Vue.js comes with built-in filters for tasks like formatting dates, numbers, or strings, but these have limitations and may not be enough for complex formatting tasks. External libraries like Moment.js, Numeral.js, and Vue-Filter-Format can be used in conjunction with Vue.js to overcome these limitations. Third-party filters like vue-filter and v-filter offer a wide range of features and customization options, making them an excellent choice for large-scale applications.