The sale of real property subject to
vat shall either be in cash basis, installment basis, or deferred payment
basis.
Installment
Sales
·
If the initial payment do not exceed 25% of
the selling price. The seller or the
real estate dealer shall be subject to vat on installment payments, inclusive of interest and penalties.
Deferred
Payment
·
If the initial payment exceeds 25% of the
selling price. If the sale is on a
deferred payment, the whole selling price shall be subject to vat (same
treatment with cash basis).
Initial
Payment
·
Pertain to ALL PAYMENTS which the seller
receives on or before the execution of the instrument of sale, INCLUDING cash
or property received, OTHER THAN
the purchaser’s evidence of indebtedness, DURING THE CALENDAR YEAR when the
real property was sold.
|
Installment
received
|
|
Pxx
|
|
Add:
|
|
|
|
Interest
|
Pxx
|
|
|
Other charges
|
xx
|
xx
|
|
Tax
base
|
|
Pxx
|
Upon
full collection, if the zonal value or market value is higher than the total
receipts or collections, the additional vat shall be paid accordingly. (RMC 03-96); RR 4-2007
