New Lowered VAT Threshold 2012
BIR has released a new law concerning VAT Thresholds on real estate properties in the Philippines.
Starting Jan. 1, 2012 the Value-Added Tax (VAT) threshold had been changed:
Condos/House and Lots:
Old – Php 2,500,000
New – Php 3,199,000
Old – Php 1,500,000
New – Php 1,900,000
What this means for real estate buyers:
Before Jan. 1, 2012, a condo unit priced at Php 2,500,000 is levied a VAT of 12% or Php 300,000 making its Total Contract Price to Php 2,800,000. The new BIR rule increasing the threshold means that the same condo unit from the same developer will remain priced at Php 2,500,000 thus saving you Php 300,000.
Note: VAT will only be imposed on properties touching or above the said threshold.
There is no better time than now to consider owning the property of your dreams!
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