CHAPTER 2- VALUE ADDED TAX ON IMPORTATION
Multiple Choice: Theory- Agricultural or marine food products: Part 1
1. Which agricultural product is VAT exempt on importation?
a.
Charcoal
b.
Wood
c.
Lumber
d.
Corn
2. Which importation is subject to VAT?
a. Importation from abroad.
b. Purchase of goods from economic zones in the Philippines
c. Both A and B
d. Neither A nor B
3. Which is not subject to VAT on importation?
a. Importation of goods for personal use.
b. Importation of goods fro business use.
c. Purchase of goods from Ecozone entities.
d. Purchase of goods from other domestic sellers.
4. Which of the following is subject to VAT on importation when imported?
a. Books
b. Table sugar
c. Mushroom
d. Ordinary salt
5. Which is non-food agricultural product is exempt from VAT on importation?
a. Chicken manure
b. Eggs
c. Live hogs
d. Cattle
6. Which of the following is not exempt from VAT?
a. Grapes
b. Orange
c. Orchids
d. Kiwi fruit
7. Which seeding is vatable?
a. Grafted mango seedlings
b. Pomelo seedlings
c. Narra seedlings
d. Guava seedlings
8. Which agricultural produce is exempt from VAT?
a. Rubber hem
b. Abaca hem
c. Copra
d. Firewood
9. Which is vatable?
a. Bamboo shoots
b. Banana hearts
c. Banana fruits
d. Bamboo poles
10. Which is VAT exempt?
a. Cotton soft wood
b. Cotton seeds
c. Cotton wool
d. None of these
11. Which is taxable to value added tax?
a. Sheep
b. Sheep wool
c. Cut sheep meat
d. All of these
12. Which is VAT exempt?
a. Coconut lumber
b. Coconut broom sticks
c. Coconut shells
d. Coconut meat
13. Which is subject to VAT on importation?
a. Wheat
b. Coffee bean
c. Barley
d. Cocoa
14. Which agricultural product is subject to VAT?
a. Honey
b. Rattan cane
c. Sugar cane
d. Sugar beets
15. Which is subject to VAT on importation?
a. Cocoon silk
b. Pineapple silk
c. Furniture
d. All of these
16. Seedlings of this tree are exempt form VAT on importation?
a. Rubber tree
b. Paper tree
c. Palm oil tree
d. Mahogany tree
17. The importation of which of the following is subject to VAT?
a. Rubber
b. Corn
c. Cacao
d. Peanut
18. Feeds of the following animals are considered as specialty feeds, except for
a. Zoo animals
b. Aquarium fish
c. Livestock
d. Fighting cocks
19. Which of the seeds is non-VAT exempt?
a. Corn seeds
b. Mustard seeds
c. Flower seeds
d. Cabbage seeds
20. Which of the following feeds is subject to VAT on importation?
a. Formulated horse feeds
b. Corn grits
c. Swine feeds
d. Broiler feeds
Multiple Choice: Theory- Agricultural or marine food products: Part 2
1. Which is VAT exempt?
a. Peacock feathers
b. Eggs
c. Hamster
d. Leather
2. Which is vatable on importation?
a. Tea leaves
b. Tobacco leaves
c. Cayenne pepper
d. Chinese cabbage
3. Which of these is VAT exempt on importation?
a. Almonds
b. Blueberries
c. Ginseng roots
d. All of these
4. Which is not exempt from VAT?
a. Sunflower seeds
b. Bees wax
c. Peanut
d. None of these
5. Which is not generally considered as pet under the regulation?
a. Rabbit
b. Zoo animals
c. Race horse
d. Fighting cocks
6. Which of these is non-vatable?
a. Love birds
b. Parrots
c. Goldfish
d. Milkfish
7. Which is not a VAT-exempt poultry?
a. Ducks
b. Geese
c. Turkeys
d. Game fowl roosters
8. Which of these animals is vatable when imported?
a. Cow
b. Rabbit
c. Goat
d. Race horse
9. Which is a vatable agricultural input?
a. Fertilizer
b. Pesticides
c. Seeds
d. Seedlings
10. The following are generally considered as pets hence vatable when imported except for
a. Janitor fish
b. Goldfish
c. Catfish
d. Koi fish
11. Which of these is taxable with VAT on importation?
a. Yellowfin tuna
b. Pink salmon
c. Blue marlin
d. Butterfly fish
12. Which of the following seafood is considered as vegetable; hence, VAT-exempt?
a. Kelp
b. Sea lettuce
c. Sea grapes
d. All of these
13. Which of these is vatable?
a. Sea shells
b. Octopus
c. Squid
d. Shrimps
14. Examples of mollusk and shellfish:
A. Crabs
B. Oysters
C. Lobsters
Which of these is subject to VAT on importation?
a. A and D
b. B and C
c. All of these
D. Clams
d. None of these
15. Which of these agricultural products is not considered as in its original state?
a. Kopra
b. Muscovado sugar
c. Refined sugar
d. Ordinary salt
16. By revenue regulation, which of the items below is not considered original state?
a. Marinated fish
b. Dried fish
c. Frozen meat
d. Smoked fish
17. Which product is non-taxable with VAT on importation?
a. Fresh cow milk
b. Olive oil
c. Butter
d. Parmesan cheese
18. Which of the items below is taxable with VAT?
a. Shrink-wrapped meat
b. Vacuum-packed vegetables
c. Tetra-packed fresh fruit juice
d. Canned fruits
19. Which is not considered as simple processing?
a. Freezing
b. Stripping
c. Broiling
d. Marinating
20. The following advanced technological means of packaging is deemed not to alter the nature of an
agricultural marine food products being in original state. Which is the exception?
a. Canning
b. Vacuum-packing
c. Plastic shrink wrapping
d. Tetra-packing
Multiple Choice: Theory- Other exempt importation
1. Which is not exempt from VAT on importation?
a. Importation of books
b. Importation of school supplies
c. Importation of magazines
d. All of these
2. Which importation is not VAT-exempt?
a. Importation of personal and household effects of residents coming to resettle in the
Philippines
b.
Importation of personal and household effects of foreigners coming to settle
permanently in the Philippines
c.
Importation of personal and household effects which are subject to custom duties
d. All of these
3. The importation of professional instruments and implements may be subject to VAT when the
a. Volume is not in commercial quantity.
b. Goods accompany the person or arrive within 30 days before and after his arrival.
c. Importation involves vehicles and machineries.
d. All of these
4. Which importation is exempt from VAT?
a. Importation of books by a school
b. Importation of books by a student
c. Importation of books by a bookstore
d. All of these
5. The importation of which transport medium is exempt from VAT?
a. Sea
b. Air
c. Land
d. A and B
6. Examples of Transport vehicles:
a. Bus
b. Cars
c. Vessels
d. Aircraft
Which of these is not exempt from VAT when imported?
a. C and D
b. A and B
c. All of these
d. None of these
7. Which importer is exempt from VAT in importation of fuel, goods and supplies?
a. Domestic carriers
b. International carriers
c. Domestic carriers on their international operations
d. Either B and C
8. Which of the following items is subject to VAT on importation to an individual who is intending to settle
in the Philippines?
a. Vehicles
b. Professional instruments
c. Household effects
d. Personal effects
9. The importation of fuel, goods and supplies is not exempt from VAT when used in
a. Domestic operation
b. International shipping operations
c. Household effects
d. Personal effects
10. Which is vatable?
a. Importation of life saving equipment
b. Importation of safety or rescue equipment
c. International transport operations
d. Any of these
11. The importation of vessel or aircraft for domestic operations is
a. Vatable.
b. Always VAT exempt.
c. VAT exempt if the importer complies with maximum service life set by law.
d. Vatable if the importer complies with maximum sevice life set by law.
12. The importation of fuels, goods and supplies for domestic shipping or air transport operation is
a. Vatable.
b. Always VAT exempt.
c. Vatable if the importer is a domestic carrier.
d. Exempt if the importer is a domestic carrier.
13. The importation of farm machineries and equipment is exempt when imported by
a. A member of the cooperative
b. A trader engaged in business.
c. An agricultural cooperative.
d. A or C
14. Who has the burden of proving exemption from VAT on importation?
a. The government
b. The importer-buyer
c. The seller
d. Both A and C
15. Which is a qualified exempt importation?
a. Importation of a cooperative of farm equipment
b. Importation by a cooperative of rice
c. Importation of books
d. Importation of marine food products
16. Which is not a qualified exempt importation?
a. Importation of fuels or supplies by a person engaged in domestic transport operations
b. Importation of fuels or supplies by an international carrier
c. Importation of cargo vessels and aircraft by those engaged in international transport
operations
17. Which of these is non-vatable?
a. Purchase of services from a foreign service provider who is not engaged in business
b. Purchase of goods from a foreign service provider who is engaged in business abroad
c. Purchase of goods from economic zone enterprises
d. None of these
18. Who shall pay the VAT on importation when a VAT on importation when a VAT-exempt entity
subsequently sells an imported article or goods to a non-exempt entity?
a. The exempt buyer
b. The non-exempt buyer
c. Both A and C
d. Neither A nor C
19. Importation is not subject to VAT when
a. Made by a VAT-registered business
b. Made by a non-VAT-registered business
c. It involves exempt goods
d. Coursed through an exempt importer
20. Which is not included in landed cost?
a. Dutiable value
b. Custom's duty
c. Excise tax
d. VAT
21. Which is not included in the landed cost?
a. Purchase price
b. All incident cost of bringing the goods to the customs warehouse
c. Taxes other than VAT paid prior to the withdrawal of the goods
d. Cost of transporting the goods from customs warehouse the importer's warehouse or
residence
Multiple Choice- Problem 1
1. Oceanizers, Inc. Purchased the following from abroad:
Sea shells and coral decors
P320,000
Tuna and salmon
P120,000
Total
P440,000
What is amount of taxable importation?
a.
P0
b.
P120,000
c.
P200,000
d.
P320,000
2. Mr. A imported various personal and household effects with a value aggregating P400,000. P320,000 of
these was subjected to an 8% customs duty by the BOC. What is the VAT on importation?
a. P0
b. P41,472
c. P42,240
d. P48,000
3. A bookstore company imported the following items:
Landed Cost
Books
P 350,000
Professional instruments
200,000
School Supplies
350,000
Total
P 900,000
What is the total VAT on importation?
a. P 0
b. P 66,000
c. P 72,000
d. P 108,000
4. Mr. C, a VAT- registered food retailer, imported the following from China:
Landed Cost
Fruits
P 250,000
Vegetables
180,000
Frozen meat
50,000
Marinated milkfish
100,000
Total
580,000
Compute the VAT on importation.
a. P 0
c. P 51,600
b. P 12,000
d. P 69,600
5. Alexis furnitures, a percentage taxpayer, imported the following household equipment:
Landed costs
Machineries, for business use
P 1,150,000
Heating system, for home use
250,000
Total
1,400,000
Compute the VAT on importation.
a. P 0
b. P 27,000
c. P 150,000
d. P 168,000
6. Danes AgriCorp imported the following:
Landed Costs
Seeds
P 400,000
Fertilizers
750,000
Farming equipment
450,000
Herbicides and Pesticides
250,000
Total
P1,850,000
Compute the VAT on importation.
a. P 0
b. P 42,000
c. P 72,000
d. P 84,000
7. Home Appliance Company imported the following for personal use:
Furniture
P 600,000
Rattan
250,000
Lumber
450,000
Compute the VAT on importation.
a. P 30,000
c. P 156,000
b. P 72,000
d. P 204,000
8. Mr. Huligan imported rice from Vietnam. Details of his importation show the following:
Total invoice value
P 1,000,000
Freight and insurance in transit
P 350,000
BOC and other charges
P 300,000
Compute the VAT on importation.
a. P 0
c. P 126,000
b. P 120,000
d. P 128,400
9. An agricultural supply dealer imported the following:
Corn grits
P 200,000
Hog feeds
P 350,000
Specialty feeds
P 300,000
Compute the VAT on importation
a. P 0
c. P 42,000
b. P 36,000
d. P 102,000
10. The following data relates to the importation of cigarettes by Mr. Shinto:
Total invoice value
P 1,000,000
BOC charges
P 300,000
Customs duties
P200,000
Excise taxes
P300,000
Compute the VAT on importation.
a. P 120,000
c. P 180,000
b. P 156,000
d. P 216,000
Multiple Choice: Problems 2
1. Don Pepito imported a harvester from the United States with a total cost of
P 1,100,000 before
Customs duties. The importation is subject to 10% Customs duties. What is the VAT on importation?
a.
P 158,400
c.
P 129,600
b.
P 145,200
d.
P0
2. In the immediately preceding problem, assuming that the importation is made by an agricultural
cooperative. What is the VAT on importation?
a. P 158,400
c. P 129,600
b. P 144,000
d. P 0
3. Mr. Smile, a professional practitioner, imported the following:
Calculators and computers for his firm
P 900,000
Books
P 600,000
Total
P 1,500,000
How much is subject to VAT on importation?
a. P 0
c. P 1,200,000
b. P 900,000
d. P 1,500,000
4. Mr. Juan Manuel Marquez arrives in the Philippines with an immigration visa. He had with him the
following:
Clothing, shoes and apparels
P 100,000
Professional instruments and implements
P150,000
Personal car
P300,000
Total costs of personal belonging
P550,000
Compute the total amount subject to the VAT on importation?
a. P 0
c. P 300,000
b. P 200,000
d. P 550,000
5. Mr. Xhi, a non-VAT taxpayer, made the following domestic purchases of goods:
Purchase of scrap metals from a PEZA- locator
P200,000
Purchase of machine from a VAT supplier
P800,000
What is the imposable VAT on importation?
a. P 0
c. P 96,000
b. P 24,000
d. P 120,000
6. Atlantis Shipping Company imported P 3,000,000 worth of vessel fuels and supplies for domestic use.
The company earmarked 60% of this for domestic use while 40% is reserved for its international
operations.
What is the VAT on importation?
a. P 0
c. P 216,000
b. P 144,000
d. P 360,000
7. Mr. Beer, a VAT- registered trader, imported an equipment with a dutiable value of $40,000 from
abroad. The importation is subject to P 100,000 BOC charges before 10% customs duties on dutiable value.
The exchange rate to the peso was P 43.00:$1.
Compute the VAT on importation.
a. P 218,400
c. P 232,400
b. P 227,040
d. P 239,040
8. If an importer paid 15% customs duties in the amount of P 24,000 plus P 134,000 charges in the Bureau
of Customs, what is the VAT on importation?
a. P 0
c. P 35,280
b. P 18,960
d. P 38,160
9. Shanum Company had the following data regarding its importation:
Invoice price in US dollar
Other costs to bring goods to the Philippines
$ 12,000
P 145,000
BOC charges
P 100,000
Customs duties is 10% of dutiable value
Peso-Dollar Exchange rate
P 42.80:$1
Compute the VAT on importation.
a. P 0
c. P 91,032.00
b. P 81,643.20
d. P 98,935.20
10. Mr. Dolinger imported various merchandise from abroad. The importation was invoiced at $ 5,000. Mr.
Dolinger also incurred the following costs of importation:
Insurance
P 4,000
Freight
P 15,000
Wharfage fee
P 4,000
Arrastre charge
P7,000
Brokerage fee
P8,000
Facilitation fee
P5,000
Mr. Dolinger was also assessed P 24,000 and P 18,000 customs duties and excise tax, respectively. The
applicable exchange rate was P 42.50:$1
What is the VAT on importation?
a. P 25,500
b. P 30,540
c. P 35,100
d. P 35,700