TITLE IV — VALUE-ADDED TAX
equipment, including spare parts thereof, to be used directly and
exclusively in the production and/or processing of their produce;
(M) Gross receipts from lending activities by credit or multi-purpose
cooperatives duly registered with the Cooperative Development
Authority.
(N) Sales by non-agricultural, non-electric and non-credit cooperatives
duly registered with the Cooperative Development Authority: Provided,
That the share capital contribution of each member does not exceed
Fifteen thousand pesos (P15,000) and regardless of the aggregate
capital and net surplus ratably distributed among the members:
(O) Export sales by persons who are not VAT-registered;
(P) Sale of real properties not primarily held for sale to customers or held
for lease in the ordinary course of trade or business, or real property
utilized for low-cost and socialized housing as defined by Republic Act
No. 7279, otherwise known as the Urban Development and Housing
Act of 1992, and other related laws, residential lot valued at One
million five hundred thousand pesos (P1,500,000) and below, house
and lot, and other residential dwellings valued at Two million five
hundred thousand pesos (P2,500,000) and below: Provided, That
beginning January 1, 2021, the VAT exemption shall only apply to sale
of real properties not primarily held for sale to customers or held for
lease in the ordinary course of trade or business, sale of real property
utilized for socialized housing as defined by Republic Act No. 7279,
sale of house and lot, and other residential dwellings with selling price
of not more than Two million pesos (P2,000,000):69 Provided, further,
That every three (3) years thereafter, the amount herein stated shall
be adjusted to its present value using the Consumer Price Index, as
published by the Philippine Statistics Authority (PSA);70
(Q) Lease of a residential unit with a monthly rental not exceeding Fifteen
thousand pesos (P15,000);71
(R) Sale, importation, printing or publication of books and any newspaper,
magazine, review or bulletin which appears at regular intervals
with fixed prices for subscription and sale and which is not devoted
principally to the publication of paid advertisements;
(S) Transport of passengers by international carriers;72
69
126
Introduced by Section 34 of the TRAIN Law.
70
As amended by Section 34 of the TRAIN Law.
71
Ibid. Previous threshold was P10,000.
72
Introduced by Section 34 of the TRAIN Law.
Isla Lipana & Co., the Philippine member firm of the PwC network
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