB net; the difference is the ITBMS.
How much of a PAB price is ITBMS?
At 7%, ITBMS makes up 6.54% of the gross price (7 ÷ 107).