rr no. 4-2007 - REPUBLIC OF THE PHILIPPINES DEPARTMENT OF...

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REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Quezon City February 7, 2007 REVENUE REGULATIONS NO. 4-2007 SUBJECT : Amending Certain Provisions of Revenue Regulations No. 16- 2005, As Amended, Otherwise Known as the Consolidated Value-Added Tax Regulations of 2005. TO : All Internal Revenue Officers and Others Concerned. Section 1. SCOPE . - Pursuant to the provisions of Sec. 244 and 245 of the National Internal Revenue Code of 1997, as amended, in relation to Title IV of the same Tax Code, these Regulations are hereby promulgated to amend certain provisions of Revenue Regulations (RR) No. 16-2005, as amended, otherwise known as the Consolidated Value-Added Tax Regulations of 2005. Section 2. VAT ON SALE OF GOODS OR PROPERTIES . - Sec. 4.106-1 of RR No. 16-2005 is hereby amended to read as follows: SEC. 4.106-1 . VAT on Sale of Goods or Properties . – VAT is imposed and collected on every sale, barter or exchange, or transactions “deemed sale” of taxable goods or properties at the rate of twelve percent (12%) (starting February 1, 2006 ) of the gross selling price or gross value in money of the goods or properties sold, bartered, or exchanged, or deemed sold in the Philippines.” Section 3. SALE OF REAL PROPERTIES . - Sec. 4.106-3 of RR No. 16- 2005 is hereby amended to read as follows: SEC. 4.106-3. Sale of Real Properties . - Sale of real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business of the seller shall be subject to VAT. Sale of residential lot with gross selling price exceeding P1,500,000.00, residential house and lot or other residential dwellings with gross selling price exceeding P2,500,000.00, where the instrument of sale (whether the instrument is nominated as a deed of absolute sale, deed of conditional sale or otherwise) is executed on or after Nov. 1, 2005 , shall be subject to ten percent (10%) output VAT, and starting Feb. 1, 2006, to twelve percent (12%) output VAT . Installment sale of residential house and lot or other residential dwellings with gross selling price exceeding P1,000,000.00, where the instrument of sale (whether the instrument is nominated as a deed of absolute
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2 sale, deed of conditional sale or otherwise) was executed prior to November 1, 2005 , shall be subject to ten percent (10%) output VAT. Sale of real property on installment plan means sale of real property by a real estate dealer, the initial payments of which in the year of sale do not exceed twenty-five (25%) of the gross selling price. In case of installment sale, the seller shall be subject to output VAT on the installment payments received, including the interests and penalties for late payment, actually and/or constructively received, subject to the provisions of Sec.4.106-4 hereof. Correspondingly, the buyer of the property can claim the input tax in the same period as the seller recognized the output tax. Installment payments, including interests and penalties, actually
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rr no. 4-2007 - REPUBLIC OF THE PHILIPPINES DEPARTMENT OF...

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