In its recently issued Revenue Regulation 1-2024, the Bureau of Internal Revenue (BIR) increased the selling price threshold for value-added tax (VAT) exemption purposes of the sale of house and lot, and other residential dwellings, further amending Section 2, Sub-section 4.109-1(B)(p) of Revenue Regulations 4-2021.
The increase in VAT exemption threshold from P3,199,200 to P3,600,000 was pursuant to Section 109(P) of the National Internal Revenue Code of 1997, as amended, mandating that the amount shall be adjusted every three years to its present value using the Consumer Price Index, as published by the Philippine Statistics Authority.
The regulation shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
Please be guided accordingly.
P&;A Grant Thornton
Certified Public Accountants