(Revenue Regulations No. 01-2024, issued on January 15, 2023, and published on January 18, 2024)
This Tax Alert is issued to inform all concerned on the adjustment on the threshold for VAT-exempt sale of house and lot and other residential dwellings pursuant to Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
Under the CREATE Act, the amount for VAT exempt threshold for sale of residential property and other residential dwellings shall be adjusted every three (3) years using the Consumer Price Index, as published by the Philippine Statistics Authority (PSA). Thus, the BIR has adjusted the new price threshold for VAT exemption of the sale of house and lot as well as other residential dwellings to Php3,600,000 from the current threshold amount of Php3,199,200, to take effect beginning January 1, 2024.
The regulations shall take effect fifteen (15) days after its publication last January 18, 2024.