BIR raises VAT exemption on sale of house and lot to P3.6 million

Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr has issued Revenue Regulations No. 1-2024 which increased, for value-added tax (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 adjustment was made by virtue of Section 109 (P) of the National Internal Revenue Code which mandates that every 3 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. 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,” Lumagui said.

The BIR said it would focus on its pillar of excellent taxpayer service this year.

President Ferdinand R.  Marcos Jr. recently signed the landmark Ease of Paying Taxes Act, paving the way for a more modern tax system, with the ultimate goal of helping taxpayers in their tax obligations.

The subject revenue regulation also shows the government's commitment to a just and service-oriented taxation in the Philippines.