CHAPTER 9 INPUT VAT & 10 VAT STILL DUE + MISCELLANEOUS
REQUIREMENTS
True or False 1
True
1. Only VAT-registered taxpayers can claim input VAT.
True
2. There is no input VAT from purchases made from non-VAT-registered suppliers.
True
3. The total consideration pay by purchasers to VAT taxpayers includes the selling price
and the VAT.
False 4. Registrable persons can claim input VAT.
True
5.Those who cannot claim input VAT can deduct those input VAT as part of their cost or
expenses.
False 6. Input VAT can be claimed as a tax credit or a deduction at the option of the taxpayer.
True
7. The term creditable input VAT means input VAT deductible from output VAT.
False 8. Exempt persons who issue VAT invoices can claim input VAT.
False 9. Input VAT is computed as 12/112 of the selling price of the seller.
True
10. Input VAT may come from importation and domestic purchase.
True
11. The purchase of exempt goods and services has no input VAT/
True
12. If the VAT is not separately billed, it shall be computed as 12/112 of the selling price
in the sales document.
False 13. Input taxes on purchases for personal consumption are creditable against output
VAT.
True
14. Only input VAT for purchase of goods or services in the course of business is
creditable.
True
15. Input VAT needs to be evidenced by a VAT invoice or official receipt to be creditable.
True or False 2
False 1. The transitional input VAT is 2% of the vatable beginning inventory.
True
2. The input VAT on importation is creditable upon release of the goods from the
Customs custody.
False 3. The input VAT on domestic purchase of goods is deductible upon payment.
False 4. The input VAT on purchases of services is claimable in the month the services are
rendered not when paid.
True
5. Persons transitioning to the VAT system shall submit an inventory of goods.
True
6. The input VAT on the purchase of real properties may be paid in installment.
False 7.The input VAT on depreciable capital goods or properties must be amortized over a
period of 60 months.
False 8. The input VAT on depreciable capital goods or properties with aggregate acquisition
costs exceeding P1M must be amortized over a period of 60 months.
True
9. The input VAT on non-depreciable vehicles is disallowed as tax credit.
False 10. The presumptive input VAT is 4% of the agricultural and marine purchases.
False 11. Traders of sardines, mackerel, milk, and cooking oil can claim presumptive input
VAT.
False 12. The standard input VAT is 5% of sales to the government.
False 13. The standard input Vat is 7% of the purchases sold to the government.
True
14. There is a deductible expense when the actual input VAT exceeds the standard input
VAT on government sales.
True
15. There is a reduction in costs or expenses or an item of gross income when the
standard input VAT exceeds the actual input VAT on government sales.
True
16. The excess of the input VAT over the output VAT is referred to as input VAT carry-
over.
True
17. Input VAT carry-over is included as part of the creditable input VAT of the following
month.
True
18. The input VAT carry-over in a quarter is deductible in the following quarter.
False 19. The input VAT carry-over cannot be credited over a period of 3 years.
True
20. The input VAT carry-over in the second month of a quarter is creditable on the third
month of that quarter.
False 21. The Input VAT carry-over in the second month of a quarter is creditable on the third
month of that quarter.
Multiple Choice – Theory:
Part 1
1. Which is creditable?
D. Input VAT traceable to vatable sales
2.
Which is a likely source of a creditable input VAT?
C. Purchase of goods from aliens who are not engaged in business abroad
3.
Partial credit for input VAT is allowed on
A. Government sales
4.
Full input VAT credit is allowed on
D. A and B
5.
No input VAT credit is allowed on
C. Exempt sales
6.
Which of the following input VAT can be claimed as tax refund?
D. Input VAT traceable to export sales
7.
The input VAT on purchases of non-VAT-registered taxpayers shall be claimable as
B. Deduction against gross income for income tax purposes
8.
Who can claim the VAT on importation as tax credit?
C. An importer of goods for business use
9.
The traditional input VAT is whichever is the
B. Higher of 2% of beginning vatable inventory or the actual input VAT thereon.
10.
Which is included in the basis of the traditional input VAT?
C. Vatable goods only purchased from VAT or non-VAT suppliers
11.
Which is included in the VAT basis of the 2% transitional input VAT?
D. A and C
12.
Which of the following properties may be included in the basis of the 2% transitional input
VAT?
C. Land or building classified as inventory held for sale
13.
Which of the following input VAT may be amortized?
D. Input VAT on the purchase of depreciable property
14.
The amortization of input VAT on certain properties is allowed when the aggregate acquisition
costs
A. exceeds P1M.
15.
The input VAT on purchases of real properties may be claimed in installment if
A. the VAT seller is subject to VAT on the installment payments.
Multiple Choice – Theory: Part 2
1.
The amortization period for depreciable capital goods or properties shall be
B. whichever is shorter between the actual useful life in months or 60 months.
2.
Statement 1: The input VAT on non-depreciable vehicles shall be claimed to the month
purchased. Statement 2: The input VAT on construction in progress shall be claimed in the
month billing is paid.
Which is correct?
B. Statement 2
3.
The final withheld final VAT is
B. 5% of the sales made to government.
4.
Which of the following cannot claim presumptive input VAT?
B. Manufacturer of grease oil
5.
The presumptive input VAT is
D. 4% of primary agricultural input.
6.
The standard input VAT is equivalent to A. 7% of the sales made to government.
7.
The withheld final percentage tax is
B. 3% of the sales made to government.
8.
If the standard input VAT exceeds the actual input VAT traceable to
A. an item of gross income subject to income tax.
9.
Statement 1: VAT-registered persons do not pay VAT on zero-rated sales.
Statement 2: VAT-registered persons always pay VAT on government sales.
Which statement is correct?
C. Both statement
10.
Statement 1: The excess of the output VAT over creditable input VAT is paid to the
government. Statement 2: The excess of creditable input VAT over output VAT is claimed as
a tax credit or tax refund.
Which statement is incorrect?
B. Statement 2
11.
The excess of creditable input VAT over output VAT is
C. Input VAT carry-over
12.
Which of the following Input VAT carry-over is creditable against output VAT of the quarterly
VAT return?
C. Those arising from the prior quarter
13.
Which of the following is creditable against the input VAT of the quarterly VAT return?
D. All of these
MC Problem Part 1
1.
Andrew, a VAT-taxpayer, imported a golden necklace as a gift to his girlfriend. The foreign
seller billed a total price of 200,000. Andrew further paid 40,000 in other landed costs
excluding VAT. Andrew can claim an input VAT of
-
2.
P0
A VAT-taxpayer purchase services from a non-VAT-registered person in which he paid a
total of P56,000 on the purchase. The claimable input VAT shall be
– P0
3.
A VAT-Taxpayer imported vatable goods from a non-resident person who is not
engaged in trade or business. The goods which were intended to be re-sold in the
Philippines has a landed cost of 150,000. What is the claimable input VAT
– P18,000
4.
A non-VAT registered person purchased goods invoiced at P112,000 from a VAT –
registered person. The claimable input VAT shall be
– P0
5.
A VAT taxpayer incurred the following during the month: Consultancy fees P 700,000
Salaries expense 400,000 Supplies expense 300,000
– P162,000
6.
A Vat-registered purchaser received the following billing from a VAT-registered seller:
Selling price 200,000 Output VAT 20,000 Invoice price 220,000
- P23,571
7.
A VAT-taxpayer made the following purchases during the year: Purchases of goods,
exclusive of VAT P50,000 Purchase of goods, inclusive of VAT 44,800 Purchase of
services, exempt from VAT 10,000 Purchase of services, inclusive of VAT 23,520 Total
128,320 – P13,320
8.
Mr. Alarcon is a percentage taxpayer. He bought goods billed at an invoice price of 20,160
form a VAT – registered taxpayer. Mr. Alarcon sold the goods in the same month at a price
of 42,000. How much input VAT is claimable by Mr. Alarcon – P0
9.
A taxpayer who became subject to VAT on the third quarter of 2020 had the following input
VAT: August 2020 32,000 September 2020 40,000 October 2020 18,000 What is the
claimable input VAT for the third quarter of 2020? – P72,000
10.
Mr. Dontetsk, a VAT – taxpayer, purchased the following from a VAT- taxpayer: VATexempt goods 20,000 Vatable goods 40,000 Total invoice price 60,000 – P4,286
11.
Ms. Kibungan, a VAT – taxpayer, made the following purchases (net of VAT) of vatable
goods during the month: Purchase from non- VAT taxpayers 50,000 Purchases from VAT
taxpayers 250,000 Total 300,000 – P30,000
12.
A VAT-taxpayer received and paid the following billings for vatable goods purchased:
Purchase from non-VAT taxpayers P 50,000
-
13.
P26,786
A VAT taxpayer had the following transactions during a first calendar quarter of 2020:
a. Purchases of goods in January but were paid in February- 50,000
-
14.
Purchase of services rendered in January but was paid in February P80,000 - 6,000
What is the creditable input VAT in February 2020?
– P9,600
15.
What is the creditable input VAT for the 1st quarter of 2020?
– P45,600
16.
Mr. and Mrs. Sikorsky compiled the following input VAT during a month:
– P0; P20,000
17.
A VAT taxpayer had the following input VAT during the year: Input VAT on exempt sales
P204,000 – P324,000
MC Problem Part 2
1.
Dino Rado, opted to be registered as a VAT taxpayer effective the third quarter of 2020.
He had the following analysis of beginning inventory for the month of July 2020: Purchases
from non – VAT suppliers 210,000
– P4,600
2.
A taxpayer who is transitioning to the VAT system had the following inventories upon
exceeding the VAT threshold: Inventory of unprocessed agricultural food products 30,000
– P7,600
3.
Miss Beauty Fooled became the subject to VAT effective the month of September. She
had the following beginning inventory in September: Purchases from non-VAT suppliers
30,000 Purchases from VAT suppliers, exclusive of VAT 220,000
– P26,400
4.
The vatable sales of an agricultural supplier exceeded the VAT threshold. Prior to his VAT
– registration, an inventory of his goods was prepared below: Fertilizers 400,000
– P1,928.57
5.
A realty development company is commencing business. Because of the large scale of its
projected operations, it decided to register as a VAT taxpayer. It had the following
inventories of properties before commencement of operations: Raw land contributed by
shareholders 11,200,000 – P224,000
6.
A VAT registered taxpayer purchased equipment which is expected to last 10 years in
January 2020. The purchase price was 1,000,000, exclusive of 120,000 VAT. – P120,000;
P0
7.
In January 2020, a VAT taxpayer made the following purchases: Goods, exclusive of VAT
P800,000 – P180,000
8.
Popogiron Corporation purchased a commercial lot with an old warehouse in April 2020.
The lot and the building were separately priced by the seller as follows: Lot 1,000,000
– P192,000
9.
Master Pogi, a VAT -registered real property dealer, purchased a residential property as
his residence in February 2020. The purchase price was to be paid in 36 monthly
installments of 60,000 plus 7,200 VAT.– P0; P0
10.
A VAT-registered individual purchased the following from various suppliers in November
2020: Machineries 800,000 - P96,000
11.
In the preceding problem, what is the creditable input VAT in the December quarterly VAT
return – P3,200
12.
A VAT-registered corporation reports on a fiscal year. It made the following purchases of
depreciable capital goods in the quarter ending August 31, 2020 from VAT suppliers
– P2,650
13.
In the preceding problem, what is the creditable input VAT in July 2020 – P2,650
14.
In the preceding problem, what is the creditable input VAT for the quarter ending August
2020? – P79,950
15.
A VAT-registered individual purchased the following capital goods – P3,000
16.
In the preceding problem, what is the creditable input VAT in August 2020? – P5,750
17.
Still on the same problem, September 2020 – P14,500
18.
A VAT-taxpayer purchased a commercial lot payable in 10 monthly installments
– P24,000; P48,000
19.
Thor Corporation is reporting on a calendar year. Thor Corporation purchased the
following capital goods in the second quarter of 2020 – P2,400
20.
In the preceding problem, what is the creditable input VAT for May 2020 – P122,400
21.
In the preceding problem, what is the creditable input VAT for the quarter ended June 30,
2020 – P151,200
22.
Lupao Corporation purchased equipment at a cost of 2,000,000 in October of 2017
exclusive of a 240,000 input VAT. Lupao Corporation sold the equipment in May 2020.
The equipment was depreciated over a period of 8 years. What is the claimable input VAT
in May 2020? – P116,000
23.
In the immediately preceding problem, what is the claimable input VAT in the second
calendar – P120,000
24.
VPI Corporation contracted GLI Construction to build its building at a contract price of
100,000,000, exclusive of VAT. – March 1,344,000 – P120,000; P102,000
25.
In the immediately preceding problem, what is the creditable input VAT in the first quarter
– P366,000
MC Problems Part 3
1.
Sardinia, a sardines canning company, had the following purchases as inputs for its
manufacturing operations during the month: Tin cans, exclusive of VAT 80,000 – P6,000
2.
What is the total creditable input VAT of Sardinia for the month – P18,000
3.
A wholesale trader of canned sardines purchased 504,000 worth of sardines inclusive of
VAT from a sardine-canning company. What is the allowable presumptive input VAT? –
P0
4.
Sugarland Corporation is a processor of refined sugar. It purchased a total of 500,000
sugar cane for processing. It purchased other supplies at a cost of 80,000, exclusive of
VAT. What is the allowable presumptive input VAT? – P20,000
5.
A sugar refiner processes raw sugar of clients into refined sugar for a fee. During the
period it processed 10,200,000 worth of raw sugar into refined sugar and charged a
processing fee of 1,000,000. What is the allowable presumptive input VAT for the sugar
refiner? – P0
6.
Mr. Mantica is a VAT registered manufacturer of cooking oil. During a month, it made the
following purchases: Raw coconut (to be processed into copra) 300,000 – P30,000
7.
Nizzin manufacturers packed noodles from wheat flour. It purchased the following from
VAT suppliers during a production month: Wheat flour 200,000 What is the presumptive
input VAT? – P800
8.
Assuming the vatable purchases in the preceding problem were exclusive of VAT, what is
the total creditable input VAT?
– P34,400
9.
Misamis Company sold to the government goods it purchased for 400,000 for 550,000
Compute the standard input VAT.– P38,500
10.
In the immediately preceding problem, what is to be included in the calculation
– P9,500 loss or expense
11.
Abenson Builders won a government contract to build a bridge at a contract price of
80,000,000. During a month, it had the following expenditures in connection with the
contract: Construction supplies 2,500,000 – P300,000
12.
In the immediately preceding problem, what is the final withholding VAT – P200,000
13.
Still on the same problem, what is the standard input VAT – P280,000
14.
Still on the same problem, what is the treatment – P20 000 expense
15.
Mayon Corporation had the following summary of output and input VAT for the 1st quarter
and second quarter of 2020: Output VAT 200,000 What is the creditable input VAT carryover to be credited in May? – P60,000
16.
What is the creditable input VAT in April – P360,000
17.
What is the input VAT carry-over to be credited in June – P40,000
18.
A VAT taxpayer had the following data in a quarter: Input VAT carry-over, prior quarter
– P60,000
19.
Him Corporation had the following details of output VAT and input VAT in a month: Output
VAT 340,000 – P30,000
CHAPTER 10 VAT STILL DUE
True or False
FALSE 1. Traders who import wheat shall pay advanced VAT.
FALSE 2. The importation of sugar cane is subject to advanced input VAT.
TRUE 3. A manufacturer of refined sugar shall pay advanced VAT before pulling out the
refined sugar at the point of production.
TRUE 4. Millers who Imports wheat shall pay advanced VAT.
TRUE 5. The owner of naturally grown timber shall pay advanced VAT prior to its transport to
buyers
FALSE 6. Traders of refined sugar and flour shall pay advanced VAT.
TRUE 7. Millers of refined sugar and flour shall pay advanced VAT.
TRUE 8. A non-VAT registered person who transport naturally grown timber sale shall pay
advanced percentage tax In lieu of the VAT.
TRUE 9. Unclaimed advanced VAT may be claimed as tax credit
FALSE 10. Unutilized advanced VAT may be claimed as tax refund.
FALSE 11. Unutilized advanced VAT may only be claimed as tax credit certificate.
TRUE 12. Unutilized input VAT can be refunded upon termination of the business of the
taxpayer.
TRUE 13. A VAT overpayment may be carried over in the succeeding periods.
FALSE 14. Advanced VAT is an input VAT
FALSE 15. The quarterly VAT due of the taxpayer is paid within 20 days following the end of the
quarter,
MULTIPLE CHOICE
I. Which is not subject to payment of advanced Input
VAT? a. Milk
b. Refined sugar
C. Flour
d. Timber
2. Which is a correct statement regarding the advanced input VAT?
a.
The advanced input VAT is synonymous to the VAT on importation
b.
The advanced Input VAT is the final VAT due from the seller.
c. The advanced input vat is a down payment of the vat on the ultimate sale of refined sugar,
flour or
timber.
d. The advanced input vat in lieu of the actual input vat traceable to the sales of refined sugar,
flour or timber
Which of the following tax credit can be claimed through a tax credit
3.
certificate c. Input VAT on sales to the government (or D???)
Which of the following is not subject to the requirement to pay advanced
4.
VAT
a. Wheat traders
b.
Millers of flour
c.
Sugar refineries which process sugar for their own accounts
d.
Owners of harvested timber
5. Which of the following can be claimed as VAT refund?
a.
Input VAT on export sales
b.
Advanced Input VAT
c.
Input VAT on sales to the government
d.
A and B
6. Which is not a tax credit against net VAT payable?
a.
Advanced VAT
c. Standard input VAT
b.
Monthly VAT payments
d. Final withheld VAT
7. Which Industry is not subject to VAT?
a. Mining
c. Banking
L Construction
d. Air transport
8. Which is not a VAT compliance requirement?
a.
VAT Invoicing
b.
Transactional Recording
c.
Filing monthly summary list
d.
None of these
9. The summary list is required for
a.
Large tax payers
c Non .VAT taxpayers
b.
Non large taxpayers
d. All VAT taxpayers
10. What is the effectivity of the request for cancellation of VAT registration?
a.
On the day of the request is approved
b.
On the day following the date the request was approved
c.
On the month following the month the cancellation was approved
d.
On the quarter following the quarter when the cancellation was approved
Multiple choice- Problems PART 1
1.
Sabina Flour Milling (SFM) Corporation imports and mills wheat.
B. 288,000
2.
Sugar Nanny Corporation (SNC) buys sugar cane from farmers and processes
D. 336,000
3.
In the immediately preceding problem, what is the total credit
4.
A VAT Taxpayer had the following data on its VAT obligation on the last quarter of the
year:
5.
C. 456,000 or ( B. ???)
B. 40,000
Mr. Esperon, a VAT taxpayer, recorded the following during the month.
A.
84,000
6.
Ms. Chelsea had the following transactions in June 2019
7.
The following gross receipts and input VAT relate to a non profit and non stock
B.
8.
116,000 or B???
A seller of goods reported the following in the month:
C.
9.
D. 18,000
24,000
The net income of AKLAN Trading Company during the quarter is as follows.
C. 30,600
10.
ABC Construction Company started work on a 5,6000,000 fixed price construction
contract.
11.
C. 213,600
A VAT registered seller of goods had the following sales and purchases exclusive of VAT:
D. 26,400
12.
Mrs.Baniaga, A fruit and vegetable dealer, had the following sales and purchases.
A. 0
13.
A VAT registered traded reported the following during the month
A. 24,000
14.
A domestic seller and exporter had the following summary of trading activities in the
quarter:
C. 60,000
MC- Problem Part 2
1.A realty dealer disposed two residential units during the month.
Unit 141-B
2,500,000
Unit 142-C
Total sales, Exclusive of VAT
Total input Vat During the month
Compute the VAT payable.
210,000
C. 297,500
2.
A vat registered restaurant had the following transaction during the month:
Receipt from foods served
600,000
Receipts from soft drink
200,000
Purchase of rice,meat and vegetable
200,000
Purchase of vegetable
100,000
Purchase of soft drink
120,000
Purchase of food condiments
80,000
Assuming all amounts are exclusive of VAT, compute the vat Payable
D.
3.
72,000
A Vat-registered tax practitioner who uses the cash basis of accounting disclosed the ff results
of operation (exclusive of Vat)
d. 654,000
4.
A manufacturing subcontractor generated the ff receipt from various clients.
Compute the VAT payable
D.
5.
0
DZQC, a radio broadcasting company with 8M annual receipt, generated a total revenue of
1M out f which of 800,000 was collected.
A. O
6.
A Vat- taxpayer had the following data during the month. Regular sale 3M export sale 1.5 M
input vat o reg sale 240k input vat on export sale 100k. compute the VAT payable
B.
B.
B.100,000
7.
An insurer had the ff receipt and input Vat data during the month. Compute the VAT payable.
D.
8.
195,000
A lessor of commercial spaces had the ff receipts and input VAT data for the month. Compute
for VATPayable
B. 270,000
9.
a domestic airliner had the following transaction during the month
B. 192,000
10.
A seller of goods had the ff. sale
C. 48,800
Chapter !0- MC Probs Part 3
1.
Denzi company bought a building
-
2.
B. 64, 000
A VAT- registered bus company has the following receipts on January 2020:
What is the VAT Payable for January
-
3.
B. 27, 400
A domestic sea carrier has the following receipts and attributable input VAT for the month:
What is the VAT payable:
-
4.
C 24, 000
A VAT registered television company with annual receipts of P8M reported P 1M total revenue
What is the VAT payable:
-C. 68, 5715
5.
A bookstore had the following summary of transaction during the month:
What is VAT payable?
-C. 78, 120
6.
Danes Bakeshop had the following details of operations during the month:
Compute the VAT payable.
-D. 180, 000
7. Sweet Papa Corporation is a VAT- registered sugar refiner.
What is the VAT payable?
-D. 32, 000
8. Baguio General Hospital has the following receipts and input VAT:
Compute the VAT payable.
-B. 360, 000
9. A VAT –registered professional review school has the following receipts during the month:
Compute the VAT payable.
-C. 92, 000
10. Cordon College had the following receipts and input VAT payments:
Compute the VAT payable.
-A. 0
11. Polaris Company, a VAT seller, has the following sales and purchases
Compute the VAT payable.
-A. 71, 000
12. A VAT taxpayer made the following sales:
Compute the VAT payable:
-C. 56, 500