The Bureau of Internal Revenue (BIR) said Wednesday it increased the value-added tax (VAT) exemption threshold for the sale of house and lot and other residential dwellings from P3,199,200 to P3,600,000.
The change, effective immediately, is outlined in Revenue Regulations No. 1-2024 issued by BIR Commissioner Romeo D. Lumagui Jr.
The adjustment is mandated by Section 109 (P) of the National Internal Revenue Code, which requires the threshold amount to be reviewed and adjusted every three years based on the consumer price index as published by the Philippine Statistics Authority (PSA).
“This timely increase in VAT exemption demonstrates our commitment to excellent taxpayer service,” Lumagui said.
Lumagui said the increase in the selling price threshold, for VAT exemption purposes, of the sale of house and lot and other residential dwelling is a testament to the BIR’s improved and updated services.
The move aligns with the BIR’s focus on taxpayer service as a key pillar of its operations this year. Lumagui said it also complements the recently signed Ease of Paying Taxes Act, which aims to modernize the tax system and ease the burden on taxpayers.
The BIR said the revised revenue regulation reflects the government’s commitment to a just and service-oriented taxation system in the Philippines.
