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Empowering Homeowners: VAT Exemption Extended to PHP3.6M for Residential Property Deals

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(source: Tierra Mallorca, Unsplash)

The Bureau of Internal Revenue (BIR) has recently issued a new regulation that increases the value limit for tax exemptions on selling houses, lots, and other residential properties.

This means that if the selling price of a house and lot is less than or equal to PHP3,600,000.00, it will be exempted from Value-Added Tax (VAT).

The adjustment was made according to the Revenue Regulations No. 1-2024 issued by BIR Commissioner Romeo D. Lumagui Jr., which requires the government to update the limit every three years to keep up with inflation. This is good news for homebuyers who want to save on taxes when purchasing their dream homes.

“This timely increase in VAT exemption shows our commitment to Excellent Taxpayer Service. This increase in the selling price threshold, for VAT exemption purposes, of the sale of house and lot, and other residential dwelling from PHP 3,199,200.00 to PHP 3,600,000.00 gives testament to the BIR’s improved and updated services”, said Lumagui.

BIR has recently signed a new law called the Ease of Paying Taxes Act, which aims to make the tax system more modern and user-friendly. This will help people fulfill their tax obligations more efficiently. The law also reflects the government’s commitment to fair and service-oriented taxation in the Philippines.

Written by
Tech Beat Philippines

Tech Beat Philippines is the social media news platform for all things technology. It is also a part of the GEARS section on Daddy's Day Out.

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