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VAT and CWT and DST

How do we handle National Taxation computational problems involving Creditable Withholding Tax, Documentary Stamp Tax, and Value-Added Tax (VAT)? What happens in sales transactions handled by VAT-registered realty developers?

The basic rule is: Remove VAT from the Total Selling Price first, before computing for CWT or DST.

Before you remove VAT, however, you first have to determine if a sale is subject to VAT.

Here are some examples of sales transactions which are subject to the 12% VAT:

  • Residential lot (land) valued at more than P1.5 million
  • Residential house and lot (property) valued at more than P2.5 million

[Sample computations, other examples of transactions which are not subject to VAT, and online video tutorials will be added here in the future]

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