Sale of a house valued at P1-M or less

A corporation engaged in the sale of fertilizer requests for a certificate of exemption from the value-added tax under Section 103(d) of the National Internal Revenue Code of 1977. The corporation submitted copies of its 1997 and current licenses issued by the Fertilizer Authority under Presidential Decree 1144.

A duly licensed manufacturer, importer, distributor and exporter of fertilizer is indeed exempt from VAT under Section 103(d) of the NIRC of 1977 (now Section 109(d) of the Tax Code of 1997).

(VAT ruling No. 33-2001 dated May 29, 2001. This ruling is issued on the basis of represented facts. However, if upon investigations, it will be disclosed that the facts are different, then this ruling shall be considered null and void).

A letter writer requests information on whether the sale of house and lot, the selling price of which does not exceed P1 million, is exempt from VAT.

Under Section 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 a house and lot or a residential dwelling valued at P1 million or less is exempt from VAT.

(VAT ruling No. 53-2001 dated Aug.7, 2001. This ruling is issued on the basis of represented facts. However, if upon investigations, it will be disclosed that the facts are different, then this ruling shall be considered null and void).