Sale, transfer or disposal within a 12-month period of two or more adjacent residential lots, house and lots or other residential dwellings to one buyer, whether from the same or from different sellers shall be considered one single transaction. Hence, the sale of the adjacent lots shall be subject to VAT if the aggregate value exceeds P1,919,500 for residential lots and P3,199,200 for residential house lots or residential dwellings, notwithstanding that the value of the individual properties do not exceed the VAT exemption thresholds.
Sale/purchase of parking lots shall not be considered a sale of residential lot/dwelling. Hence, it shall be subject to VAT regardless of its selling price.
The regulations was published on October 17, 2012 and took effect after 15 days of its publication on November 1, 2012.
Please see attached copy of RR 13-2012 for your reference and guidance.
