BIR: House and lots valued P3.6M and below are VAT exempt

House and lots to be sold at P3.6 million and below are exempted from value-added tax (VAT).

This after the Bureau of Internal Revenue (BIR) raised the VAT exemption threshold on the sale of house and lot, and other residential dwellings to P3.6 million from P3.199 million.

In a statement on Wednesday, the BIR said Internal Revenue Commissioner Romeo Lumagui Jr. issued Revenue Regulations No. 1-2024.

The RR No. 1-2024 increased, “for VAT exemption purposes, the selling price threshold of the sale of house and lot, and other residential dwelling from P3,199,200.00 to P3,600,000.00.”

The taxman said the adjustment was pursuant to the Section 109 (P) of the National Internal Revenue Code which mandates that every three years the subject amount should be adjusted to its present value using the Consumer Price Index as published by the Philippine Statistics Authority.

"This timely increase in VAT exemption shows our commitment to Excellent Taxpayer Service,” said Lumagui.

“This increase in the selling price threshold, for VAT exemption purposes, of the sale of house and lot, and other residential dwelling from P3,199,200.00 to P3,600,000.00 gives testament to the BIR's improved and updated services,” said the BIR chief.

The BIR, moreover, said it will focus on its pillar of Excellent Taxpayer Service this 2024. 

The taxman said the recently signed landmark Ease of Paying Taxes Act would pave the way for a more modern tax system, “with the ultimate goal of helping taxpayers in their tax obligations.”—AOL, GMA Integrated News