Creba Speaks By CHARLIE A.V. GORAYEB February 2, 2012, 2:59am MANILA, Philippines — Starting Jan. 1 this year, real estate buyers can already enjoy added relief from value-added taxes (VAT) with the passage of BIR Revenue Regulation No. 16-2011, which effectively increases the threshold amounts for VAT-exempt transactions, as follows: (1) From P1.5 million to P1,915,500 for residential lots; and (2) From P2.5 million to P3,199,200 for house and lot packages or other residential dwellings. Adjacent lots, even if covered by separate titles and tax declarations, can be counted together when sold to a singular buyer. This means that multiple lots sold or disposed in favor of one buyer for the purpose of utilizing them as one residential lot will be VAT-exempt for as long as the aggregate value of the sale does not exceed the P1,919,500 limit. The lease of residential units for a monthly rent of P12,800 and below shall likewise be VAT-free. Residential units leased over P12,800 monthly
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