REVENUE REGULATIONS NO. 1 – 2024
Further amends Section 2, Sub-section 4.109-1(B)(p) of Revenue Regulations (RR) No. 4-2021, as amended by RR No. 8-2021, to implement the adjustment of the selling price threshold of the sale of house and lot, and other residential dwellings for Value-Added Tax (VAT) exemption purposes.
Considering the Consumer Price Index (CPI) values for 2023 as published by the Philippine Statistics Authority (PSA), the new price threshold, for sale of house and lot and other residential dwellings for VATexemption purposes, rounded up is Three Million Six Hundred Thousand Pesos (₱3,600,000.00) from the current threshold amount of ₱3,199,200.00, computed using the following formula:
New Threshold = Current Threshold x CPI (2023)/ CPI (2021)
Section 3 of RR No. 1-2024 provides that:
“Provided, That beginning January 1, 2021, the VAT exemption shall only apply to sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business; sale of real property utilized for socialized housing as defined by Republic Act (RA) No. 7279, as amended, and, sale of house and lot, and other residential dwellings with selling price of not more than Three Million One Hundred Ninety-Nine Thousand Two Hundred (₱3,199,200.00) Pesos, as adjusted to Three Million Six Hundred Thousand (₱3,600,000.00) Pesosusing the 2023 Consumer Price Index values to take effect beginning January 1, 2024: Provided, further, That every three (3) years thereafter, the amount stated herein shall be adjusted to its present value using the Consumer Price Index as published by the Philippine Statistics Authority (PSA).”