VAT rules on Sale of Real Property

In general. sale of real property primarily held in the normal course of business is a VAT taxable transaction except:

a. Residential lot valued at 1,500,000 and below.

b. Sale of house and lot and other residential dwellings valued at 2,500,000 and below.


  • Gross Selling Price in Sale of Real Property means the consideration stated in the sales document or Fair Market Value whichever is higher.
  • If the VAT is not billed separately in the document of sale, the selling price or the consideration stated therein shall be deemed inclusive of VAT.

Installment Sale

Initial Payment does not exceed 25% of the gross selling price:

Installment Received                xxx

Add: Interest                 xx

Other Charges       xx          xxx

Taxable Base                                 xxx



About Jonathan Ruiz CPA

Entrepreneur, CPA Mentor, Stock market Newbie Mentor, Influential Author and Master's Degree in International Business graduate in Hult International Business School, UK. A father of two lovely daughters.
This entry was posted in Taxation and tagged , . Bookmark the permalink.

One Response to VAT rules on Sale of Real Property

  1. Maaya Malaya says:

    Thanks for posting this kind of articles. It really helps.👍


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