What Sales of Property Are Exempted from VAT
Value Added Tax is the tax levied when a buyer buys something – be it a product or a real estate property in Gen Trias – Cavite. Especially when you are buying a real estate property, the VAT is levied as a way for the government to earn an income out of that transaction. Without VAT, the government won’t have funds to function.
However, not all sales of properties are levied with VAT. There are exempted sales in accordance to RA 9337. Here are some of the sales of properties in Gen Trias – Cavite that are VAT-exempt.
Sale of real estate properties that are not primarily put up for sale to buyers nor held for lease under ordinary course of business or trade.
Sale of real estate properties that are used for the development of low-cost housing. The rules applied for this are defined by RA 7279 which is also known as “Urban Development Housing Act of 1992”. There are other related laws involved in this particular regulation which include RA 8763 and RA 7835. For properties that are sold while governed by this regulation, the ceiling price per unit should not go beyond 450,000 pesos. Sometimes, it may also be determined by NEDA, HUDCC, and other related real estate laws.
Sale of real estate properties that are used for socialized housing. This is defined under the RA 8763. like with the low-cost housing development, the ceiling price should not go above 450,000. It may also be determined by NEDA, HUDCC, and other related real estate laws.
Residential lots that are currently valued at no more than 1,919,500 pesos.
Residential dwellings and house and lot that are no more than 3,199,200 pesos, provided that every three years and not later than January 31, 2009, the price is adjusted to present values using that time’s Consumer Price Index published by NSO.
These are just some of the sales of properties that are not levied with Value Added Tax. These are exempted by reasons of law so if you want to buy or sell a property in Gen Trias – Cavite while saving money, then consider these rules. It will surely be great savings for you.
