MULTIPLE CHOICE – PROBLEMS: PART 1
1. A non-VAT taxpayer sold goods for P20,000. Half of which is paid by the buyer
who gave a promissory note for the balance. The output VAT is
a. P 0
b. P 1,200
c. P 2,400
d. P 4,800
2. A VAT-taxpayer sold goods for P40,000 which excludes a P 1,000 delivery
charge and VAT. The buyer paid P 30,000 downpayment and promised to pay
the P11,000 balance plus the VAT in 30 days.
What is the output VAT?
a. P 4,920
b. P 4,800
c. P 3,600
d. P 0
3. A VAT-taxpayer complied the following for the purpose of filing his BIR Form
2550M:
Sales to VAT taxpayers
Sales to non-VAT taxpayers
TOTAL
What is the output VAT?
a.
b.
c.
d.
P
P
P
P
P 200,000
150,000
P350,000
0
18,000
24,000
42,000
4. A VAT-registered car dealer sold the following goods to a relative
Selling Price
P 300,000
Fair market value
500,000
What is the output VAT?
a. P 0
b. P 36,000
c. P 42,000
d. P 60,000
5. A VAT-registered realty dealer sold a parking lot at the following terms:
Zonal value (fair value)
Less: 10% discount
Selling price
Compute the output VAT.
a. P 0
b. P 168,000
c. P 216,000
P 2,000,000
200,000
P 1,800,000
d. P 240,000
6. A VAT-registered seller sold various merchandise at wholesale price exclusive
of VAT:
Product total retail price
Less: Trade discount (10%)
Product wholesale price
Less: Cash discount (5%)*
NET PRICE DUE IN 15 DAYS
P 300,000
30,000
P 270,000
13,500
P 256,500
*If the customer pays in 15 days
What is the output VAT?
a. P 0
b. P 30,780
c. P 32,400
d. P 36,000
7. A non-VAT taxpayer prepared the summary of sales for the purpose of filling
his BIR Form 2551M:
Sales to VAT-taxpayers
P 200,000
Sales to non-VAT taxpayers
150,000
TOTAL
350,000
Compute the output VAT.
a. P 0
b. P 18,000
c. P 24,000
d. P 42,000
8. Mr. Venta is a VAT-registered seller of “Hot Siopao”. During the month, it sold
a total of P400,000 out of which P300,000 were paid by customers. During
the month he made a total collection of P420,000 inclusive of collection of
past accounts.
Compute the output VAT.
a. P 50,400
b. P 48,000
c. P 36,000
d. P 0
9. A VAT-registered practicing lawyer disclosed the following during the month:
Total professional fees billed
Total professional fees collected
Advances by certain clients
Compute the output VAT.
a. P 120,000
b. P 96,000
c. P 72,000
P 800,000
600,000
200,000
d. P 0
10.A VAT-service provider prepared the following lists of cash collections during
the month:
Gross receipts inclusive of VAT
Client advances
Proceeds of bank loan
TOTAL
Compute the output VAT.
a. P 54,000
b. P 78,000
c. P 84,800
d. P 108,643
P 504,000
200,000
300,000
P 1,014,000
MULTIPLE CHOICE – PROBLEMS: PART 2
1. A VAT-seller of goods billed the following to a customer:
List price
P 800,000
Trade discount
125,000
NET PRICE
P 675,000
The credit term for the sale was 2%/15, n 60 days.
What is the output VAT?
a. P 96,000
b. P 81,000
c. P 79,380
d. P 70,875
2. A VAT-seller of goods reported the following during the month:
Gross sales
Less:
Cash discount for early
P 50,000
payment
Sales returns
20,000
Net sales
What is the output VAT for the month?
a. P 51,600
b. P 54,000
c. P 57,600
d. P 60,000
P 500,000
70,000
P 430,000
3. A restaurant which also caters for special events had the following data which
may be relevant in filing its BIR Form 2550M:
Gross receipts from customers
P 500,000
Gross receipts from advanced
50,000
reservations
Client balances evidenced by
70,000
promissory note
TOTAL
P 620,000
Compute the output VAT.
a. P 60,000
b. P 66,000
c. P 68,400
d. P 74,400
4. A VAT-seller merely indicated an amount of P300,000 on a bill without
separately indicating the VAT thereon.
What is the output VAT?
a. P 0
b. P 32,143
c. P 36,000
d. P 40,000
5. A VAT-seller indicate the following in a VAT invoice evidencing the sale of
vegetables:
Selling price
P 5,000
Output VAT
600
Total amount due
P 5,600
What is the output VAT?
a. P 0
b. P 600
c. P 6,520
d. P 6,720
6. IN the immediately preceding problem, compute the output VAT assuming the
sale is made by a non-VAT seller.
a. P 0
b. P 600
c. P 6,520
d. P 6,720
7. A VAT taxpayer had the following invoiced sales during the first quarter of
2015:
January
P 280,000
February
347,200
March
313,600
What is the reportable output VAT in January, February and March,
respectively?
a. P 33,600; P 41,664; P 37,632
b. P 33,600; P 41,664; P 112,896
c. P 30,000; P 37,200; P 33,600
d. P 30,000; P 37,200; P 100,800
8. A real property dealer sold an agricultural lot for P2,500,00 with the following
values:
Appraisal value
P 3,000,000
Zonal value
2,000,000
Assessed value
1,500,000
Compute the output VAT.
a. P 180,000
b. P 240,000
c. P 300,000
d. P 360,000
9. A VAT-registered building contractor who reports under the calendar year
basis had the following billings and collections (inclusive of VAT) regarding its
construction contracts:
BILL
COLLECTION
June
P 448,000
P 403,200
July
504,000
453,600
August
336,000
302,400
What is the output Vat in June and July?
a. P 53,760; P 114,240
b. P 48,000; P54,000
c. P 43,200; P 91,800
d. P 43,200; P 48,600
10.In the immediately preceding problem, what is the output VAT in August?
a. P 138,000
b. P 124,200
c. P 36,000
d. P 32,400
MULTIPLE CHOICE – PROBLEMS: PART 3
1. In June 2014, a realty dealer sold a residential lot for P2,000,000. The lot had
a fair value of P2,500,000 at the date of sale. The buyer agreed to pay in P
100,000 monthly instalment June 2014.
What is the output VAT in June 2014 and July 2014, respectively?
a. P 300,000; P 0
b. P 240,000; P 0
c. P 15,000; P 15,000
d. P 12,000; P 12,000
2. On April 2015, a VAT-registered realty developer sold a condominium unit at a
selling price of P3,600,000. The buyer agreed to pay in 36 monthly
instalments. The property had a zonal value of P4,000,000 and assessed
value of P3,000,000 at the date of sale.
What is the output VAT on every installment?
a. P 13,333
b. P 12,000
c. P 10,000
d. P 0
3. A VAT-registered realtor sold a commercial building at a selling price of
P20,000,000 payable over 20 monthly instalment of P1,000,000. A sample
monthly bill of the realtor depicts the following:
Installment due
P 1,000,000
Plus: Output VAT
144,000
Invoice price
P 1,144,000
What is the fair value of the property sold?
a. P 20,000,000
b. P 22,000,000
c. P 24,000,000
d. P 30,000,000
4. A realtor sold a commercial land for P 1,500,000 on November 2014. 20%
downpayment was required and the balance was due on 20 monthly
instalment of P60,000 starting December 2014.
What is the output VAT for November and the quarter ending December
2014?
a. P 180,000; P 180,000
b. P 36,000; P 43,200
c. P 36,000; P 7,200
d. P 180,000; P 0
5. A real property developer exchanged one of its land inventory with a zonal
value of P 2,000,000 and assessed value of P 1,500,000 for the stocks of
another corporation.
What is the output VAT on the exchange?
a. P 0
b. P 180,000
c. P 214,286
d. P 240,000
6. A VAT-registered seller of goods reported the following in a month:
Cash sales
P 200,000
Credit sales
300,000
Installment sales
400,000
Consignment sales (30 days old)
100,000
TOTAL
P 1,000,000
Compute the output VAT.
a. P 24 000
b. P 60 000
c. P 72 000
d. P 108 000
7. A VAT-registered seller received the following statements from its consignees:
Gross price
P 500 000
Less:
Commission (20%)
100 000
Freight charger
20 000
NET REMITTANCE
P 380 000
What should be the output VAT in the sales?
a. P 44 000
b. P 45 600
c. P 57 600
d. P 60 000
8. A VAT-seller had the following summaries of sales and consignment in a April:
Cash sales
P 200 000
Credit sales
150 000
Sales reported by consignees
250 000
Unsold January consignment
50 000
Unsold February consignment
30 000
Unsold March consignment
40 000
Unsold April consignment
65 000
Assuming that the rules on deemed sale was properly applied in prior
months, what is the output VAT for April?
a. P 42 000
b. P 75 600
c. P 78 000
d. P 81 600
9. Delfin Corporation, a security dealer, declared the following dividends in
March 2015:
Cash dividend
P 1 200 000
Property dividend
800 000
The property dividend represents various merchandise inventories.
Compute the output VAT.
a. P 0
b. P 96 000
c. P 144 000
d. P 240 000
10.After consecutive year of persistent losses, Luigi Corporation decided to
liquidate its business. It has the following items in its possession upon
termination of operations:
Book Value
Fair Value
Receivables
P 1 200 000
P 1 200 000
Investments
200 000
400 000
Inventories
600 000
700 000
Properties and equipment
1 200 000
800 000
Compute the output VAT on the deemed sale transaction.
a. P 0
b. P 168 000
c. P 216 000
d. P 240 000
MULTIPLE CHOICE – PROBLEMS: PART 4
1. Mr. Yaobang is a VAT-registered professional. He also owns a hotel and a
professional practice. He instructed his accounting staff to indicate in
hotel receipts as zero-rated.
During the month, he had the following receipts from its business and
exercise of profession:
Gross receipts from profession
P 1 000 000
Gross receipts from hotel
800 000
TOTAL
P 1 800 000
Compute the output VAT.
a. P 0
b. P 96 000
c. P 120 000
d. P 216 000
2. Mang Juan applied for the cancellation of his VAT registration. His
application was granted by the BIR. At that time, he had the following
inventories of vatable goods:
Supplies, bought from non-VAT suppliers
P 50 000
Supplies, bought from VAT suppliers
80 000
Merchandise, bought from VAT suppliers
100 000
Merchandise, bought from non-VAT
20 000
suppliers
TOTAL
250 000
Compute the output VAT on the deemed sales.
a. P 0
b. P 8 400
c. P 21 600
d. P 30 000
3. A VAT-registered farm supply dealer sold the following during a month:
Fertilizers
P 200 000
Corn seeds
250 000
Farm equipment
1 200 000
Pesticides
300 000
TOTAL
P 1 950 000
What is the output VAT?
a. P 234 000
b. P 204 000
c. P 180 000
d. P 144 000
4. A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books
Sales of books held as inventory
Sales of school supplies
TOTAL
Compute the output VAT.
P 300 000
400 000
900 000
1 600 000
a. P 192 000
b. P 156 000
c. P 144 000
d. P 108 000
5. A VAT taxpayer made the following sales during the quarter:
Domestic sales:
Sales of VAT-exempt goods
P 1 200 000
Sales of vatable goods
900 000
Export sales
800 000
What is the output VAT?
a. P 348 000
b. P 252 000
c. P 204 000
d. P 108 000
6. Oval corporation owns a coliseum which caters to large indoor events. The
coliseum had the following receipts during a month:
SOURCE OF GROSS RECEIPTS
AMOUNT
Professional basketball games
P 400 000
Professional boxing competitions
500 000
Amateur basketball games
100 000
Amateur boxing competitions
150 000
Musical concerts
250 000
Religious gatherings
50 000
Other special events or gatherings
120 000
TOTAL
P1570 000
What is the output VAT?
a. P 188 400
b. P 168 214
c. P 80 400
d. P 71 786
7. King Bank presented the following gross receipts during the quarter:
Interest income-short term loans
P 4 000 000
Interest income-long term loans
1 200 000
Rental of ROPA
800 000
Processing fees
200 000
TOTAL
P 6 200 000
Compute the output VAT.
a. P 0
b. P 107 143
c. P 120 000
d. P 744 000
8. Phil-Air is a domestic air carrier with both domestic and international
operations. During a month, it had the following gross receipts.
Domestic operations
Transport of passengers
P 40 000 000
Transport of cargoes
12 000 000
International operations
Transport of passengers
P 30 000 000
Transport of cargoes
8 000 000
Compute the output VAT.
a. P 1 440 000
b. P 4 800 000
c. P 6 240 000
d. P 10 800 000
9. Cebu Ferries has a fleet of ship traversing the island of Bohol and Cebu. It
reported the following total receipts during a month:
Transport of passengers
P 8 000 000
Transport of cargoes and baggage
1 000 000
TOTAL
P 9 000 000
Compute the output VAT.
a. P 0
b. P 120 000
c. P 960 000
d. P 1 080 000
10.Victor Lines is a VAT-registered operator of buses. During the month, it had
the following total receipts:
Transport of passengers
P14 000 000
Transport of cargoes and baggage
1 000 000
TOTAL
P 15 000 000
Compute the output VAT.
a. P 0
b. P 120 000
c. P 1 680 000
d. P 1 800 000
11.Mr. Asuncion is a non-VAT registered operator of 40 taxis. During a month,
he collected a total receipts of P 1 300 000 under the “boundary” system.
Compute the output VAT.
a. P 0
b. P 278 572
c. P 312 000
d. P 321 000
12.A non-VAT registered radio broadcasting company collected a total of P
800 000 during a month. Compute the output VAT.
a. P 0
b. P 48 000
c. P 85 714
d. P 96 000
13.A VAT registered real property dealer sold the following during a quarter:
House and Lot – 2B-A
House and Lot – 2B-D
House and Lot – 2C-E
P 2 000 000
3 000 000
4 000 000
Residential Lot – 1A
1 000 000
Residential Lot – 2B
2 000 000
TOTAL SALES
P 12 000 000
Compute the total output VAT.
a. P 0
b. P 720 000
c. P 1 080 000
d. P 1 320 000
14.A VAT-registered dealer sold two residential units to the same buyer with
the following separate prices:
House and Lot – 1C-A
P 1 500 000
House and Lot – 1C-B
2 000 000
What is the output VAT?
a. P 0
b. P 180 000
c. P 240 000
d. P 420 000
15.A VAT-registered realty dealer sold the following adjacent residential lots
to the same buyer. The separate deed of sale had the following respective
prices:
Residential Lot – 2A
P 800 000
Residential Lot – 2B
900 000
What is the output VAT?
a. P 0
b. P 96 000
c. P 108 000
d. P 204 000
16.An insurance company had the following gross receipts during a month:
Cash collections from life premiums
Notes receivable for life premiums
Cash collections for non-life premiums
Note receivable for non-life premiums
What is the output VAT?
a. P 0
b. P 360 000
c. P 180 000
d. P 132 000
ANSWER KEY
T or F (1)
1. T
2. F
3. F
P 1 800 000
200 000
1 100 000
300 000
4. F
5. T
6. F
7. T
8. F
9. F
10.T
11.F
12.T
13.F
14.T
15.F
16.F
17.F
18.F
19.T
20.F
T or F 2
1. T
2. T
3. T
4. T
5. T
6. F
7. F
8. F
9. F
10.F
11.T
12.T
13.T
14.T
15.T
16.T
17.F
18.F
19.T
20.F
Multiple choice – Theory: Part 1
1. B
2. A
3. C
4. D
5. C
6. A
7. C
8. B
9. B
10.C
11.D
12.C
13.D
14.B
15.C
Multiple choice – Theory: Part 2
1. D
2. B
3. C
4. C
5. C
6. C
7. C
8. D
9. D
10.C
11.A
12.A
13.A
14.A
15.A
Multiple choice – Problems: Part 1
1. A
2. A
3. D
4. D
5. D
6. C
7. A
8. B
9. B
10.B
Multiple choice – Problems: Part 2
1. B
2. C
3. B
4. B
5. B
6. B
7. D
8. C
9. D
10.D
Multiple choice – Problems: Part 3
1. A
2. A
3. C
4. D
5. D
6. D
7. D
8. B
9. B
10.B
Multiple choice – Problems: Part 4
1. D
2. D
3. C
4. C
5. D
6. C
7. A
8. C
9. D
10.B
11.A
12.A
13.B
14.D
15.A
16.D