Revenue Regulations (RR) No. 1-2024 dated January 10, 2024 was issued by the Bureau of Internal Revenue (BIR) amending Section 2, Sub-section 4, 109-1 (B)(p) of 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.
In Section 2 of this RR No. 1, 2024, stated the Adjusted Amount with regards of the new price threshold. for sale of house and lot and other residential dwellings for VAT exemption purposes, rounded up is Three Million Six Hundred Thousand (Php3,600,000.00) Pesos from the current threshold amount of Php3,199,200, computed using the following formula:
New Threshold = Current Threshold x CPI (2023) / CPI (2021
Please refer https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%201-2024.pdf of the full text of RR No. 1-2024.
