The Philippino Bureau of Internal Revenue (BIR) upped its VAT thresholds this week on residential land and property transactions.
The trigger point for the sale of land and houses – and for lease-deals on dwelling units which are exempt from value-added tax (VAT) payments – were both increased at the weekend.
The VAT threshold for residential land has gone up from PP1.5 million to P1,919,500 and from P2.5 million to P3,199,200 for a plot with a house built on it.
According to the new revenue regulations No. 16- 2011, signed by Revenue Commissioner Kim S. Jacinto-Henares, transactions below these new prices are no longer viable for VAT.