ITAD Ruling No. 053-01
ITAD Ruling No. 053-01 • Bureau of Internal Revenue (BIR) Issuances • International Tax Affairs Division (ITAD) Rulings • Aug 7, 2001
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August 7, 2001 ITAD RULING NO. 053-01 Sec 4.103-1 (w) (4) BIR Ruling No. 110-98 053-2001 Shelter Systems Development Corporation 12 Mother Ignacia Street Quezon City Attention: Mr . Jose Dennis A. dela Cruz Vice President Gentlemen : This refers to your letter dated November 15, 2000, requesting information as to whether or not you are exempt from the payment of VAT on the sale of house and lots, the selling price of which do not exceed one million pesos (P1,000,000.00) each. In reply, please be informed that pursuant to Article 4.103-1(w)(4) of Revenue Regulations No. 7-95, as amended by Revenue Regulations No. 6-97, the sale by real estate dealers and/or lessors of house and lot and other residential dwellings valued at One Million Pesos (P1,000,000.00) and below shall be exempt from VAT. Accordingly, since the price of the house and lot you are selling does not exceed P1,000,000.00 each, you are exempt from VAT on your said transaction, pursuant to Section 109(w) of the Tax Code of 1997. Likewise, you are not subject to the 3% gross receipts tax imposed under Section 116 of the same Code. (BIR ruling No. 110-98, as modified by BIR Ruling No. 120-99). Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group
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