The study reviews the revenue performance of the VAT on real property imposed by LGUs from 2001 up to 2005.
For the period 2001-2005, VAT collection on real property transactions inclusive of sale and lease of real properties, amounted to P15.19 billion with an average annual collection of P3.04 billion, which is 4.04% of the total VAT collection and 0.68% of the total BIR collection for the same period.
It is noted that the land use of the highest contributors are for residential, commercial and industrial purposes. These are the Revenue Regions categorized as highly urbanized cities such as Makati, Quezon City, Manila, and Cebu City.
On the other hand, the lowest contributors to the VAT collection are the areas whose main investments are in agricultural and forest production. It is highly probable that the value of transactions in these areas may be below the threshold subject to the VAT.
