VAT Exemption Threshold for Sale of House and Lot and Other Residential Dwellings Increased

Through RR No. 1-2024, the BIR increased the VAT-exemption selling-price threshold for the sale of house and lot and other residential dwellings from PHP3,199,200 to PHP3,600,000, effective 1 January 2024. RR No. 1-2024 amends Section 4.109-1(B)(p) of RR No. 4-2021.

The previous threshold was PHP3,199,200.00. Pursuant to Section 109(1)(P) of the National Internal Revenue Code, as amended, the amount shall be adjusted to its present value using the Consumer Price Index (“CPI”), as published by the Philippine Statistics Authority (“PSA”). 

Given this mandate and taking into account 2023 CPI values as published by the PSA, the new price threshold for the sale of house and lot and other residential dwellings for VAT-exemption purposes, rounded up, is PHP3,600,000.00. 

The new threshold shall take effect beginning 1 January 2024.

This alert was prepared by OS Law for general information only and is not legal advice. Please consult counsel on how these rules apply to your specific circumstances.