REVENUE REGULATIONS 12-2012 – Purchase of VehiclesThe Bureau of Internal Revenue (BIR) has issued Revenue Regulation No. 12-2012 dated October 12, 2012, providing for the limits/rules/guidelines on the deductibility of depreciation expenses relating to purchase of vehicles and other related expenses as well as the input taxes allowed therefore.Guidelines to claim depreciation as a deduction in the gross income:1. Only one vehicle for land transport is allowed for the use of an official or employee;2. The value of which should not exceed P 2,400,000; 3. It must be substantiated with sufficient evidence, such as official receipts or other adequate records; and4. There is a direct connection or relation of the Vehicle to the development, management, operation, and/or conduct of the trade or business or profession of the taxpayer.Generally, no deduction in the gross income shall be allowed for depreciation of the following:1. Yachts, helicopters, airplanes and/or aircrafts; and2. Land vehicles with a value of more than P 2,400,000. Exception: the taxpayer is in the business of transport operations, or lease of transportation equipment and the vehicles purchased are used in said operations. In addition, the following shall be disallowed as deduction in the gross income:1. All maintenance expenses on account of non-depreciable Vehicles; and2. Input taxes on the purchase of non-depreciable Vehicles and all input taxes on maintenance expenses.REVENUE REGULATIONS 13-2012– VAT treatment on Sale of Adjacent Residential Lots, House & Lots or other residential dwellingsRevenue Regulations (RR) No. 13-2012 is an amendment to RR No. 16-2005 with respect to VAT treatment on sale of real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business of the seller.Under RR 13-2012, a sale, transfer or disposal of two or more adjacent residential lots, house and lots or other residential dwellings within the 12-month period in favor of one buyer, shall be presumed as a single or one sale of real property. It is subject to VAT if the aggregate value of the adjacent properties sold exceeds P1,919,500.00 for residential lots and P3,199,200.00 for residential house and lots or other dwellings. The sale of parking lot, which may or may not be included in sale of condominium units, is a separate and distinct transaction not covered by the rules on residential exemption threshold, this being not a residential lot, house & lot or a residential dwelling. Thus, it shall be subject to VAT regardless of amount of selling price.