Higher VAT exemptions on real property sale
Here’s good news to businessmen engaged in the sale of real estate and lease of residential properties.
The Bureau of Internal Revenue (BIR) adjusted upwards over the weekend the threshold amounts for the sale of residential lots and houses and the leasing of dwelling units which are exempted from the payment of value-added tax (VAT).
In revenue Regulations No. 16- 2011 signed by Revenue Commissioner Kim S. Jacinto-Henares, lot sellers are exempted from paying the VAT if the value of the property is not more than P1,919,500 and P3,199,200 if there is a house in the said property.
