VAT exempt

Hi good afternoon everyone! Newbie here...

I would like to seek assistance in understanding a law regarding vat exempted transaction – copied/pasted below:

THE NATIONAL INTERNAL REVENUE CODE OF THE PHILIPPINES [Tax Reform Act of 1997] Republic Act No. 8424 AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES

SEC. 109. Exempt Transactions. - The following shall be exempt from the value-added tax:

(z) Sale or lease of goods or properties or the performance of services other than the transactions mentioned in the preceding paragraphs, the gross annual sales and/or receipts do not exceed the amount of Five hundred fifty thousand pesos (P550,000): Provided, That not later than January 31st of the calendar year subsequent to the effectivity of Republic Act No. 8241 and each calendar year

- me and my wife are lessees of a three stall property of GOCC National Livelihood Corporation's Metromart Complex, located at Edsa corner Boni ave. Mandaluyong City worth P9270 per month or P111,240 annually...

Are we covered by this vat exemption? Your advise would help us realize a long over curiosity.

All The Best,

Oriole

Not covered if you are a Vat-registered person who avails Vat exemption because your annual gross rental does not exceed 1.919,500.00M. That 550,000 is now increased to 1,919,500.00. HOWEVER, you are obliged to pay percentage tax.

thanks a lot tsi ming choi! happy new year!