RE Broker = Vatable?

I've encountered several broker colleagues for whom the BIR imposed VAT for selling their personal properties. Is this correct?

No. Real estate brokers are considered "professionals, " not "persons engaged in RE buying, selling, renting, and leasing..."

If brokers check their BIR Certificate of Registration under "Line of Business (PSIC)," brokers are classified as "68200 Real Estate Activities on a Fee or Contract Basis".

"PSIC" pertains to the Philippine Standard Industrial Classification 2009 (you may Google the PDF version and go to page 243), a document published by the National Statistical Coordination Board. This document provides codes for different industry classifications–which the BIR adopted when classifying businesses/individuals.

"68200" pertains to the classification brokers belong to, "Real Estate Activities on a Fee or Contract Basis."

The BIR should only impose VAT on RE transactions of individuals classified under 68110, 68120, 68130, 68140, and 68190.

The same protocol goes for other professionals. 👍🏻