Hi Ms. Denise! Thanks very much for sharing your thoughts about the TRAIN Law revision of the threshhold for 12% VAT applicability. Kindly share also the taxes deductible from the commission of real estate salespersons aside from the 15% tax deducted by developers. Thank you and yave a great day! God bless you🙏😊
VAT is a disaster and a STEALTH tax that we in the UK started this model, it is a cruel Tax, when countries start to impose this TAX then look twice, the country starts then to become un attractive, we in the UK call it a GANGSTER tax, nindot nga video pero sad, Salamat Po, Ray in the UK..
Hello, paano po kung nakabili po ng vacant lot sa developer last June 2018 then fully paid na po ng june 2020. But until now 2021 hindi pa po naitatransfer ung title, kasi hindi pa nababayaran ung reg expenses for title. Kasama po ba un sa 12%vat?
Hi denice, saan ba mag basi ang 12% vat, ss selling price ba or sa zonal vanue? St sa ruling ng bir may exemption pa ng 1.5 m.sa ordinary assets.i want a clarification.
Hello Urab. Thanks for your comment. 12% VAT is added for properties sold by developers. If private owners lang, yung hindi habitually selling real estate, no VAT is charged. For more info, please check out page 7 of this doc: www.pwc.com/ph/en/tax-alerts/assets/2018/RR%20No.%2013-2018.pdf
What about kung Pre-Selling po sya.. Usually 24 to 36 months po ang Equity... Let say 2nd qtr of 2019 na reserved ang lot or House and Lot.. 24 mos to pay ang Equity.. Matatapos palang ang Equity ng 2nd qtr of this yr (2021) as per Developer that time lang sila nag papa sign sa Buyer ng CTS. So subject to, 12% Vat parin ba ang Property na na kuha nila?
Better to confirm with developer because iba iba treatment nila. When the CTS gets signed and notarized this yr, some developers consider the 12% VAT, others just stick with the original price excluding VAT.
Very informative thanks. Maam D, kasama po ba sa VAT ang purchase of H/L na galing sa isang taong binenta ang kanyang property na hindi nman isang developer (sale of principal residence)? Ano po ba ang effect ng train law sa ibang mga taxes gaya ng CGT, DST, transfer tax, etc. thanks ang more power
Hello po! VAT only applies to developer projects. No VAT po if the seller is the owner of the property. Basta subject to CGT ang property, wala pong kasamang VAT yan.
Hi Denice thank you for sharing this input with us. My question is I've got my residential lot in 2019 and doing my amortization until now. Am I exempted in VAT though. Please advice. Thank you.
Hi maam Rowena. As long as you have signed a contract to sell and it was notarized by the developer before 2021 then you are exempted from VAT. Hope that helps.
@@DeniceManubag I haven't received any contract to sell yet. As they require certain percentage of payment. Is that legal or they should issue it right away (considering the percentage of payment?
@@rowenacandelaria3512 the developer should have informed you if there are any changes in terms of payment, such as VAT. If you were not notified, then possible no VAT imposed, but still better to confirm with the developer.
Good morning po Ma'am Denice, thank you for clear explanation about HOW TO AVOID VAT IN REAL ESTATE TRANSACTIONS. May inquiry po ako. This is about BIR VAT-EXEMPTION for P3.2 Million and Below Real Estate Properties. Bumili po ako ng condo ng March 2016 and turnover po sya this Aug 2023 and within P3.2M ang halaga ng property, VAT EXEPT po ba Ito? Maraming salamat po!
Binisita ko po uli yung Contract to Sell, fully paid ko na po yung cotract amount, pero andun din may naka add na "Now therefore, for and in consideration of the foregoing premises and the contract price of Php 3.15M, exclusive of "VAT", if any, and fees for miscellaneous expenses, the SELLER has agree to sell and the BUYER has agreed to purchase the Property subject to the Terms and Condition found in Annex "A" hereof. Lahat din po ng payment invoice copies nasa akin na rin po. Worry ko lang po baka sa (March 2016 purchased, fully paid Oct 2019) Aug 2023 na turnover, bigla pala magbabayad ako ng 12%. Ito po worry ko.
May ask lang po ako.nag real state ako.tapos po non vatable inapply ko sa bir. Ask ko lang po kahit wala ba akong benta magkakaroon po ba ako mg penalty.kasi hnd ko ina update na no sale ako sa bir.
Maam may tanong lng po ako kasi nag pa update ako ng akin tax s lupa start 2018 to 2021 ang total n’ya is 56,220.43 ang area lng nito 363 sqr. m. Bakit ganito na kalaki last two yrs. Nang bayad ako is 8k plus lng. Sana bigyan n’yo ako advice. Thank you po. Sub na kita .
Hi Denice! I bought 2 residential lots (96 sq.m each) last week of april 2021. Each lot costs 384,000 pesos.After 2 weeks they told me they need to charge me with 12% VAT for each lot. Is the 384,000 lot vatable of 12%?
Denice Manubag : Yes from a developer.However, they didnt disclosed the 12% VAt after I paid the spot cash.it was 2-3 weeks after that they informed me.
Pa advise po sa nakaka alam sa real state 12% vat Train law january 1 2021 baka po maka tulong kung sino man po naka incounter sa agent nyo about sa train law effective jan 1 2021.. Sakin kasi pinipilit na may additional 12% vat kahit bininta nila sakin nong lock down promo nila.. Last year july 15 2020 Wala pa kasi 1m na bili ko hindi po ba dapat hindi sya kasama. July 15 2020 po ako ng star ng 20% down and july 12 2021 naman po ang last payment ko sa 20% payment ko.. Diba dapat july 15 2020 ito ang conseder ng pagkakabili ko
Dapat po nag advise ang agent nyo or better yet ang developer nyo sa possible addtl charge which is the VAT before matapos ang year 2020 para hindi nag effect yung TRAIN LAW. Ang signed & notarized CTS sana makaka-exempt satin sa VAT if only it was done 2020.
Hi po! Question po, we purchased a h&l from a developer last Dec 2018. We paid for the reservation and had fully paid the dp last Dec 2020. May pinirmahan po kaming contract to sell na hdmf format nung Dec 2020 din po. The property is more than 2M will we be subjected to VAT po?
@@DeniceManubag thank you for the reply. Nako-confuse po kasi kaming mag asawa kasi sinabihan kami ng developer na "baka" magka vat daw po kami kasi this year ire-release ni Pag-Ibig yung loan proceeds namin.
hi. ask ko lang what if i signed contract to sell ng 2018 then natapos ang payment ng 2021. Vatable pa din po ba un? kung single person lng nag sell paano nya po ako mabbigyan ng Official receipt?
Good day po. Just want to ask if you know the implication of this law with house construction. I have a TCP with my contractor above 2M. Is house construction also VATable?
If I understand it correctly, Train Law does not apply to housing loans with the developers who owned the subdivisions? Because we already owned the lot?
@@Godspeed1415 the change in Train law regarding real estate selling prices is the VAT threshold. Since you already purchased the lot, (assuming it is not VATable), you are not affected.
Hi Ms. Denise! Thanks very much for sharing your thoughts about the TRAIN Law revision of the threshhold for 12% VAT applicability. Kindly share also the taxes deductible from the commission of real estate salespersons aside from the 15% tax deducted by developers. Thank you and yave a great day! God bless you🙏😊
Thanks for sharing your video I'm interested to video you upload 😉
kapag pina rent nyo po ba condo nyo for 100K a month subjected po ba ito sa 12% VAT.
nice ka workmate... informative kaayo nga video. :)
Thank you so much for your encouragement & support Master Eiyan! 🥰
@@DeniceManubag hahaahhaha....kung maka master oi...hahahahaha..beginner rasad ko boss madam oi..hahahaha
Galing boss! 🥂 Congratulations on this! ❤️❣️
Thank you so much Boss!
VAT is a disaster and a STEALTH tax that we in the UK started this model, it is a cruel Tax, when countries start to impose this TAX then look twice, the country starts then to become un attractive, we in the UK call it a GANGSTER tax, nindot nga video pero sad, Salamat Po, Ray in the UK..
Hello, paano po kung nakabili po ng vacant lot sa developer last June 2018 then fully paid na po ng june 2020. But until now 2021 hindi pa po naitatransfer ung title, kasi hindi pa nababayaran ung reg expenses for title. Kasama po ba un sa 12%vat?
Hello po. Sino magprocess ng title, kayo po or si developer ?
@@DeniceManubag so developer po
@@Celebritychizmis and ano po yung reg expenses ang hindi nabayaran?
@@DeniceManubag registration expenses po. Para po sa title.
@@Celebritychizmis wala na pong VAT na babayaran
kung 2016 po nagpirmahan ng contract worth P1M tapos ngayong 2023 lang nabayaran, automatic 12% po ba yun?
Hi denice, saan ba mag basi ang 12% vat, ss selling price ba or sa zonal vanue? St sa ruling ng bir may exemption pa ng 1.5 m.sa ordinary assets.i want a clarification.
Hello Urab. Thanks for your comment.
12% VAT is added for properties sold by developers. If private owners lang, yung hindi habitually selling real estate, no VAT is charged. For more info, please check out page 7 of this doc: www.pwc.com/ph/en/tax-alerts/assets/2018/RR%20No.%2013-2018.pdf
What about kung Pre-Selling po sya.. Usually 24 to 36 months po ang Equity... Let say 2nd qtr of 2019 na reserved ang lot or House and Lot.. 24 mos to pay ang Equity.. Matatapos palang ang Equity ng 2nd qtr of this yr (2021) as per Developer that time lang sila nag papa sign sa Buyer ng CTS. So subject to, 12% Vat parin ba ang Property na na kuha nila?
Better to confirm with developer because iba iba treatment nila. When the CTS gets signed and notarized this yr, some developers consider the 12% VAT, others just stick with the original price excluding VAT.
Very informative thanks. Maam D, kasama po ba sa VAT ang purchase of H/L na galing sa isang taong binenta ang kanyang property na hindi nman isang developer (sale of principal residence)? Ano po ba ang effect ng train law sa ibang mga taxes gaya ng CGT, DST, transfer tax, etc. thanks ang more power
Hello po! VAT only applies to developer projects. No VAT po if the seller is the owner of the property. Basta subject to CGT ang property, wala pong kasamang VAT yan.
Hi Denice thank you for sharing this input with us. My question is I've got my residential lot in 2019 and doing my amortization until now. Am I exempted in VAT though. Please advice. Thank you.
Hi maam Rowena. As long as you have signed a contract to sell and it was notarized by the developer before 2021 then you are exempted from VAT. Hope that helps.
@@DeniceManubag I haven't received any contract to sell yet. As they require certain percentage of payment. Is that legal or they should issue it right away (considering the percentage of payment?
@@rowenacandelaria3512 the developer should have informed you if there are any changes in terms of payment, such as VAT. If you were not notified, then possible no VAT imposed, but still better to confirm with the developer.
@@DeniceManubag thank you.
Good morning po Ma'am Denice, thank you for clear explanation about HOW TO AVOID VAT IN REAL ESTATE TRANSACTIONS. May inquiry po ako. This is about BIR VAT-EXEMPTION for P3.2 Million and Below Real Estate Properties. Bumili po ako ng condo ng March 2016 and turnover po sya this Aug 2023 and within P3.2M ang halaga ng property, VAT EXEPT po ba Ito? Maraming salamat po!
Hello! As long as may pinirmahan na kayong Contract to Sell stating the fixed amount, thats the final price you have to pay po.
Binisita ko po uli yung Contract to Sell, fully paid ko na po yung cotract amount, pero andun din may naka add na "Now therefore, for and in consideration of the foregoing premises and the contract price of Php 3.15M, exclusive of "VAT", if any, and fees for miscellaneous expenses, the SELLER has agree to sell and the BUYER has agreed to purchase the Property subject to the Terms and Condition found in Annex "A" hereof.
Lahat din po ng payment invoice copies nasa akin na rin po.
Worry ko lang po baka sa (March 2016 purchased, fully paid Oct 2019) Aug 2023 na turnover, bigla pala magbabayad ako ng 12%. Ito po worry ko.
May ask lang po ako.nag real state ako.tapos po non vatable inapply ko sa bir.
Ask ko lang po kahit wala ba akong benta magkakaroon po ba ako mg penalty.kasi hnd ko ina update na no sale ako sa bir.
Maam may tanong lng po ako kasi nag pa update ako ng akin tax s lupa start 2018 to 2021 ang total n’ya is 56,220.43 ang area lng nito 363 sqr. m. Bakit ganito na kalaki last two yrs. Nang bayad ako is 8k plus lng. Sana bigyan n’yo ako advice. Thank you po. Sub na kita .
Hello maam. Hindi ko po masasagot kasi iba iba po zonal values per area. I suggest you inquire sa cityhall or BIR kung saan assigned yung lupa nyo.
Also maam, nagupdate na po kasi ng zonal values ang BIR ngayon, could be one reason bakit nagmahal na ang tax
Hello, according po sa TRAIN law, the threshold sa vacant lot is 1.5M. Medyo confused lang po ako if 1.9M or 1.5M ba ang threshold until 2021.
Hello Dennis! This is correct po but only under properties not primarily held for sale to customers, meaning not from developers po.
Please see page 8 of the REVENUE REGULATIONS NO. 13-2018 www.pwc.com/ph/en/tax-alerts/assets/2018/RR%20No.%2013-2018.pdf
Thanks! So tama po ba na kapag from developer, 1.9M? Ano po ang example where mag-apply ang 1.5M threshold?
@@denong05 hindi po. Basta developer projects especially lot for sale, automatic VATable.
Nasa video po yung summary. Inexplain ko po doon.
Subscribed ❤️💖
Thank you dear Nikki :)
Hi Denice! I bought 2 residential lots (96 sq.m each) last week of april 2021. Each lot costs 384,000 pesos.After 2 weeks they told me they need to charge me with 12% VAT for each lot. Is the 384,000 lot vatable of 12%?
Yes, residential lots bought from developer is subject to VAT.
Denice Manubag : What about the revenue regulations no. 4-2021 for sale of residential lots valued at 1.5 M and below are exempted from VAT?
Did you buy the lot from a developer or private owner? For developer, VAT applies. For private owner, only capital gains tax. No VAT added.
Denice Manubag : Yes from a developer.However, they didnt disclosed the 12% VAt after I paid the spot cash.it was 2-3 weeks after that they informed me.
What is the name of the developer?
Pa advise po sa nakaka alam sa real state 12% vat
Train law january 1 2021
baka po maka tulong kung sino man po naka incounter sa agent nyo about sa train law effective jan 1 2021.. Sakin kasi pinipilit na may additional 12% vat kahit bininta nila sakin nong lock down promo nila.. Last year july 15 2020
Wala pa kasi 1m na bili ko hindi po ba dapat hindi sya kasama.
July 15 2020 po ako ng star ng 20% down and july 12 2021 naman po ang last payment ko sa 20% payment ko..
Diba dapat july 15 2020 ito ang conseder ng pagkakabili ko
Dapat po nag advise ang agent nyo or better yet ang developer nyo sa possible addtl charge which is the VAT before matapos ang year 2020 para hindi nag effect yung TRAIN LAW. Ang signed & notarized CTS sana makaka-exempt satin sa VAT if only it was done 2020.
Hi po! Question po, we purchased a h&l from a developer last Dec 2018. We paid for the reservation and had fully paid the dp last Dec 2020. May pinirmahan po kaming contract to sell na hdmf format nung Dec 2020 din po. The property is more than 2M will we be subjected to VAT po?
Hi po. Hindi po since nakapirma na kayo ng contract to sell.
@@DeniceManubag thank you for the reply. Nako-confuse po kasi kaming mag asawa kasi sinabihan kami ng developer na "baka" magka vat daw po kami kasi this year ire-release ni Pag-Ibig yung loan proceeds namin.
What about if you purchased a USED house and lot from the owner and not from a developer, would that still be covered by vat?
No. Sale from private owners are not subject to VAT. Thanks!
@@DeniceManubag Is this true that sale from private owners are not subject to VAT?
hi. ask ko lang what if i signed contract to sell ng 2018 then natapos ang payment ng 2021. Vatable pa din po ba un? kung single person lng nag sell paano nya po ako mabbigyan ng Official receipt?
Hello. What do you mean po single person?
Good day po. Just want to ask if you know the implication of this law with house construction. I have a TCP with my contractor above 2M. Is house construction also VATable?
Hello po. VAT is only applicable for developer projects po. Meaning house & lot or condos sold by developers.
@@DeniceManubag thank you po.
Kasama house construction/building and you already owned the lot?
This is for developer projects only.
Like housing loans from thr Developer but we already owned the lot?
@@Godspeed1415 this is for projects offered for sale. Not already sold projects.
If I understand it correctly, Train Law does not apply to housing loans with the developers who owned the subdivisions? Because we already owned the lot?
@@Godspeed1415 the change in Train law regarding real estate selling prices is the VAT threshold. Since you already purchased the lot, (assuming it is not VATable), you are not affected.