Marcelo is an operator of a fleet of 10 taxis operated under the �boundary system.�
A total of P150,000 �boundary� payments from chauffeurs was received in March 2020.
A total of P20,000 is still receivable from chauffeurs for family advances. The
percentage tax for the month is
a. P4,500 CORRECT
b. P5,100
c. P600
d. P360
Isabelo Insurance Corporation has the following receipts and receivables from its
insurance products:
What is the insurance premiums tax due?
a. P20,000
b. P36,000
c. P24,000 CORRECT
d. P30,000
Panganiban Company is conducting an initial public offering of 2,000,000 shares.
Panganiban Company already had 4,000,000 issued and outstanding shares. The new IPO
shares shall be sold at P3 per share. What is the tax on the initial public
offering?
a. P60,000
b. P120,000 CORRECT
c. P240,000
d. P0
Emilio, a non-VAT-registered operator of jeepney, reported a total receipt of
P200,000 during a month, including P20,000 rentals for cargo transport. How much is
the percentage tax?
a. P6,000 CORRECT
b. P0
c. P5,400 WRONG
d. P6,600
In a recently completed race, Rivera Astrodome noted the following winning tickets:
Straight bets: P40,000, 20 tickets at P100 per ticket
Combination bets: P20,000, 2 tickets at P200 per ticket
What is the percentage tax to be withheld on the winnings?
a. P3,800
b. P4,584
c. P5,760 WRONG
d. P0
Padre Burgos, a non-VAT taxpayer, is an operator of four buses plying the route
Isabela-Manila. In February 2020, the buses remitted a total of P320,000, including
P30,000 freight and charges for passenger baggage. The common carriers tax is
a. P0
b. P10,500
c. P8,700 WRONG
d. P9,600 CORRECT
Antonio Ferry Boats transport passengers and cargoes between the islands of Palaui
and Sta. Ana. It earned a total of P120,000 in February 2020, excluding P10,000
freight for cargoes.
What is the percentage tax if Antonio Ferry boats registered respectively as a nonVAT taxpayer and as a VAT taxpayer?
a. P3,600 and P0
b. P3,900 and P3,600
c. P0 and P0
d. P3,900 and P0 CORRECT
Fernando Company is a transportation contractor of Amita Delivery Services, a mail
courier company. Fernando Company delivers the mails to addressee location
specified in the mails. During the month, Fernando Company was paid P400,000 by
Amita. The percentage tax due is
a. P48,000
b. P12,000 CORRECT
c. P24,000
d. P0
Ricarte Bank reported the following receipts during the month:
What is the gross receipts tax due?
a. P110,000 CORRECT
b. P100,000
c. P70,000
d. P80,000
A quasi-bank received the following from its short-term placement of excess funds:
Dividend income, P500,000
Bank interest income, net of final tax, P800,000
What is the gross receipts tax due?
a. P50,000 CORRECT
b. P40,000 WRONG
c. P0
d. P91,000
wo taxis which were both grounded during the month of March due to the enhanced
community quarantine. The applicable presumptive quarterly gross receipt for each
tax was P3,600. What is the percentage tax due for March 2020?
a. P72
b. P0
c. P216 WRONG
d. P108
Panday Pira Local Water District has an annual sales of P10 million a year. During
the month, it collected P4,000,00 from sales of water. The percentage tax due is
a. P80,000 CORRECT
b. P0
c. P200,000
d. P120,000
Compensation income from teaching, P200,000
Receipts from taxi, P50,000
Receipts from professional practice
What is the percentage tax payable of Apolinario for March 2020?
a. P18,000 WRONG
b. P12,000
c. P0
d. P1,500
MV Leona, an international shipping carrier, had the following receipts on its
Philippine operations:
a. P54,000 CORRECT
b. P99,000
c. P0
d. P144,000
Paterno Flights, an international carrier, recorded the following receipts during a
month for outgoing flights:
a. P60,000
b. P51,000 CORRECT
c. P75,000
d. P15,000
Lakandula is an operator of cockpit. During the quarter, it collected P200,000 from
gate receipts, P240,000 from �tongs� and P300,000 from business concessionaires
inside the cockpits. Total winnings on derby sets totaled P2,400,000. What is the
amusement tax?
a. P0
b. P133,200 CORRECT
c. P74,000 WRONG
d. P111,000
An operator of car with chauffeurs for hire had the following financial results
during a month:
What is the percentage tax due?
a. P4,200
b. P4,320 WRONG
c. P2,880 CORRECT
d. P7,200 WRONG
There are two competing garage with the following receipts:
Juan, P1,200,000
Diego, P3,500,000
Who will pay percentage tax?
a. Both Juan and Diego CORRECT
b. Juan only
c. Diego only
d. Neither Juan nor Diego
Padre Gomez owns a cargo truck for rent. During the month, it generated total
receipts of P40,000 from various clients. The percentage tax due is
a. P4,800
b. P0
c. P1,200 CORRECT
d. P2,000
Palma Bank had the following summary of receipts
What is the gross receipts tax due?
a. P200,000
b. P220,000
c. P160,000 WRONG
d. P180,000
Mr. Dipatuan practices his profession as a medical practitioner. He registered as a
VAT-taxpayer. Mrs. Dipatuan is a nurse employed by a public hospital.
Which statement is correct?
a. Mrs. Dipatuan is exempt from business tax.
b. Mr. Dipatuan shall pay percentage tax.
c. Mr. Dipatuan is exempt from business tax.
d. Mrs. Dipatuan shall pay percentage tax. WRONG
Apolinario owns and operates a taxi unit. He also teaches as an accounting
professor at a university and renders professional consultancy services to various
clients. Apolinario is registered as a VAT-taxpayer. In March 2020, he had the
following receipts:
Compensation income from teaching, P200,000
Receipts from taxi, P50,000
Receipts from professional practice P100,000
What is the total amount subject to VAT?
a. P0
b. P400,000
c. P350,000 CORRECT
d. P550,000
Dagohoy Corporation sell bread to various stores and makes P150,000 monthly sales
on the average. During the month, it made total sales of P200,000 out of which only
P160,000 was collected. What is the percentage tax due?
a. P0
b. P4,800
c. P6,000 CORRECT
d. P4,500
Lapu-Lapu Corporation, a non-VAT taxpayer, leases commercial spaces to various
businesses. During a month, it received P142,500 rentals, net of 5% creditable
withholding tax. What is the percentage tax due?
a. P4,061
b. P4,275
c. P0
d. P4,500 CORRECT
Padre Gomez owns a cargo truck for rent. During the month, it generated total
receipts of P40,000 from various clients. The percentage tax due is
a. P2,000
b. P1,200 CORRECT
c. P4,800
d. P0
Soliman Corporation, a publicly-listed company, is planning to increase its public
ownership by issuing additional 1,000,000 shares for P10 per share. The new shares
will increase the outstanding shares of Soliman to 2,500,000. What is the IPO tax?
a. P0 CORRECT
b. P100,000 WRONG
c. P400,000 WRONG
d. P200,000 WRONG
Jose is a proprietor of a mini-store with sales in any 12-month period not
exceeding P3,000,000. He shall pay
a. Excise tax
b. Value-added tax
c. Percentage tax CORRECT
d. Percentage and excise tax
A cellular company had the following receipts:
P2 million from domestic calls
P3 million from incoming calls to the Philippines
P2.5 million from outgoing calls abroad
What is the percentage tax due?
a. P0
b. P250,000 CORRECT
c. P165,000
d. P75,000
Mariano Ponce had annual sales not exceeding P10 million a year. During the month,
it posted a revenue of P2 million, out of which P1.8 million was collected. The
percentage tax due is
a.
b.
c.
d.
P54,000 CORRECT
P36,000
P0
P60,000
Gregoria Transporters, a transportation contractor, transports employees of Amita
Industries to and from Ilagan City to a distant plant in San Mariano City. In
March, Gregoria Transporters was paid P300,000 by Amita Industries. The percentage
tax due is
a. P36,000
b. P15,000
c. P9,000 CORRECT
d. P0
Padre Zamora, a VAT taxpayer, is an operator of four buses plying the route
Isabela-Manila. In February 2020, the buses remitted a total of P320,000, including
P30,000 freight and charges for passenger baggage. The percentage tax due is
a. P0
b. P9,600 WRONG
c. P8,700 CORRECT
d. P10,50 WRONG
Felipe Airlines, an international air carrier, collected a total of P300,000 from
transporting passengers during the month. It also collected a total of P5,000,000
from transporting mails and baggage. The percentage tax due is
a. P150,000 CORRECT
b. P0
c. P1,050,000
d. P900,000
In a recently completed race, Rivera Astrodome noted the following winning tickets:
Straight bets: P40,000, 20 tickets at P100 per ticket
Combination bets: P20,000, 2 tickets at P200 per ticket
What is the percentage tax to be withheld on the winnings?
a. P3,800
b. P5,760
c. P4,584 CORRECT
d. P0
Graciano Ferries transports passengers and land vehicles between Batangas and
Mindoro. Graciano usually had an average annual receipts of P5,000,000. During the
month, it earned a total of P400,000 from customers. The percentage tax is
a. P138,000
b. P12,000 WRONG
c. P150,000 CORRECT
d. P0 WRONG
Mr. Galicano owns 1,000,000 shares representing 40% of the outstanding stocks of
Amita Corporation, a closely-held corporation, which is conducting an initial
public offering. Mr. Galicano sold 700,000 shares during the initial public
offering for P100 per share.
After the initial public offering, Mr. Galicano further sold his remaining 300,000
shareholdings for P90 per share.
What is the IPO tax due from Mr. Galicano on the sale of the 300,000 shares?
a. P162,000 CORRECT
b. P540,000
c. P270,000
d. P161,000 WRONG
Mr. Galicano owns 1,000,000 shares representing 40% of the outstanding stocks of
Amita Corporation, a closely-held corporation, which is conducting an initial
public offering. Mr. Galicano sold 700,000 shares during the initial public
offering for P100 per share.
What is the IPO tax due from Mr. Galicano?
a. P350,000
b. P700,000
c. P1,400,000 CORRECT
d. P2,800,000
Andres, a VAT-registered taxpayer, reported P200,000 sales last month. His annual
sales never exceeded P3,000,000. Compute his percentage tax.
a. P6,000
b. P54,000
c. P24,000
d. P0 CORRECT
Melchora has two taxis which were both grounded during the month of March due to
the enhanced community quarantine. The applicable presumptive quarterly gross
receipt for each tax was P3,600. What is the percentage tax due for March 2020?
a. P108 WRONG
b. P72 CORRECT
c. P0
d. P216 WRONG
Rafael Airlines is a domestic airliner with annual receipts exceeding P50 million.
During the month, it generated the following receipts: Passengers, P5 million;
Cargoes and baggage, P1.5 million. The percentage tax due is
a. P195,000 WRONG
b. P45,000 WRONG
c. P0 CORRECT
d. P150,000
Apolinario owns and operates a taxi unit. He also teaches as an accounting
professor at a university and renders professional consultancy services to various
clients. Apolinario is registered as a VAT-taxpayer. In March 2020, he had the
following receipts:
Compensation income from teaching, P200,000
Receipts from taxi, P50,000
Receipts from professional practice
What is the percentage tax payable of Apolinario for March 2020?
a. P1,500 CORRECT
b. P18,000
c. P12,000
d. P0
Palma Bank had the following summary of receipts:
a. P160,000
b. P220,000
c. P180,000 CORRECT
d. P200,000
Chapter 10
To
a.
b.
c.
d.
franchise grantees of radio television, the VAT registration shall be
Irrevocable (CORRECT)
Irrevocable in 3 years
Revocable in 3 years
Revocable in 1year
The claimable input VAT is 12% of purchases from
I.
VAT-registered taxpayers
II.
Non-VAT-registered taxpayers
a. Neither I nor II
b. II only
c. I only (CORRECT)
d. Both I and II
What is the business tax payable by a person who is VAT-registrable?
a. The input VAT
b. The output VAT (CORRECT)
c. Output VAT less input VAT
d. Output VAT plus 3% percentage tax
A VAT taxpayer cannot claim input VAT credit on
a. Exempt sales (CORRECT)
b. Government sales
c. Zero-rated sales
d. Regular sales
The monthly
a. BIR Form
b. BIR Form
c. BIR Form
d. BIR Form
VAT return is referred to as
2551M
2551Q
2550Q
2550M (CORRECT)
All of these businesses are vatable, except
a. Security dealers
b. Non-life insurance business
c. Merchandisers
d. Banks (CORRECT)
Statement 1: VAT paid in the first two months of the quarter is deductible against
the output VAT for the entire quarter.
Statement 2: The VAT paid in a quarter is deductible against the output VAT of
future quarters of the taxable year.
Which is correct?
a. Statement 2 only
b. Statement 1 only (CORRECT)
c. Both statements are incorrect
d. Both statements are correct
Statement 1: A VAT taxpayer who purchases goods from non-VAT suppliers will
effectively pay a VAT equivalent to the output VAT
Statement 2: No output VAT shall be billed on export sales and exempt sales
Which is correct?
a. Both statements are correct (CORRECT)
b. Both statements are incorrect (WRONG)
c. Statement 2 only (WRONG)
d. Statement 1 only (WRONG)
Which is vatable?
a. Cooperative
b. Department store (CORRECT)
c. Meat vendor
d. Fruit dealer
Which of the following is vatable?
a. An operator of cockpits
b. A bowling alley (CORRECT)
c. An operator of a racetrack
d. A disco
Statement 1: Input VAT is creditable only by VAT-registered taxpayers.
Statement 2: Input VAT is deductible by non-VAT taxpayers against the gross income
for purposes of income tax.
Which is correct?
a. Statement 1 only
b. Both statements are correct (CORRECT)
c. Statement 2 only
d. Both statements are incorrect
Which of the following will pay VAT?
a. Fruit dealer
b. Farmer
c. Rice or corn miller
d. Food processor (CORRECT)
Statement 1: The VAT returns for the first two months of the quarter are prepared
on a monthly basis.
Statement 2: The VAT return on the third month of the quarter reflects the monthly
sales for the same month.
Which is correct?
a. Both statements are incorrect
b. Statement 1 only (CORRECT)
c. Statement 2 only
d. Both statements are correct
Which is not a category for VAT taxpayers?
a. Sales to government
b. Sales to non-profit institutions (CORRECT)
c. Zero-rated sales
d. Exempt sales
Which is vatable?
a. Sales of fertilizers, seeds and seedlings
b. Gross receipt of medical practitioners (CORRECT)
c. Sales of agricultural or marine food products
d. Sale of books
Statement 1: Discounts that are contingent to a future event are deductible from
gross selling price.
Statement 2: Expenses of the service provider that are reimbursed by the client
forms part of the gross receipt.
Which statement is correct?
a. Both statements are incorrect
b. Statement 2 only (CORRECT)
c. Both statements are correct
d. Statement 1 only
Which will not pay VAT on its receipts?
a. Taxicab operators (CORRECT)
b. Bookstores
c. Hospitals
d. Real property dealers
Which is not VAT-exempt?
a. Gross receipts of professional practitioners (CORRECT)
b. Receipts from taxicabs
c. Gross receipt of hospitals
d. Importation of agricultural marine food products
What is the VAT due and payable on regular sales?
a. Output VAT less input VAT (CORRECT)
b. Output VAT less 3% percentage tax
c. Output VAT less input VAT plus 3% percentage tax
d. Output VAT plus 3% percentage tax plus surcharge
The output VAT on export sales is
a. 0% of sales (CORRECT)
b. 12% of the value added
c. 12% of sales
d. None
No
a.
b.
c.
d.
input VAT is creditable on
Government sales
Exempt sales (CORRECT)
Export sales
Regular sales
Statement 1: As a rule, percentage tax is paid monthly.
Statement 2: VAT is paid monthly and quarterly.
Which is correct?
a. Statement 1 only
b. Both statements are incorrect
c. Statement 2 only (CORRECT)
d. Both statements are correct
Statement 1: Sellers of services are subject to VAT on gross receipts.
Statement 2: Sellers of goods are subject to VAT on gross selling price.
Which statement is correct?
a. Statement 1 only
b. Both statements are correct (CORRECT)
c. Statement 2 only
d. Both statements are incorrect
Statement 1: The VAT due and payable on regular sales is always positive.
Statement 2: The VAT due and payable on export sales is always negative.
Which statement is generally correct?
a. Statement 1 only
b. Both statements are incorrect
c. Both statements are correct
d. Statement 2 only (CORRECT)
A VAT taxpayer can claim the actual input VAT credit on
I.
Regular sales
II.
Zero-rated sales
III.
Government sales
Select one:
a. I and II only (CORRECT)
b. I and III only (WRONG)
c. I, II and III (WRONG)
d. II and III only
The output VAT on government sales is
a. None
b. 12% of sales (CORRECT)
c. 12% of the value added
d. 0% of sales
Which is vatable?
a. Sale of vegetables
b. Sale of fertilizers
c. Sale of fruits
d. Sale of bamboo handicrafts (CORRECT)
A VAT taxpayer may claim only partial or full input VAT credit on
I.
Regular sales
II.
Zero-rated sales
III.
Government sales
a. II only
b. III only (CORRECT)
c. I only
d. I, II and III
Which is subject to withholding VAT?
a. Exempt sales
b. Regular sales of real properties
c. Sales to the government (CORRECT)
d. Zero-rated sales
Which statement is correct?
a. Husband and wife are considered separate taxpayers for business tax purposes
(CORRECT)
b. For purposes of the VAT threshold, both exempt sales and receipts from services
subject to percentage tax must be included
c. Parent and subsidiary companies are considered one taxpayer for business tax
purposes
d. A VAT-registered taxpayer must pay VAT on services subject to percentage tax
Which is a possible source of input VAT?
I.
Importation
II.
Purchase from VAT-sellers
Which is correct?
III.
Purchase from non-VAT sellers
a. I and II only (CORRECT)
b. II and III only
c. I, II and III
d. I and III only
The claimable input VAT on government sales is
a. 12% of purchases from non-VAT suppliers or VAT suppliers
b. 12% purchases from VAT suppliers
c. 7% of purchases from VAT purchases
d. 7% of sales (CORRECT)
Which is a correct statement regarding the value added tax?
a. The taxable quarter of any taxpayer must not be aligned to the calendar year.
b. The taxable quarter of any taxpayer must be aligned to the calendar year.
c. The taxable quarter of an individual taxpayer must be aligned to the calendar
year (CORRECT)
d. The taxable quarter of a corporate taxpayer must be aligned to the calendar
year.
No
a.
b.
c.
d.
input VAT is creditable on
Export sales
Government sales
Regular sales
Exempt sales (CORRECT)
Which is not vatable as a separate entity?
a. A subsidiary company
b. A spouse
c. A parent company
d. A branch (CORRECT)
Statement 1: The VAT returns for the first two months of the quarter are prepared
on a monthly basis.
Statement 2: The VAT return on the third month of the quarter reflects the monthly
sales for the same month.
a. Both statements are incorrect
b. Statement 1 only (CORRECT)
c. Both statements are correct
d. Statement 2 only
Which is not a category for VAT taxpayers?
a. Zero-rated sales
b. Sales to government
c. Sales to non-profit institutions (CORRECT)
d. Exempt sales
Statement 1: As a rule, percentage tax is paid monthly.
Statement 2: VAT is paid monthly and quarterly.
a. Both statements are correct
b. Statement 2 only (CORRECT)
c. Statement 1 only
d. Both statements are incorrect
Which is non-vatable?
a. Exempt sales billed as regular sales by VAT persons
b. Export sales of VAT-registered persons
c. Export sales of non-VAT-registered persons (CORRECT)
d. Regular sales of registrable persons
Statement 1: The VAT due and payable on regular sales is always positive.
Statement 2: The VAT due and payable on export sales is always negative.
Which statement is generally correct?
a. Both statements are incorrect
b. Statement 2 only (CORRECT)
c. Statement 1 only
d. Both statements are correct
The monthly
a. BIR Form
b. BIR Form
c. BIR Form
d. BIR Form
VAT return is referred to as
2550Q
2551Q
2550M (CORRECT)
2551M
Which is not VAT-exempt?
a. Gross receipt of hospitals
b. Importation of agricultural marine food products
c. Receipts from taxicabs
d. Gross receipts of professional practitioners (CORRECT)
Statement 1: Input VAT is creditable only by VAT-registered taxpayers.
Statement 2: Input VAT is deductible by non-VAT taxpayers against the gross income
for purposes of income tax.
a. Both statements are incorrect
b. Statement 1 only
c. Statement 2 only
d. Both statements are correct (CORRECT)
Statement 1: �Gross receipt� means collections and advances by clients.
Statement 2: �Gross selling price� means gross sales including delivery charges and
excise tax on the sales if any.
a. Both statements are correct (CORRECT)
b. Statement 1 only
c. Statement 2 only
d. Both statements are incorrect
What is the general lock-in period for those who voluntarily register as VAT
taxpayers?
a. 5 years
b. Irrevocable
c. 3 years (CORRECT)
d. 1 year
All of these are vatable, except
a. Brokers
b. Lawyers
c. Engineering contractors
d. Employees (CORRECT)
Statement 1: VAT paid in the first two months of the quarter is deductible against
the output VAT for the entire quarter.
Statement 2: The VAT paid in a quarter is deductible against the output VAT of
future quarters of the taxable year.
Which is correct?
a. Both statements are correct
b. Both statements are incorrect
c. Statement 2 only
d. Statement 1 only (CORRECT)
What is the business tax payable by a person who is VAT-registrable?
a. The output VAT (CORRECT)
b. Output VAT less input VAT
c. Output VAT plus 3% percentage tax
d. The input VAT
The output VAT on exempt sales is
a. None (CORRECT)
b. 0% of sales
c. 12% of the value added
d. 12% of sales
Which is a source of input VAT?
a. Purchase of agricultural or marine food products from non-VAT sellers
b. Purchase of agricultural or marine food products from VAT-sellers
c. Purchase of vatable goods or services from VAT suppliers (CORRECT)
d. Purchase of vatable goods or services from non-VAT suppliers
Which will not pay VAT?
a. International carrier (CORRECT)
b. Domestic air carrier
c. Domestic sea carrier
d. All of the above
What is the tax payable by a non-VAT taxpayer who issues a VAT invoice or VAT
official receipt?
a. Output VAT plus 3% percentage tax
b. Output VAT less input VAT, plus 3% percentage tax and 50% surcharge
c. Output VAT plus 3% percentage tax and 50% surcharge (CORRECT)
d. 3% percentage tax
Statement 1: Sellers always pay VAT on government sales.
Statement 2: Sellers will not pay VAT on export sales.
Which is correct?
a. Statement 1 only
b. Both statements are incorrect
c. Both statements are correct (CORRECT)
d. Statement 2 only
Which is a possible source of input VAT?
I.
Importation
II.
Purchase from VAT-sellers
III.
Purchase from non-VAT sellers
a. I and II only (CORRECT)
b. II and III only
c. I, II and III
d. I and III only
Which is vatable?
a. Schools
b. Internet service providers (CORRECT)
c. Local water districts
d. Gasoline stations
Chapter 6 comp
San Juan High School (SJHS), a public school, collected a total of P3,000,000
tuition fees on October 2020. Which statement is correct?
a. SJHS is exempt from both VAT and percentage tax. **
b. SJHS is subject to both VAT and percentage tax.
c. SJHS is subject to VAT.
d. SJHS is subject to percentage tax.
Gotham Developers sold three residential units:
Green residence for P1,900,000
Blue residence for P1,400,000
Pink residence for P2,500,000
Green residence and Blue residence are adjacent and were sold to unrelated buyers.
What is the amount of vatable sales?
a. P1,900,000
b. P2,500,000 WRONG
c. P3,300,000 WRONG
d. P0 CORRECT
A small �sari-sari� store has annual receipts of P80,000 on the average. It had a
sales of P3,000 from sales of candies and P5,000 from the sales of cigarettes.
What is the taxable amount of sales?
a. P5,000
b. P3,000
c. P8,000
d. P0 **
A non-VAT recreational center has a senior citizen member. The normal rate for nonsenior citizen member is P2,000 per month. How much should be billed to the senior
citizen?
a. P1,792 WRONG
b. P1,429
c. P1,786 WRONG
d. P1,600 CORRECT
Miracle Hospital reported P20,000 gross receipts from patient service revenue and
an additional P10,000,000 from other accessory hospital services which includes
P5,000,000 sales of medicines.
What is the amount subject to business tax?
a. P5,000,000**
b. P35,000,000
c. None
d. P30,000,000
Lowland Credit Cooperative transacts business with members. It had the following
receipts during the month:
Interest income from members, P210,000
Rent income from properties, 50,000
What is the amount subject to business tax?
a. P0
b. P260,000 WRONG
c. P50,000
d. P210,000 WRONG
A non-VAT taxpayer made the following sales during the year:
Domestic sales, P100,000
Export sales, P120,000
What is the amount of business tax?
a. P12,000
b. P6,600
c. P3,000 **
d. P0
Mr. Ayala owns a 400-unit dormitory near a university. Each boarder pays a rental
of P4,000 each month.
Which of the following is a correct statement?
a. Mr. Ayala shall pay VAT
b. Mr. Ayala shall pay percentage tax
c. Mr. Ayala is exempt from business tax **
d. Mr. Ayala is exempt from income tax
A VAT-taxpayer made the following sales during the year:
Domestic sales, P100,000
Export sales, P120,000
a. P12,000 **
b. P14,400
c. P0
d. P26,400
A seller of goods had the following details of sales and collections during the
month:
Receivables, beginning
P200,000
Gross sales
400,000
Less: Collection
500,000
Receivables, ending
P100,000
What is the amount subject to business tax?
a. P400,000 **
b. P300,000
c. P200,000
d. P500,000
Juan Masipag, a non-VAT registered senior citizen and owner of St. John Drugstore,
had the following sales during the first quarter of 2020:
a. P220,000 CORRECT
b. P120,000 WRONG
c. P0
d. P130,000 WRONG
A farmer sold the following goods in March:
What is the amount subject to business tax?
a. P90,000
b. P135,000
c. P0 **
d. P45,000
Feedback
A farm supply dealer made the following sales during a month:
a. P360,000 **
b. P110,000
c. P120,000
d. P230,000
Mr. Castillo is both empFloyed and self-employed. He had the following income
receipts during the month:
What is the total amount subject to business tax?
a. P280,000
b. P120,000
c. P200,000 **
d. P400,000
A non-VAT taxpayer made the following sales during the year:
Domestic sales, P100,000
Export sales, P120,000
What is the amount subject to business tax?
a. P120,000
b. P0
c. P220,000
d. P100,000 **
Mr. Diaz is a dealer of cars. In June 2020, he sold two cars for P1,700,000 and
sold his principal residence for P5,000,000.
Which statement is correct?
a. Both sales are subject to business tax.
b. Only the sale of the residence is subject to business tax.
c. Only the sale of the car is subject to business tax. **
d. Neither sale is subject to business tax.
Amita Leasing Company leases residential houses with the following rentals for each
unit per month:
How much is the exempt receipts of Amita Leasing Company in one month?
a. P800,000 **
b. P1,000,000
c. P0
d. P500,000
Amita Leasing Company leases residential houses with the following rentals
What is the business tax liability of Amita Leasing Company?
a. Percentage tax and VAT
b. Percentage tax **
c. VAT
d. Excise tax
Rodel Macapuy is a
to consumers.
Which statement is
a. Rodel shall not
b. Rodel shall pay
c. Rodel shall not
d. Rodel shall pay
vegetable trader. He buys vegetables from farmers and sells them
correct?
pay business
business tax
pay business
business tax
tax as he is not engaged in the farming business.
as he is engaged in business.
tax on the sale of vegetables. **
since he is a trader.
Magellan Shipping Company leases two of its ferry boats to Lapu-Lapu Superferries,
a domestic transport company.
Which is the correct statement?
a. The rental income of Magellan Shipping is exempt from business tax.
b. The gross receipt of Lapu-Lapu Superferries on transport of cargoes is exempt
from business tax.
c. The gross receipt of Lapu-Lapu Superferries on transport of passengers is exempt
from business tax.
d. Both Magellan Shipping and Lapu-Lapu Superferries are vatable. **
A VAT-taxpayer made the following sales during the year:
Domestic sales, P100,000
Export sales, P120,000
a. P100,000 (WRONG)
b. P0
c. P120,000
d. P220,000
Mang Andres is a meat vendor. He purchases live hogs from piggery operators,
butchers the hogs, and sells them in a public market.
In January 2020, Mang Andres purchased 12 live hogs for P180,000 from Mang Emilio
and sold these to customers for P320,000.
Which statement is correct?
a. Mang Emilio shall pay business tax, but Mang Andress shall not pay business tax.
b. Both Mang Emilio and Mang Andres shall pay business tax.
c. Mang Emilio shall not pay business tax, but Mang Andres shall pay business tax.
d. Neither Mang Emilio and Mang Andres shall pay business tax. (CORRECT)
A printing press had the following revenues and collections during the month
What is the total vatable amount?
a. P1,030,000
b. P480,000
c. P630,000 **
d. P780,000
VAT-registered drugstore sold medicine with a total tax-inclusive price of P1,120
to
a.
b.
c.
d.
a senior citizen. What is the amount due from the senior citizen?
P1,120
P800 **
P896
P1,003
Mr. Kim Jong, a North Korean foreign student, sold his cellphone for P50,000. What
is the business tax payable?
a. P0 CORRECT
b. Excise tax plus P6,000 WRONG
c. P1,500
d. P6,000 WRONG
The Silver Corporation is a dealer of properties. During the year, it sold adjacent
residential lots to the same buyer. The first residential lot was sold for
P1,000,000. The second lot was sold for P500,000.
Which statement is correct?
a. The sales of both lots are taxable whether or not they exceed the price ceiling.
b. The sales of both lots are exempt because the aggregate selling price is below
the price ceiling. **
c. The sales of both lots are exempt whether or not they exceed the price ceiling.
d. Only the sale of the first lot is exempt while the second sale to the same buyer
is taxable.
Magellan Shipping Company, a non-resident company, leases two of its ferry boats to
Lapu-Lapu Superferries, a domestic transport company.
Which statement is correct?
a. The gross receipt of Lapu-Lapu Superferries on transport of cargoes is exempt
from business tax.
b. Both Magellan Shipping and Lapu-Lapu Superferries are required to pay VAT. WRONG
c. The gross receipt of Lapu-Lapu Superferries on transport of passengers is exempt
from business tax.
d. The rental income of Magellan Shipping Company is subject to final withholding
VAT. CORRECT
A realty trader sold the following properties:
Residential lot
P1,200,000
Residential dwelling
2,000,000
Commercial lot
800,000
What is the vatable sale?
a. P4,000,000
b. P800,000 CORRECT
c. P0
d. P2,000,000
Isabelan is a realty development company. It bought an agricultural lot from
Cagayan Realty Corporation for P1,000,000 and contracted Ilocos Construction
Company to construct a residential house on the lot. Isabelan paid Ilocos
P1,000,000. Isabelan sold the house and lot to a buyer for P2,500,000.
Which statement is correct?
a. The sale of the house and lot by Isabelan is exempt from business tax.CORRECT
b. The construction services rendered by Ilocos Contruction Company is exempt from
business tax.
c. Only realty contractors are subject to business tax.
d. The sale of the residential lot by Cagayan Realty Corporation is subject to
business tax.
A restaurant sold to a senior citizen who was accompanied by two adult persons. The
total price of their order was P3,360. What is the amount that should be billed?
a.
b.
c.
d.
P3,240 WRONG
P3,040 CORRECT
P3,000
P3,136 WRONG
Mr. Brownie has a pet shop. In April 2020, he made a sales of P300,000 from sales
of pets, P120,000 for pet feeds, and P20,000 for pet toys. Mr. Brownie is also a
practicing veterinarian. He derived additional P80,000 professional fees.
a. P80,000
b. P520,000 **
c. P440,000
d. P0
Mr. Kiaolin imports Chinese vegetables and sells them in the domestic market for
Chinese residents in the Philippines. The following data relates to his operations
during the period
a. P96,000 WRONG
b. P0 CORRECT
c. P144,000 WRONG
d. P24,000
An international sea carrier had the following receipts during the month:
Passenger fares, P4,000,000
Cargoes and baggage, P2,000,000
a. P4,000,000
b. P6,000,000
c. P0
d. P2,000,000 CORRECT
A VAT-taxpayer made the following sales during the month:
Domestic sales, P2,100,000
Export sales, P1,000,000
What is the amount subject to business tax?
a. P2,100,000 WRONG
b. P0
c. P3,100,000
d. P1,000,000
Miss Chicken is a food franchise with most food menus offering chicken as an
ingredient. Miss Chicken contracted Mister Manok to product the chicken needs of
its entire food franchise. To control quality, Miss Chicken gives Mister Manok the
chicks. Mister Manok raises the chicks for 40 days, then delivers them to Miss
Chicken. Miss Chicken paid Mister Manok P400,000 for the first delivery of chicken.
a. Both Mis Chicken and Mister Manok are exempt
b. Both Mis Chicken and Mister Manok are taxable
c. Miss Chicken is exempt from business tax on its sales to customers but Mister
Manok shall pay business tax
d. Mister Manok is exempt from business tax CORRECT
555 Canning Corporation produces canned sardines but sells raw excess fish during
peak fishing seasons or preserves them by sun-drying and sells them to the local
market
a. P0
b. P130,000
c. P850,000 CORRECT
d. P820,000
Mobile Store made the following sales during the month:
a.
b.
c.
d.
P520,000 WRONG
P220,000
P0
P470,000
A restaurant reported the following revenues and receipts in May 2020:
a. P120,000 WRONG
b. P0 CORRECT
c. P160,000
d. P150,000
A domestic airliner had the following receipts during the month:
Passenger fares, P5,000,000
Cargoes and excess baggage, P2,000,000
a. P0
b. P5,000,000
c. P7,000,000 CORRECT
d. P2,000,000
AssetPro Review Center, a non-VAT professional review school, provides preparatory
courses to accountancy graduates who will take the CPA exam. During the month, it
collected a total receipt of P300,000.
Which statement is correct?
a. The P300,000 is exempt from both percentage tax and VAT.
b. The P300,000 is subject to both percentage tax and VAT.
c. The P300,000 is exempt from VAT, but is subject to percentage tax. **
d. The P300,000 is exempt from percentage tax, but is subject to VAT.
Ginto Realty Corporation sold two adjacent commercial lots to the same buyer. The
first lot is worth P1,000,000 while the second lot is worth P800,000.
Which statement is correct?
a. Both properties are subject to VAT without regard as to whether they are above
or below the ceiling. CORRECT
b. The sale of both properties is exempt from VAT since they are below the price
ceiling.
c. Only the sale of the first lot is exempt since it is P1,000,000 in price.
d. Only the sale of the second lot is subject to VAT.
A �sari-sari� store registered as a VAT-taxpayer had the following sales:
a. P0 WRONG
b. P155,000
c. P95,000 CORRECT
d. P115,000
A bus operator had the following receipts during the month:
From passengers, P140,000
From cargoes, P10,000
Total, P150,000
What is the amount subject to business tax?
a. P10,000
b. P0
c. P150,000 **
d. P140,000
Exceed Realty made the following sales of properties during the year:
Residential lot for P2,000,000
Residential dwelling for 3,000,000
The amount subject to VAT is
a. P5,000,000 WRONG
b. P2,000,000
c. P3,000,000
d. P0
An
a.
b.
c.
d.
insurance agent had the following receipts during the month:
P0 WRONG
P90,000
P120,000 WRONG
P210,000 WRONG
A seller of services had the following details of sales and collections during the
month:
a. P400,000
b. P200,000
c. P500,000 **
d. P300,000
A printing press had the following revenues and collections during the month:
a. P1,030,000
b. P480,000
c. P780,000
d. P630,000 CORRECT
A private hospital admitted a senior citizen. Total amount due before discharge was
P112,000. What is the output VAT?
a. P12,000
b. P13,440
c. P0 CORRECT
d. P9,600
St. Andrew Elementary
collection P2,000,000
correct?
a. The tuition fee is
b. The tuition fee is
c. The tuition fee is
d. The tuition fee is
School, a non-profit religious educational institution,
tuition fees from students in June 2020. Which statement is
exempt from both percentage tax and VAT. CORRECT
subject to both percentage tax and VAT.
subject to percentage tax.
subject to VAT.
VAT-registered seller sold various merchandise a wholesale price, exclusive of VAT
Product total retail price P300,000
Less: Trade discount (10%) 30,000
Product wholesale price P270,000
Less: Cash discount (5/15, n/30) 13,500
Net price due in 15 days P256,500
What is the output VAT?
a. P0
b. P32,400 CORRECT
c. P30,780
d. P36,000
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
April P448,000 P403,200
May 504,000 453,600
June 336,000 302,400
What is the
a. P48,000;
b. P53,760;
c. P43,200;
d. P43,200;
output VAT respectively in April and May?
P54,000 WRONG
P114,240
P48,600 448K*12/112
P91,800
A VAT-registered farm supply dealers sold the following during a month:
Fertilizers, P200,000
Corn seeds, P250,000
Farm equipment, P1,200,000
Pesticides, P300,000
What is the output VAT?
a. P144,000
b. P234,000
c. P204,000 WRONG
d. P180,000 CORRECT 1.5M*.12
A VAT-registered seller merely indicated an amount of P300,000 on a bill without
separately indicating the VAT thereon.
What is the output VAT?
a. P36,000 WRONG
b. P40,000
c. P0 WRONG
d. P32,143 300K*12/112
A VAT-registered real property dealer sold the following during a quarter:
House and lot � 2BA, P2 million
House and lot � 2BD, P3 million
House and lot � 2CE, P4 million
Residential lot � 1A, P1 million
Residential lot � 2B, P2 million
What is the total output VAT?
a. P0
b. P720,000
c. P1,080,000 CORRECT
d. P1,320,000
A VAT-taxpayer compiled the following for the purpose of filing his BIR Form 2550M:
Sales to VAT taxpayers, P200,000
Sales to non-VAT taxpayers, P150,000
Total sales, P350,000
What is the output VAT?
a. P18,000
b. P24,000
c. P0
d. P42,000 CORRECT
A VAT-registered seller received the following statement from its consignees:
Gross price - P500,000
Less:
Commission (20%) - 100,000
Freight charges - 20,000
Net remittance - P380,000
What should be the output VAT on the sales?
a. P44,000
b. P60,000 CORRECT 500K*.12
c. P45,600 WRONG
d. P57,600 WRONG
A non-VAT registered radio broadcasting company collected a total of P800,000
during a month.
What is the output VAT?
a. P85,714
b. P96,000
c. P48,000 WRONG
d. P0
A VAT-taxpayer made the following sales during the quarter:
Domestic sales of VAT-exempt goods, P1,200,000
Domestic sales of vatable goods, P900,000
Export sales, P800,000
What is the output VAT?
a. P108,000
b. P204,000
c. P252,000
d. P348,000 WRONG
A VAT-registered seller of goods reported the following in a month:
Cash sales, P200,000
Credit sales, P300,000
Installment sales, P400,000
Consignment sales (30 days old), P100,000
What is the output VAT?
a. P72,000
b. P108,000 CORRECT (200+300+400)*.12
c. P60,000
d. P24,000
A VAT-registered realty developer sold a parking lot for P2 million, less a 10%
discount.
What is the output VAT?
a. P0
b. P240,000 2M*.12
c. P168,00 WRONG
d. P216,000 WRONG
A VAT taxpayer had the following invoiced sales during the first quarter of the
year:
January, P280,000
February, P347,200
March, P313,600
What is the reportable output VAT respectively in January, February and March?
a. P30,000; P37,200; P33,600
b. P33,600; P41,664; P37,362
c. P30,000; P37,200; P100,800 CORRECT
d. P33,600; P41,664; P112,896
Ricarte Corporation owns a coliseum which caters to large indoor events. The
coliseum had the following receipts during a month:
Source of gross receipts and amounts:
Professional basketball games, P400,000
Professional boxing competitions, P500,000
Amateur basketball games, P100,000
Amateur boxing competitions, P150,000
Musical concerts, P250,000
Religious gatherings, P50,000
Other special events or gatherings, P120,000
What is the output VAT?
a. P188,400
b. P71,786
c. P80,400 CORRECT
d. P168,214
Lakandula 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, P40 million
Transport of cargoes, P12 million
International operations:
Transport of passengers, P30 million
Transport of cargoes, P8 million
What is the output VAT?
a. P10.8 million
b. P6.24 million CORRECT 52MIL*.12
c. P4.8 million
d. P1.44 million
Soliman Ferries has a fleet of ships traversing the islands of Bohol and Cebu. It
reported the following receipts during a month:
Transport of passengers, P8 million
Transport of cargoes, P1 million
What is the output VAT?
a. P0
b. P120,000
c. P1,080,000 CORRECT
d. P960,000
A VAT-registered seller of goods reported the following during a month:
What is the output VAT for the month?
Gross sales P500,000
Less:
Cash discount for early payment P50,000
Sales returns 20,000
Net sales P430,000
What is the output VAT for the month?
a. P51,600
b. P60,000 WRONG
c. P57,600 CORRECT 480K*.12
d. P54,000 WRONG
A VAT-registered car dealer sold the following goods to a relative:
Selling price, P300,000
Fair market value, P500
What is the output VAT?
a. P42,000
b. P0
c. P36,000 WRONG
d. P60,000 CORRECT 500K*.12
A realtor sold a commercial land for P1.5 million on November 2020. A 20% down
payment was required and the balance was due in 20 monthly installment of P60,000
starting December 2020.
What is the output VAT respectively for November and the quarter ending December
2020?
a. P180,000; P0
b. P36,000; P43,200 CORRECT 300K*.12, 360K*.12
c. P36,000; P7,200
d. P180,000; P180,000
Mr. Aguinaldo is a
he sold a total of
the month, he made
months.
What is the output
a. P36,000
b. P0
c. P48,000 CORRECT
d. P50,400
VAT-registered seller of �Polka Dots Siopao.� During the month,
P400,000, out of which P300,000 were paid by customers. During
a total collection of P420,000 inclusive of collection of past
VAT?
Mr. Paterno is a VAT-registered professional. He also owns a hotel and has a
professional practice. He instructed his accounting staff to indicate zero-rated
sales in hotel receipts.
During the month, he had the following receipts:
From profession, P1,000,000
From hotel, P800,000
What is the output VAT?
a. P0
b. P216,000 CORRECT
c. P120,000
d. P96,000 WRONG
A VAT-registered dealer sold two residential units to the same buyer with the
following separate prices:
House and lot - 1C-A, P1.5 million
House and lot - 1C-B, P2 million
What is the output VAT?
a. P180,000
b. P420,000 CORRECT
c. P0
d. P240,000
A VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
a. P600 CORRECT
b. P6,250 WRONG
c. P0 WRONG
d. P6,720
A VAT-registered service provider prepared the following list of cash collections
during a month:
Gross receipts, inclusive of VAT, P504,000
Client advances, P200,000
Proceeds of bank loan, P300,000
What is the output VAT?
a. P108,643
b. P54,000
c. P84,480 WRONG
d. P78,000 CORRECT - 504K*12/112 + 200K*.12
After consecutive years of persistent losses, Talo Corporation decided to liquidate
its business. It had the following items in its possession upon termination of
operations:
Book value Fair value
Receivables P1,200,000 P1,200,000
Investments 200,000 400,000
Inventories 600,000 700,000
Properties and equipment 1,200,000 800,000
What is the output VAT on the deemed sale transaction?
a. P168,000 CORRECT
b. P0 WRONG
c. P240,000
d. P216,000
In July 2020, a realty dealer sold a residential lot for P2 million. The lot had a
fair value of P2.5 million at the date of sale. The buyer agreed to pay in P100,000
monthly installments starting July 2020.
What is the output VAT respectively in July and August 2020?
a. P12,000; P12,000 WRONG
b. P15,000; P15,000 WRONG
c. P240,000; P0
d. P300,000; P0 CORRECT 2.5M*.12
Agoncillo is a non-VAT registered operator of 40 taxis. During a month, he
collected a total receipt of P1.3 million under the �boundary� system.
What is the output VAT?
a. P278,572
b. P312,000
c. P321,000
d. P0 CORRECT
A VAT-registered seller had the following summary of sales and consignment during
the month:
Cash sales - P200,000
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 the rules on deemed sale was properly applied in prior months, what is the
output VAT for the current month?
a. P42,000
b. P81,600 WRONG
c. P75,600 CORRECT 200+150+250+30
d. P78,000
A VAT-registered realty dealer sold the following adjacent residential lots to the
same buyer. The separate deeds of sale had the following respective prices:
Residential lot - 2A, P800,000
House and lot - 2B, P900,000
What is the output VAT?
a. P108,000
b. P0 WRONG
c. P96,000
d. P204,000 CORRECT 1.7M*.12
A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
a.
b.
c.
d.
P192,000
P108,000 CORRECT
P156,000
P144,000
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
April P448,000 P403,200
May 504,000 453,600
June 336,000 302,400
What is the output VAT respectively in June?
a. P124,200
b. P32,400 CORRECT
c. P138,000
d. P36,000
A non-VAT taxpayer prepared the following summary of sales for the purpose of
filing his business tax:
Sales to VAT taxpayers, P200,000
Sales to non-VAT taxpayers, P150,000
What is the output VAT?
a. P0 CORRECT
b. P18,000 WRONG
c. P24,000 WRONG
d. P42,000 WRONG
A real property dealer sold an agricultural lot for P2,500,000 with the following
values:
Appraisal value, P3,000,000
Zonal value, P2,000,000
Assessed value, P1,500,000
What is the output VAT?
a. P180,000
b. P360,000
c. P300,000 CORRECT
d. P240,000
An insurance company had the following gross receipts during a month:
Cash collection from life premiums, P1,800,000
Notes receivable from life premiums, P200,000
Cash collection from non-life premiums, P1,100,000
Notes receivable from non-life premiums, P300,000
What is the output VAT?
a. P0
b. P180,000
c. P132,000 CORRECT
d. P360,000
A VAT-registered realtor sold a commercial building at a selling price of P20
million payable over 20 monthly installments of P1 million. A sample monthly bill
of the realtor shows the following:
Installment due - P1,000,000
Output VAT - 144,000
Invoice price - P1,144,000
What is the fair value of the property sold?
a. P24 million CORRECT
b. P22 million
c. P20 million WRONG
d. P30 million WRONG
On April 2020, a VAT-registered realty developer sold a condominium unit at a
selling price of P3.6 million. The buyer agreed to pay in 36 monthly installments.
The property had a zonal value of P4 million and assessed value of P3 million at
the date of sale.
What is the output VAT on every installment?
a. P0
b. P13,333 CORRECT 400K/36*.12
c. P10,000 WRONG
d. P12,000 WRONG
A VAT-registered seller of goods billed a customer the following:
List price, P800,000
Trade discount, P125,000
Net price, P675,000
The credit term for the sale was 2/15, n60.
What is the output VAT?
a. P81,000 CORRECT 675*.12
b. P70,875
c. P79,380
d. P96,000
A restaurant which also caters for special events had the following data:
Gross receipts from customers, P500,000
Gross receipts from advanced reservations, P50,000
Client balances evidenced by promissory notes, P70,000
What is the output VAT?
a. P66,000 CORRECT = 500K+50K
b. P68,400 WRONG
c. P74,400
d. P60,000
A VAT-registered practicing lawyer disclosed the following during the month:
Total professional fees billed, P800,000
Total professional fees collected, P600,000
Advances by certain clients, P200,000
What is the output VAT?
a. P120,000 WRONG
b. P72,000 WRONG
c. P96,000 WRONG
d. P88,286 CORRECT
Epifanio Corporation, a security dealer, declared the following dividends in April
2020:
Cash dividend, P1.2 million
Property dividend, P800,000
The property dividend represents various merchandise inventories.
What is the output VAT?
a. P240,000 WRONG
b. P0
c. P144,000 WRONG
d. P96,000 CORRECT 800K*.12
A VAT-registered seller merely indicated an amount of P300,000 on a bill without
separately indicating the VAT thereon.
What is the output VAT?
a. P36,000 WRONG
b. P40,000
c. P0 WRONG
d. P32,143 CORRECT
A non-VAT taxpayer sold goods for P20,000, half of which are paid by the buyer who
gave a promissory note for the balance. The output VAT is
a. P2,400
b. P1,200
c. P0 CORRECT
d. P4,800
A real property developer exchanged one of its land inventories with a zonal value
of P2 million and assessed value of P1.5 million for the stocks of another
corporation.
What is the output VAT on the exchange?
a. P214,286
b. P180,000
c. P0
d. P240,000 CORRECT
Palma Banking Corporation presented the following gross receipts during the
quarter:
Interest income on short-term loans, P4,000,000
Interest income on long-term loans, P1,200,000
Rental of ROPA, P800,000
Processing fees, P200,000
What is the output VAT?
a. P120,000 WRONG
b. P107,143 WRONG
c. P0 CORRECT NOT SUBJ TO VAT
d. P744,000
Isabelo 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 suppliers
20,000
What is the output VAT on the deemed sales?
a. P0
b. P30,000 CORRECT
c. P21,600
d. P8,400
A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
a. P0
b. P600 CORRECT
c. P6,520
d. P6,720
A VAT-taxpayer made the following sales during the quarter:
Domestic sales of VAT-exempt goods, P1,200,000
Domestic sales of vatable goods, P900,000
Export sales, P800,000
What is the output VAT?
a.
b.
c.
d.
P108,000 CORRECT
P204,000
P348,000
P252,000
A VAT taxpayer sold goods for P40,000 which excludes a P1,000 delivery charge and
VAT. The buyer paid P30,000 down payment and promised to pay the P11,000 balance
plus the VAT in 30 days.
What is the output VAT?
a. P3,600 WRONG
b. P4,920 CORRECT 41K*.12
c. P0
d. P4,800 WRONG
Leonor Lines is a VAT-registered operator of buses. During the month, it had the
following total receipts:
Transport of passengers, P14 million
Transport of cargoes, P1 million
What is the output VAT?
a. P120,000 CORRECT
b. P1,800,000
c. P1,680,000
d. P0
A non-VAT registered radio broadcasting company collected a total of P800,000
during a month.
What is the output VAT?
a. P0 CORRECT
b. P96,000
c. P48,000
d. P85,714
A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
a. P600 CORRECT
b. P6,520
c. P0
d. P6,720
A VAT-registered taxpayer made the following sales:
Sales destination Terms Payment
China FOB destination $10,000
Malaysia FOB destination P450,000
Hongkong FOB shipping point HKD800,000
Philippines FOB shipping point P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the output VAT?
a. P90,000
b. P54,000
c. P0
d. P36,000 CORRECT
There is not output VAT on export sales. But the P300,000 domestic sales has
P300,000 x 12% = P36,000 output VAT.
Antique Enterprises, a VAT taxpayer, sold the following to various exporters in
July 2020:
Sales to Amount
BOI-registered entity with domestic sales P2,000,000
BOI-registered entity with no domestic sales 2,500,000
Export-oriented enterprise (60% export last year) 1,000,000
Export-oriented enterprise (90% export last year) 1,500,000
Total P7,000,000
Assuming that the BIR and DOF has not yet fully implemented the new VAT refund
system, what is the zero-rated sales?
a. P2,500,000
b. P1,500,000
c. P5,000,000
d. P4,000,000 (CORRECT)
Sale to BOI-regitered entity with no domestic sales 2.5M
Sale to export-oriented enterprise (with 90% export last year) 1.5M
A non-VAT taxpayer had the following sales during the month:
Direct export sales, $2,000
Domestic sales, P250,000
Assuming the exchange rate is P43,20:$1, what is the zero-rated sales?
a. P86,400
b. P250,000
c. P0 CORRECT
d. P336,400
The taxpayer is non-VAT hence its export sales are exempt rather than zero-rated
sales.
Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. He ordered the
said packaging materials from another Philippine company, Luna Packaging, Inc.
(LPI). It was agreed that LPI will deliver the packaging materials to Florentino
Corporation so that the latter can use the same for the sardines to be delivered to
Mr. Wu Han in China.
What is the treatment for the VAT purchases of the sale of Florentino Corporation
to Mr. Wu Han?
a. Subject to 3%
b. Subject to 0% (CORRECT)
c. Subject to 12%
d. Exempt
A VAT-registered taxpayer made the following sales:
Sales destination Terms Payment
China FOB destination $10,000
Malaysia FOB destination P450,000
Hongkong FOB shipping point HKD800,000
Philippines FOB shipping point P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
a. P420,000
b. P1,270,000
c. P1,570,000
d. P820,000 CORRECT
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.
A PEZA-registered enterprise made the following sales to entities within the custom
territories:
Sale of goods to a Philippine firm, P4,000,000
Sale of scrap materials to a Philippine firm, $100,000
Forex rate: P43.00:$1
What is the zero-rated sales?
a. P4,000,000
b. P8,300,000
c. P0 CORRECT
d. P4,300,000
The sale is not treated as zero-rated sale to the selling PEZA-locator but an
import sale to the purchasing buyer in the custom�s territory.
Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. He ordered the
said packaging materials from another Philippine company, Luna Packaging, Inc.
(LPI). It was agreed that LPI will deliver the packaging materials to Florentino
Corporation so that the latter can use the same for the sardines to be delivered to
Mr. Wu Han in China.
What is the tax treatment of the sale of LPI to Mr. Wu Han?
a. Exempt
b. Subject to 0% CORRECT
c. Subject to 12%
d. Subject to 3%
A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
a. The sale is exempt from VAT.
b. The sale is subject to the VAT on importation to the domestic business. CORRECT
c. The sale is subject to zero-rated VAT.
d. The sale is subject to the regular 12% VAT.
Abra Company, a maintenance contractor, had the following receipts from the
following clients in June 2020:
Receipt from Development Bank of the Philippines, P1,000,000
Receipts from Oceania, an international carrier, P1,200,000
Receipts from International Rice Research Institute, P800,000
What is the total zero-rated sales or receipts?
a. P800,000
b. P2,000,000 CORRECT
c. P3,000,000
d. P0
Receipts from Oceania, P1,200,000 + Receipts from IRRI, P800,000
A BSP assay report on a sale of gold nuggets discloses the following:
Gold content (850g x P1,800/gram) P1,530,000
Silver content (250g x P38/gram) 9,500
Total P1,539,500
What is the total vatable sales and the output VAT?
a. P1,539,500; 184,740
b. P9,500; P1,140
c. P1,539,500; P1,140 CORRECT
d. P1,530,000; P183,600
Both sales components are vatable. The sale of gold is subject to zero-rated VAT.
The sale of silver is subject to 12% output VAT. The output VAT is P9,500 x 12% =
P1,140.
An exporter entered into the following transactions during the month:
Transaction Amount Unsold
Export sales P1,000,00 Export sales $100,000 60-day Consignment abroad $ 50,000 40%
Forex rate = $1 = P42.50.
What is the zero-rated sales?
a. P4,250,000
b. P6,100,000
c. P0
d. P5,525,000 CORRECT
Direct Export Sales + Consignment
Aklan Protect, a security service provider, had the following receipts during the
month:
Receipts from clients inside PEZA, P3,000,000
Receipts from clients in the customs territory:
Government agencies and GOCCs, P1,000,000
Asian Development Bank, P1,200,000
Non-profit client, P1,500,000
Private clients, P2,000,000
What is the total amount of zero-rated sales?
a. P4,000,000
b. P5,200,000
c. P3,000,000
d. P4,200,000 CORRECT
P3 million + P1.2 million
A VAT-registered service provider had the following receipts from services rendered
in the Philippines in February 2020:
Paid for in foreign currencies (Peso equivalent):
To non-resident clients, P500,000
To resident clients, P400,000
Paid for in the local currency:
To non-resident clients, P800,000
To resident clients, P1,200,000
To IRRI, P200,000
What is the total zero-rated sale?
a. P400,000
b. P900,000
c. P500,000 CORRECT
d. P700,000
Albay Corporation had the following sales in March 2020:
Sale to an export-oriented enterprise, P2,000,000
Sales to a BOI-registered enterprise, P3,000,000
Assuming that the new VAT refund system is already in place, what is the total
effectively zero-rated sales?
a. P0
b. P3,800,000
c. P5,000,000 CORRECT
d. P3,000,000
The sale to an export-oriented enterprise is a constructive export even if not
actually exported. The sales to a BOI enterprise are considered export sales if the
latter exports 100% of its produce.
A domestic enterprise made the following sales:
Sales to domestic missions, P2,000,000
Sales to ecozone-registered enterprise, $50,000
Conversion rate: P42=$1
What is the zero-rated sales?
a. P2,000,000
b. P4,100,000 CORRECT
c. P2,100,00
d. P0
Sales to diplomatic missions + Sales to ecozones = 4.1M
An electric cooperative sold the following during the month:
Sale of electricity from renewable sources of energy, P2,000,000
Sale of electricity generated from coal and natural gas, P1,000,000
What is the zero-rated sale of the electric cooperative?
a. P1,000,000
b. P0 CORRECT
c. P3,000,000
d. P2,000,000
The tax incentive on zero-rated treatment on sales of electricity pertains to
generation company, not to a distribution company or cooperative.
A VAT-registered export trader purchased and sold an equipment. The details of the
purchase and sale are follows:
Export sales, P400,000
Purchases, P200,00
Input VAT, P12,000
What is the gross income for taxation purposes?
a. P212,000
b. P188,000
c. P224,000
d. P200,000 CORRECT
Your answer is correct.
400,000 � 200,000 = 200,000
The Input VAT is claimable as tax credit or tax refund.
Agusan Company made the following export and foreign consignments:
Type of transaction Amount
Export sales 1 P1,000,000
Export sales 2 $80,000
Consignment 1 $50,000
Consignment 2 $10,000
Export sales 2 pertains to goods owned by another entity where Agusan Company was
granted export commission. Consignment 1 was sold by foreign consignees during the
month. Consignment 2 remained unsold 75 days as of the end of the current month.
The applicable exchange rate is P43:$1.
What is the total zero-rated sales or receipts?
a. P5,590,000
b. P2,924,000
c. P3,494,000
d. P2,494,000 CORRECT
Export Sales 2 commission + Consignment = 2494K
A Philippine company exported goods for $140,000 to a non-resident customer. The
payment, however, was not inwardly remitted. The same was remitted to its home
office abroad.
Which is correct?
a. The sale is a zero-rated sale.
b. The sale is subject to 3% percentage tax.
c. The sale is subject to 12% VAT.
d. The sale is an exempt sale. CORRECT
To be subject to zero-rating, the proceeds of export sales must be inwardly
remitted and accounted for under the rules of the BSP. Export sales that do not
conform to zero-rating requirements are exempt.
Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. To accommodate
this requirement, Florentino Corporation bought the specialized packaging materials
from the Philippine company, Luna Packaging, Inc. (LPI).
What is the status of the sale of LPI to Florentino Corporation?
a. Subject to 0% only if Florentino Corporation�s export sales exceed 70% of total
annual production in the current year. CORRECT
b. Subject to 0%
c. Subject to 0% only if LPI�s export sales exceed 70% of total annual production
in the current year.
d. Subject to 12%
A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
a. The sale is subject to zero-rated VAT.
b. The sale is subject to the VAT on importation to the domestic business. CORRECT
c. The sale is subject to the regular 12% VAT.
d. The sale is exempt from VAT.
For a taxpayer subject to a 30% tax rate, compute respectively the tax benefits of
a P60,000 input VAT deduction and a P40,000 input VAT credit.
a. P60,000; P40,000
b. P60,000; P12,000
c. P18,000; P40,000 CORRECT
d. P18,000; P12,000
Tax benefit of P60,000 x 30% = P18,000
P40,000 tax credit x 100% = P40,000
A non-VAT taxpayer had the following sales during the month:
Direct export sales, $2,000
Domestic sales, P250,000
Assuming the exchange rate is P43,20:$1, what is the zero-rated sales?
a. P0 CORRECT
b. P86,400
c. P336,400
d. P250,000
The taxpayer is non-VAT hence its export sales are exempt rather than zero-rated
sales.
Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. To accommodate
this requirement, Florentino Corporation bought the specialized packaging materials
from the Philippine company, Luna Packaging, Inc. (LPI).
What is the status of the sale of LPI to Florentino Corporation?
a. Subject to 0% only if LPI�s export sales exceed 70% of total annual production
in the current year.
b. Subject to 0% only if Florentino Corporation�s export sales exceed 70% of total
annual production in the current year. CORRECT
c. Subject to 0%
d. Subject to 12%
A business taxpayer reported the following sale during a period:
Domestic sales, P200,000
Deemed sales, P100,000
Export sales, P300,000
What is the zero-rated sales assuming the seller is respectively a VAT taxpayer and
a non-VAT taxpayer?
a. P600,000; P300,000
b. P300,000; P0 CORRECT
c. P600,000; P0
d. P300,000; P300,000
A PEZA-registered enterprise made the following sales to entities within the custom
territories:
Sale of goods to a Philippine firm, P4,000,000
Sale of scrap materials to a Philippine firm, $100,000
Forex rate: P43.00:$1
What is the zero-rated sales?
a. P0 CORRECT
b. P8,300,000
c. P4,300,000
d. P4,000,000
The sale is not treated as zero-rated sale to the selling PEZA-locator but an
import sale to the purchasing buyer in the custom�s territory.
Which of the following businesses is allowed a presumptive input VAT?
a. Manufacturer of dried fish
b. Manufacturer of canned goods
c. Manufacturer of packed noodles (CORRECT)
d. Manufacturer of packed juices
Which of the following cannot claim presumptive input VAT?
a. Manufacturer of packed noodle instant meals
b. Processor of milk
c. Processor of sardines
d. Manufacturer of grease oil (CORRECT)
Input VAT on purchases of capital assets shall be spread (amortized over 60 months
or over the useful lives of the capital assets if shorter than 60 months) when
a. VAT taxpayer has secured prior approval for him to amortize input tax on
purchases of capital assets.
b. Capital assets have been acquired from enterprises registered with and located
at the export processing zones.
c. Value of asset, excluding VAT, exceeds P1,000,000. W
d. Aggregate monthly purchases of capital assets, excluding VAT, exceeds
P1,000,000. CORRECT
For purposes of claiming input VAT on depreciable assets, the aggregate acquisition
cost of a depreciable asset in any calendar month refers to the
a. Total price agreed upon for one or more assets acquired during the calendar
month. C
b. Payments actually made during the calendar month.
c. Initial payments made if purchased on installment plan.
d. Total price agreed upon for one asset only acquired during the calendar month.
No input VAT credit is allowed on
a. Government sales
b. Export sales
c. Exempt sales C
d. Regular sales
Which of the following properties may be included in the basis of the 2%
transitional input VAT?
a. Land and other properties not subject to depreciation
b. Building subject to periodic provision for depreciation
c. Land or building classified as inventory held for sale C
d. Land or building classified as property held for use
Which is included in the VAT basis of the 2% transitional input VAT?
I.
Inventory of processed goods
II.
Inventory of fruits and vegetables
III.
Inventory of non-food products
a. I, II and III
b. I and III only CORRECT
c. II and III only
d. I and II only
Statement 1: The input value-added tax on purchase of capital goods valued at
P1,000,000 shall be spread over 60 months if the life of property is equivalent to
5 years or more.
Statement 2: The input value-added tax on purchase of capital goods valued at
P1,000,000 shall be spread over the life of property if the life of property is
less than 5 years.
a. Statement 1 is false but statement 1 is true.
b. Statement 1 is true but statement 2 is false.
c. Statements 1 and 2 are false. C
d. Statements 1 and 2 are true.
The excess of creditable input VAT over output VAT is
a. Input VAT carry-over C
b. VAT payable
c. Standard input VAT
d. VAT refundable
Who may claim transitional input tax creditable against output tax?
a. Those who sell goods or services to persons or entities whose exemption from tax
is provided by special law or by international agreement to which the Philippines
is a signatory.
b. Newly-registered VAT taxpayer changing from being VAT-exempt or non-VAT
taxpayer. C
c. Those whose transaction is subject to zero percent VAT.
d. Processor or manufacturer of cooking oil or refined sugar.
Which of the following input VAT carry-over is creditable against output VAT of the
quarterly VAT return?
a. Those arising the first month after the quarter
b. Those arising from the first month of the quarter
c. Those arising from the prior quarter C
d. Those arising from the second month of the quarter
The amortization of input VAT on certain properties is allowed when the aggregate
acquisition costs
a. Exceeds P10,000,000
b. Exceeds P3,000,000
c. Do not exceed P1,000,000
d. Exceeds P1,000,000 CORRECT
Who can claim the
a. An importer of
b. An importer of
c. An importer of
d. An importer of
VAT on importation as a tax credit?
services for personal consumption
goods who is exempt from the VAT on importation
goods for personal consumption
goods for business use CORRECT
Who can claim the VAT on importation as a tax credit?
a. An importer of goods for personal use.
b. An OFW who imported goods from abroad.
c. An importer for business use. CORRECT
d. An importer of goods who is exempt from the VAT on importation.
The transitional input VAT is whichever is the
a. Higher of 2% of total beginning inventory or the actual input VAT thereon
b. Lower of 2% of total beginning inventory or the actual input VAT thereon
c. Lower of 2% of beginning vatable inventory or the actual input VAT thereon
d. Higher of 2% of beginning vatable inventory or the actual input VAT thereon
CORRECT
The transitional input VAT is whichever is the
a. Higher of 2% of beginning VAT-able inventory or the actual input VAT thereon.
b. Lower of 2% of total beginning inventory or the actual input VAT thereon.
c. Lower of 2% of beginning VAT-able inventory or the actual input VAT thereon.
d. Higher of 2% of total beginning inventory or the actual input VAT thereon.
CORRECT
Which of
return?
a. Input
b. Input
c. Input
d. Input
the following is creditable against the input VAT of the quarterly VAT
VAT
VAT
VAT
VAT
from
from
from
from
Which of
a. Input
b. Input
c. Input
d. Input
the
VAT
VAT
VAT
VAT
following input VAT may be amortized?
on the purchase of depreciable property C
on the purchase of non-depreciable property
on the sale of services
on the purchase of goods on installment
the
the
the
the
three months of the quarter C
third month of the quarter
first month of the quarter
second month of the quarter
No input VAT is allowed on
I.
Export sales
II.
Government sales
III.
Exempt sales
a. I, II and III (WRONG)
b. II only
c. III only (CORRECT)
d. I only
Which is
a. Input
b. Input
c. Input
d. Input
creditable?
VAT traceable to vatable sales CORRECT
VAT incurred on personal purchases
VAT on exempt sales
VAT evidenced by an ordinary receipt
Partial credit for input VAT is allowed on
a. Government sales (CORRECT)
b. Regular sales
c. Export sales
d. Exempt sales
The final percentage tax withheld is
a. 5% of the sales made to the government
b. 7% of the sales made to the government
c. 3% of the sales made to the government CORRECT
d. 3% of the purchases on sales made to the government
Once optionally-registered as a VAT person, the taxpayer shall be liable to output
tax and be entitled to input tax credit beginning on the
a. First day of the month following the registration.
b. Tenth day of the month following the close of the first quarter after
registration.
c. Twenty-fifth day following the close of the quarter. WRONG
d. First day of the month following the close of the first quarter after
registration. (CORRECT)
Which is included in the basis of transitional input VAT?
a. VAT-able goods and properties purchased from non-VAT suppliers.
b. VAT-able goods and properties purchased from VAT suppliers.
c. VAT-able properties purchased from VAT or non-VAT suppliers.
d. VAT-able goods purchased from VAT or non-VAT suppliers (CORRECT)
The presumptive input VAT is
a. 4% of primary agricultural or marine input
b. 4% of primary agricultural input CORRECT
c. 2% of primary marine input
d. 2% of primary agricultural input
Partial credit for input VAT is allowed on
a. Exempt sales
b. Export sales (WRONG)
c. Government sales (CORRECT)
d. Regular sales (wrong)
Which of
a. Input
b. Input
c. Input
d. Input
the
VAT
VAT
VAT
VAT
following
traceable
traceable
traceable
traceable
input VAT can be claimed as tax refund?
to exempt sales
to export sales (CORRECT)
to sales to the government
to regular sales (WRONG)
The amortization period for depreciable capital goods or properties shall be
a. 60 months if the useful life of the capital goods or properties do not exceed 5
years
b. Whichever is shorter between the actual useful life in months or 60 months
CORRECT
c. 60 months, without regard to the actual useful life in months
d. Whichever is longer between the actual useful life in months or 60 months
Feedback
Which of
a. Input
b. Input
c. Input
d. Input
the
VAT
VAT
VAT
VAT
following
traceable
traceable
traceable
traceable
input VAT can be claimed as tax refund?
to exempt sales
to regular sales
to sales to the government
to export sales C
Once optionally-registered as a VAT person, the taxpayer shall be liable to output
tax and be entitled to input tax credit beginning on the
a. Tenth day of the month following the
registration.
b. Twenty-fifth day following the close
c. First day of the month following the
d. First day of the month following the
registration. CORRECT
close of the first quarter after
of the quarter.
registration.
close of the first quarter after
The input VAT on purchases of real properties may be claimed in installment if
a. The sale of the real property is qualified as a deferred payment sale
b. The seller is a non-realty dealer
c. The VAT seller is subject to VAT on the installment payments (CORRECT)
d. The seller is a realty dealer
In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming tax credit for input tax, it must contain
I.
The VAT registration number.
II.
The total amount which the purchaser pays or is obligated to pay the seller
with the indication that such amount includes the VAT.
a. Only II (WRONG)
b. Both I and II (WRONG)
c. Only I (CORRECT)
d. Neither I nor II
Which of
a. Input
b. Input
c. Input
d. Input
the
VAT
VAT
VAT
VAT
following input VAT may be amortized?
on the sale of services
on the purchase of goods on installment
on the purchase of non-depreciable property
on the purchase of depreciable property C
Input VAT on purchases of capital assets shall be spread (amortized over 60 months
or over the useful lives of the capital assets if shorter than 60 months) when
a. Capital assets have been acquired from enterprises registered with and located
at the export processing zones.
b. Aggregate monthly purchases of capital assets, excluding VAT, exceeds
P1,000,000. (CORRECT)
c. Value of asset, excluding VAT, exceeds P1,000,000.
d. VAT taxpayer has secured prior approval for him to amortize input tax on
The input VAT on purchases of non-VAT registered taxpayers shall be claimable as
a. Deduction against gross income for income tax purposes (CORRECT)
b. Deduction against output VAT
c. Tax credit within two years
d. Deduction against any tax liability
The final VAT withheld is
a. 7% of the sales made to government
b. 7% of the input VAT traceable to the government
c. 5% of the sales made to government (CORRECT)
d. 5% of the purchases on sales made to the government
Who can claim the
a. An importer of
b. An importer of
c. An importer of
d. An importer of
VAT on importation as a tax credit?
goods for personal consumption
services for personal consumption
goods for business use (CORRECT)
goods who is exempt from the VAT on importation
a. Purchase of goods from non-VAT registered persons engaged in business
b. Purchase of goods from VAT persons without invoices (WRONG)
c. Purchase of goods from persons not engaged in business (WRONG)
d. Purchase of goods from aliens who are not engaged in business abroad (CORRECT)
The standard
a. 5% of the
b. 7% of the
c. 7% of the
d. 5% of the
input VAT is equivalent to
sales made to government
input VAT traceable to the government
sales made to government (CORRECT)
purchases on sales made to the government
a. The excess input
carried over to the
b. The excess input
carried over to the
c. The excess input
refunded. (WRONG)
d. The excess input
refunded. (CORRECT)
taxes of a
succeeding
taxes of a
succeeding
taxes of a
taxable month arising from domestic sales may be
month. (WRONG)
taxable quarter arising from domestic sales may be
quarter. (WRONG)
payable period arising from export sales may be
taxes of a taxable period arising from domestic sales may be
Which of the following input VAT carry-over is creditable against output VAT of the
quarterly VAT return?
a. Those arising from the second month of the quarter
b. Those arising from the prior quarter (CORRECT)
c. Those arising from the first month of the quarter
d. Those arising the first month after the quarter
Which is included in the VAT basis of the 2% transitional input VAT?
I.
Inventory of processed goods
II.
Inventory of fruits and vegetables
III.
Inventory of non-food products
a. I and III only (CORRECT)
b. I and II only
c. I, II and III
d. II and III only
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 tax
credit or tax refund.
a. Both statements are incorrect WRONG
b. Both statements are correct
c. Statement 2 only
d. Statement 1 only (CORRECT)
The excess of creditable input VAT over output VAT is
a. VAT payable
b. VAT refundable
c. Input VAT carry-over
d. Standard input VAT CORRECT
Which is a likely source of a creditable input VAT?
I.
Purchase of goods from persons not engaged in business
II.
Purchase of goods from non-VAT registered persons engaged in business
III.
Purchase of goods from aliens who are not engaged in business abroad
a. I and II only
b. I only (WRONG)
c. III only (CORRECT)
d. II only
Which of the following properties may be included in the basis of the 2%
transitional input VAT?
a.
b.
c.
d.
Land or building classified as inventory held for sale CORRECT
Land and other properties not subject to depreciation
Building subject to periodic provision for depreciation
Land or building classified as property held for use
Which of the following shall not be entitled to transitional input tax?
a. Taxpayers who elect to revert to being a VAT-exempt from being VAT subject.
CORRECT
b. Taxpayer whose taxable transactions exceeded the VAT registration threshold of
P3,000,000.
c. Taxpayers who are already VAT-registered person and also deal in goods or
property, the sale of which is exempt but becomes VAT-able transaction under a new
amendatory law.
d. Taxpayers who become liable to VAT for the first time under a new legislation.
Which of
return?
a. Input
b. Input
c. Input
d. Input
the following is creditable against the input VAT of the quarterly VAT
VAT
VAT
VAT
VAT
from
from
from
from
the
the
the
the
first month of the quarter
third month of the quarter
three months of the quarter (CORRECT)
second month of the quarter
Full input VAT credit is allowed on
I.
Regular sales
II.
Export sales
III.
Exempt sales
a. I and II only (CORRECT)
b. I, II and III
c. II and III only
d. I and III only
No input VAT is allowed on
I.
Export sales
II.
Government sales
III.
Exempt sales
a. II only
b. III only (CORRECT)
c. I only
d. I, II and III
If the depreciable capital good is sold or transferred within a period of 5 years
or prior to the exhaustion of the amortizable input tax thereon, the unamortized
input tax on the capital goods sold or transferred can be
a. Amortized over the remaining life of the capital good.
b. Claimed as input tax credit in its entirety during the month or quarter when the
sale or transfer was made. (CORRECT)
c. Claimed as input tax credit in its entirety or amortized over the remaining life
of the capital good at the option of the taxpayer.
d. Expensed outright in the month or quarter the sale or transfer was made.
Statement 1: The input VAT on non-depreciable vehicles shall be claimed in the
month purchased.
Statement 2: The input VAT on construction-in-progress shall be claimed in the
month billing is paid.
a. Both statements are correct
b. Statement 1 only
c. Both statements are incorrect
d. Statement 2 only CORRECT
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?
a. Both statements are incorrect
b. Statement 1 only
c. Both statements are correct (CORRECT)
d. Statement 2 only
Which is a likely source of a creditable input VAT?
a. Purchase of goods from persons not engaged in business (WRONG)
b. Purchase of goods from non-VAT registered persons engaged in business
c. Purchase of goods from aliens who are not engaged in business abroad (CORRECT)
d. Purchase of goods from VAT persons without invoices (WRONG)
A taxpayer has excess credit as a result of input taxes paid on purchases of
capital goods. He may
a. Carry-over and apply his excess tax credit against output taxes in the
subsequent period or periods. C
b. Use it in payment of any internal revenue tax of a VAT-registered person.
c. Make his application for refund in the subsequent period following the period
when the purchases were made. (WRONG)
d. Have his excess tax credit refunded to a VAT-registered person (WRONG)
Which of
a. Input
b. Input
c. Input
d. Input
the
VAT
VAT
VAT
VAT
following
traceable
traceable
traceable
traceable
input VAT can be claimed as tax refund?
to regular sales
to export sales (CORRECT)
to exempt sales
to sales to the government
Persons or firms engaged in the processing of sardines, mackerel and milk, and in
manufacturing refined sugar and cooking oil shall be allowed
I.
Creditable input tax
II.
Transitional input tax
III.
Presumptive input tax
IV.
Refundable input tax
a. I, II and III only (CORRECT)
b. I only
c. I and III only
d. I, II, III and IV
If the standard input VAT exceeds the actual input VAT traceable to government
sales, the excess is
a. Claimable as a tax credit against other national tax
b. Ignored since it has no further use
c. An item of gross income subject to income tax (CORRECT)
d. An item of deduction against gross income in income tax
Statement 1: The government or any of its political subdivisions,
instrumentalities or agencies, including government-owned or controlled
corporations shall, before making a payment on account of each purchase of goods or
services subject to VAT, deduct and withhold a final VAT due at the rate of five
percent (5%) of the gross payment thereof.
Statement 2: The five percent (5%) final VAT withholding rate shall represent the
net VAT payable of the seller.
a. Statement 1 is false but statement 1 is true. (WRONG)
b. Statements 1 and 2 are true. (CORRECT)
c. Statement 1 is true but statement 2 is false. (WRONG)
d. Statements 1 and 2 are false.
Which of the following statements is incorrect? When a purchase from a VATregistered person is for use both in the VAT and non-VAT business of the purchaser,
the VAT component of the total amount paid for the purchase
a. Must be allocated immediately at the time of purchase between the VAT and nonVAT business. (CORRECT)
b. May be debited at the time of purchase to the Input Taxes account. (WRONG)
c. Must be allocated between the VAT and non-VAT business at the end of the taxable
period. (WRONG)
d. May be debited at the time of purchase to the Purchases account. (WRONG)
Choose the correct statement(s) from the following:
I.
A non-VAT registered person could not claim the input VAT on its purchases as
tax credit against its business taxes.
II.
In the books of a VAT-registered person, the input VAT is an asset account,
III.
Purchases on account from VAT-registered supplier is a source of creditable
input VAT.
a. I only
b. I and III only
c. I, II and III (CORRECT)
d. I and II only
Which is included in the basis of the transitional input VAT?
a. Vatable goods and properties purchased from non-VAT suppliers
b. Vatable goods and properties purchased from VAT suppliers
c. Vatable goods only purchased from VAT or non-VAT suppliers (CORRECT)
d. Exempt goods purchased from VAT suppliers
Statement 1: The input VAT on non-depreciable vehicles shall be claimed in the
month purchased.
Statement 2: The input VAT on construction-in-progress shall be claimed in the
month billing is paid.
Which is correct?
a. Statement 2 only (CORRECT)
b. Both statements are incorrect
c. Both statements are correct
d. Statement 1 only
Julian, a VAT-taxpayer, imported a golden necklace as a gift to his girlfriend. The
foreign seller billed a total price of P200,000. Julian further paid P40,000 in
other landed costs excluding VAT. Julian can claim an input VAT of
a. P0 CORRECT
b. P28,800
c. P24,000
d. P25,714
Input VAT on purchases not made in the course of business is not creditable.
Panganiban Corporation contracted Galicano Construction to build its building at a
contract price of P100,000,000, exclusive of VAT. The building is expected to have
a useful life of 50 years upon completion.
Panganiban received and paid the following monthly billings in the first quarter of
2020 which were inclusive of VAT:
January, P1,120,000
February, P952,000
March, P1,344,000
What is the creditable input VAT respectively in January and February?
a. P12,000,000 and P0
b. P200,000 and P200,000
c. P200,000 and P120,000
d. P120,000 and P102,000 CORRECT
Construction in progress is not a purchase of capital goods but a purchase of
service. Hence, the input VAT paid shall be claimed in the month of payment.
The claimable input VAT for January shall be P1,120,000 x 12/112 = P120,00. The
claimable input VAT for February shall be P952,000 x 12/112 = P102,000.
A VAT-taxpayer had the following data in a quarter:
Input VAT carry-over, prior quarter, P20,000
Output VAT, P280,000
Input VAT during the quarter, P310,000
VAT paid during the quarter, P10,000
What is the input VAT carry-over at the end of the current quarter?
a. P60,000 CORRECT
b. P10,000
c. P0
d. P40,000
Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the final withholding VAT?
a. P200,000
b. P4,000,000
c. P165,000
d. P125,000
P4,000,000 x 5% = P200,000
A non-VAT registered person purchased goods invoiced at P112,000 from a VATregistered person. The claimable input VAT shall be
a. P12,000
b. P0 CORRECT
c. P15,000
d. P13,440
Non-VAT taxpayers cannot claim credit for input VAT.
Baltazar opted to be registered as a VAT taxpayer effective on the third quarter of
the year. He had the following analysis of beginning inventory for the month of
July:
Purchases from non-VAT suppliers, P210,000
Purchases from VAT suppliers, P22,400
How much is the transitional input VAT?
a. P4,600 CORRECT
b. P4,648
c. P24,900
d. P2,400
A VAT taxpayer made the following purchases during the year:
Goods, exclusive of VAT, P50,000
Goods, inclusive of VAT, P44,800
Services, exempt from VAT, P10,000
Services, inclusive of VAT, P23,520
What is the input VAT?
a. P13,320 COREECT
b. P14,198
c. P0
d. P12,677
A VAT-registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers:
July 2020: Machine with 10-year estimated useful life, P1,680,000
August 2020: Factory equipment with 4-year estimated useful life, P1,232,000
Assume all amounts are inclusive of VAT.
What is the creditable input VAT for the quarter ending September 2020?
a. P9,000
b. P14,500 CORRECT
c. P15,220
d. P5,500
Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the treatment of the difference between actual input VAT and standard input
VAT?
a. P20,000 expense CORRECT
b. P50,000 expense
c. P20,000 gain
d. P50,000 gain
OUTPUT VAT 480K
LOSS
20K
ACTUAL INPUT VAT
300K
FINAL WITHHELD VAT 200K
A VAT-taxpayer purchased 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
a. P6,720
b. P60,000
c. P7,200
d. P0 CORRECT
Purchases from non-VAT taxpayer has no claimable input VAT. The seller passes on a
percentage tax rather than an output VAT.
Paterno Corporation had the following details of output VAT and input VAT in a
month:
Output VAT, P340,000
Input VAT on regular sales, P300,000
Input VAT on zero-rated sale, P120,000
Input VAT on exempt sales, P60,000
Input VAT claimed as tax refund, P50,000
What is the input VAT carry-over at the end of the month?
a. P70,000
b. P90,000
c. P40,000
d. P30,000 CORRECT
P340,000 output VAT - (P300,000+(P120,000-P50,000)) = P30,000
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, P400,000
Seeds, P300,000
Farm equipment, P98,000
Pesticides, P18,000
Assuming all amounts are inclusive of VAT when applicable, what is the transitional
input VAT?
a. P12,429
b. P1,929 CORRECT
c. P13,920
d. P13,920
2% TRANSITIONAL INPUT VAT < ACTUAL INPUT VAT
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:
June 2020:
Truck (10 years estimated useful life), P700,000
Office equipment (4 years estimated useful life), P500,000
August 2020:
Office furniture (5 years estimated useful life), P600,000
Assume all amounts are exclusive of VAT.
What is the creditable input VAT in July 2020?
a. P1,950
b. P2,200
c. P0
d. P2,650 CORRECT
The input VAT shall be amortized over 60 months or actual useful life, whichever is
shorter.
Isabelo Corporation had the following summary of output and input VAT for the 1st
and 2nd quarters of 2020:
1st Quarter April May
Output VAT P200,000 P300,000 P250,000
Input VAT 240,000 320,000 240,000
What is the input VAT carry-over to be credited in June?
a. P40,000 CORRECT
b. P10,000
c. P70,000
d. P0
June is the end of the quarter so the input VAT carry-over must be those from the
1st quarter, P40,000.
Leonor Corporation is a processor of refined sugar. It purchase a total of P500,000
sugar cane for processing. It purchased other supplies at a cost of P800,000
exclusive of VAT.
What is the allowable presumptive input VAT?
a. P3,200
b. P20,000 CORRECT
c. P0
d. P23,300
P500,000 x 4% = P20,000
A refining company processes raw sugar of clients into table sugar for a fee.
During the period it processed P10,200,000 worth of refined sugar and charged a
processing fee of P1,000,000.
What is the allowable presumptive input VAT for the sugar refiner?
a. P448,000
b. P40,000
c. P0 CORRECT
d. P408,000
A processor of sugar for others is not allowed to claim presumptive input VAT.
A VAT-registered individual purchased the following from various suppliers in
November 2020:
From VAT suppliers From Non-VAT suppliers
Machineries P800,000 P300,000
Useful life 6 years 3 years
What is the creditable input VAT in November?
a. P0
b. P2,200
c. P1,600
d. P96,000 CORRECT
Purchase from non-VAT supplier has not input VAT. The question here is whether or
not to include the purchase of depreciable capital goods from non-VAT supplier to
the monthly aggregate acquisition cost. Since the law did not expressly
distinguish, the proper interpretation shall be to include the same in the monthly
aggregate acquisition cost (MAAC). The P1.1 million exceeds, the P1M threshold, the
input VAT on purchases of depreciable capital goods must be amortized.
Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the standard input VAT?
a. P5,600,000
b. P175,000
c. P231,000
d. P280,000 CORRECT
P4,000,000 x 7% = P280,000
A taxpayer who became subject to VAT on the third quarter of 2020 had the following
input VAT:
August, P32,000
September, P40,000
October, P18,000
What is the claimable input VAT for the third quarter of 2020?
a. P72,000 CORRECT
b. P40,000
c. P90,000
d. P32,000
The taxable quarter of business taxpayer is aligned with his or its accounting
period. The calendar year is presumed in the absence of an indication that a fiscal
year is adopted. The third calendar quarter ends September. Hence the claimable
input VAT in the third quarter shall be P32,000 plus P40,000 = P72,000.
Lakandula manufactures noodles from wheat flour. It purchased the following from
VAT suppliers during a production month:
Wheat flour, P200,000
Egg, P20,000
Coconut oil, P40,000
Other seasonings, P40,000
What is the presumptive input VAT?
a. P8,800
b. P10,400
c. P0
d. P800 CORRECT
P20,000 x 4% = P800
Panganiban Corporation contracted Galicano Construction to build its building at a
contract price of P100,000,000, exclusive of VAT. The building is expected to have
a useful life of 50 years upon completion.
Panganiban received and paid the following monthly billings in the first quarter of
2020 which were inclusive of VAT:
January, P1,120,000
February, P952,000
March, P1,344,000
What is the creditable input VAT in the first quarter of 2020?
a. P12,000,000
b. P366,000 CORRECT
c. P222,000
d. P600,000
A VAT taxpayer had the following transactions during the first calendar quarter of
the year:
Purchase of goods in January but were paid in February, P50,000
Purchase of services rendered in January but were paid in February, P80,000
Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March, P250,000
All amounts are exclusive of VAT.
What is the creditable input VAT in February?
a. P45,600
b. P39,600
c. P9,600 80K*.12
d. P15,600
What is the creditable input VAT for the quarter?
a. P6,000
b. P45,600 CORRECT
c. P15,600
d. P39,600
A VAT-registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers:
July 2020: Machine with 10-year estimated useful life, P1,680,000
August 2020: Factory equipment with 4-year estimated useful life, P1,232,000
Assume all amounts are inclusive of VAT.
What is the creditable input VAT in August 2020?
a. P5,750 CORRECT
b. P4,250
c. P6,110
d. P2,750
A taxpayer transitioning to the VAT system had the following inventories upon
exceeding the VAT threshold:
�
Inventory of unprocessed agricultural food products, P30,000
�
Inventory of processed goods, P170,000
�
Inventory of non-food goods, P210,000
The taxpayer acquired all the goods from non-VAT suppliers.
a. P3,400
b. P8,200
c. P0
d. P7,600 CORRECT
A VAT taxpayer had the following input VAT during the year:
on exempt sales, P204,000
on regular sales, P174,000
on export sales, P150,000
What is the total creditable input VAT?
a. P378,000
b. P0
c. P528,000
d. P324,000 CORRECT
Ms. Marina, a VAT-taxpayer, purchased the following from a VAT-taxpayer:
VAT-exempt goods, P20,000
Vatable goods, P40,000
What is the input VAT allowable to Mr. Marina?
a. P4,286 CORRECT
b. P4,800
c. P2,143
d. P0
The amount shown are �invoice prices.� Hence, the input VAT shall be computed out
of the vatable purchases as P40,000 x 12/112 = P4,286.
Dagohoy 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, P1,000,000
Building, (estimated useful life of 7 years), P600,000
What is the claimable input VAT in April 2020?
a. P127,200
b. P192,000 CORRECT
c. P7,200
d. P120,000
The amortization of input VAT applies only to depreciable capital goods. The input
VAT on non-depreciable capital goods may be claimed in the month of purchase. Since
the aggregate acquisition cost of purchases of capital goods did not exceed P1
million, no amortization shall be made for the month.
What is the total creditable input VAT in April?
a. P340,000
b. P60,000
c. P360,000 CORRECT
d. P70,000
P40,000 carry-over from 1st quarter plus the P320,000 input VAT in April
Mr. Makabulos is a percentage taxpayer. He bought goods billed at an invoice price
of P20,160 from a VAT-registered taxpayer. Mr. Makabulos sold the goods in the same
month at a price of P42,000. How much input VAT is claimable by Mr. Makabulos?
a. P2,160
b. P160
c. P0 CORRECT
d. P2,419
There is no indication in the problem that the taxpayer is also a VAT-taxpayer. As
a rule, percentage taxpayers are non-VAT taxpayers, and hence, cannot claim input
VAT.
Palma Company sold to the government goods it purchased for P400,000 for P550,000.
What is to be included in the calculation of the taxable income of Palma Company?
a. P9,500 loss or expense CORRECT
b. P20,500 gain
c. P9,500 gain
d. P20,500 loss or expense
Actual input VAT = 12% x P400,000 = P48,000. Standard input VAT = P38,500 => loss
or an item of deduction of P9,500.
A VAT-registered purchaser received the following billing from a VAT-registered
seller:
Selling price
P200,000
Output VAT
20,000
Invoice price
P220,000
What is the creditable input VAT?
a. P23,571 CORRECT
b. P24,000
c. P0
d. P20,000
The VAT is incorrect billed, hence, it must be recomputed as P220,000 x 12/112 =
P23,571.
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 resold in the Philippines
had a landed cost of P150,000. What is the claimable input VAT?
a. P0
b. P16,071
c. P18,000 CORRECT
d. P19,758
As a rule, importation is subject to VAT. This applies without regard to whether or
not the foreign seller is engaged or not engaged in business. The VAT is 12% x
P150,000 land cost = P18,000.
Agoncillo Delata, Inc., a sardines canning Company, had the following purchases as
inputs for its manufacturing operations during a month:
Tin cans, exclusive of VAT, P80,000
Tomatoes, P150,000
Sardines, P200,000
Labels, exclusive of VAT, P20,000
What is the presumptive input VAT allowable to Agoncillo?
a. P18,000
b. P6,000 CORRECT
c. P0
d. P14,000
Only purchases of agricultural inputs is allowed of presumptive input VAT; hence,
P150,000 purchase of tomatoes x 4% = P6,000.
Lapu-lapu, 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 plus P7,200 VAT.
What is the creditable input VAT in the February VAT return and in the quarterly
VAT return of March 2020?
a. P7,200 and P7,200 WRONG
b. P259,200 and P259,200
c. P0 and P0
d. P7,200 and P14,400
Only input VAT incurrect or paid in the course of business can be claimed.
Gabriela Corporation is reporting on a calendar-year basis. It purchased the
following capital goods in the second quarter of 2020:
All amounts are inclusive of VAT. Equipment is depreciated over a 4-year useful
life while machineries are depreciated over a 10-year useful life basis.
What is the creditable input VAT for May 2020?
a. P4,600
b. P123,000
c. P5,300
d. P122,400 CORRECT
Your answer is correct.
The input VAT on the May purchase of capital goods shall not be amortized. Hence,
P120,000 (P400,000 + P600,000 multiply by 12%) plus P2,400 = P122,400.
Ms. Agueda, a VAT-taxpayer, made the following purchases (net of VAT) of vatable
goods during the month:
From non-VAT taxpayers, P50,000
From VAT taxpayers, P250,000
What is the input VAT?
a. P6,000
b. P0
c. P36,000
d. P30,000 CORRECT
P250,000 x 12% = P30,000.
A VAT-taxpayer incurred the following during the month:
Consultancy fees, P700,000
Salaries expense, P400,000
Supplies expense, P300,000
Purchases from VAT suppliers were P250,000 supplies and P400,000 equipment. The
equipment is expected to last for 5 years.
What is the claimable input VAT during the month?
a. P114,800
b. P162,000 CORRECT
c. P114,000
d. P84,000
Total vatable purchases of P1,250,000 x 12% = P162,000 input VAT.
The expensing of purchases in the accounting records is not subject to VAT but
rather the purchases of the item involved. Employment income is not subject to VAT.
Lakandula manufactures noodles from wheat flour. It purchased the following from
VAT suppliers during a production month:
Wheat flour, P200,000
Egg, P20,000
Coconut oil, P40,000
Other seasonings, P40,000
Assuming the vatable purchases were exclusive of VAT, what is the total creditable
input VAT?
Select one:
a. P34,000
b. P34,800
c. P33,600
d. P34,400 CORRECT
INPUT VAT ON FLOUR 24K
COCONUT OIL 4.8K
SEASONINGS 4.8K
PRESUMPTIVE VAT ON EGGS 800
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, P11,200,000
Corporate office building, P20,000,000
Various equipment, P4,000,000
What is the transitional input VAT?
a. P0
b. P624,000
c. P1,200,000
d. P224,000 CORRECT
It must be emphasized that the actual presence of VAT in the beginning inventory is
not a pre-condition to the claim of input VAT.
RAW LAND CONTRIBUTED*2%
Mr. and Mrs. Tecson compiled the following input VAT during a month:
Mr. Tecson is a non-VAT taxpayer while Mrs. Tecson is a VAT taxpayer.
What is the respective creditable input VAT of Mr. and Mrs. Tecson?
a. P22,000; P20,000 WRONG
b. P22,000; P0
c. P0; P0
d. P0; P20,000 CORRECT
Non-VAT taxpayers cannot claim input Vat
Epifanio became subject to VAT effective the month of September. He had the
following beginning inventory in September:
Purchases from non-VAT suppliers, P30,000
Purchases from VAT suppliers, exclusive of VAT, P220,000
What is the transitional input VAT?
a. P30,000
b. P5,000
c. P26,400 CORRECT
d. P0
A VAT-taxpayer received and paid the following billings for vatable goods
purchased:
Purchases from non-VAT taxpayers, P50,000
Purchases from VAT taxpayers, P250,000
What is the claimable input VAT?
a. P0
b. P5,357
c. P32,143
d. P26,786 CORRECT
The term �billing� means invoice price. Hence, the claimable input VAT shall be
P250,000 x 12/112 = P26,756.
Dagohoy 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, P1,000,000
Building, (estimated useful life of 7 years), P600,000
What is the claimable input VAT in April 2020?
a. P120,000
b. P7,200
c. P127,200
d. P192,000 CORRECT
The amortization of input VAT applies only to depreciable capital goods. The input
VAT on non-depreciable capital goods may be claimed in the month of purchase. Since
the aggregate acquisition cost of purchases of capital goods did not exceed P1
million, no amortization shall be made for the month.
A VAT-registered taxpayer purchased equipment which is expected to last for 10 year
in January 2020. The purchase price was P1,000,000, exclusive of P120,000 VAT.
What is the input VAT claimable respectively in January 2020 and February 2020?
a. P2,000 and P2,000
b. P1,000 and P1,000
c. P0 and P120,000
d. P120,000 and P0 CORRECT
The input VAT on the depreciable equipment is claimable in the month of purchase
because the aggregate purchase price in that month did not exceed P1 million.
Ms. Agueda, a VAT-taxpayer, made the following purchases (net of VAT) of vatable
goods during the month:
From non-VAT taxpayers, P50,000
From VAT taxpayers, P250,000
What is the input VAT?
a. P0
b. P30,000 CORRECT
c. P36,000
d. P6,000
P250,000 x 12% = P30,000.
Gabriela Corporation is reporting on a calendar-year basis. It purchased the
following capital goods in the second quarter of 2020:
All amounts are inclusive of VAT. Equipment is depreciated over a 4-year useful
life while machineries are depreciated over a 10-year useful life basis.
What is the creditable input VAT for the quarter ended June 20, 2020?
a. P151,200 CORRECT
b. P16,400
c. P148,800
d. P24,000
APRIL 2.4K
MAY 112.4K
JUNE (2400+200K)*.12 26400
TOTAL CLAIMABLE INPUT VAT 151200
Mr. Soliman is a VAT-registered manufacturer of cooking oil. During a month, it
made the following purchases:
Raw coconut (into copra), P300,000
Copra from farmers, P450,000
Other supplies for manufacturing cooking oil, P120,000
What is the presumptive input VAT?
a. P12,000
b. P0
c. P34,800
d. P30,000 CORRECT
RAW+COPRA)*.04
Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the actual input VAT of Artemio for the month?
a. P336,000
b. P300,000 CORRECT 2.5M*.12
c. P360,000
d. P396,000
In January 2020, a VAT taxpayer made the following purchases:
Goods, exclusive of VAT, P800,000
Capital goods, exclusive of VAT, P700,000
The capital goods pertain to several equipment with estimated useful life of 3
years.
What is the claimable input VAT?
a. P180,000 CORRECT
b. P98,333
c. P160,714
d. P97,400
The input VAT on the goods is claimable in the month of purchase. The input VAT on
the purchase of deprecable capital goods shall likewise be claimable in the month
of purchase because the aggregate acquisition costs of capital goods in the month
did not exceed P1 million. Hence, P1.5 million x 12% = P180,000.
What is the creditable input VAT in April 2020?
a. P3,000
b. P2,400
c. P0
d. P144,000
The April input VAT shall be amortized. Hence, P1.2 million x 12% divide by 60
months = P2,400.
A VAT-registered individual purchased the following from various suppliers in
November 2020:
What is the creditable input VAT in November?
a. P0
b. P96,000 CORRECT
c. P1,600
d. P2,200
Purchase from non-VAT supplier has not input VAT. The question here is whether or
not to include the purchase of depreciable capital goods from non-VAT supplier to
the monthly aggregate acquisition cost. Since the law did not expressly
distinguish, the proper interpretation shall be to include the same in the monthly
aggregate acquisition cost (MAAC). The P1.1 million exceeds, the P1M threshold, the
input VAT on purchases of depreciable capital goods must be amortized.
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 resold in the Philippines
had a landed cost of P150,000. What is the claimable input VAT?
a. P18,000 CORRECT
b. P19,758
c. P0
d. P16,071
As a rule, importation is subject to VAT. This applies without regard to whether or
not the foreign seller is engaged or not engaged in business. The VAT is 12% x
P150,000 land cost = P18,000.
Diego Corporation purchased equipment at a cost of P2,000,000 in October of 2017,
exclusive of a P240,000 input VAT. The corporation sold the equipment in May 2020.
The equipment was depreciated over a period of 8 years.
What is the claimable input VAT in the second calendar quarter of 2020?
a. P112,000
b. P108,000
c. P116,000
d. P120,000 CORRECT
P4,000 for April and P116,000 for May
Diego Corporation purchased equipment at a cost of P2,000,000 in October of 2017,
exclusive of a P240,000 input VAT. The 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?
Select one:
a. P112,000
b. P108,000
c. P120,000
d. P116,000 CORRECT
The input VAT on the equipment must have been amortized over 60 months starting
October 2017. Since credit for input VAT is made at the end of the month, no
amortization is provided for May 2020. As of May 2020, 31 months lapsed. There are
30 remaining monthly amortization as of May 2020. Any unamortized input VAT may be
claimed in the month of sale. Thus, P240,000 x (60-31)/60 = P116,000.
A VAT-taxpayer incurred the following during the month:
Consultancy fees, P700,000
Salaries expense, P400,000
Supplies expense, P300,000
Purchases from VAT suppliers were P250,000 supplies and P400,000 equipment. The
equipment is expected to last for 5 years.
What is the claimable input VAT during the month?
a. P162,000 CORRECT
b. P114,000
c. P84,000
d. P114,800
Total vatable purchases of P1,250,000 x 12% = P162,000 input VAT.
The expensing of purchases in the accounting records is not subject to VAT but
rather the purchases of the item involved. Employment income is not subject to VAT.
Lapu-lapu, 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 plus P7,200 VAT.
What is the creditable input VAT in the February VAT return and in the quarterly
VAT return of March 2020?
a. P7,200 and P7,200
b. P259,200 and P259,200
c. P0 and P0 CORRECT
d. P7,200 and P14,400
Only input VAT incurrect or paid in the course of business can be claimed.
A wholesale trader of canned sardines purchased P504,000 worth of sardines
inclusive of VAT from a sardine-canning company.
What is the allowable presumptive input VAT?
a. P4,000
b. P20,160
c. P0 CORRECT
d. P18,000
Only manufacturers and processors are allowed of presumptive input VAT.
Agoncillo Delata, Inc., a sardines canning Company, had the following purchases as
inputs for its manufacturing operations during a month:
Tin cans, exclusive of VAT, P80,000
Tomatoes, P150,000
Sardines, P200,000
Labels, exclusive of VAT, P20,000
What is the total creditable input VAT of Agoncillo for the month?
a. P14,000
b. P18,000 CORRECT
c. P6,000
d. P15,600
INPUT VAT ON TIN CANS (80K*.12) 9600
INPUT VAT ON WRAPPERS (20K*.12) 2400
PRESUMPTIVE INPUT VAT ON TOMATOES 6K
TOTAL 18K
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:
June 2020:
Truck (10 years estimated useful life), P700,000
Office equipment (4 years estimated useful life), P500,000
August 2020:
Office furniture (5 years estimated useful life), P600,000
Assume all amounts are exclusive of VAT.
What is the creditable input VAT for the quarter ending August 2020?
a. P145,200
b. P79,950 CORRECT
c. P216,000
d. P81,150
CLAIMABLE INPUT VAT IN JUNE 2650
CLAIMABLE INPUT VAT IN JULY 2650
CLAIMABLE INPUT VAT IN AUGUST
AMORTIZATION OF DEFERRED VAT FROM PURCHASES IN PRIOR MONTHS 2650
VAT ON PURCHASE OF DEPRECIABLE GOODS 72k
TOTAL 79950
Ms. Marina, a VAT-taxpayer, purchased the following from a VAT-taxpayer:
VAT-exempt goods, P20,000
Vatable goods, P40,000
What is the input VAT allowable to Mr. Marina?
a. P4,800
b. P0
c. P4,286 CORRECT
d. P2,143
The amount shown are �invoice prices.� Hence, the input VAT shall be computed out
of the vatable purchases as P40,000 x 12/112 = P4,286.
A taxpayer transitioning to the VAT system had the following inventories upon
exceeding the VAT threshold:
�
Inventory of unprocessed agricultural food products, P30,000
�
Inventory of processed goods, P170,000
�
Inventory of non-food goods, P210,000
The taxpayer acquired all the goods from non-VAT suppliers.
a. P8,200
b. P7,600 CORRECT
c. P0
d. P3,400
380K*.02=7600
Palma Company sold to the government goods it purchased for P400,000 for P550,000.
What is the standard input VAT?
a. P27,500
b. P20,000
c. P28,000
d. P38,500 CORRECT
P550,000 x 7% = P38,500
Isabelo Corporation had the following summary of output and input VAT for the 1st
and 2nd quarters of 2020:
a. P60,000 CORRECT
b. P70,000
c. P20,000
d. P40,000
P40,000 carry-over from 1st quarter and P20,000 from April
What is the creditable input VAT in the December quarterly VAT return?
a. P3,200
b. P1,600
c. P96,000 CORRECT
d. P4,400
A VAT-registered individual purchased the following from various suppliers in
November 2020:
What is the creditable input VAT in November?
a. P1,600
b. P2,200
c. P96,000 CORRECT
d. P0
Purchase from non-VAT supplier has not input VAT. The question here is whether or
not to include the purchase of depreciable capital goods from non-VAT supplier to
the monthly aggregate acquisition cost. Since the law did not expressly
distinguish, the proper interpretation shall be to include the same in the monthly
aggregate acquisition cost (MAAC). The P1.1 million exceeds, the P1M threshold, the
input VAT on purchases of depreciable capital goods must be amortized.
The withholding agent of creditable
of value-added tax withheld within
a. 10 days following the end of the
b. 20 days following the end of the
c. 15 days following the end of the
d. 25 days following the end of the
value-added tax is required to remit the amount
month
month
month
month
the
the
the
the
withholding
withholding
withholding
withholding
was
was
was
was
made (CORRECT)
made
made
made
The summary list is required for
a. Large taxpayers
b. Non-VAT taxpayers
c. Non-large taxpayers
d. VAT taxpayers (CORRECT)
Which of the following is not subject to the requirement to pay advanced VAT?
a. Owners of harvested timber
b. Sugar refineries which process sugar for their own accounts
c. Wheat traders (CORRECT)
d. Millers of flour
Which of the following is exempt from value-added tax?
a. Sale of paintings.
b. Lease of cold storage rooms in ice plants and cold storage.
c. Importation of radio and television equipment by broadcasting and television
stations.
d. Sale of sliced fruits and vegetables. (CORRECT)
Which of the following is not subject to VAT?
a. Franchise grantees of radio broadcasting whose gross receipts for the preceding
year is P10,000,000. (CORRECT)
b. Importation of items for personal use (WRONG)
c. Importation of goods in the ordinary course of business (WRONG)
d. VAT-registered person whose annual gross receipt is less than P3,000,00.
Which of the following is the benefit of VAT-registration of a taxpayer subject to
zero-percent (0%) VAT rate?
a. Exclusion from tax audit by tax examiners.
b.
c.
be
d.
Not required to file VAT return whether monthly or quarterly.
He does not have output tax although he may have an input tax credit which can
claimed for refund (CORRECT)
He is entitled to tax discount equivalent to 20%.
Gross selling price includes all of the following, except
a. Total amount which the purchaser pays to the seller
b. Excise tax
c. Total amount with the purchaser is obligated to pay to the seller
d. Value-added tax (CORRECT)
Which of the following can be claimed as VAT refund?
a. Input VAT on sales to the government
b. Input VAT on domestic purchases
c. Advanced input VAT
d. Input VAT on export sales (CORRECT)
Aejay owns a mango plantation. He sold his ripe mangoes to Amita, a fresh fruit
vendor. Amita sold the ripe mangoes he bought from Aejay to Mona. Who shall be
subject to VAT?
a. Aejay
b. Amita
c. Mona
d. Nobody (CORRECT)
Which of the following shall be exempt from value-added tax?
I.
Sales by agricultural cooperatives duly registered with the Cooperative
Development Authority to their members as well as sale of their products, whether
in its original state or processed form to non-members.
II.
Gross receipts from lending activities by credit or multi-purpose
cooperatives duly registered with the Cooperative Development Authority.
III.
Sales of non-agricultural, non-electric and non-credit cooperatives duly
registered with the Cooperative Development Authority.
a. I only
b. I, II and III
c. II and III only
d. I and II only (CORRECT)
Which one of the following is not a livestock for VAT purposes?
a. Cow
b. Pig
c. Rabbit
d. Race horse (CORRECT)
Which of the following transactions is subject to value-added tax?
a. Sale of coal and natural gas. (CORRECET)
b. Educational services duly approved by DepEd, CHED and TESDA or those operated by
the government.
c. Rental of residential units at P15,000 per month.
d. Services subject to percentage tax.
A lessor of commercial units shall be exempt from VAT when
I.
Annual gross receipts do not exceed P3 million.
II.
Monthly rental per unit does not exceed P15,000.
a. Either I and II
b. II only
c. I only
d. Both I and II (CORRECT)
In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming input tax, it must contain the following, except
a. The date of transaction
b. The address of the supplier of goods, properties or services
c. The description, quantity and unit cost of the goods or properties or nature of
service (CORRECT)
d. The VAT registration number (WRONG)
Which of the following is not correct?
a. Any business pursued by an individual where the aggregate gross sales or
receipts do not exceed P100,000 during any 12-month period
b. Importation of items for personal use is subject to VAT.
c. Non-stock, non-profit private organizations are not subject to VAT if their
income from sales is used for non-profit purposes. (CORRECT)
d. A VAT-registered taxpayer can pass on the VAT even to non-VAT registered
Mr. Lopez, VAT-exempt, issued VAT invoice to Mr. Tacac, VAT-registered trader. As a
consequence, Mr. Lopez would
a. Be liable to VAT without the benefit of input tax credit (WRONG)
b. Be liable to percentage tax, VAT and surcharge (WRONG)
c. Not be liable to any business tax but may be liable to income tax
d. Not be liable to VAT (CORRECT)
Monthly
a. 20th
b. 15th
c. 30th
d. 25th
VAT
day
day
day
day
declaration is filed
from the end of each
from the end of each
from the end of each
from the end of each
on or before the
month. (CORRECT)
month.
month.
month.
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 in lieu of the actual input VAT traceable to the sales
of refined sugar, flour or timber
c. The advanced input VAT is the final VAT due from the seller
d. The advanced input VAT is a down payment on the VAT on the ultimate sale of
refined sugar, flour or timber (CORRECT)
Which industry is not subject to VAT?
a. Construction
b. Mining
c. Banking (CORRECT)
d. Air transport
Which of the following transactions is exempt from value-added tax?
a. Services arising from employer-employee relationship (CORRECT)
b. Medical services rendered by professionals
c. Services rendered by domestic air transport companies
d. Legal services
Statement 1: If the sale involves goods, properties or services some of which are
subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or
receipt shall clearly indicate the breakdown of the sales price between its
taxable, exempt and zero-rated components, and the calculation of the VAT on each
portion of the sale shall be shown on the invoice or receipt.
Statement 2: The seller has the option to issue separate invoices or receipts for
the taxable, exempt, and zero-rated components of the sale.
a. Statement 1 is false but statement 1 is true. (CORRECT)
b. Statements 1 and 2 are true.
c. Statement 1 is true but statement 2 is false.
d. Statements 1 and 2 are false.
Cabiso owns Imperial Gardens. He harvested flowers and sold them to Monette.
Monette sold the flowers in their original state to Mona. The sale of flowers by
Monette to Mona shall be
a. Subject to VAT (CORRECT)
b. Exempt from VAT or subject to Vat depending on the annual receipts of Joseph.
c. Subject to VAT if Joseph did not subsequently sell it.
d. Exempt from VAT
Which of the following transactions is exempt from value-added tax?
a. Sale of musical composition
b. Sale of itinerary work
c. Sale of books, newspaper and magazines CORRECT
d. Distribution of electricity
Which one of the following goods is not in its original state?
a. Refined brown sugar CORRECT
b. Polished or husked rice
c. Corn grits
d. Salted eggs
Once optionally-registered as a VAT person, the taxpayer shall be liable to output
tax and be entitled to input tax credit beginning on the
a. First day of the month following the registration. (CORRECT)
b. First day of the month following the close of the first quarter after
registration
c. Tenth day of the month following the close of the first quarter after
registration.
d. Twenty-fifth day following the close of the quarter.
Which of the following is subject to VAT?
a. Sale of copra.
b. Sale of vegetables in its original state.
c. Sale of olive oil. (CORRECT)
d. Sale of fruits in its original state.
Which one of the following is not a poultry for VAT purposes?
a. Duck
b. Fighting cock CORRECT
c. Goose
d. Fowl
Which of the following tax credit can be claimed through a tax credit certificate?
I.
Input VAT on export sales
II.
Advanced input VAT
III.
Input VAT on sales to the government
a. II and III only
b. I and III only
c. I, II and III
d. I and II only (CORRECT)
Which of the following shall not be subjected to VAT?
I.
Mona Trading, VAT-registered, but gross sales for the year did not exceed P3
million.
II.
Alburo Corporation, a foreign licensor or non-resident lessor who is not
VAT-registered.
III.
Cabiso Company, a domestic corporation required to register under VAT
system but failed to register.
a. All of the three. (WRONG)
b. None of the three. (CORRECT)
c. Mona Trading and Alburo Corporation
d. Mona Trading and Cabiso Company
Which one of the following is not subject to VAT on importation?
a. Goods brought into the Philippines not in the course of trade or business by
persons who are not VAT-registered.
b. Goods brought into the Philippines in the course of trade or business by VATregistered persons.
c. Goods exempt from customs duties classified as personal and household effects
belonging to residents of the Philippines returning from abroad. (CORRECT)
d. Tax free goods imported by tax-exempt importers who transferred the goods to
persons who does not enjoy exemption from VAT on importation.
Quarterly VAT declaration is filed on or before the
a. 25th day from the end of each quarter. (CORRECT)
b. 20th day from the end of each quarter.
c. 25th day from the end of each month.
d. 20th day from the end of each month.
What is the effectivity of the request for cancellation of VAT registration?
a. On the day following the date the request was approved
b. On the month following the month the cancellation was approved (CORRRECT)
c. On the quarter following the quarter when the cancellation was approved
d. On the day the request is approved
Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
a. I, II and III
b. II and III only
c. I and III only
d. I and II only (CORRECT)
A VAT-registered supplier sold goods amounting to P500,000 to a government-owned
corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale of the goods?
a. The government-owned corporation will withhold P25,000 withholding VAT.
b. The government-owned corporation shall remit the final VAT withheld to the BIR
within 10 days following the end of the month the withholding was made.
c. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT. (CORRECT)
d. The sale is subject to final withholding VAT.
In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming tax credit for input tax, it must contain
I.
The VAT registration number.
II.
The total amount which the purchaser pays or is obligated to pay the seller
with the indication that such amount includes the VAT.
a. Only I (CORRECT)
b. Only II
c. Neither I nor II
d. Both I and II (WRONG)
Which is not a VAT compliance requirement?
a.
b.
c.
d.
Filing of monthly summary list
Transaction recording
Registration with the Department of Trade and Industry (CORRECT)
VAT invoicing
Which is not a tax credit against net VAT payable?
a. Standard input VAT (CORRECT)
b. Monthly VAT payments (WRONG)
c. Final VAT withheld
d. Advanced VAT (WRONG)
A lessor of commercial units shall be exempt from VAT when
I.
Annual gross receipts do not exceed P3 million.
II.
Monthly rental per unit does not exceed P15,000.
a. Both I and II
b. II only
c. I only (CORRECT)
d. Neither I and II
A lessor of residential units shall be exempt from VAT when
I.
Annual gross receipts do not exceed P3 million.
II.
Monthly rental per unit does not exceed P15,000.
a. I only
b. II only
c. Either I or II
d. Both I and II (CORRECT)
Which of the following is not correct pertaining to the transactions of a business
which is engaged in VAT and non-VAT transactions?
a. Separate VAT invoice for the taxable transactions and non-VAT invoice for the
VAT-exempt transactions.
b. Only one invoice for both VAT and non-VAT transactions shall be issued.
(CORRECT)
c. VAT invoice shall be issued for VAT transactions.
d. Non-VAT invoice shall be issued to non-VAT transactions.
A lessor of commercial spaces had the following receipts and input VAT data for the
month:
What is the VAT payable?
a. P204,000
b. P153,000
c. P360,000
d. P270,000 CORRECT
A VAT-registered television company with annual receipts of P8 million, reported a
P1 million revenue for the month of June 2020. It collected P1.2 million from
various clients including advances and paid P800,000 of expenses, P560,000 of which
was paid to VAT suppliers.
The collections and payments are inclusive of VAT.
What is the VAT Payable?
a. P76,800
b. P52,800
c. P68,571 CORRECT
d. P0
Aguinaldo College had the following receipts and input VAT payments:
Tuition fees, P800,000
Miscellaneous fees, P200,000
Input VAT, P20,000
What is the VAT payable?
a. P4,000
b. P0 CORRECT
c. P76,000
d. P100,000
Zamora Corporation is a VAT-registered sugar refiner. Details of its operations are
as follows:
Domestic sale of refined sugar, P3,000,000
Export sales of refined sugar, P2,000,000
Purchases of sugar cane, P1,000,000
Other purchases, inclusive of VAT, P448,000
Advanced input VAT paid, P240,000
What is the VAT payable?
a. P32,000 CORRECT
b. P272,000 WRONG
c. P312,000 WRONG
d. P72,000
A bookstore had the following summary of transactions during the month:
Sale of books, P300,000
Sale of school supplies, exclusive of VAT, P700,000
Rental expense, inclusive of VAT, P56,000
Salaries expense, P100,000
Utilities expense, P20,000
What is the VAT payable?
a. P78,120 CORRECT
b. P77,000
c. P84,000
d. P120,000
A VAT-registered restaurant had the following transactions during the month:
Receipts from foods served, P600,000
Receipts from soft drinks, P200,000
Purchase of rice, meat and vegetables, P200,000
Purchase of vegetables, P100,000
Purchase of soft drinks, P120,000
Purchase of food condiments, P80,000
Assuming all amounts are exclusive of VAT, what is the VAT payable?
a. P9,600
b. P0
c. P36,000
d. P72,000 CORRECT
Jacinto Broadcasting Company regularly have annual receipts of P8 million. During
the month, it generated a total revenue of P1 million, out of which P800,000 was
collected. It incurred P600,000 total expenditures, out of which P224,000 was paid
to VAT suppliers. What is the VAT payable?
a. P72,000
b. P0 CORRECT
c. P24,000
d. P48,000
A VAT-registered seller of goods had the following sales and purchases, exclusive
of VAT:
Sales, P800,000
Sales returns and allowances, P20,000
Purchases, P600,000
Purchase returns and allowances, P40,000
The VAT payable is
a. P0
b. P26,400 CORRECT
c. P21,600
d. P24,000
A VAT-registered trader reported the following during the month:
Export sales, P800,000
Domestic sales, P1,200,000
Purchases, P1,000,000
The VAT payable is
a. P120,000
b. P72,000
c. P24,000 CORRECT
d. P60,000
Mr. Antonio, a fruit and vegetable dealer, had the following sales and purchases:
Sales of fruits and vegetables, P800,000
Purchase of fruits and vegetables, P500,000
Purchases of cellophane and containers, exclusive of VAT, P20,000
What is the VAT payable?
a. P33,600
b. P36,000 WRONG
c. P0 CORRECT
d. P38,400 WRONG
A VAT-registered bus company had the following receipts in January 2020:
Receipts from passengers, P2,700,000
Receipts from cargoes, P300,000
Input VAT on gasoline, P50,000
Input VAT on bus insurance and repairs, P30,000
Input VAT on purchase of a new bus, P360,000
What is the VAT payable for January?
a. P30,000
b. P27,400 CORRECT
c. P0
d. P274,000
OUTPUT VAT (3OOK*.12) - (50K+30K+6K)*300K/3M
Note that P360,000/12% is more than P1 million, hence, the input VAT must be
amortized.
The input VAT are common for vatabale and non-vatable receipts; hence, it must be
allocated to the two.
A realty developer disposed two residential units during the month:
What is the VAT payable?
a. P297,500 CORRECT
b. P720,000
c. P210,000 WRONG
d. P510,000 WRONG
The following gross receipts and input VAT relate to a non-profit and non-stock
charitable institution in the month:
Contributions from the public, P8,000,000
Government grant, P1,000,000
Sales of gift shop items, P900,000
Rental of vacant premises, P1,000,000
Input VAT related to shop and rental operations, P112,000
Input VAT related to non-profit operations, P428,000
What is the VAT payable?
a.
b.
c.
d.
P116,000 CORRECT
P768,000 WRONG
P0 WRONG
P840,000 WRONG
Burgos Bakeshop had the following details of operations during the month:
Sales of bread, P4,000,000
Sales of cakes, P500,000
Importation of flour, P1,000,000
Other purchases, inclusive of P240,000 VAT, P2,500,000
Salaries expense, P500,000
Other expenses, exclusive of P120,000 VAT, P1,200,000
What is the VAT payable?
a. P60,000
b. P140,000
c. P20,000
d. P180,000 CORRECT
An insurer had the following receipts and input VAT during the month:
What is the VAT payable?
a. P220,000
b. P232,000 WRONG
c. P195,000 CORRECT
OUTPUT (2.5M*.12) - (80K+70K*2.5M/7M) = 195K
d. P207,000
A domestic sea carrier had the following receipts and attributable input VAT for
the month:
Receipts from passengers, P2,400,000
Receipts from cargoes, P600,000
Total input VAT for the month, P240,00
What is the VAT payable?
a. P0
b. P48,000
c. P24,000 CORRECT
d. P120,000
Ms. Melchora had the following transactions in June:
Sale of VAT-exempt goods, P200,000
Sale of vatable goods, P400,000
Purchase of VAT-exempt goods, P120,000
Purchase of vatable goods, P250,000
All figures are exclusive of VAT. What is the VAT payable?
a. P21,000 WRONG
b. P18,000 CORRECT
c. P27,600 WRONG
d. P42,000 WRONG
A VAT taxpayer have the following data:
Sales:
To the government, P250,000
To non-profit institutions, P350,000
To registered ecozone export traders, P200,000
To persons engaged in business, P700,000
To persons not engaged in business, P500,000
Purchases and payments, inclusive of VAT, P1,512,000.
Actual input VAT of P20,000 is traceable to the sales to the government.
What is the VAT payable?
a. P0
b. P54,000
c. P56,500 CORRECT
d. P78,000
A VAT-registered tax practitioner, who uses cash basis of accounting, disclosed the
following results of operations (exclusive of VAT):
Receipts from clients, P5,000,000
Advances from clients, P1,000,000
Salaries expense, P3,000,000
Depreciation expense, P200,000
Office supplies expense, P500,000
Utilities expense, P50,000
What is the VAT payable?
a. P634,000
b. P150,000
c. P534,000
d. P654,000 CORRECT
A seller of goods had the following sales:
Sales:
Unprocessed agricultural food products, P200,000
Processed agricultural products, P300,000
Non-food products, P500,000
Input VAT:
Purchase of goods and supplies, P28,000
Purchase of equipment (4-year life), P24,000
What is the VAT payable?
a. P68,000 WRONG
b. P48,800 CORRECT
c. P44,000 WRONG
d. P67,500 WRONG
Gomez Marketing bought a building to house its retail activities. The following
relate to its sales and input VAT during the quarter:
What is the VAT payable?
a. P70,000 WRONG
b. P0
c. P64,000 CORRECT
d. P130,000 WRONG
Mr. Ponce, a VAT taxpayer, recorded the following during the month:
Sales to non-VAT-registered persons, VAT exclusive, P400,000
Sales to VAT-registered persons, VAT exclusive, P500,000
Purchases from VAT-registered persons, VAT exclusive, P200,000
Purchases from non-VAT persons, P100,000
What is the VAT payable?
a. P84,000 CORRECT
b. P24,000
c. P72,000 WRONG
d. P36,000 WRONG
A VAT-taxpayer had the following data during the month:
Regular sales, P3,000,000
Export sales, P1,500,000
Input VAT on regular sales, P240,000
Input VAT on export sales (P80,000 applied for tax credit certificate), P100,000
What is the VAT payable?
a. P20,000
b. P0
c. P120,000
d. P100,000 CORRECT
A manufacturer subcontractor generated the following receipts from various clients:
Receipts from PEZA-registered entities, P4,000,000
Receipts from non-PEZA entities, P1,000,000
Input VAT traceable to PEZA clients, P100,000
Input VAT traceable to non-PEZA clients, P50,000
Input VAT on general operations, P60,000
What is the VAT payable?
a. P58,000 WRONG
b. P390,000 WRONG
c. P50,000 WRONG
d. P0 CORRECT
The net income of Panday Pira Company during the quarter is as follows:
37.50% of the expenses were from VAT suppliers. All inventories were purchased from
VAT suppliers. Inventory increased by P60,000 at the end of the month. What is the
VAT payable?
a. P30,600 CORRECT
b. P28,800 WRONG
c. P37,800 WRONG
d. P45,000
Guerrero Flour Milling (GFM) Corporation imports and mills wheat for the domestic
market. During the month, it imported wheat at a total landed cost of P3 million.
The same was middle and yielded 2,000 sacks of flour, of which 1,200 sacks were
sold at a price of P1,200 per sack.
What is the advanced VAT to be paid by GFM upon importation of the wheat?
a. P0 WRONG
b. P360,000 WRONG
c. P460,800 WRONG
d. P288,000 CORRECT
Lopez-Jaena Construction Company started work on a P5.6 million fixed price
construction contract. Details of its operations during the quarter is presented
below:
Total progress billing on the contract, P2,688,000
Collection from the contract, P2,240,000
Depreciation expense, P600,000
Supplies expense, P134,400
Salaries expense, P400,000
Utilities expense, inclusive of P12,000 VAT, P140,000
Assuming all data are inclusive of VAT, what is the VAT payable?
a. P261,600
b. P210,600
c. P213,600 CORRECT
d. P258,600
A seller of goods reported the following in the month:
a. P130,200 WRONG
b. P0
c. P24,000 CORRECT
d. P132,000
Gregoria Sugar Corporation (SGC) buys sugar cane from farmers and processes it into
refined sugar. During a month, SGC made the following purchases:
Cane sugar, P1.8 million
Other supplies, excluding VAT, P300,000
Other supplies, including VAT, P112,000
A total of 2,000 bags were produced, of which 1,500 were sold at a price of P1,600
per bag in the same month.
SGC paid the advanced VAT on the production in accordance with the BIR�s prescribed
new base price for refined sugar.
What is the total credit against output VAT (including the advanced VAT) for the
month?
a. P480,000 WRONG
b. P318,000 WRONG
c. P456,000 CORRECT
d. P324,000
What is the advanced VAT amount?
a. P336,000 CORRECT (2,000 bags x P1,400 per bag) x 12%
b. P204,000
c. P288,000
d. P216,000
A domestic seller and exporter had the following summary of trading activities in
the quarter:
Export sales, P1,000,000
Domestic sales, P1,500,000
Purchases, P1,200,000
Input VAT of P36,000 was applied for a tax refund during the period. VAT of P12,000
was paid in the first two prior months of the quarter. The VAT payable still due
should be
a. P60,000 CORRECT
b. P24,000 WRONG
c. P36,000 WRONG
d. P72,000 WRONG
Apolinario General Hospital had the following receipts and input VAT:
Receipts from hospital operations, P20,000,000
Sales of medicines, P4,000,000
Input VAT traceable to hospital operations, P2,100,000
Input VAT on hospital drugstore, P120,000
What is the VAT payable?
a. P360,000 CORRECT 480K-120K
b. P660,000
c. P260,000 WRONG
d. P300,000
A VAT-registered professional review school had the following receipts during the
month:
Tuition fees, P800,000
Miscellaneous fees, P100,000
Sale of snacks, P150,000
Reviewer salaries, P300,000
Purchase of supplies, exclusive of VAT, P150,000
Other expenses, inclusive of P16,000 VAT, P220,000
What is the VAT payable?
a. P110,000
b. P0
c. P92,000 CORRECT
d. P2,000
A VAT-taxpayer had the following data on its VAT obligation on the last quarter of
the year:
Output VAT on regular sales, P150,000
Input VAT on regular sales, P120,000
Advanced input VAT, P70,000
Advanced input VAT claimed as tax credit, P40,000
VAT paid in the prior months, P40,000
What is the input VAT carry-over for the following quarter?
a. P0
b. P40,000 CORRECT
c. P50,000
d. P80,000
A domestic airline had the following transactions during the month:
International operation:
Receipts from outgoing flights, P2,000,000
Receipts from incoming flights, P2,500,000
Domestic operation:
Transport of passengers, P4,000,000
Transport of cargoes and baggage, P1,500,000
Total claimable input VAT, P468,000
What is the VAT payable?
a. P52,363 WRONG
b. P192,000 CORRECT
c. P12,000
d. P309,000 WRONG
A non-VAT taxpayer had the following sales during the month:
Direct export sales, $2,000
Domestic sales, P250,000
Assuming the exchange rate is P43,20:$1, what is the zero-rated sales?
Select one:
a. P0
b. P86,400
c. P336,400
d. P250,000
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Your answer is correct.
The taxpayer is non-VAT hence its export sales are exempt rather than zero-rated
sales.
The correct answer is: P0
Question 2
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What is the tax basis of the output VAT on deemed sales?
Select one:
a. Gross receipts
b. Fair value
c. Fair value or gross selling price whichever is higher
d. Gross selling price
fair value
Question 3
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Which statement is correct?
Select one:
a. Parent and subsidiary companies are considered one taxpayer for business tax
purposes
b. For purposes of the VAT threshold, both exempt sales and receipts from services
subject to percentage tax must be included
c. A VAT-registered taxpayer must pay VAT on services subject to percentage tax
d. Husband and wife are considered separate taxpayers for business tax purposes
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The correct answer is: Husband and wife are considered separate taxpayers for
business tax purposes
Question 4
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What is the effectivity of the request for cancellation of VAT registration?
Select one:
a. On the day following the date the request was approved
b. On the quarter following the quarter when the cancellation was approved
c. On the month following the month the cancellation was approved
d. On the day the request is approved
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The correct answer is: On the month following the month the cancellation was
approved
Question 5
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Soliman Ferries has a fleet of ships traversing the islands of Bohol and Cebu. It
reported the following receipts during a month:
Transport of passengers, P8 million
Transport of cargoes, P1 million
What is the output VAT?
Select one:
a. P0
b. P120,000
c. P960,000
d. P1,080,000
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The correct answer is: P1,080,000
Question 6
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A sales was invoiced by a VAT-seller at P500,000. What is the output VAT?
Select one:
a. P0
b. P50,000
c. P53,571
d. P60,000
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The correct answer is: P53,571
Question 7
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Mr. Antonio, a fruit and vegetable dealer, had the following sales and purchases:
Sales of fruits and vegetables, P800,000
Purchase of fruits and vegetables, P500,000
Purchases of cellophane and containers, exclusive of VAT, P20,000
What is the VAT payable?
Select one:
a. P38,400
b. P0
c. P33,600
d. P36,000
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The correct answer is: P0
Question 8
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No input VAT is creditable on
Select one:
a. Government sales
b. Regular sales
c. Export sales
d. Exempt sales
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The correct answer is: Exempt sales
Question 9
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A wholesale trader of canned sardines purchased P504,000 worth of sardines
inclusive of VAT from a sardine-canning company.
What is the allowable presumptive input VAT?
Select one:
a. P20,160
b. P4,000
c. P18,000
d. P0
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Only manufacturers and processors are allowed of presumptive input VAT.
The correct answer is: P0
Question 10
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Quarterly VAT declaration is filed on or before the
Select one:
a. 25th day from the end of each quarter.
b. 20th day from the end of each month.
c. 25th day from the end of each month.
d. 20th day from the end of each quarter.
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The correct answer is: 25th day from the end of each quarter.
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A taxpayer collected the following from lessors of commercial spaces:
Billing for rentals
P1,500,000
Less: Creditable withholding tax
75,000
Net receipt
P1,425,000
What is the output VAT?
Select one:
a. P200,000
b. P160,714
c. P180,000
d. P0
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The correct answer is: P160,714
Question 12
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A domestic sea carrier had the following receipts and attributable input VAT for
the month:
Receipts from passengers, P2,400,000
Receipts from cargoes, P600,000
Total input VAT for the month, P240,00
What is the VAT payable?
Select one:
a. P120,000
b. P0
c. P24,000
d. P48,000
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The correct answer is: P24,000
Question 13
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Apolinario General Hospital had the following receipts and input VAT:
Receipts from hospital operations, P20,000,000
Sales of medicines, P4,000,000
Input VAT traceable to hospital operations, P2,100,000
Input VAT on hospital drugstore, P120,000
What is the VAT payable?
Select one:
a. P260,000
b. P360,000
c. P660,000
d. P300,000
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The correct answer is: P360,000
Question 14
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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?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Statement 2 only
d. Both statements are incorrect
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The correct answer is: Both statements are correct
Question 15
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Which is subject to output tax?
Select one:
a. Gross receipts of international common carriers
b. Gross receipts of domestic common carriers by land
c. Gross receipts of non-life insurance companies
d. Gross receipts of banks
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The correct answer is: Gross receipts of non-life insurance companies
Question 16
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No input VAT is allowed on
I.
Export sales
II.
Government sales
III.
Exempt sales
Select one:
a. I, II and III
b. II only
c. I only
d. III only
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The correct answer is: III only
Question 17
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Which is a possible source of input VAT?
I.
Importation
II.
Purchase from VAT-sellers
III.
Purchase from non-VAT sellers
Select one:
a. I and III only
b. I, II and III
c. I and II only
d. II and III only
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The correct answer is: I and II only
Question 18
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A VAT-registered real property dealer sold the following during a quarter:
House and lot � 2BA, P2 million
House and lot � 2BD, P3 million
House and lot � 2CE, P4 million
Residential lot � 1A, P1 million
Residential lot � 2B, P2 million
What is the total output VAT?
Select one:
a. P1,320,000
b. P1,080,000
c. P0
d. P720,000
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The correct answer is: P1,080,000
Question 19
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What is the tax basis of the output VAT on sales of goods with unreasonably lower
selling prices?
Select one:
a. Gross selling price
b. Fair value
c. Fair value or gross selling price whichever is higher
d. Gross receipts
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The correct answer is: Fair value
Question 20
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The excess of creditable input VAT over output VAT is
Select one:
a. Standard input VAT
b. VAT refundable
c. Input VAT carry-over
d. VAT payable
Input VAT carry-over
Question 21
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An agricultural supplier had the following sales during the last 12-month period:
Sales of fertilizers and corn seeds
P1,200,000
Sales of seedlings
400,000
Farm equipment
700,000
What is the business tax liability of this taxpayer?
Select one:
a. VAT on all these categories of sale
b. Percentage tax on equipment and seedlings
c. VAT on equipment and seedlings
d. Percentage tax on farm equipment
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The correct answer is: Percentage tax on farm equipment
Question 22
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7-3-10.
A VAT-registered service provider prepared the following list of cash
collections during a month:
Gross receipts, inclusive of VAT, P504,000
Client advances, P200,000
Proceeds of bank loan, P300,000
What is the output VAT?
Select one:
a. P78,000
b. P108,643
c. P84,480
d. P54,000
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The correct answer is: P78,000
Question 23
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Abra Company, a maintenance contractor, had the following receipts from the
following clients in June 2020:
Receipt from Development Bank of the Philippines, P1,000,000
Receipts from Oceania, an international carrier, P1,200,000
Receipts from International Rice Research Institute, P800,000
What is the total zero-rated sales or receipts?
Select one:
a. P2,000,000
b. P800,000
c. P3,000,000
d. P0
Feedback
Your answer is correct.
Receipts from Oceania, P1,200,000
Receipts from IRRI, P800,000
The correct answer is: P2,000,000
Question 24
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Which is the requirement for zero-rating of sales to BOI-registered enterprises?
Select one:
a. More than 100% of production must be exported
b. At least 70% of production must be exported
c. 100% of production must be exported
d. More than 70% of production must be exported
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The correct answer is: 100% of production must be exported
Question 25
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Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
Select one:
a. I, II and III
b. I and III only
c. II and III only
d. I and II only
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The correct answer is: I and II only
Question 26
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Sale of services to this entity is subject to the 12% VAT
Select one:
a. Philippine National Red Cross
b. International Rice Research Institute
c. Development Bank of the Philippines
d. Philippine Amusement and Gaming Corporation
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The correct answer is: Development Bank of the Philippines
Question 27
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A domestic enterprise made the following sales:
Sales to domestic missions, P2,000,000
Sales to ecozone-registered enterprise, $50,000
Conversion rate: P42=$1
What is the zero-rated sales?
Select one:
a. P0
b. P2,100,00
c. P4,100,000
d. P2,000,000
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The correct answer is: P4,100,000
Question 28
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Mr. Soliman is a VAT-registered manufacturer of cooking oil. During a month, it
made the following purchases:
Raw coconut (into copra), P300,000
Copra from farmers, P450,000
Other supplies for manufacturing cooking oil, P120,000
What is the presumptive input VAT?
P30,000
A VAT-taxpayer received and paid the following billings for vatable goods
purchased:
Purchases from non-VAT taxpayers, P50,000
Purchases from VAT taxpayers, P250,000
What is the claimable input VAT?
a. P32,143
b. P0
c. P26,786
d. P5,357
Feedback
Your answer is correct.
The term �billing� means invoice price. Hence, the claimable input VAT shall be
P250,000 x 12/112 = P26,756.
The correct answer is: P26,786
Question 30
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Which statement is correct?
Select one:
a. All services rendered in the custom�s territory is subject to the 12% VAT.
b. Service rendered to an ecozone entity is subject to 12% VAT.
c. Service rendered abroad is exempt from any business tax.
d. Service rendered abroad is subject to 0% VAT.
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Your answer is incorrect.
The correct answer is: Service rendered abroad is exempt from any business tax
Which is correct regarding the treatment of input VAT?
Select one:
a. Input VAT on zero-rated sales is creditable against output VAT or refundable
b. Input VAT on zero-rated sales is deductible from gross income
c. Input VAT on zero-rated sales is both deductible from gross income and
creditable against output VAT
d. Input VAT on exempt sales is refundable or creditable
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The correct answer is: Input VAT on zero-rated sales is creditable against output
VAT or refundable
Question 2
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Prior BIR application for effective zero-rating is not required for
Select one:
a. Sales to an export-oriented enterprise
b. Direct export to a foreign country
c. Sales to international air transport operations
d. Sales to tax exempt persons
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The correct answer is: Direct export to a foreign country
Question 3
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A VAT-registered supplier sold goods amounting to P500,000 to a government-owned
corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale of the goods?
Select one:
a. The government-owned corporation shall remit the final VAT withheld to the BIR
within 10 days following the end of the month the withholding was made.
b. The government-owned corporation will withhold P25,000 withholding VAT.
c. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
d. The sale is subject to final withholding VAT.
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The correct answer is: The VAT-registered supplier may refuse the withholding of
VAT as long as it is willing to pay the full 12% VAT.
Question 4
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Baltazar Corporation had the following sales in the past 12-month period
Home office sales
P4,000,000
Branch 1 sales
1,200,000
Branch 2 sales
1,000,000
Which is correct?
Select one:
a. Home office shall pay VAT while the branches shall pay percentage tax.
b. Branch 1 and branch 2 shall pay percentage tax
c. Home office shall pay VAT
d. The home office and branches shall all pay VAT
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The correct answer is: The home office and branches shall all pay VAT
Question 5
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A VAT-registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers:
July 2020:
Machine with 10-year estimated useful life, P1,680,000
August 2020:
Factory equipment with 4-year estimated useful life, P1,232,000
Assume all amounts are inclusive of VAT.
What is the creditable input VAT in July 2020?
Select one:
a. P3,000
b. P1,500
c. P180,000
d. P3,360
The MAAC exceeded P1 million and, hence, any input VAT on depreciable capital goods
must be amortized.
Input VAT in July = P1,680,000 x 12/112 = P180,000/60 months = P3,000.
The input VAT shall be amortized over not more than 60 months.
The correct answers are: P3,000, P3,360
Question 6
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If the standard input VAT exceeds the actual input VAT traceable to government
sales, the excess is
Select one:
a. Claimable as a tax credit against other national tax
b. An item of deduction against gross income in income tax
c. An item of gross income subject to income tax
d. Ignored since it has no further use
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The correct answer is: An item of gross income subject to income tax
Question 7
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A VAT taxpayer had the following invoiced sales during the first quarter of the
year:
January, P280,000
February, P347,200
March, P313,600
What is the reportable output VAT respectively in January, February and March?
Select one:
a. P33,600; P41,664; P37,362
b. P30,000; P37,200; P33,600
c. P33,600; P41,664; P112,896
d. P30,000; P37,200; P100,800
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Your answer is correct.
The correct answer is: P30,000; P37,200; P100,800
Question 8
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A VAT-registered bus company had the following receipts in January 2020:
Receipts from passengers, P2,700,000
Receipts from cargoes, P300,000
Input VAT on gasoline, P50,000
Input VAT on bus insurance and repairs, P30,000
Input VAT on purchase of a new bus, P360,000
What is the VAT payable for January?
Select one:
a. P27,400
b. P274,000
c. P0
d. P30,000
Feedback
Your answer is correct.
Note that P360,000/12% is more than P1 million, hence, the input VAT must be
amortized.
The input VAT are common for vatabale and non-vatable receipts; hence, it must be
allocated to the two.
The correct answer is: P27,400
Question 9
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Isabelo Corporation had the following summary of output and input VAT for the 1st
and 2nd quarters of 2020:
1st Quarter
April
May
Output VAT
P200,000
P300,000
P250,000
Input VAT
240,000
320,000
240,000
What is the input VAT carry-over to be credited in June?
Select one:
a. P0
b. P10,000
c. P40,000
d. P70,000
Feedback
Your answer is correct.
June is the end of the quarter so the input VAT carry-over must be those from the
1st quarter, P40,00.
The correct answer is: P40,000
Question 10
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A real property dealer sold an agricultural lot for P2,500,000 with the following
values:
Appraisal value, P3,000,000
Zonal value, P2,000,000
Assessed value, P1,500,000
What is the output VAT?
Select one:
a. P240,000
b. P300,000
c. P360,000
d. P180,000
Feedback
Your answer is correct.
The correct answer is: P300,000
Which is non-vatable?
Select one:
a. Sales to an international carrier
b. Sales to senior citizen
c. Sales to a domestic shipping company
d. Sale of goods to a BOI-registered manufacturer which exports 80% of its annual
production
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The correct answer is: Sales to senior citizen
Question 12
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A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made to regular customers?
Select one:
a. P50,000
b. P20,000
c. P34,000
d. P57,000
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The correct answer is: P34,000
Question 13
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Which is vatable?
Select one:
a. Cooperative
b. Meat vendor
c. Fruit dealer
d. Department store
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The correct answer is: Department store
Question 14
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A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
Select one:
a. The sale is subject to the VAT on importation to the domestic business.
b. The sale is exempt from VAT.
c. The sale is subject to zero-rated VAT.
d. The sale is subject to the regular 12% VAT.
The sale is subject to the VAT on importation to the domestic business.
Question 15
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Gomez Marketing bought a building to house its retail activities. The following
relate to its sales and input VAT during the quarter:
Sales of goods
P3,000,000
Export sales
1,500,000
Sales of VAT-exempt goods
500,000
Total sales, exclusive of VAT
P5,000,000
Input VAT carry-over in the prior quarter
P
60,000
Input VAT on purchase of vatable goods
150,000
Input VAT on building (20-year life)
180,000
VAT paid in prior months
80,000
The building was acquired on the second month of the quarter.
What is the VAT payable?
Select one:
a. P70,000
b. P64,000
c. P0
d. P130,000
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The correct answer is: P64,000
Question 16
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Which is vatable?
Select one:
a. Sales of fertilizers, seeds and seedlings
b. Sale of books
c. Sales of agricultural or marine food products
d. Gross receipt of medical practitioners
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The correct answer is: Gross receipt of medical practitioners
Question 17
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Who can claim the VAT on importation as a tax credit?
Select one:
a. An importer of goods who is exempt from the VAT on importation
b. An importer of services for personal consumption
c. An importer of goods for business use
d. An importer of goods for personal consumption
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The correct answer is: An importer of goods for business use
Question 18
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Which of the following is vatable?
Select one:
a. An operator of a racetrack
b. A disco
c. An operator of cockpits
d. A bowling alley
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The correct answer is: A bowling alley
Question 19
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Which is not a tax credit against net VAT payable?
Select one:
a. Final VAT withheld
b. Monthly VAT payments
c. Standard input VAT
d. Advanced VAT
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The correct answer is: Standard input VAT
Question 20
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A VAT-registered dealer sold two residential units to the same buyer with the
following separate prices:
House and lot - 1C-A, P1.5 million
House and lot - 1C-B, P2 million
What is the output VAT?
Select one:
a. P0
b. P240,000
c. P180,000
d. P420,000
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The correct answer is: P420,000
Question 21
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The withholding agent of creditable value-added tax is required to remit the amount
of value-added tax withheld within
Select one:
a. 10 days following the end of the month the withholding was made
b. 20 days following the end of the month the withholding was made
c. 25 days following the end of the month the withholding was made
d. 15 days following the end of the month the withholding was made
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The correct answer is: 10 days following the end of the month the withholding was
made
Question 22
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. To accommodate
this requirement, Florentino Corporation bought the specialized packaging materials
from the Philippine company, Luna Packaging, Inc. (LPI).
What is the status of the sale of LPI to Florentino Corporation?
Select one:
a. Subject to 12%
b. Subject to 0% only if LPI�s export sales exceed 70% of total annual production
in the current year.
c. Subject to 0%
d. Subject to 0% only if Florentino Corporation�s export sales exceed 70% of total
annual production in the current year.
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Your answer is incorrect.
The correct answer is: Subject to 0% only if Florentino Corporation�s export sales
exceed 70% of total annual production in the current year.
Question 23
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Antique Enterprises, a VAT taxpayer, sold the following to various exporters in
July 2020:
Sales to
Amount
BOI-registered entity with domestic sales
P2,000,000
BOI-registered entity with no domestic sales
2,500,000
Export-oriented enterprise (60% export last year)
1,000,000
Export-oriented enterprise (90% export last year)
1,500,000
Total
P7,000,000
Assuming that the BIR and DOF has not yet fully implemented the new VAT refund
system, what is the zero-rated sales?
Select one:
a. P4,000,000
b. P5,000,000
c. P1,500,000
d. P2,500,000
P4,000,000
Question 24
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Which of the following is subject to the output tax?
Select one:
a. Sale of agricultural or marine food products
b. Sale of educational services by a school
c. Sale of non-food agricultural or marine food products
d. Sale of books
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The correct answer is: Sale of non-food agricultural or marine food products
Question 25
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Which is deemed sales transaction subject to VAT?
Select one:
a. Consumption of inventory for business use
b. Retirement of business by a non-VAT taxpayer
c. Dacion en pago of properties by a person not engaged in business
d. Distribution of property as dividend by a VAT taxpayer
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The correct answer is: Distribution of property as dividend by a VAT taxpayer
Question 26
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The standard input VAT is equivalent to
Select one:
a. 5% of the sales made to government
b. 7% of the input VAT traceable to the government
c. 7% of the sales made to government
d. 5% of the purchases on sales made to the government
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Your answer is correct.
The correct answer is: 7% of the sales made to government
Question 27
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A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made to the government?
Select one:
a. P50,000
b. P20,000
c. P57,000
d. P34,000
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Your answer is correct.
The correct answer is: P50,000
Question 28
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A VAT-taxpayer had the following data during the month:
Regular sales, P3,000,000
Export sales, P1,500,000
Input VAT on regular sales, P240,000
Input VAT on export sales (P80,000 applied for tax credit certificate), P100,000
What is the VAT payable?
Select one:
a. P100,000
b. P20,000
c. P120,000
d. P0
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Your answer is correct.
The correct answer is: P100,000
Question 29
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A taxpayer who became subject to VAT on the third quarter of 2020 had the following
input VAT:
August, P32,000
September, P40,000
October, P18,000
What is the claimable input VAT for the third quarter of 2020?
Select one:
a. P90,000
b. P72,000
c. P40,000
d. P32,000
Feedback
Your answer is correct.
The taxable quarter of business taxpayer is aligned with his or its accounting
period. The calendar year is presumed in the absence of an indication that a fiscal
year is adopted. The third calendar quarter ends September. Hence the claimable
input VAT in the third quarter shall be P32,000 plus P40,000 = P72,000.
The correct answer is: P72,000
Question 30
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Which is subject to the 12% regular output tax?
Select one:
a. Gross receipts from residential dwelling with P15,000 monthly rental
b. Receipts from publishing books
c. Sale of residential dwelling with P1,500,000 unit price
d. Gross receipts of hospital from sale of medicines
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Your answer is correct.
The correct answer is: Gross receipts of hospital from sale of medicines
Agusan Company made the following export and foreign consignments:
Type of transaction
Amount
Export sales 1
P1,000,000
Export sales 2
$80,000
Consignment 1
$50,000
Consignment 2
$10,000
Export sales 2 pertains to goods owned by another entity where Agusan Company was
granted export commission. Consignment 1 was sold by foreign consignees during the
month. Consignment 2 remained unsold 75 days as of the end of the current month.
The applicable exchange rate is P43:$1.
What is the total zero-rated sales or receipts?
Select one:
a. P2,494,000
b. P2,924,000
c. P5,590,000
d. P3,494,000
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Your answer is correct.
The correct answer is: P2,494,000
Question 2
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A real property is sold by a dealer for P1,900,000. The property had a zonal value
of P2,000,000, assessed value of P1,800,000 and independent appraisal value of
P2,400,000.
What is the gross selling price for VAT purposes?
Select one:
a. P1,900,000
b. P1,800,000
c. P2,400,000
d. P2,000,000
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Your answer is correct.
The correct answer is: P2,000,000
Question 3
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Which is not a VAT compliance requirement?
Select one:
a. Registration with the Department of Trade and Industry
b. Transaction recording
c. VAT invoicing
d. Filing of monthly summary list
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The correct answer is: Registration with the Department of Trade and Industry
Question 4
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The final VAT withheld is
Select one:
a. 7% of the input VAT traceable to the government
b. 7% of the sales made to government
c. 5% of the sales made to government
d. 5% of the purchases on sales made to the government
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Your answer is correct.
The correct answer is: 5% of the sales made to government
Question 5
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A VAT-registered purchaser received the following billing from a VAT-registered
seller:
Selling price
P200,000
Output VAT
20,000
Invoice price
P220,000
What is the creditable input VAT?
Select one:
a. P20,000
b. P24,000
c. P23,571
d. P0
Feedback
Your answer is correct.
The VAT is incorrect billed, hence, it must be recomputed as P220,000 x 12/112 =
P23,571.
The correct answer is: P23,571
Question 6
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Monthly VAT declaration is filed on or before the
Select one:
a. 15th day from the end of each month.
b. 20th day from the end of each month.
c. 25th day from the end of each month.
d. 30th day from the end of each month.
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Your answer is correct.
The correct answer is: 20th day from the end of each month.
Question 7
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Statement 1: Input VAT is creditable only by VAT-registered taxpayers.
Statement 2: Input VAT is deductible by non-VAT taxpayers against the gross income
for purposes of income tax.
Which is correct?
Select one:
a. Statement 2 only
b. Both statements are correct
c. Both statements are incorrect
d. Statement 1 only
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The correct answer is: Both statements are correct
Question 8
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Which of these is excluded in the gross selling price?
Select one:
a. Output tax
b. Excise tax
c. Delivery charges
d. Contract price
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Your answer is incorrect.
The correct answer is: Output tax
Question 9
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A VAT-registered seller received the following statement from its consignees:
Gross price
P500,000
Less:
Commission (20%)
100,000
Freight charges
20,000
Net remittance
P380,000
What should be the output VAT on the sales?
Select one:
a. P57,600
b. P60,000
c. P45,600
d. P44,000
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Your answer is correct.
The correct answer is: P60,000
Question 10
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A VAT taxpayer is engaged in mixed transactions:
Exempt Sales
Export Sales
Regular Sales
Output VAT
N/A
P0
P300,000
Input VAT
12,000
36,000
200,000
What is the creditable input VAT?
Select one:
a. P236,000
b. P0
c. P200,000
d. P248,000
Feedback
Your answer is correct.
The correct answer is: P236,000
Question 11
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7-6-11.
Agoncillo is a non-VAT registered operator of 40 taxis. During a month,
he collected a total receipt of P1.3 million under the �boundary� system.
What is the output VAT?
Select one:
a. P312,000
b. P321,000
c. P278,572
d. P0
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Your answer is correct.
The correct answer is: P0
Question 12
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Ricarte Corporation owns a coliseum which caters to large indoor events. The
coliseum had the following receipts during a month:
Source of gross receipts and amounts:
Professional basketball games, P400,000
Professional boxing competitions, P500,000
Amateur basketball games, P100,000
Amateur boxing competitions, P150,000
Musical concerts, P250,000
Religious gatherings, P50,000
Other special events or gatherings, P120,000
What is the output VAT?
Select one:
a. P188,400
b. P71,786
c. P80,400
d. P168,214
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Your answer is correct.
The correct answer is: P80,400
Question 13
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The input VAT on purchases of non-VAT registered taxpayers shall be claimable as
a. Deduction against output VAT
b. Deduction against gross income for income tax purposes
c. Tax credit within two years
d. Deduction against any tax liability
Deduction against gross income for income tax purposes
Question 14
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Dagohoy 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, P1,000,000
Building, (estimated useful life of 7 years), P600,000
What is the claimable input VAT in April 2020?
Select one:
a. P127,200
b. P120,000
c. P7,200
d. P192,000
Feedback
Your answer is correct.
The amortization of input VAT applies only to depreciable capital goods. The input
VAT on non-depreciable capital goods may be claimed in the month of purchase. Since
the aggregate acquisition cost of purchases of capital goods did not exceed P1
million, no amortization shall be made for the month.
The correct answer is: P192,000
Question 15
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Magbanua Corporation is a parent corporation with two subsidiaries with the
following sales in the past 12 months:
Magbanua Corporation
P4,000,000
Subsidiary A sales
1,200,000
Subsidiary B sales
1,000,000
Which is not correct?
Select one:
a. All companies in the group shall pay VAT.
b. Magbanua Corporation shall pay VAT.
c. Magbanua Corporation shall pay VAT while Subsidiary A and Subsidiary B shall pay
percentage taxes.
d. Subsidiary A and Subsidiary B shall pay percentage taxes.
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Your answer is incorrect.
The correct answer is: All companies in the group shall pay VAT.
Question 16
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Statement 1: The export of VAT-exempt goods is subject to zero-rated VAT.
Statement 2: The domestic sale of VAT-exempt goods is subject to 12% VAT.
Which statement is correct?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Statement 2 only
d. Both statements are incorrect
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Your answer is incorrect.
The correct answer is: Statement 1 only
Question 17
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Mr. Lopez, VAT-exempt, issued VAT invoice to Mr. Tacac, VAT-registered trader. As a
consequence, Mr. Lopez would
Select one:
a. Be liable to percentage tax, VAT and surcharge
b. Be liable to VAT without the benefit of input tax credit
c. Not be liable to any business tax but may be liable to income tax
d. Not be liable to VAT
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The correct answer is: Not be liable to VAT
Question 18
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The sale of services to the following cannot qualify for zero-rating
Select one:
a. Sale to a resident export-oriented enterprise
b. Sale to a non-resident not engaged in business abroad
c. Sale to a non-resident person engaged in business abroad
d. Sale to a resident person doing business in the Philippines
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The correct answer is: Sale to a resident person doing business in the Philippines
Question 19
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Which of the following receipts from a domestic common carrier are not subject to
regular output tax?
Select one:
a. Receipts
b. Receipts
c. Receipts
d. Receipts
Feedback
from transport of passengers by sea
from transport of cargoes by air
from transport of passengers by land
of cargoes by land
Your answer is incorrect.
The correct answer is: Receipts from transport of passengers by land
Question 20
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What is the tax payable by a non-VAT taxpayer who issues a VAT invoice or VAT
official receipt?
Select one:
a. Output VAT less input VAT, plus 3% percentage tax and 50% surcharge
b. 3% percentage tax
c. Output VAT plus 3% percentage tax
d. Output VAT plus 3% percentage tax and 50% surcharge
Feedback
Your answer is correct.
The correct answer is: Output VAT plus 3% percentage tax and 50% surcharge
Question 21
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. He ordered the
said packaging materials from another Philippine company, Luna Packaging, Inc.
(LPI). It was agreed that LPI will deliver the packaging materials to Florentino
Corporation so that the latter can use the same for the sardines to be delivered to
Mr. Wu Han in China.
What is the treatment for the VAT purchases of the sale of Florentino Corporation
to Mr. Wu Han?
Select one:
a. Subject to 3%
b. Subject to 12%
c. Exempt
d. Subject to 0%
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The correct answer is: Subject to 0%
Question 22
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A VAT taxpayer had the following transactions during the first calendar quarter of
the year:
Purchase of goods in January but were paid in February, P50,000
Purchase of services rendered in January but were paid in February, P80,000
Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March, P250,000
All amounts are exclusive of VAT.
What is the creditable input VAT in February?
Select one:
a. P39,600
b. P15,600
c. P45,600
d. P9,600
Feedback
Your answer is correct.
P80,000 x 12% = P9,600 input VAT on services paid for the month.
The correct answer is: P9,600
Question 23
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The amortization of input VAT on certain properties is allowed when the aggregate
acquisition costs
Select one:
a. Exceeds P1,000,000
b. Do not exceed P1,000,000
c. Exceeds P3,000,000
d. Exceeds P10,000,000
Feedback
Your answer is correct.
The correct answer is: Exceeds P1,000,000
Question 24
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Ms. Melchora had the following transactions in June:
Sale of VAT-exempt goods, P200,000
Sale of vatable goods, P400,000
Purchase of VAT-exempt goods, P120,000
Purchase of vatable goods, P250,000
All figures are exclusive of VAT. What is the VAT payable?
Select one:
a. P18,000
b. P27,600
c. P42,000
d. P21,000
Feedback
Your answer is correct.
The correct answer is: P18,000
Question 25
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Albay Corporation had the following sales in March 2020:
Sale to an export-oriented enterprise, P2,000,000
Sales to a BOI-registered enterprise, P3,000,000
Assuming that the new VAT refund system is already in place, what is the total
effectively zero-rated sales?
Select one:
a. P5,000,000
b. P3,000,000
c. P0
d. P3,800,000
Feedback
Your answer is correct.
The sale to an export-oriented enterprise is a constructive export even if not
actually exported. The sales to a BOI enterprise are considered export sales if the
latter exports 100% of its produce.
The correct answer is: P5,000,000
Question 26
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Which of the following is not subject to zero-rated VAT?
Select one:
a. Sales to diplomatic missions
b. Sale of gold to BSP
c. Export sales paid for in the local currency
d. All of the above
Feedback
Your answer is correct.
The correct answer is: Export sales paid for in the local currency
Question 27
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Question text
The following gross receipts and input VAT relate to a non-profit and non-stock
charitable institution in the month:
Contributions from the public, P8,000,000
Government grant, P1,000,000
Sales of gift shop items, P900,000
Rental of vacant premises, P1,000,000
Input VAT related to shop and rental operations, P112,000
Input VAT related to non-profit operations, P428,000
What is the VAT payable?
Select one:
a. P116,000
b. P840,000
c. P0
d. P768,000
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Your answer is correct.
The correct answer is: P116,000
Question 28
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The monthly VAT return is referred to as
Select one:
a. BIR Form 2551M
b. BIR Form 2551Q
c. BIR Form 2550Q
d. BIR Form 2550M
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Your answer is correct.
The correct answer is: BIR Form 2550M
Question 29
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A VAT-registered restaurant had the following transactions during the month:
Receipts
Receipts
Purchase
Purchase
Purchase
Purchase
from foods served, P600,000
from soft drinks, P200,000
of rice, meat and vegetables, P200,000
of vegetables, P100,000
of soft drinks, P120,000
of food condiments, P80,000
Assuming all amounts are exclusive of VAT, what is the VAT payable?
Select one:
a. P72,000
b. P36,000
c. P0
d. P9,600
Feedback
Your answer is correct.
The correct answer is: P72,000
Question 30
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A VAT-taxpayer sold goods to the government for P1,000,000 and paid P40,000 input
VAT traceable to the sale. What is the creditable input VAT on government sale?
Select one:
a. P0
b. P70,000
c. P40,000
d. P50,000
Feedback
Your answer is incorrect.
The correct answer is: P70,000
The summary list is required for
Select one:
a. Non-VAT taxpayers
b. VAT taxpayers
c. Large taxpayers
d. Non-large taxpayers
Feedback
Your answer is correct.
The correct answer is: VAT taxpayers
Question 2
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Which of the following input VAT may be amortized?
Select one:
a. Input VAT on the purchase of depreciable property
b. Input VAT on the purchase of non-depreciable property
c. Input VAT on the sale of services
d. Input VAT on the purchase of goods on installment
Feedback
Your answer is incorrect.
The correct answer is: Input VAT on the purchase of depreciable property
Question 3
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Statement 1: Discounts that are contingent to a future event are deductible from
gross selling price.
Statement 2: Expenses of the service provider that are reimbursed by the client
forms part of the gross receipt.
Which statement is correct?
Select one:
a. Statement 2 only
b. Both statements are incorrect
c. Both statements are correct
d. Statement 1 only
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Your answer is correct.
The correct answer is: Statement 2 only
Question 4
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A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is VAT-exempt?
Select one:
a. P34,000
b. P57,000
c. P50,000
d. P20,000
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Your answer is incorrect.
The correct answer is: P20,000
Question 5
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Gabriela Corporation is reporting on a calendar-year basis. It purchased the
following capital goods in the second quarter of 2020:
April
May
June
Equipment
P400,000
P200,000
Machineries
P1,200,000
600,000
All amounts are inclusive of VAT. Equipment is depreciated over a 4-year useful
life while machineries are depreciated over a 10-year useful life basis.
What is the creditable input VAT for May 2020?
Select one:
a. P4,600
b. P122,400
c. P5,300
d. P123,000
Feedback
Your answer is correct.
The input VAT on the May purchase of capital goods shall not be amortized. Hence,
P120,000 (P400,000 + P600,000 multiply by 12%) plus P2,400 = P122,400.
The correct answer is: P122,400
Question 6
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Statement 1: The VAT returns for the first two months of the quarter are prepared
on a monthly basis.
Statement 2: The VAT return on the third month of the quarter reflects the monthly
sales for the same month.
Which is correct?
Select one:
a. Statement 2 only
b. Both statements are correct
c. Both statements are incorrect
d. Statement 1 only
Feedback
Your answer is correct.
The correct answer is: Statement 1 only
Question 7
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A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
Select one:
a. P144,000
b. P108,000
c. P192,000
d. P156,000
Feedback
Your answer is correct.
The correct answer is: P108,000
Question 8
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A VAT-registered purchaser received the following billing from a VAT-registered
seller:
Selling price
P200,000
Output VAT
20,000
Invoice price
P220,000
What is the creditable input VAT?
Select one:
a. P20,000
b. P24,000
c. P23,571
d. P0
Feedback
Your answer is correct.
The VAT is incorrect billed, hence, it must be recomputed as P220,000 x 12/112 =
P23,571.
The correct answer is: P23,571
Question 9
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Mr. Aguinaldo is a VAT-registered seller of �Polka Dots Siopao.� During the month,
he 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
months.
What is the output VAT?
Select one:
a. P36,000
b. P50,400
c. P0
d. P48,000
Feedback
Your answer is correct.
The correct answer is: P48,000
Question 10
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Which is not a category for VAT taxpayers?
Select one:
a. Exempt sales
b. Sales to non-profit institutions
c. Zero-rated sales
d. Sales to government
Feedback
Your answer is correct.
The correct answer is: Sales to non-profit institutions
Question 11
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A seller of goods had the following sales:
Sales:
Unprocessed agricultural food products, P200,000
Processed agricultural products, P300,000
Non-food products, P500,000
Input VAT:
Purchase of goods and supplies, P28,000
Purchase of equipment (4-year life), P24,000
What is the VAT payable?
Select one:
a. P48,800
b. P44,000
c. P67,500
d. P68,000
Feedback
Your answer is correct.
The correct answer is: P48,800
Question 12
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Which is not subject to zero-rating?
Select one:
a. Sale of services to a BOI-registered enterprise
b. Services to an export-oriented enterprise
c. Sale of services to embassies with VAT exemption certificates
d. Sale of services to PEZA locators
Feedback
Your answer is correct.
The correct answer is: Sale of services to a BOI-registered enterprise
Question 13
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A VAT-registered individual purchased the following from various suppliers in
November 2020:
From VAT suppliers
From Non-VAT suppliers
Machineries
P800,000
P300,000
Useful life
6 years
3 years
What is the creditable input VAT in the December quarterly VAT return?
Select one:
a. P96,000
b. P3,200
c. P1,600
d. P4,400
Feedback
Your answer is incorrect.
The input VAT shall be amortized over 60 months or actual useful life, whichever is
shorter.
The correct answer is: P3,200
Question 14
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Which is subject to a zero-rated VAT?
Select one:
a. Sale of fruits and vegetables to senior citizens
b. Sales of any goods to the government
c. Sale of fruits and vegetable to an embassy personnel with VAT exemption
certificates
d. Sale of fruits and vegetables to persons with disability
Feedback
Your answer is correct.
The correct answer is: Sale of fruits and vegetable to an embassy personnel with
VAT exemption certificates
Question 15
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Which is a deemed sale transaction?
Select one:
a. Change in corporate name
b. Merger or consolidation of corporations
c. Sale of entire business
d. Placement of an investment by a shareholder
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Your answer is correct.
The correct answer is: Sale of entire business
Question 16
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What is the tax basis of the output VAT on sales of goods?
Select one:
a. Gross selling price
b. Fair value or gross selling price whichever is higher
c. Gross receipts
d. Fair value
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Your answer is incorrect.
The correct answer is: Gross selling price
Question 17
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A taxpayer made a sale of P400,000 to the government from goods purchased for
P300,000 from VAT taxpayers. What is the actual input VAT?
Select one:
a. P0
b. P20,000
c. P28,000
d. P36,000
Feedback
Your answer is incorrect.
The correct answer is: P36,000
Question 18
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A VAT-registered bus company had the following receipts in January 2020:
Receipts from passengers, P2,700,000
Receipts from cargoes, P300,000
Input VAT on gasoline, P50,000
Input VAT on bus insurance and repairs, P30,000
Input VAT on purchase of a new bus, P360,000
What is the VAT payable for January?
Select one:
a. P274,000
b. P30,000
c. P27,400
d. P0
Feedback
Your answer is correct.
Note that P360,000/12% is more than P1 million, hence, the input VAT must be
amortized.
The input VAT are common for vatabale and non-vatable receipts; hence, it must be
allocated to the two.
The correct answer is: P27,400
Question 19
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A VAT-registered export trader purchased and sold an equipment. The details of the
purchase and sale are follows:
Export sales, P400,000
Purchases, P200,00
Input VAT, P12,000
What is the gross income for taxation purposes?
Select one:
a. P200,000
b. P224,000
c. P212,000
d. P188,000
Feedback
Your answer is correct.
400,000 � 200,000 = 200,000
The Input VAT is claimable as tax credit or tax refund.
The correct answer is: P200,000
Question 20
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A VAT-registered taxpayer made the following sales:
Sales destination
Terms
Payment
China
FOB destination
$10,000
Malaysia
FOB destination
P450,000
Hongkong
FOB shipping point
HKD800,000
Philippines
FOB shipping point
P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
Select one:
a. P820,000
b. P420,000
c. P1,270,000
d. P1,570,000
Feedback
Your answer is correct.
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.
The correct answer is: P820,000
Question 21
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The withholding agent of creditable value-added tax is required to remit the amount
of value-added tax withheld within
Select one:
a. 10 days following the end of the month the withholding was
b. 20 days following the end of the month the withholding was
c. 15 days following the end of the month the withholding was
d. 25 days following the end of the month the withholding was
Feedback
Your answer is correct.
The correct answer is: 10 days following the end of the month
made
made
made
made
the withholding was
made
Question 22
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Which is not a VAT compliance requirement?
Select one:
a. Transaction recording
b. VAT invoicing
c. Registration with the Department of Trade and Industry
d. Filing of monthly summary list
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Your answer is correct.
The correct answer is: Registration with the Department of Trade and Industry
Question 23
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A VAT-registered taxpayer purchased goods which was invoiced by the seller as
follows:
Selling price, P50,000
Output VAT, P6,000
What is the claimable input VAT?
Select one:
a. P6,000
b. P6,720
c. P0
d. P7,200
Feedback
Your answer is correct.
The correct answer is: P6,000
Question 24
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A VAT-taxpayer compiled the following for the purpose of filing his BIR Form 2550M:
Sales to VAT taxpayers, P200,000
Sales to non-VAT taxpayers, P150,000
Total sales, P350,000
What is the output VAT?
Select one:
a. P24,000
b. P0
c. P42,000
d. P18,000
Feedback
Your answer is incorrect.
The correct answer is: P42,000
Question 26
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The presumptive input VAT is
Select one:
a. 4% of primary agricultural or marine input
b. 2% of primary agricultural input
c. 2% of primary marine input
d. 4% of primary agricultural input
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Your answer is correct.
The correct answer is: 4% of primary agricultural input
Question 27
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A domestic airline had the following transactions during the month:
International operation:
Receipts from outgoing flights, P2,000,000
Receipts from incoming flights, P2,500,000
Domestic operation:
Transport of passengers, P4,000,000
Transport of cargoes and baggage, P1,500,000
Total claimable input VAT, P468,000
What is the VAT payable?
Select one:
a. P12,000
b. P192,000
c. P309,000
d. P52,363
Feedback
Your answer is correct.
The correct answer is: P192,000
Which is not a constructive export?
Select one:
a. Sale to export processing zones
b. Sale to a foreign customers abroad
c. Sales to diplomatic missions
d. Sale to a bonded manufacturing warehouse of an export-oriented enterprise
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Your answer is correct.
The correct answer is: Sale to a foreign customers abroad
Question 2
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Which of the following may not qualify as export sale?
Select one:
a. Sale to domestic trader
b. Export by an export producer
c. Sale to an export trader
d. Export by an export producer to another export producer
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Your answer is incorrect.
The correct answer is: Sale to an export trader
Question 3
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Which of the following is excluded in gross receipts?
Select one:
a. Check collection
b. Cash collection
c. Promissory note given by the buyer
d. Credit card collection
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Your answer is correct.
The correct answer is: Promissory note given by the buyer
Question 4
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A PEZA-registered enterprise made the following sales to entities within the custom
territories:
Sale of goods to a Philippine firm, P4,000,000
Sale of scrap materials to a Philippine firm, $100,000
Forex rate: P43.00:$1
What is the zero-rated sales?
Select one:
a. P4,000,000
b. P8,300,000
c. P0
d. P4,300,000
Feedback
Your answer is correct.
The sale is not treated as zero-rated sale to the selling PEZA-locator but an
import sale to the purchasing buyer in the custom�s territory.
The correct answer is: P0
Question 5
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Diego Corporation purchased equipment at a cost of P2,000,000 in October of 2017,
exclusive of a P240,000 input VAT. The corporation sold the equipment in May 2020.
The equipment was depreciated over a period of 8 years.
What is the claimable input VAT in the second calendar quarter of 2020?
Select one:
a. P116,000
b. P108,000
c. P120,000
d. P112,000
Feedback
Your answer is correct.
P4,000 for April and P116,000 for May
The correct answer is: P120,000
Question 6
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A VAT-registered seller of goods billed a customer the following:
List price, P800,000
Trade discount, P125,000
Net price, P675,000
The credit term for the sale was 2/15, n60.
What is the output VAT?
Select one:
a. P81,000
b. P70,875
c. P96,000
d. P79,380
Feedback
Your answer is correct.
The correct answer is: P81,000
Question 7
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Which of the following input VAT can be claimed as tax refund?
Select one:
a. Input VAT traceable to regular sales
b. Input VAT traceable to export sales
c. Input VAT traceable to exempt sales
d. Input VAT traceable to sales to the government
Feedback
Your answer is correct.
The correct answer is: Input VAT traceable to export sales
Question 8
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The input VAT on purchases of real properties may be claimed in installment if
Select one:
a. The seller is a realty dealer
b. The seller is a non-realty dealer
c. The sale of the real property is qualified as a deferred payment sale
d. The VAT seller is subject to VAT on the installment payments
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Your answer is correct.
The correct answer is: The VAT seller is subject to VAT on the installment payments
Question 9
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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
April
P448,000
P403,200
May
504,000
453,600
June
336,000
302,400
What is the output VAT respectively in April and May?
Select one:
a. P48,000; P54,000
b. P43,200; P48,600
c. P43,200; P91,800
d. P53,760; P114,240
Feedback
Your answer is correct.
The correct answer is: P43,200; P48,600
Question 10
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Mr. Agueda, a VAT-registered taxpayer, owns a mini-store with the following sales
in the past 12 months:
Sales of meat and vegetables
P1,800,000
Sales of cooked rice and viands
1,200,000
Sales of snacks and soft drinks
500,000
Which is correct?
Select one:
a. Mr. Agueda shall pay VAT on the sales of rice, viands, snacks and soft drinks.
b. Mr. Agueda shall pay percentage tax on the sales of rice, viands, snacks and
soft drinks.
c. M. Agueda shall pay VAT on all sales.
d. Mr. Agueda shall pay percentage tax on all sales.
Feedback
Your answer is incorrect.
The correct answer is: Mr. Agueda shall pay VAT on the sales of rice, viands,
snacks and soft drinks.
Question 11
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Statement 1: Services to non-residents are always subject to zero-rated VAT if
rendered abroad.
Statement 2: Services to residents may be subject to zero-rating if paid for in
acceptable foreign currencies.
Which statement is correct?
Select one:
a. Both statements are incorrect
b. Statement 1 only
c. Statement 2 only
d. Both statements are correct
Feedback
Your answer is correct.
The correct answer is: Both statements are incorrect
Question 12
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A VAT-taxpayer sold goods to the government for P1,000,000 and paid P40,000 input
VAT traceable to the sale. What is the creditable input VAT on government sale?
Select one:
a. P0
b. P50,000
c. P70,000
d. P40,000
Feedback
Your answer is correct.
The correct answer is: P70,000
Question 13
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Which industry is not subject to VAT?
Select one:
a. Banking
b. Mining
c. Construction
d. Air transport
Feedback
Your answer is correct.
The correct answer is: Banking
Question 14
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For a taxpayer subject to a 30% tax rate, compute respectively the tax benefits of
a P60,000 input VAT deduction and a P40,000 input VAT credit.
Select one:
a. P60,000;
b. P18,000;
c. P18,000;
d. P60,000;
Feedback
Your answer
Tax benefit
P40,000 tax
P12,000
P40,000
P12,000
P40,000
is correct.
of P60,000 x 30% = P18,000
credit x 100% = P40,000
The correct answer is: P18,000; P40,000
Question 15
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A VAT-registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers:
July 2020:
Machine with 10-year estimated useful life, P1,680,000
August 2020:
Factory equipment with 4-year estimated useful life, P1,232,000
Assume all amounts are inclusive of VAT.
What is the creditable input VAT in July 2020?
Select one:
a. P3,360
b. P3,000
c. P180,000
d. P1,500
Feedback
Your answer is correct.
The MAAC exceeded P1 million and, hence, any input VAT on depreciable capital goods
must be amortized.
Input VAT in July = P1,680,000 x 12/112 = P180,000/60 months = P3,000.
The input VAT shall be amortized over not more than 60 months.
The correct answers are: P3,000, P3,360
Question 16
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The input VAT on purchases of non-VAT registered taxpayers shall be claimable as
Select one:
a. Deduction against output VAT
b. Deduction against gross income for income tax purposes
c. Deduction against any tax liability
d. Tax credit within two years
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Your answer is correct.
The correct answer is: Deduction against gross income for income tax purposes
Question 17
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Which of the following is not subject to the requirement to pay advanced VAT?
Select one:
a. Sugar refineries which process sugar for their own accounts
b. Owners of harvested timber
c. Millers of flour
d. Wheat traders
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Your answer is correct.
The correct answer is: Wheat traders
Question 18
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Which is a source of input VAT?
Select one:
a. Purchase of agricultural or marine food products from non-VAT sellers
b. Purchase of vatable goods or services from non-VAT suppliers
c. Purchase of agricultural or marine food products from VAT-sellers
d. Purchase of vatable goods or services from VAT suppliers
Feedback
Your answer is correct.
The correct answer is: Purchase of vatable goods or services from VAT suppliers
Question 19
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A VAT-registered supplier sold goods amounting to P500,000 to a government-owned
corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale of the goods?
Select one:
a. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
b. The sale is subject to final withholding VAT.
c. The government-owned corporation will withhold P25,000 withholding VAT.
d. The government-owned corporation shall remit the final VAT withheld to the BIR
within 10 days following the end of the month the withholding was made.
Feedback
Your answer is correct.
The correct answer is: The VAT-registered supplier may refuse the withholding of
VAT as long as it is willing to pay the full 12% VAT.
Question 20
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Which is vatable?
Select one:
a. Sale of vessels
b. Sale of buses and jeepneys
c. Sale or aircraft
d. Lease of vessels or aircraft
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Your answer is correct.
The correct answer is: Sale of buses and jeepneys
Question 21
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Which is non-vatable?
Select one:
a. Exempt sales billed as regular sales by VAT persons
b. Regular sales of registrable persons
c. Export sales of non-VAT-registered persons
d. Export sales of VAT-registered persons
Feedback
Your answer is correct.
The correct answer is: Export sales of non-VAT-registered persons
Question 22
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A VAT-registered trader reported the following during the month:
Export sales, P800,000
Domestic sales, P1,200,000
Purchases, P1,000,000
The VAT payable is
Select one:
a. P120,000
b. P24,000
c. P60,000
d. P72,000
Feedback
Your answer is correct.
The correct answer is: P24,000
Question 23
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A VAT-taxpayer had the following data on its VAT obligation on the last quarter of
the year:
Output VAT on regular sales, P150,000
Input VAT on regular sales, P120,000
Advanced input VAT, P70,000
Advanced input VAT claimed as tax credit, P40,000
VAT paid in the prior months, P40,000
What is the input VAT carry-over for the following quarter?
Select one:
a. P0
b. P40,000
c. P80,000
d. P50,000
Feedback
Your answer is correct.
The correct answer is: P40,000
Question 24
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A VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P600
b. P6,720
c. P0
d. P6,250
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The correct answer is: P600
Question 25
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Which of the following is not subject to output tax when sold by a realty dealer?
Select one:
a. Sale of properties held for sale
b. Sale of properties used in business
c. Sale of investment in stocks
d. Exchange of properties held for sale in settlement of debt
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The correct answer is: Sale of investment in stocks
Question 26
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Mr. and Mrs. Tecson had the following sales in the past 12 months:
Sales of
Mr. Tecson
Mrs. Tecson
Total
Fruits and vegetables
P2,400,000
P
0
P2,400,000
Fish and meat
0
1,200,000
1,200,000
Grocery
800,000
600,000
1,400,000
Total
P3,200,000
P1,800,000
P5,000,000
Which statement is correct?
Select one:
a. Mr. Tecson shall pay VAT but Mrs. Tecson shall pay percentage tax.
b. Both Mr. and Mrs. Tecson shall pay percentage tax.
c. Both Mr. and Mrs. Tecson shall pay VAT.
d. Mrs. Tecson shall pay VAT but Mr. Tecson shall pay percentage tax.
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The correct answer is: Both Mr. and Mrs. Tecson shall pay percentage tax.
Question 27
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A taxpayer who became subject to VAT on the third quarter of 2020 had the following
input VAT:
August, P32,000
September, P40,000
October, P18,000
What is the claimable input VAT for the third quarter of 2020?
Select one:
a. P72,000
b. P40,000
c. P32,000
d. P90,000
Feedback
Your answer is correct.
The taxable quarter of business taxpayer is aligned with his or its accounting
period. The calendar year is presumed in the absence of an indication that a fiscal
year is adopted. The third calendar quarter ends September. Hence the claimable
input VAT in the third quarter shall be P32,000 plus P40,000 = P72,000.
The correct answer is: P72,000
Question 28
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An electric cooperative sold the following during the month:
Sale of electricity from renewable sources of energy, P2,000,000
Sale of electricity generated from coal and natural gas, P1,000,000
What is the zero-rated sale of the electric cooperative?
Select one:
a. P2,000,000
b. P1,000,000
c. P3,000,000
d. P0
Feedback
Your answer is correct.
The tax incentive on zero-rated treatment on sales of electricity pertains to
generation company, not to a distribution company or cooperative.
The correct answer is: P0
Question 29
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A domestic sea carrier had the following receipts and attributable input VAT for
the month:
Receipts from passengers, P2,400,000
Receipts from cargoes, P600,000
Total input VAT for the month, P240,00
What is the VAT payable?
Select one:
a. P24,000
b. P48,000
c. P0
d. P120,000
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The correct answer is: P24,000
Question 30
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Which is not subject to the 12% output tax?
Select one:
a. Gross receipts from racetrack operations
b. Sale of medicines
c. Gross receipts from restaurant
d. Gross receipts from professional practice
Feedback
Your answer is correct.
The correct answer is: Gross receipts from racetrack operations
A VAT taxpayer had the following transactions during the first calendar quarter of
the year:
Purchase of goods in January but were paid in February, P50,000
Purchase of services rendered in January but were paid in February, P80,000
Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March, P250,000
All amounts are exclusive of VAT.
What is the creditable input VAT in January?
Select one:
a. P9,600
b. P6,000
c. P0
d. P15,600
Feedback
Your answer is incorrect.
P500,000 x 12% = P6,000 input VAT on purchases of the month.
The correct answer is: P6,000
Question 2
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7-3-10.
A VAT-registered service provider prepared the following list of cash
collections during a month:
Gross receipts, inclusive of VAT, P504,000
Client advances, P200,000
Proceeds of bank loan, P300,000
What is the output VAT?
Select one:
a. P54,000
b. P84,480
c. P108,643
d. P78,000
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Your answer is correct.
The correct answer is: P78,000
Question 3
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Agoncillo Delata, Inc., a sardines canning Company, had the following purchases as
inputs for its manufacturing operations during a month:
Tin cans, exclusive of VAT, P80,000
Tomatoes, P150,000
Sardines, P200,000
Labels, exclusive of VAT, P20,000
What is the total creditable input VAT of Agoncillo for the month?
Select one:
a. P6,000
b. P14,000
c. P18,000
d. P15,600
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Your answer is correct.
The correct answer is: P18,000
Question 4
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In July 2020, a realty dealer sold a residential lot for P2 million. The lot had a
fair value of P2.5 million at the date of sale. The buyer agreed to pay in P100,000
monthly installments starting July 2020.
What is the output VAT respectively in July and August 2020?
Select one:
a. P240,000; P0
b. P300,000; P0
c. P15,000; P15,000
d. P12,000; P12,000
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Your answer is correct.
The correct answer is: P300,000; P0
Question 5
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Which of the following is creditable against the input VAT of the quarterly VAT
return?
Select one:
a. Input VAT from the three months of the quarter
b. Input VAT from the third month of the quarter
c. Input VAT from the first month of the quarter
d. Input VAT from the second month of the quarter
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The correct answer is: Input VAT from the three months of the quarter
Question 6
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Which of these is excluded in the gross selling price?
Select one:
a. Delivery charges
b. Output tax
c. Excise tax
d. Contract price
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The correct answer is: Output tax
Question 7
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Sale of services to this entity is subject to the 12% VAT
Select one:
a. Philippine National Red Cross
b. Philippine Amusement and Gaming Corporation
c. International Rice Research Institute
d. Development Bank of the Philippines
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Your answer is correct.
The correct answer is: Development Bank of the Philippines
Question 8
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A service provider had the following data during the month:
Revenue, including VAT, P268,800
Gross receipts, including VAT, P180,000
Input VAT, P12,000
Assuming the taxpayer is VAT-registered, the VAT payable is
Select one:
a. P19,286
b. P16,800
c. P9,600
d. P7,286
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Your answer is incorrect.
The correct answer is: P7,286
Question 9
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7-3-04.
A VAT-registered car dealer sold the following goods to a relative:
Selling price, P300,000
Fair market value, P500
What is the output VAT?
Select one:
a. P0
b. P42,000
c. P60,000
d. P36,000
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The correct answer is: P60,000
Question 10
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A taxpayer collected the following from lessors of commercial spaces:
Billing for rentals
P1,500,000
Less: Creditable withholding tax
75,000
Net receipt
P1,425,000
What is the output VAT?
Select one:
a. P200,000
b. P160,714
c. P180,000
d. P0
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Your answer is correct.
The correct answer is: P160,714
Question 11
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Mr. Makabulos is a percentage taxpayer. He bought goods billed at an invoice price
of P20,160 from a VAT-registered taxpayer. Mr. Makabulos sold the goods in the same
month at a price of P42,000. How much input VAT is claimable by Mr. Makabulos?
Select one:
a. P160
b. P2,419
c. P0
d. P2,160
Feedback
Your answer is correct.
There is no indication in the problem that the taxpayer is also a VAT-taxpayer. As
a rule, percentage taxpayers are non-VAT taxpayers, and hence, cannot claim input
VAT.
The correct answer is: P0
Question 12
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A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
Select one:
a. The sale is subject to the VAT on importation to the domestic business.
b. The sale is exempt from VAT.
c. The sale is subject to the regular 12% VAT.
d. The sale is subject to zero-rated VAT.
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Your answer is correct.
The correct answer is: The sale is subject to the VAT on importation to the
domestic business.
Question 13
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A VAT-registered professional review school had the following receipts during the
month:
Tuition fees, P800,000
Miscellaneous fees, P100,000
Sale of snacks, P150,000
Reviewer salaries, P300,000
Purchase of supplies, exclusive of VAT, P150,000
Other expenses, inclusive of P16,000 VAT, P220,000
What is the VAT payable?
Select one:
a. P0
b. P2,000
c. P92,000
d. P110,000
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The correct answer is: P92,000
Question 14
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Which is subject to withholding VAT?
Select one:
a. Regular sales of real properties
b. Zero-rated sales
c. Exempt sales
d. Sales to the government
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The correct answer is: Sales to the government
Question 15
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What is the effectivity of the request for cancellation of VAT registration?
Select one:
a. On the month following the month the cancellation was approved
b. On the day following the date the request was approved
c. On the day the request is approved
d. On the quarter following the quarter when the cancellation was approved
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Your answer is correct.
The correct answer is: On the month following the month the cancellation was
approved
Question 16
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Ms. Melchora had the following transactions in June:
Sale of VAT-exempt goods, P200,000
Sale of vatable goods, P400,000
Purchase of VAT-exempt goods, P120,000
Purchase of vatable goods, P250,000
All figures are exclusive of VAT. What is the VAT payable?
Select one:
a. P42,000
b. P18,000
c. P27,600
d. P21,000
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Your answer is correct.
The correct answer is: P18,000
Question 17
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A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made by a VAT-registrable person?
Select one:
a. P50,000
b. P34,000
c. P41,000
d. P20,000
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The correct answer is: P34,000
Question 18
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Statement 1: If the output VAT is erroneously billed, the amount shown in the
invoice is deemed exclusive of VAT.
Statement 2: If the output VAT is not separately indicated in the invoice, it
shall be computed as 12/112 of the invoice price.
Which statement is correct?
Select one:
a. Statement 2 only
b. Statement 1 only
c. Both statements are correct
d. Both statements are incorrect
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The correct answer is: Statement 2 only
Question 19
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Which is vatable?
Select one:
a. Sale of books
b. Gross receipt of medical practitioners
c. Sales of agricultural or marine food products
d. Sales of fertilizers, seeds and seedlings
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Your answer is correct.
The correct answer is: Gross receipt of medical practitioners
Question 20
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A VAT-registered service provider had the following receipts from services rendered
in the Philippines in February 2020:
Paid for in foreign currencies (Peso equivalent):
To non-resident clients, P500,000
To resident clients, P400,000
Paid for in the local currency:
To non-resident clients, P800,000
To resident clients, P1,200,000
To IRRI, P200,000
What is the total zero-rated sale?
Select one:
a. P900,000
b. P400,000
c. P500,000
d. P700,000
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Your answer is correct.
The correct answer is: P500,000
Question 21
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The final VAT withheld is
Select one:
a. 7% of the input VAT traceable to the government
b. 5% of the purchases on sales made to the government
c. 7% of the sales made to government
d. 5% of the sales made to government
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Your answer is incorrect.
The correct answer is: 5% of the sales made to government
Question 22
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Which of the following tax credit can be claimed through a tax credit certificate?
I.
Input VAT on export sales
II.
Advanced input VAT
III.
Input VAT on sales to the government
Select one:
a. II and III only
b. I, II and III
c. I and II only
d. I and III only
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Your answer is correct.
The correct answer is: I and II only
Question 23
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Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
Select one:
a. I, II and III
b. I and II only
c. I and III only
d. II and III only
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Your answer is correct.
The correct answer is: I and II only
Question 24
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Zamora Corporation is a VAT-registered sugar refiner. Details of its operations are
as follows:
Domestic sale of refined sugar, P3,000,000
Export sales of refined sugar, P2,000,000
Purchases of sugar cane, P1,000,000
Other purchases, inclusive of VAT, P448,000
Advanced input VAT paid, P240,000
What is the VAT payable?
Select one:
a. P312,000
b. P32,000
c. P272,000
d. P72,000
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Your answer is correct.
The correct answer is: P32,000
Question 25
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Which of the following is not subject to zero-rated VAT?
Select one:
a. Sales to diplomatic missions
b. Sale of gold to BSP
c. Export sales paid for in the local currency
d. All of the above
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The correct answer is: Export sales paid for in the local currency
Question 26
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All of these are vatable, except
Select one:
a. Employees
b. Brokers
c. Lawyers
d. Engineering contractors
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Your answer is correct.
The correct answer is: Employees
Question 27
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Which is a likely source of a creditable input VAT?
Select one:
a. Purchase of goods from persons not engaged in business
b. Purchase of goods from aliens who are not engaged in business abroad
c. Purchase of goods from non-VAT registered persons engaged in business
d. Purchase of goods from VAT persons without invoices
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Your answer is correct.
The correct answer is: Purchase of goods from aliens who are not engaged in
business abroad
Question 28
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What is the tax basis of the output VAT on deemed sales?
Select one:
a. Fair value or gross selling price whichever is higher
b. Gross selling price
c. Gross receipts
d. Fair value
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Your answer is correct.
The correct answer is: Fair value
Question 29
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Which is not a constructive export?
Select one:
a. Sales to diplomatic missions
b. Direct export to a foreign country
c. Sale to ecozone enterprises
d. Sales to export-oriented enterprises
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The correct answer is: Direct export to a foreign country
Question 30
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Agusan Company made the following export and foreign consignments:
Type of transaction
Amount
Export sales 1
P1,000,000
Export sales 2
$80,000
Consignment 1
$50,000
Consignment 2
$10,000
Export sales 2 pertains to goods owned by another entity where Agusan Company was
granted export commission. Consignment 1 was sold by foreign consignees during the
month. Consignment 2 remained unsold 75 days as of the end of the current month.
The applicable exchange rate is P43:$1.
What is the total zero-rated sales or receipts?
P2,494,000
Mr. Ponce, a VAT taxpayer, recorded the following during the month:
Sales to non-VAT-registered persons, VAT exclusive, P400,000
Sales to VAT-registered persons, VAT exclusive, P500,000
Purchases from VAT-registered persons, VAT exclusive, P200,000
Purchases from non-VAT persons, P100,000
What is the VAT payable?
Select one:
a. P36,000
b. P84,000
c. P72,000
d. P24,000
Feedback
Your answer is incorrect.
The correct answer is: P84,000
Which is subject to zero-rating?
Select one:
a. Outgoing transport of passengers, cargoes, excess baggage or mails by a domestic
carrier**
b. Outgoing transport of passengers by an international carrier
c. Incoming transport of passengers, cargoes, excess baggage or mails by a domestic
carrier
d. Outgoing transport of mails, cargoes or baggage by an international carrier
Outgoing transport of passengers, cargoes, excess baggage or mails by a domestic
carrier
Which is incorrect with effectively zero-rated sales?
Select
a. The
b. The
c. The
one:
sale must be rendered to a person with indirect tax exemption
sale need not be paid for in acceptable foreign currencies
sale must be made by a VAT-exempt person
d. The sale must be rendered in the Philippines
The sale must be made by a VAT-exempt person
Which of these services is subject to zero-rating?
Select one:
a. Incoming transport by a domestic sea carrier
b. Incoming transport by an international sea carrier
c. Outgoing transport by a domestic carrier
d. Incoming transport by a domestic air carrier
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The correct answer is: Outgoing transport by a domestic carrier
Question 3
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A VAT-taxpayer exported P1,000,000 worth of goods. It incurred P36,000 input VAT on
such sales. What is the creditable input VAT?
Select one:
a. P50,000
b. P70,000
c. P36,000
d. P0
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Your answer is incorrect.
The correct answer is: P36,000
Question 4
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Which is subject to the 12% regular output VAT?
Select one:
a. Export sale by a non-VAT taxpayer
b. Sale of silver to the Bangko Sentral ng Pilipinas
c. Sale of office supplies to the Asian Development Bank
d. Sale of services to a non-resident person
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Your answer is correct.
The correct answer is: Sale of silver to the Bangko Sentral ng Pilipinas
Question 5
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The summary list is required for
Select one:
a. Large taxpayers
b. VAT taxpayers
c. Non-large taxpayers
d. Non-VAT taxpayers
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Your answer is correct.
The correct answer is: VAT taxpayers
Question 6
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A VAT taxpayer is engaged in mixed transactions:
Exempt Sales
Export Sales
Regular Sales
Output VAT
N/A
P0
P300,000
Input VAT
12,000
36,000
200,000
What is the creditable input VAT?
Select one:
a. P200,000
b. P248,000
c. P0
d. P236,000
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Your answer is correct.
The correct answer is: P236,000
Question 7
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Which of the following when sold will result in an output VAT?
Select one:
a. Fruits
b. Vegetables
c. Furniture
d. Rice
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Your answer is correct.
The correct answer is: Furniture
Question 8
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Which statement is correct?
Select one:
a. Zero-rated sales are taxable, but will not result in an output VAT.
b. Zero-rated sales are non-taxable, hence, these will not result in an output VAT.
c. VAT zero-rating and VAT exemption are synonymous concepts
d. All of the above.
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Your answer is correct.
The correct answer is: Zero-rated sales are taxable, but will not result in an
output VAT.
Question 9
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A non-VAT realty lessor had the following receipts during a month:
Bed spacers� rooms with P2,000 monthly rental each
P
120,000
Houses for rent with P10,000 monthly rental each
1,000,000
Commercial spaces with P5,000 monthly rental each
900,000
Which transaction is not deemed sales for VAT purposes?
Select one:
a. Consignment of goods when actual sale is made within 60 days
b. Dacion en pago
c. Cessation of status as VAT taxpayer
d. Distribution of property as dividend
Feedback
Your answer is incorrect.
The correct answer is: Consignment of goods when actual sale is made within 60 days
Which is correct?
Select one:
a. The taxpayer shall pay VAT on the commercial spaces.
b. The taxpayer shall pay VAT on all receipts.
c. The taxpayer shall pay percentage tax on the commercial spaces.
d. The taxpayer shall pay percentage tax on all receipts.
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Your answer is correct.
The correct answer is: The taxpayer shall pay percentage tax on the commercial
spaces.
Question 10
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Which is not subject to zero-rating?
Select one:
a. Sale to a domestic air carrier on its international operations
b. Sale to an international air carrier
c. Sale to a domestic sea carrier on tis domestic operations
d. Sale to an international sea carrier
Feedback
Your answer is correct.
The correct answer is: Sale to a domestic sea carrier on tis domestic operations
An insurer had the following receipts and input VAT during the month:
Life
Non-Life
Total
Cash collection
P4,000,000
P2,500,000
P6,500,000
Promissory note
500,000
100,000
600,000
Traceable input VAT
120,000
80,000
200,000
Other input VAT
70,000
What is the VAT payable?
Select one:
a. P207,000
b. P220,000
c. P195,000
d. P232,000
Which industry is not subject to VAT?
Select one:
a. Construction
b. Mining
c. Banking
d. Air transport
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The correct answer is: Banking
Question 2
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Aklan Protect, a security service provider, had the following receipts during the
month:
Receipts from clients inside PEZA, P3,000,000
Receipts from clients in the customs territory:
Government agencies and GOCCs, P1,000,000
Asian Development Bank, P1,200,000
Non-profit client, P1,500,000
Private clients, P2,000,000
What is the total amount of zero-rated sales?
Select one:
a. P3,000,000
b. P5,200,000
c. P4,200,000
d. P4,000,000
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P3 million + P1.2 million
The correct answer is: P4,200,000
Question 3
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Statement 1: The input VAT on non-depreciable vehicles shall be claimed in the
month purchased.
Statement 2: The input VAT on construction-in-progress shall be claimed in the
month billing is paid.
Which is correct?
Select one:
a. Both statements are incorrect
b. Both statements are correct
c. Statement 2 only
d. Statement 1 only
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The correct answer is: Statement 2 only
Question 4
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Statement 1: Sellers always pay VAT on government sales.
Statement 2: Sellers will not pay VAT on export sales.
Which is correct?
Select one:
a. Statement 2 only
b. Statement 1 only
c. Both statements are incorrect
d. Both statements are correct
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The correct answer is: Both statements are correct
Question 5
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A VAT taxpayer received a sum of P74,900 and a P3,500 certificate of creditable
withholding tax. What is the output VAT?
Select one:
a. P9,396
b. P8,988
c. P8,400
d. P8,568
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Your answer is correct.
The correct answer is: P8,400
Question 6
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Ricarte Corporation owns a coliseum which caters to large indoor events. The
coliseum had the following receipts during a month:
Source of gross receipts and amounts:
Professional basketball games, P400,000
Professional boxing competitions, P500,000
Amateur basketball games, P100,000
Amateur boxing competitions, P150,000
Musical concerts, P250,000
Religious gatherings, P50,000
Other special events or gatherings, P120,000
What is the output VAT?
Select one:
a. P80,400
b. P71,786
c. P168,214
d. P188,400
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Your answer is correct.
The correct answer is: P80,400
Question 7
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What is the requirement for zero-rating of sales to an export-oriented enterprise?
Select one:
a. The goods must be actually imported
b. Export sales must exceed 70% of annual production
c. At least 70% of production must be exported
d. Production must be 100% exported
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The correct answer is: Export sales must exceed 70% of annual production
Question 8
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An approved application for effective zero-rating is given
I.
A retrospective effect
II.
A prospective effect
Select one:
a. I only
b. Both I and II
c. Neither I nor II
d. II only
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The correct answer is: II only
Question 9
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A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
Select one:
a. P144,000
b. P108,000
c. P192,000
d. P156,000
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The correct answer is: P108,000
Question 10
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Which is not a VAT compliance requirement?
Select one:
a. Transaction recording
b. Registration with the Department of Trade and Industry
c. Filing of monthly summary list
d. VAT invoicing
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The correct answer is: Registration with the Department of Trade and Industry
Question 11
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Quarterly VAT declaration is filed on or before the
Select one:
a. 20th day from the end of each month.
b. 20th day from the end of each quarter.
c. 25th day from the end of each quarter.
d. 25th day from the end of each month.
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The correct answer is: 25th day from the end of each quarter.
Question 12
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A VAT-registered taxpayer purchased goods which was invoiced by the seller as
follows:
Selling price, P50,000
Output VAT, P6,000
What is the claimable input VAT?
Select one:
a. P0
b. P6,000
c. P6,720
d. P7,200
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The correct answer is: P6,000
Question 13
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A business taxpayer reported the following sale during a period:
Domestic sales, P200,000
Deemed sales, P100,000
Export sales, P300,000
What is the zero-rated sales assuming the seller is respectively a VAT taxpayer and
a non-VAT taxpayer?
Select one:
a. P300,000; P300,000
b. P600,000; P300,000
c. P300,000; P0
d. P600,000; P0
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The correct answer is: P300,000; P0
Question 14
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Diego Corporation purchased equipment at a cost of P2,000,000 in October of 2017,
exclusive of a P240,000 input VAT. The corporation sold the equipment in May 2020.
The equipment was depreciated over a period of 8 years.
What is the claimable input VAT in the second calendar quarter of 2020?
Select one:
a. P112,000
b. P108,000
c. P116,000
d. P120,000
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Your answer is correct.
P4,000 for April and P116,000 for May
The correct answer is: P120,000
Question 15
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A VAT-registered seller had the following summary of sales and consignment during
the month:
Cash sales
P200,000
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 the rules on deemed sale was properly applied in prior months, what is the
output VAT for the current month?
Select one:
a. P42,000
b. P78,000
c. P81,600
d. P75,600
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The correct answer is: P75,600
Question 16
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A VAT taxpayer made the following purchases during the year:
Goods, exclusive of VAT, P50,000
Goods, inclusive of VAT, P44,800
Services, exempt from VAT, P10,000
Services, inclusive of VAT, P23,520
What is the input VAT?
Select one:
a. P12,677
b. P0
c. P13,320
d. P14,198
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The correct answer is: P13,320
Question 17
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Which of the following is subject to the output tax?
Select one:
a. Sale of educational services by a school
b. Sale of books
c. Sale of non-food agricultural or marine food products
d. Sale of agricultural or marine food products
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The correct answer is: Sale of non-food agricultural or marine food products
Question 18
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A VAT-taxpayer had the following data during the month:
Regular sales, P3,000,000
Export sales, P1,500,000
Input VAT on regular sales, P240,000
Input VAT on export sales (P80,000 applied for tax credit certificate), P100,000
What is the VAT payable?
Select one:
a. P120,000
b. P0
c. P100,000
d. P20,000
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The correct answer is: P100,000
Question 19
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Which of the following is excluded in gross receipts?
Select one:
a. Cash collection
b. Check collection
c. Promissory note given by the buyer
d. Credit card collection
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The correct answer is: Promissory note given by the buyer
Question 20
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A VAT-registered department store had an un-invoiced sale with the following
prices:
1 cavan rice, P2,500
Vegetables, P1,500
Cooking oil, P200
Noodles, P1,300
Total sales, P5,500
What should be the invoice price?
Select one:
a. P5,680
b. P5,500
c. P5,665
d. P5,545
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The correct answer is: P5,680
Question 21
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Which is vatable?
Select one:
a. Sales of fertilizers, seeds and seedlings
b. Gross receipt of medical practitioners
c. Sale of books
d. Sales of agricultural or marine food products
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The correct answer is: Gross receipt of medical practitioners
Question 22
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Statement 1: Only VAT taxpayers are generally subject to the output tax.
Statement 2: Non-VAT taxpayers never pay the 12% output tax.
Which statement is correct?
Select one:
a. Statement 2 only
b. Statement 1 only
c. Both statements are correct
d. Both statements are incorrect
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The correct answer is: Statement 1 only
Question 23
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Which is not VAT-exempt?
Select one:
a. Gross receipt of hospitals
b. Receipts from taxicabs
c. Importation of agricultural marine food products
d. Gross receipts of professional practitioners
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The correct answer is: Gross receipts of professional practitioners
Question 24
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Which is creditable?
Select one:
a. Input VAT traceable to vatable sales
b. Input VAT evidenced by an ordinary receipt
c. Input VAT on exempt sales
d. Input VAT incurred on personal purchases
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The correct answer is: Input VAT traceable to vatable sales
Question 25
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Ms. Melchora had the following transactions in June:
Sale of VAT-exempt goods, P200,000
Sale of vatable goods, P400,000
Purchase of VAT-exempt goods, P120,000
Purchase of vatable goods, P250,000
All figures are exclusive of VAT. What is the VAT payable?
Select one:
a. P27,600
b. P42,000
c. P18,000
d. P21,000
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The correct answer is: P18,000
Question 26
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The presumptive input VAT is
Select one:
a. 2% of primary agricultural input
b. 4% of primary agricultural input
c. 2% of primary marine input
d. 4% of primary agricultural or marine input
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The correct answer is: 4% of primary agricultural input
Question 27
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Statement 1: Services to non-residents are always subject to zero-rated VAT if
rendered abroad.
Statement 2: Services to residents may be subject to zero-rating if paid for in
acceptable foreign currencies.
Which statement is correct?
Select one:
a. Statement 2 only
b. Both statements are incorrect
c. Statement 1 only
d. Both statements are correct
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The correct answer is: Both statements are incorrect
Question 28
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A VAT-registered individual purchased the following from various suppliers in
November 2020:
From VAT suppliers
From Non-VAT suppliers
Machineries
P800,000
P300,000
Useful life
6 years
3 years
What is the creditable input VAT in November?
Select one:
a. P1,600
b. P0
c. P96,000
d. P2,200
Feedback
Your answer is correct.
Purchase from non-VAT supplier has not input VAT. The question here is whether or
not to include the purchase of depreciable capital goods from non-VAT supplier to
the monthly aggregate acquisition cost. Since the law did not expressly
distinguish, the proper interpretation shall be to include the same in the monthly
aggregate acquisition cost (MAAC). The P1.1 million exceeds, the P1M threshold, the
input VAT on purchases of depreciable capital goods must be amortized.
The correct answer is: P96,000
Question 29
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. To accommodate
this requirement, Florentino Corporation bought the specialized packaging materials
from the Philippine company, Luna Packaging, Inc. (LPI).
What is the status of the sale of LPI to Florentino Corporation?
Select one:
a. Subject to 0% only if Florentino Corporation�s export sales exceed 70% of total
annual production in the current year.
b. Subject to 12%
c. Subject to 0%
d. Subject to 0% only if LPI�s export sales exceed 70% of total annual production
in the current year.
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Your answer is incorrect.
The correct answer is: Subject to 0% only if Florentino Corporation�s export sales
exceed 70% of total annual production in the current year.
Which is not subject to payment of advanced input VAT?
Select one:
a. Timber
b. Milk CORRECT
c. Flour
d. Refined sugar
In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming input tax, it must contain the following, except
Select one:
a. The VAT registration number
b. The address of the supplier of goods, properties or services
c. The description, quantity and unit cost of the goods or properties or nature of
service
d. The date of transaction
: The address of the supplier of goods, properties or services
Gregoria Sugar Corporation (SGC) buys sugar cane from farmers and processes it into
refined sugar. During a month, SGC made the following purchases:
Cane sugar, P1.8 million
Other supplies, excluding VAT, P300,000
Other supplies, including VAT, P112,000
A total of 2,000 bags were produced, of which 1,500 were sold at a price of P1,600
per bag in the same month.
SGC paid the advanced VAT on the production in accordance with the BIR�s prescribed
new base price for refined sugar.
What is the total credit against output VAT (including the advanced VAT) for the
month?
Select one:
a. P480,000
b. P324,000
c. P318,000
d. P456,000
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The correct answer is: P456,000
Question 2
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Which transaction is not deemed sales for VAT purposes?
Select one:
a. Dacion en pago
b. Cessation of status as VAT taxpayer
c. Consignment of goods when actual sale is made within 60 days
d. Distribution of property as dividend
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The correct answer is: Consignment of goods when actual sale is made within 60 days
Question 3
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Which of the following may not qualify as export sale?
Select one:
a. Export by an export producer
b. Export by an export producer to another export producer
c. Sale to an export trader
d. Sale to domestic trader
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The correct answer is: Sale to an export trader
Question 4
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Statement 1: The VAT due and payable on regular sales is always positive.
Statement 2: The VAT due and payable on export sales is always negative.
Which statement is generally correct?
Select one:
a. Both statements are incorrect
b. Both statements are correct
c. Statement 2 only
d. Statement 1 only
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The correct answer is: Statement 2 only
Question 5
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In July 2020, a realty dealer sold a residential lot for P2 million. The lot had a
fair value of P2.5 million at the date of sale. The buyer agreed to pay in P100,000
monthly installments starting July 2020.
What is the output VAT respectively in July and August 2020?
Select one:
a. P12,000; P12,000
b. P240,000; P0
c. P300,000; P0
d. P15,000; P15,000
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The correct answer is: P300,000; P0
Question 6
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Which of the following is not subject to output tax when sold by a realty dealer?
Select one:
a. Sale of properties used in business
b. Exchange of properties held for sale in settlement of debt
c. Sale of investment in stocks
d. Sale of properties held for sale
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The correct answer is: Sale of investment in stocks
Question 7
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A VAT-registered individual purchased the following from various suppliers in
November 2020:
From VAT suppliers
From Non-VAT suppliers
Machineries
P800,000
P300,000
Useful life
6 years
3 years
What is the creditable input VAT in the December quarterly VAT return?
Select one:
a. P1,600
b. P4,400
c. P96,000
d. P3,200
Feedback
Your answer is correct.
The input VAT shall be amortized over 60 months or actual useful life, whichever is
shorter.
The correct answer is: P3,200
Question 8
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What is the tax basis of the output VAT on installment sales?
Select one:
a. Fair value or gross selling price whichever is higher
b. Fair value of property sold
c. Gross receipts
d. Gross selling price
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Your answer is incorrect.
The correct answer is: Gross selling price
Question 9
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Albay Corporation had the following sales in March 2020:
Sale to an export-oriented enterprise, P2,000,000
Sales to a BOI-registered enterprise, P3,000,000
Assuming that the new VAT refund system is already in place, what is the total
effectively zero-rated sales?
Select one:
a. P3,000,000
b. P0
c. P3,800,000
d. P5,000,000
Feedback
Your answer is correct.
The sale to an export-oriented enterprise is a constructive export even if not
actually exported. The sales to a BOI enterprise are considered export sales if the
latter exports 100% of its produce.
The correct answer is: P5,000,000
Question 10
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An exporter entered into the following transactions during the month:
Transaction
Amount
Unsold
Export sales
P1,000,00
-
Export sales
$100,000
60-day Consignment abroad
$ 50,000
40%
Forex rate = $1 = P42.50.
What is the zero-rated sales?
Select one:
a. P0
b. P4,250,000
c. P6,100,000
d. P5,525,000
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The correct answer is: P5,525,000
Question 11
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Statement 1: Discounts that are contingent to a future event are deductible from
gross selling price.
Statement 2: Expenses of the service provider that are reimbursed by the client
forms part of the gross receipt.
Which statement is correct?
Select one:
a. Statement 1 only
b. Statement 2 only
c. Both statements are incorrect
d. Both statements are correct
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The correct answer is: Statement 2 only
Question 12
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Who can claim the VAT on importation as a tax credit?
Select one:
a. An importer of goods for business use
b. An importer of goods for personal consumption
c. An importer of goods who is exempt from the VAT on importation
d. An importer of services for personal consumption
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The correct answer is: An importer of goods for business use
Question 13
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Soliman Ferries has a fleet of ships traversing the islands of Bohol and Cebu. It
reported the following receipts during a month:
Transport of passengers, P8 million
Transport of cargoes, P1 million
What is the output VAT?
Select one:
a. P120,000
b. P960,000
c. P1,080,000
d. P0
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Your answer is correct.
The correct answer is: P1,080,000
Question 14
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Ms. Marina, a VAT-taxpayer, purchased the following from a VAT-taxpayer:
VAT-exempt goods, P20,000
Vatable goods, P40,000
What is the input VAT allowable to Mr. Marina?
Select one:
a. P4,286
b. P2,143
c. P4,800
d. P0
Feedback
Your answer is correct.
The amount shown are �invoice prices.� Hence, the input VAT shall be computed out
of the vatable purchases as P40,000 x 12/112 = P4,286.
The correct answer is: P4,286
Question 15
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Which is included in the basis of the transitional input VAT?
Select one:
a. Vatable goods only purchased from VAT or non-VAT suppliers
b. Vatable goods and properties purchased from VAT suppliers
c. Vatable goods and properties purchased from non-VAT suppliers
d. Exempt goods purchased from VAT suppliers
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Your answer is correct.
The correct answer is: Vatable goods only purchased from VAT or non-VAT suppliers
Question 16
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A VAT-registered supplier sold goods amounting to P500,000 to a government-owned
corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale of the goods?
Select one:
a. The sale is subject to final withholding VAT.
b. The government-owned corporation shall remit the final VAT withheld to the BIR
within 10 days following the end of the month the withholding was made.
c. The government-owned corporation will withhold P25,000 withholding VAT.
d. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
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The correct answer is: The VAT-registered supplier may refuse the withholding of
VAT as long as it is willing to pay the full 12% VAT.
Question 17
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Statement 1: Services to non-residents are always subject to zero-rated VAT if
rendered abroad.
Statement 2: Services to residents may be subject to zero-rating if paid for in
acceptable foreign currencies.
Which statement is correct?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Statement 2 only
d. Both statements are incorrect
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Your answer is correct.
The correct answer is: Both statements are incorrect
Question 18
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Full input VAT credit is allowed on
I.
Regular sales
II.
Export sales
III.
Exempt sales
Select one:
a. I and III only
b. I, II and III
c. I and II only
d. II and III only
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The correct answer is: I and II only
Question 19
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A real property dealer sold an agricultural lot for P2,500,000 with the following
values:
Appraisal value, P3,000,000
Zonal value, P2,000,000
Assessed value, P1,500,000
What is the output VAT?
Select one:
a. P180,000
b. P300,000
c. P240,000
d. P360,000
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Your answer is correct.
The correct answer is: P300,000
Question 20
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The output VAT on export sales is
Select one:
a. 12% of the value added
b. 0% of sales
c. 12% of sales
d. None
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Your answer is correct.
The correct answer is: 0% of sales
Question 21
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The following sales and purchases were taken from the books of accounts of a VAT
taxpayer:
April
May
June
Sales
P625,000
P400,000
P600,000
Purchases
400,000
420,000
200,000
What is the VAT payable in June?
Select one:
a. P72,600
b. P45,600
c. P72,000
d. P48,000
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Your answer is incorrect.
The correct answer is: P45,600
Question 22
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Which is subject to a zero-rated VAT?
Select one:
a. Sales of any goods to the government
b. Sale of fruits and vegetable to an embassy personnel with VAT exemption
certificates
c. Sale of fruits and vegetables to senior citizens
d. Sale of fruits and vegetables to persons with disability
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The correct answer is: Sale of fruits and vegetable to an embassy personnel with
VAT exemption certificates
Question 23
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Which is a correct statement regarding the advanced input VAT?
Select one:
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 on the VAT on the ultimate sale of
refined sugar, flour or timber
d. The advanced input VAT is in lieu of the actual input VAT traceable to the sales
of refined sugar, flour or timber
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Your answer is correct.
The correct answer is: The advanced input VAT is a down payment on the VAT on the
ultimate sale of refined sugar, flour or timber
Question 24
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Mr. Antonio, a fruit and vegetable dealer, had the following sales and purchases:
Sales of fruits and vegetables, P800,000
Purchase of fruits and vegetables, P500,000
Purchases of cellophane and containers, exclusive of VAT, P20,000
What is the VAT payable?
Select one:
a. P36,000
b. P38,400
c. P0
d. P33,600
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Your answer is correct.
The correct answer is: P0
Question 25
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Guerrero Flour Milling (GFM) Corporation imports and mills wheat for the domestic
market. During the month, it imported wheat at a total landed cost of P3 million.
The same was middle and yielded 2,000 sacks of flour, of which 1,200 sacks were
sold at a price of P1,200 per sack.
What is the advanced VAT to be paid by GFM upon importation of the wheat?
Select one:
a. P288,000
b. P0
c. P360,000
d. P460,800
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Your answer is correct.
The correct answer is: P288,000
Question 26
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A business taxpayer reported the following sale during a period:
Domestic sales, P200,000
Deemed sales, P100,000
Export sales, P300,000
What is the zero-rated sales assuming the seller is respectively a VAT taxpayer and
a non-VAT taxpayer?
Select one:
a. P600,000; P300,000
b. P300,000; P0
c. P300,000; P300,000
d. P600,000; P0
Feedback
Your answer is correct.
The correct answer is: P300,000; P0
Question 27
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The sale of fruits was invoiced in a VAT invoice at P24,000. What is the output
VAT?
Select one:
a. P2,880
b. P4,000
c. P0
d. P2,571
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Your answer is incorrect.
The correct answer is: P2,571
Question 28
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Quarterly VAT declaration is filed on or before the
Select one:
a. 20th day from the end of each quarter.
b. 25th day from the end of each month.
c. 25th day from the end of each quarter.
d. 20th day from the end of each month.
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Your answer is correct.
The correct answer is: 25th day from the end of each quarter.
Question 29
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A VAT-registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers:
July 2020:
Machine with 10-year estimated useful life, P1,680,000
August 2020:
Factory equipment with 4-year estimated useful life, P1,232,000
Assume all amounts are inclusive of VAT.
What is the creditable input VAT for the quarter ending September 2020?
Select one:
a. P9,000
b. P5,500
c. P15,220
d. P14,500
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Your answer is correct.
The correct answer is: P14,500
Question 30
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Question text
A non-VAT realty lessor had the following receipts during a month:
Bed spacers� rooms with P2,000 monthly rental each
P
120,000
Houses for rent with P10,000 monthly rental each
1,000,000
Commercial spaces with P5,000 monthly rental each
900,000
Which is correct?
Select one:
a. The taxpayer shall pay percentage tax on all receipts.
b. The taxpayer shall pay VAT on the commercial spaces.
c. The taxpayer shall pay percentage tax on the commercial spaces.
d. The taxpayer shall pay VAT on all receipts.
Feedback
Your answer is correct.
The correct answer is: The taxpayer shall pay percentage tax on the commercial
spaces
VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
Select one:
a. P144,000
b. P192,000
c. P156,000
d. P108,000
Feedback
Your answer is correct.
The correct answer is: P108,000
Question 2
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The final percentage tax withheld is
Select one:
a. 7% of the sales made to the government
b. 3% of the purchases on sales made to the government
c. 3% of the sales made to the government
d. 5% of the sales made to the government
Feedback
Your answer is incorrect.
The correct answer is: 3% of the sales made to the government
Question 3
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Question text
Statement 1: If the output VAT is erroneously billed, the amount shown in the
invoice is deemed exclusive of VAT.
Statement 2: If the output VAT is not separately indicated in the invoice, it
shall be computed as 12/112 of the invoice price.
Which statement is correct?
Select one:
a. Statement 2 only
b. Both statements are correct
c. Statement 1 only
d. Both statements are incorrect
Feedback
Your answer is correct.
The correct answer is: Statement 2 only
Question 4
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Which is vatable?
Select one:
a. Gasoline stations
b. Internet service providers
c. Schools
d. Local water districts
Feedback
Your answer is correct.
The correct answer is: Internet service providers
Question 5
Correct
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Question text
A sales was invoiced by a VAT-seller at P500,000. What is the output VAT?
Select one:
a. P0
b. P60,000
c. P50,000
d. P53,571
Feedback
Your answer is correct.
The correct answer is: P53,571
Question 6
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Question text
Which of the following is subject to output tax if sold by a person not engaged in
business?
Select one:
a. Sale of personal residence
b. Sale of car
c. Sale of merchandise in the course of business
d. Sale of investment in stocks
Feedback
Your answer is correct.
The correct answer is: Sale of merchandise in the course of business
Question 7
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Question text
A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made by a VAT-registrable person?
Select one:
a. P41,000
b. P34,000
c. P20,000
d. P50,000
Feedback
Your answer is correct.
The correct answer is: P34,000
Question 8
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Question text
Isabelo Corporation had the following summary of output and input VAT for the 1st
and 2nd quarters of 2020:
1st Quarter
April
May
Output VAT
P200,000
P300,000
P250,000
Input VAT
240,000
320,000
240,000
What is the total creditable input VAT in April?
Select one:
a. P70,000
b. P340,000
c. P60,000
d. P360,000
Feedback
Your answer is correct.
P40,000 carry-over from 1st quarter plus the P320,000 input VAT in April
The correct answer is: P360,000
Question 9
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Question text
Which of the following requires prior BIR application for effective zero-rating?
Select one:
a. Direct export sales
b. Foreign currency denominated sales
c. Sales to export-oriented enterprises
d. Sales to PEZA-registered entities
Feedback
Your answer is correct.
The correct answer is: Sales to export-oriented enterprises
Question 10
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Question text
A taxpayer made a sale of P400,000 to the government from goods purchased for
P300,000 from VAT taxpayers. What is the actual input VAT?
Select one:
a. P28,000
b. P36,000
c. P0
d. P20,000
Feedback
Your answer is correct.
The correct answer is: P36,000
Question 11
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Question text
Jacinto Broadcasting Company regularly have annual receipts of P8 million. During
the month, it generated a total revenue of P1 million, out of which P800,000 was
collected. It incurred P600,000 total expenditures, out of which P224,000 was paid
to VAT suppliers. What is the VAT payable?
Select one:
a. P24,000
b. P0
c. P48,000
d. P72,000
Feedback
Your answer is correct.
The correct answer is: P0
Question 12
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Question text
Which is a correct statement regarding the advanced input VAT?
Select one:
a. The advanced input VAT is a down payment on the VAT on the ultimate sale of
refined sugar, flour or timber
b. The advanced input VAT is synonymous to the VAT on importation
c. The advanced input VAT is the final VAT due from the seller
d. The advanced input VAT is in lieu of the actual input VAT traceable to the sales
of refined sugar, flour or timber
Feedback
Your answer is correct.
The correct answer is: The advanced input VAT is a down payment on the VAT on the
ultimate sale of refined sugar, flour or timber
Question 13
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Question text
A VAT taxpayer cannot claim input VAT credit on
Select one:
a. Exempt sales
b. Zero-rated sales
c. Government sales
d. Regular sales
Feedback
Your answer is correct.
The correct answer is: Exempt sales
Question 14
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Question text
Mr. and Mrs. Tecson compiled the following input VAT during a month:
Input VAT on
Mr. Tecson
Mrs. Tecson
Purchase of goods
P10,000
P12,000
Purchase of services
12,000
8,000
Mr. Tecson is a non-VAT taxpayer while Mrs. Tecson is a VAT taxpayer.
What is the respective creditable input VAT of Mr. and Mrs. Tecson?
Select one:
a. P22,000; P20,000
b. P0; P0
c. P0; P20,000
d. P22,000; P0
Feedback
Your answer is correct.
Non-VAT taxpayers cannot claim input Vat
The correct answer is: P0; P20,000
Question 15
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Question text
What is the effectivity of the request for cancellation of VAT registration?
Select one:
a. On the quarter following the quarter when the cancellation was approved
b. On the day following the date the request was approved
c. On the day the request is approved
d. On the month following the month the cancellation was approved
Feedback
Your answer is correct.
The correct answer is: On the month following the month the cancellation was
approved
Question 16
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Question text
A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
Select one:
a. The sale is exempt from VAT.
b. The sale is subject to the regular 12% VAT.
c. The sale is subject to zero-rated VAT.
d. The sale is subject to the VAT on importation to the domestic business.
Feedback
Your answer is correct.
The correct answer is: The sale is subject to the VAT on importation to the
domestic business.
Question 17
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Question text
In January 2020, a VAT taxpayer made the following purchases:
Goods, exclusive of VAT, P800,000
Capital goods, exclusive of VAT, P700,000
The capital goods pertain to several equipment with estimated useful life of 3
years.
What is the claimable input VAT?
Select one:
a. P97,400
b. P180,000
c. P98,333
d. P160,714
Feedback
Your answer is correct.
The input VAT on the goods is claimable in the month of purchase. The input VAT on
the purchase of deprecable capital goods shall likewise be claimable in the month
of purchase because the aggregate acquisition costs of capital goods in the month
did not exceed P1 million. Hence, P1.5 million x 12% = P180,000.
The correct answer is: P180,000
Question 18
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Question text
A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P600
b. P0
c. P6,720
d. P6,520
Feedback
Your answer is correct.
The correct answer is: P600
Question 19
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Question text
Which of the following is vatable?
Select one:
a. A bowling alley
b. A disco
c. An operator of a racetrack
d. An operator of cockpits
Feedback
Your answer is correct.
The correct answer is: A bowling alley
Question 20
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Question text
A VAT-registered taxpayer made the following sales:
Sales destination
Terms
Payment
China
FOB destination
$10,000
Malaysia
FOB destination
P450,000
Hongkong
FOB shipping point
HKD800,000
Philippines
FOB shipping point
P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
Select one:
a. P1,570,000
b. P420,000
c. P1,270,000
d. P820,000
Feedback
Your answer is correct.
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.
The correct answer is: P820,000
Question 21
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Question text
The summary list is required for
Select one:
a. VAT taxpayers
b. Non-VAT taxpayers
c. Non-large taxpayers
d. Large taxpayers
Feedback
Your answer is correct.
The correct answer is: VAT taxpayers
Question 22
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Question text
The standard input VAT is equivalent to
Select one:
a. 5% of the purchases on sales made to the government
b. 7% of the input VAT traceable to the government
c. 5% of the sales made to government
d. 7% of the sales made to government
Feedback
Your answer is correct.
The correct answer is: 7% of the sales made to government
Question 23
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Question text
Which is correct regarding the treatment of input VAT?
Select one:
a. Input VAT on exempt sales is refundable or creditable
b. Input VAT on zero-rated sales is deductible from gross income
c. Input VAT on zero-rated sales is both deductible from gross income and
creditable against output VAT
d. Input VAT on zero-rated sales is creditable against output VAT or refundable
Feedback
Your answer is correct.
The correct answer is: Input VAT on zero-rated sales is creditable against output
VAT or refundable
Question 24
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What is the tax basis of the output VAT on sales of goods?
Select one:
a. Gross receipts
b. Gross selling price
c. Fair value or gross selling price whichever is higher
d. Fair value
Feedback
Your answer is correct.
The correct answer is: Gross selling price
Question 25
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Question text
A business taxpayer reported the following sale during a period:
Domestic sales, P200,000
Deemed sales, P100,000
Export sales, P300,000
What is the zero-rated sales assuming the seller is respectively a VAT taxpayer and
a non-VAT taxpayer?
Select one:
a. P300,000; P0
b. P600,000; P300,000
c. P300,000; P300,000
d. P600,000; P0
Feedback
Your answer is correct.
The correct answer is: P300,000; P0
Question 26
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Question text
Gregoria Sugar Corporation (SGC) buys sugar cane from farmers and processes it into
refined sugar. During a month, SGC made the following purchases:
Cane sugar, P1.8 million
Other supplies, excluding VAT, P300,000
Other supplies, including VAT, P112,000
A total of 2,000 bags were produced, of which 1,500 were sold at a price of P1,600
per bag in the same month.
SGC paid the advanced VAT on the production in accordance with the BIR�s prescribed
new base price for refined sugar.
What is the total credit against output VAT (including the advanced VAT) for the
month?
Select one:
a. P324,000
b. P456,000
c. P318,000
d. P480,000
Feedback
Your answer is correct.
The correct answer is: P456,000
Question 27
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Full input VAT credit is allowed on
I.
Regular sales
II.
Export sales
III.
Exempt sales
Select one:
a. I, II and III
b. I and III only
c. I and II only
d. II and III only
Feedback
Your answer is correct.
The correct answer is: I and II only
Question 28
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Which is not subject to zero-rating?
Select one:
a. Sale to an international sea carrier
b. Sale to an international air carrier
c. Sale to a domestic sea carrier on tis domestic operations
d. Sale to a domestic air carrier on its international operations
Feedback
Your answer is correct.
The correct answer is: Sale to a domestic sea carrier on tis domestic operations
Question 29
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7-6-11.
Agoncillo is a non-VAT registered operator of 40 taxis. During a month,
he collected a total receipt of P1.3 million under the �boundary� system.
What is the output VAT?
Select one:
a. P278,572
b. P321,000
c. P0
d. P312,000
Feedback
Your answer is correct.
The correct answer is: P0
Question 30
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Question text
An insurer had the following receipts and input VAT during the month:
Life
Non-Life
Total
Cash collection
P4,000,000
P2,500,000
P6,500,000
Promissory note
500,000
100,000
600,000 VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
Select one:
a. P144,000
b. P192,000
c. P156,000
d. P108,000
Feedback
Your answer is correct.
The correct answer is: P108,000
Question 2
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The final percentage tax withheld is
Select one:
a. 7% of the sales made to the government
b. 3% of the purchases on sales made to the government
c. 3% of the sales made to the government
d. 5% of the sales made to the government
Feedback
Your answer is incorrect.
The correct answer is: 3% of the sales made to the government
Question 3
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Question text
Statement 1: If the output VAT is erroneously billed, the amount shown in the
invoice is deemed exclusive of VAT.
Statement 2: If the output VAT is not separately indicated in the invoice, it
shall be computed as 12/112 of the invoice price.
Which statement is correct?
Select one:
a. Statement 2 only
b. Both statements are correct
c. Statement 1 only
d. Both statements are incorrect
Feedback
Your answer is correct.
The correct answer is: Statement 2 only
Question 4
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Question text
Which is vatable?
Select one:
a. Gasoline stations
b. Internet service providers
c. Schools
d. Local water districts
Feedback
Your answer is correct.
The correct answer is: Internet service providers
Question 5
Correct
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Question text
A sales was invoiced by a VAT-seller at P500,000. What is the output VAT?
Select one:
a. P0
b. P60,000
c. P50,000
d. P53,571
Feedback
Your answer is correct.
The correct answer is: P53,571
Question 6
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Question text
Which of the following is subject to output tax if sold by a person not engaged in
business?
Select one:
a. Sale of personal residence
b. Sale of car
c. Sale of merchandise in the course of business
d. Sale of investment in stocks
Feedback
Your answer is correct.
The correct answer is: Sale of merchandise in the course of business
Question 7
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Question text
A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made by a VAT-registrable person?
Select one:
a. P41,000
b. P34,000
c. P20,000
d. P50,000
Feedback
Your answer is correct.
The correct answer is: P34,000
Question 8
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Question text
Isabelo Corporation had the following summary of output and input VAT for the 1st
and 2nd quarters of 2020:
1st Quarter
April
May
Output VAT
P200,000
P300,000
P250,000
Input VAT
240,000
320,000
240,000
What is the total creditable input VAT in April?
Select one:
a. P70,000
b. P340,000
c. P60,000
d. P360,000
Feedback
Your answer is correct.
P40,000 carry-over from 1st quarter plus the P320,000 input VAT in April
The correct answer is: P360,000
Question 9
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Question text
Which of the following requires prior BIR application for effective zero-rating?
Select one:
a. Direct export sales
b. Foreign currency denominated sales
c. Sales to export-oriented enterprises
d. Sales to PEZA-registered entities
Feedback
Your answer is correct.
The correct answer is: Sales to export-oriented enterprises
Question 10
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Question text
A taxpayer made a sale of P400,000 to the government from goods purchased for
P300,000 from VAT taxpayers. What is the actual input VAT?
Select one:
a. P28,000
b. P36,000
c. P0
d. P20,000
Feedback
Your answer is correct.
The correct answer is: P36,000
Question 11
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Question text
Jacinto Broadcasting Company regularly have annual receipts of P8 million. During
the month, it generated a total revenue of P1 million, out of which P800,000 was
collected. It incurred P600,000 total expenditures, out of which P224,000 was paid
to VAT suppliers. What is the VAT payable?
Select one:
a. P24,000
b. P0
c. P48,000
d. P72,000
Feedback
Your answer is correct.
The correct answer is: P0
Question 12
Correct
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Question text
Which is a correct statement regarding the advanced input VAT?
Select one:
a. The advanced input VAT is a down payment on the VAT on the ultimate sale of
refined sugar, flour or timber
b. The advanced input VAT is synonymous to the VAT on importation
c. The advanced input VAT is the final VAT due from the seller
d. The advanced input VAT is in lieu of the actual input VAT traceable to the sales
of refined sugar, flour or timber
Feedback
Your answer is correct.
The correct answer is: The advanced input VAT is a down payment on the VAT on the
ultimate sale of refined sugar, flour or timber
Question 13
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Question text
A VAT taxpayer cannot claim input VAT credit on
Select one:
a. Exempt sales
b. Zero-rated sales
c. Government sales
d. Regular sales
Feedback
Your answer is correct.
The correct answer is: Exempt sales
Question 14
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Question text
Mr. and Mrs. Tecson compiled the following input VAT during a month:
Input VAT on
Mr. Tecson
Mrs. Tecson
Purchase of goods
P10,000
P12,000
Purchase of services
12,000
8,000
Mr. Tecson is a non-VAT taxpayer while Mrs. Tecson is a VAT taxpayer.
What is the respective creditable input VAT of Mr. and Mrs. Tecson?
Select one:
a. P22,000; P20,000
b. P0; P0
c. P0; P20,000
d. P22,000; P0
Feedback
Your answer is correct.
Non-VAT taxpayers cannot claim input Vat
The correct answer is: P0; P20,000
Question 15
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Question text
What is the effectivity of the request for cancellation of VAT registration?
Select one:
a. On the quarter following the quarter when the cancellation was approved
b. On the day following the date the request was approved
c. On the day the request is approved
d. On the month following the month the cancellation was approved
Feedback
Your answer is correct.
The correct answer is: On the month following the month the cancellation was
approved
Question 16
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Question text
A PEZA-registered entity sold scraps to a domestic business for $12,000. Which is
correct?
Select one:
a. The sale is exempt from VAT.
b. The sale is subject to the regular 12% VAT.
c. The sale is subject to zero-rated VAT.
d. The sale is subject to the VAT on importation to the domestic business.
Feedback
Your answer is correct.
The correct answer is: The sale is subject to the VAT on importation to the
domestic business.
Question 17
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Question text
In January 2020, a VAT taxpayer made the following purchases:
Goods, exclusive of VAT, P800,000
Capital goods, exclusive of VAT, P700,000
The capital goods pertain to several equipment with estimated useful life of 3
years.
What is the claimable input VAT?
Select one:
a. P97,400
b. P180,000
c. P98,333
d. P160,714
Feedback
Your answer is correct.
The input VAT on the goods is claimable in the month of purchase. The input VAT on
the purchase of deprecable capital goods shall likewise be claimable in the month
of purchase because the aggregate acquisition costs of capital goods in the month
did not exceed P1 million. Hence, P1.5 million x 12% = P180,000.
The correct answer is: P180,000
Question 18
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Question text
A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P600
b. P0
c. P6,720
d. P6,520
Feedback
Your answer is correct.
The correct answer is: P600
Question 19
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Question text
Which of the following is vatable?
Select one:
a. A bowling alley
b. A disco
c. An operator of a racetrack
d. An operator of cockpits
Feedback
Your answer is correct.
The correct answer is: A bowling alley
Question 20
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Question text
A VAT-registered taxpayer made the following sales:
Sales destination
Terms
Payment
China
FOB destination
$10,000
Malaysia
FOB destination
P450,000
Hongkong
FOB shipping point
HKD800,000
Philippines
FOB shipping point
P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
Select one:
a. P1,570,000
b. P420,000
c. P1,270,000
d. P820,000
Feedback
Your answer is correct.
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.
The correct answer is: P820,000
Question 21
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Question text
The summary list is required for
Select one:
a. VAT taxpayers
b. Non-VAT taxpayers
c. Non-large taxpayers
d. Large taxpayers
Feedback
Your answer is correct.
The correct answer is: VAT taxpayers
Question 22
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Question text
The standard input VAT is equivalent to
Select one:
a. 5% of the purchases on sales made to the government
b. 7% of the input VAT traceable to the government
c. 5% of the sales made to government
d. 7% of the sales made to government
Feedback
Your answer is correct.
The correct answer is: 7% of the sales made to government
Question 23
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Question text
Which is correct regarding the treatment of input VAT?
Select one:
a. Input VAT on exempt sales is refundable or creditable
b. Input VAT on zero-rated sales is deductible from gross income
c. Input VAT on zero-rated sales is both deductible from gross income and
creditable against output VAT
d. Input VAT on zero-rated sales is creditable against output VAT or refundable
Feedback
Your answer is correct.
The correct answer is: Input VAT on zero-rated sales is creditable against output
VAT or refundable
Question 24
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Question text
What is the tax basis of the output VAT on sales of goods?
Select one:
a. Gross receipts
b. Gross selling price
c. Fair value or gross selling price whichever is higher
d. Fair value
Feedback
Your answer is correct.
The correct answer is: Gross selling price
Question 25
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A business taxpayer reported the following sale during a period:
Domestic sales, P200,000
Deemed sales, P100,000
Export sales, P300,000
What is the zero-rated sales assuming the seller is respectively a VAT taxpayer and
a non-VAT taxpayer?
Select one:
a. P300,000; P0
b. P600,000; P300,000
c. P300,000; P300,000
d. P600,000; P0
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The correct answer is: P300,000; P0
Question 26
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Gregoria Sugar Corporation (SGC) buys sugar cane from farmers and processes it into
refined sugar. During a month, SGC made the following purchases:
Cane sugar, P1.8 million
Other supplies, excluding VAT, P300,000
Other supplies, including VAT, P112,000
A total of 2,000 bags were produced, of which 1,500 were sold at a price of P1,600
per bag in the same month.
SGC paid the advanced VAT on the production in accordance with the BIR�s prescribed
new base price for refined sugar.
What is the total credit against output VAT (including the advanced VAT) for the
month?
Select one:
a. P324,000
b. P456,000
c. P318,000
d. P480,000
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The correct answer is: P456,000
Question 27
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Full input VAT credit is allowed on
I.
Regular sales
II.
Export sales
III.
Exempt sales
Select one:
a. I, II and III
b. I and III only
c. I and II only
d. II and III only
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The correct answer is: I and II only
Question 28
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Which is not subject to zero-rating?
Select one:
a. Sale to an international sea carrier
b. Sale to an international air carrier
c. Sale to a domestic sea carrier on tis domestic operations
d. Sale to a domestic air carrier on its international operations
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The correct answer is: Sale to a domestic sea carrier on tis domestic operations
Question 29
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7-6-11.
Agoncillo is a non-VAT registered operator of 40 taxis. During a month,
he collected a total receipt of P1.3 million under the �boundary� system.
What is the output VAT?
Select one:
a. P278,572
b. P321,000
c. P0
d. P312,000
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The correct answer is: P0
Question 30
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An insurer had the following receipts and input VAT during the month:
Life
Non-Life
Total
Cash collection
P4,000,000
P2,500,000
P6,500,000
Promissory note
500,000
100,000
600,000
Traceable input VAT
120,000
80,000
200,000
Other input VAT
70,000
What is the VAT payable?
Select one:
a. P207,000
b. P232,000
c. P220,000
d. P195,000
Traceable input VAT
120,000
80,000
200,000
Other input VAT
70,000
What is the VAT payable?
Select one:
a. P207,000
b. P232,000
c. P220,000
d. P195,000
Which of the following can be claimed as VAT refund?
Select one:
a. Input VAT on sales to the government
b. Advanced input VAT
c. Input VAT on export sales
d. Input VAT on domestic purchases
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The correct answer is: Input VAT on export sales
Question 2
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Which of the following input VAT carry-over is creditable against output VAT of the
quarterly VAT return?
Select one:
a. Those arising the first month after the quarter
b. Those arising from the first month of the quarter
c. Those arising from the prior quarter
d. Those arising from the second month of the quarter
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The correct answer is: Those arising from the prior quarter
Question 3
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A VAT-registered practicing lawyer disclosed the following during the month:
Total professional fees billed, P800,000
Total professional fees collected, P600,000
Advances by certain clients, P200,000
What is the output VAT?
Select one:
a. P72,000
b. P88,286
c. P96,000
d. P120,000
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The correct answer is: P88,286
Question 4
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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, P11,200,000
Corporate office building, P20,000,000
Various equipment, P4,000,000
What is the transitional input VAT?
Select one:
a. P1,200,000
b. P624,000
c. P224,000
d. P0
Feedback
Your answer is correct.
It must be emphasized that the actual presence of VAT in the beginning inventory is
not a pre-condition to the claim of input VAT.
The correct answer is: P224,000
Question 5
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A domestic airline had the following transactions during the month:
International operation:
Receipts from outgoing flights, P2,000,000
Receipts from incoming flights, P2,500,000
Domestic operation:
Transport of passengers, P4,000,000
Transport of cargoes and baggage, P1,500,000
Total claimable input VAT, P468,000
What is the VAT payable?
Select one:
a. P309,000
b. P52,363
c. P12,000
d. P192,000
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The correct answer is: P192,000
Question 6
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Which is not a category for VAT taxpayers?
Select one:
a. Sales to government
b. Zero-rated sales
c. Sales to non-profit institutions
d. Exempt sales
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The correct answer is: Sales to non-profit institutions
Question 7
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A Philippine company exported goods for $140,000 to a non-resident customer. The
payment, however, was not inwardly remitted. The same was remitted to its home
office abroad.
Which is correct?
Select one:
a. The sale is a zero-rated sale.
b. The sale is an exempt sale.
c. The sale is subject to 3% percentage tax.
d. The sale is subject to 12% VAT.
Feedback
Your answer is correct.
To be subject to zero-rating, the proceeds of export sales must be inwardly
remitted and accounted for under the rules of the BSP. Export sales that do not
conform to zero-rating requirements are exempt.
The correct answer is: The sale is an exempt sale.
Question 8
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In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming input tax, it must contain the following, except
Select one:
a. The VAT registration number
b. The date of transaction
c. The address of the supplier of goods, properties or services
d. The description, quantity and unit cost of the goods or properties or nature of
service
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Your answer is correct.
The correct answer is: The address of the supplier of goods, properties or services
Question 9
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. He ordered the
said packaging materials from another Philippine company, Luna Packaging, Inc.
(LPI). It was agreed that LPI will deliver the packaging materials to Florentino
Corporation so that the latter can use the same for the sardines to be delivered to
Mr. Wu Han in China.
What is the treatment for the VAT purchases of the sale of Florentino Corporation
to Mr. Wu Han?
Select one:
a. Exempt
b. Subject to 12%
c. Subject to 0%
d. Subject to 3%
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The correct answer is: Subject to 0%
Question 10
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Which of the following properties may be included in the basis of the 2%
transitional input VAT?
Select one:
a. Land or building classified as property held for use
b. Building subject to periodic provision for depreciation
c. Land or building classified as inventory held for sale
d. Land and other properties not subject to depreciation
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The correct answer is: Land or building classified as inventory held for sale
Question 11
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Statement 1: The input VAT on non-depreciable vehicles shall be claimed in the
month purchased.
Statement 2: The input VAT on construction-in-progress shall be claimed in the
month billing is paid.
Which is correct?
Select one:
a. Both statements are incorrect
b. Both statements are correct
c. Statement 2 only
d. Statement 1 only
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The correct answer is: Statement 2 only
Question 12
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A VAT-registered taxpayer with several businesses had the following sales:
Last 12 months
Current month
Sales of fertilizers and feeds
P1,800,000
P200,000
Sales of equipment
1,500,000
150,000
Input VAT on processed foods
140,000
13,000
What is the VAT payable for the current month?
Select one:
a. P18,000
b. P5,000
c. P29,000
d. P0
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The correct answer is: P5,000
Question 13
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A VAT-registered seller sold various merchandise a wholesale price, exclusive of
VAT
Product total retail price
P300,000
Less: Trade discount (10%)
30,000
Product wholesale price
P270,000
Less: Cash discount (5/15, n/30)
13,500
Net price due in 15 days
P256,500
What is the output VAT?
Select one:
a. P32,400
b. P30,780
c. P36,000
d. P0
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Your answer is correct.
The correct answer is: P32,400
Question 14
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An approved application for zero-rating is valid for
Select one:
a. 3 years
b. 5 years
c. 2 years
d. One quarter only
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The correct answer is: One quarter only
Question 15
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A seller of goods had the following data during the month:
Sales invoice (total billed prices), P436,800
Total cash collection, P380,800
Sales returns and allowances, billed price, P11,200
Input VAT, P14,000
Assuming the taxpayer is VAT-registered, what is the VAT payable?
Select one:
a. P31,600
b. P35,600
c. P26,800
d. P0
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Your answer is correct.
The correct answer is: P31,600
Question 16
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What is the tax basis of the output VAT on sales of services?
Select one:
a. Fair value or gross selling price whichever is higher
b. Fair value
c. Gross receipts
d. Gross selling price
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The correct answer is: Gross receipts
Question 17
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The claimable input VAT is 12% of purchases from
I.
VAT-registered taxpayers
II.
Non-VAT-registered taxpayers
Select one:
a. I only
b. Neither I nor II
c. Both I and II
d. II only
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Your answer is correct.
The correct answer is: I only
Question 18
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A VAT-registered television company with annual receipts of P8 million, reported a
P1 million revenue for the month of June 2020. It collected P1.2 million from
various clients including advances and paid P800,000 of expenses, P560,000 of which
was paid to VAT suppliers.
The collections and payments are inclusive of VAT.
What is the VAT Payable?
Select one:
a. P52,800
b. P76,800
c. P68,571
d. P0
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Your answer is correct.
The correct answer is: P68,571
Question 19
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. To accommodate
this requirement, Florentino Corporation bought the specialized packaging materials
from the Philippine company, Luna Packaging, Inc. (LPI).
What is the status of the sale of LPI to Florentino Corporation?
Select one:
a. Subject to 0% only if LPI�s export sales exceed 70% of total annual production
in the current year.
b. Subject to 12%
c. Subject to 0% only if Florentino Corporation�s export sales exceed 70% of total
annual production in the current year.
d. Subject to 0%
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Your answer is correct.
The correct answer is: Subject to 0% only if Florentino Corporation�s export sales
exceed 70% of total annual production in the current year.
Question 20
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Gabriela Corporation is reporting on a calendar-year basis. It purchased the
following capital goods in the second quarter of 2020:
April
May
June
Equipment
P400,000
P200,000
Machineries
P1,200,000
600,000
All amounts are inclusive of VAT. Equipment is depreciated over a 4-year useful
life while machineries are depreciated over a 10-year useful life basis.
What is the creditable input VAT for the quarter ended June 20, 2020?
Select one:
a. P16,400
b. P24,000
c. P148,800
d. P151,200
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The correct answer is: P151,200
Question 21
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The net income of Panday Pira Company during the quarter is as follows:
Gross income (40% of sales)
P360,000
Less: Expenses
120,000
Net Income
240,000
37.50% of the expenses were from VAT suppliers. All inventories were purchased from
VAT suppliers. Inventory increased by P60,000 at the end of the month. What is the
VAT payable?
Select one:
a. P30,600
b. P45,000
c. P37,800
d. P28,800
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Your answer is correct.
The correct answer is: P30,600
Question 22
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What is the tax basis of the output VAT on sales of real properties?
Select one:
a. Gross receipts
b. Fair value
c. Fair value or gross selling price whichever is higher
d. Gross selling price
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Your answer is correct.
The correct answer is: Fair value or gross selling price whichever is higher
Question 23
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An agricultural supplier had the following sales during the last 12-month period:
Sales of fertilizers and corn seeds
P1,200,000
Sales of seedlings
400,000
Farm equipment
700,000
What is the business tax liability of this taxpayer?
Select one:
a. Percentage tax on farm equipment
b. Percentage tax on equipment and seedlings
c. VAT on all these categories of sale
d. VAT on equipment and seedlings
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Your answer is correct.
The correct answer is: Percentage tax on farm equipment
Question 24
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Which is not subject to the 12% output tax?
Select one:
a. Gross receipts from professional practice
b. Gross receipts from racetrack operations
c. Sale of medicines
d. Gross receipts from restaurant
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The correct answer is: Gross receipts from racetrack operations
Question 25
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Which is a possible source of input VAT?
I.
Importation
II.
Purchase from VAT-sellers
III.
Purchase from non-VAT sellers
Select one:
a. I and II only
b. II and III only
c. I and III only
d. I, II and III
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The correct answer is: I and II only
Question 26
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Isabelo 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 suppliers
20,000
What is the output VAT on the deemed sales?
Select one:
a. P30,000
b. P8,400
c. P21,600
d. P0
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Your answer is correct.
The correct answer is: P30,000
Question 27
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Which industry is not subject to VAT?
Select one:
a. Banking
b. Air transport
c. Mining
d. Construction
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Your answer is correct.
The correct answer is: Banking
Question 28
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Which is subject to a zero-rated VAT?
Select one:
a. Sale of fruits and vegetables to senior citizens
b. Sales of any goods to the government
c. Sale of fruits and vegetables to persons with disability
d. Sale of fruits and vegetable to an embassy personnel with VAT exemption
certificates
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Your answer is correct.
The correct answer is: Sale of fruits and vegetable to an embassy personnel with
VAT exemption certificates
Question 29
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A VAT-taxpayer received and paid the following billings for vatable goods
purchased:
Purchases from non-VAT taxpayers, P50,000
Purchases from VAT taxpayers, P250,000
What is the claimable input VAT?
Select one:
a. P5,357
b. P32,143
c. P26,786
d. P0
Feedback
Your answer is correct.
The term �billing� means invoice price. Hence, the claimable input VAT shall be
P250,000 x 12/112 = P26,756.
The correct answer is: P26,786
Question 30
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Which of the following power generation plants is not qualified to zero-rating
treatment on the sale of electricity?
Select one:
a. Solar power plant
b. Hydro power plant
c. Geothermal power plant
d. Coal power plant
Feedback
Your answer is correct.
The correct answer is: Coal power plant
To which of the following is a sale not subject to zero-rated VAT?
Select one:
a. Philippine Amusement and Gaming Corporation
b. Philippine National Red Cross
c. Ecozone Entities
d. Government agencies
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Your answer is correct.
The correct answer is: Government agencies
Question 2
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Isabelo 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 suppliers
20,000
What is the output VAT on the deemed sales?
Select one:
a. P8,400
b. P21,600
c. P0
d. P30,000
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Your answer is correct.
The correct answer is: P30,000
Question 3
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Antique Enterprises, a VAT taxpayer, sold the following to various exporters in
July 2020:
Sales to
Amount
BOI-registered entity with domestic sales
P2,000,000
BOI-registered entity with no domestic sales
2,500,000
Export-oriented enterprise (60% export last year)
1,000,000
Export-oriented enterprise (90% export last year)
1,500,000
Total
P7,000,000
Assuming that the BIR and DOF has not yet fully implemented the new VAT refund
system, what is the zero-rated sales?
Select one:
a. P1,500,000
b. P2,500,000
c. P5,000,000
d. P4,000,000
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Your answer is correct.
The correct answer is: P4,000,000
Question 4
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The standard input VAT is equivalent to
Select one:
a. 5% of the sales made to government
b. 7% of the sales made to government
c. 5% of the purchases on sales made to the government
d. 7% of the input VAT traceable to the government
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The correct answer is: 7% of the sales made to government
Question 5
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The output VAT on exempt sales is
Select one:
a. 0% of sales
b. None
c. 12% of the value added
d. 12% of sales
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The correct answer is: None
Question 6
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Which is not subject to the 12% output tax?
Select one:
a. Gross receipts from restaurant
b. Gross receipts from racetrack operations
c. Gross receipts from professional practice
d. Sale of medicines
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Your answer is correct.
The correct answer is: Gross receipts from racetrack operations
Question 7
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Statement 1: The VAT returns for the first two months of the quarter are prepared
on a monthly basis.
Statement 2: The VAT return on the third month of the quarter reflects the monthly
sales for the same month.
Which is correct?
Select one:
a. Statement 2 only
b. Both statements are incorrect
c. Both statements are correct
d. Statement 1 only
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Your answer is correct.
The correct answer is: Statement 1 only
Question 8
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A seller of goods had the following data during the month:
Sales invoice (total billed prices), P436,800
Total cash collection, P380,800
Sales returns and allowances, billed price, P11,200
Input VAT, P14,000
Assuming the taxpayer is VAT-registered, what is the VAT payable?
Select one:
a. P31,600
b. P26,800
c. P35,600
d. P0
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Your answer is correct.
The correct answer is: P31,600
Question 9
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Statement 1: Services to non-residents are always subject to zero-rated VAT if
rendered abroad.
Statement 2: Services to residents may be subject to zero-rating if paid for in
acceptable foreign currencies.
Which statement is correct?
Select one:
a. Both statements are correct
b. Statement 2 only
c. Statement 1 only
d. Both statements are incorrect
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Your answer is correct.
The correct answer is: Both statements are incorrect
Question 10
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A VAT taxpayer had the following sales and purchases during the month:
Sales, excluding VAT, P300,000
Purchases (inclusive of P14,000 VAT) P280,000
What is the gross income if the sale is made to regular customers?
Select one:
a. P50,000
b. P57,000
c. P34,000
d. P20,000
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Your answer is correct.
The correct answer is: P34,000
Question 11
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The withholding agent of creditable value-added tax is required to remit the amount
of value-added tax withheld within
Select one:
a. 20 days following the end of the month the withholding was made
b. 15 days following the end of the month the withholding was made
c. 25 days following the end of the month the withholding was made
d. 10 days following the end of the month the withholding was made
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Your answer is correct.
The correct answer is: 10 days following the end of the month the withholding was
made
Question 12
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The input VAT on purchases of non-VAT registered taxpayers shall be claimable as
Select one:
a. Deduction against any tax liability
b. Deduction against output VAT
c. Tax credit within two years
d. Deduction against gross income for income tax purposes
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Your answer is correct.
The correct answer is: Deduction against gross income for income tax purposes
Question 13
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A manufacturer subcontractor generated the following receipts from various clients:
Receipts from PEZA-registered entities, P4,000,000
Receipts from non-PEZA entities, P1,000,000
Input VAT traceable to PEZA clients, P100,000
Input VAT traceable to non-PEZA clients, P50,000
Input VAT on general operations, P60,000
What is the VAT payable?
Select one:
a. P58,000
b. P0
c. P50,000
d. P390,000
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Your answer is correct.
The correct answer is: P0
Question 14
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A VAT-registered restaurant had the following transactions during the month:
Receipts from foods served, P600,000
Receipts from soft drinks, P200,000
Purchase
Purchase
Purchase
Purchase
of
of
of
of
rice, meat and vegetables, P200,000
vegetables, P100,000
soft drinks, P120,000
food condiments, P80,000
Assuming all amounts are exclusive of VAT, what is the VAT payable?
Select one:
a. P72,000
b. P36,000
c. P0
d. P9,600
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Your answer is correct.
The correct answer is: P72,000
Question 15
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Panganiban Corporation contracted Galicano Construction to build its building at a
contract price of P100,000,000, exclusive of VAT. The building is expected to have
a useful life of 50 years upon completion.
Panganiban received and paid the following monthly billings in the first quarter of
2020 which were inclusive of VAT:
January, P1,120,000
February, P952,000
March, P1,344,000
What is the creditable input VAT in the first quarter of 2020?
Select one:
a. P222,000
b. P12,000,000
c. P366,000
d. P600,000
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Your answer is correct.
The correct answer is: P366,000
Question 16
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Question text
Zamora Corporation is a VAT-registered sugar refiner. Details of its operations are
as follows:
Domestic sale of refined sugar, P3,000,000
Export sales of refined sugar, P2,000,000
Purchases of sugar cane, P1,000,000
Other purchases, inclusive of VAT, P448,000
Advanced input VAT paid, P240,000
What is the VAT payable?
Select one:
a. P32,000
b. P312,000
c. P272,000
d. P72,000
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Your answer is correct.
The correct answer is: P32,000
Question 17
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Statement 1: If the output VAT is erroneously billed, the amount shown in the
invoice is deemed exclusive of VAT.
Statement 2: If the output VAT is not separately indicated in the invoice, it
shall be computed as 12/112 of the invoice price.
Which statement is correct?
Select one:
a. Both statements are correct
b. Statement 2 only
c. Both statements are incorrect
d. Statement 1 only
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The correct answer is: Statement 2 only
Question 18
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A domestic enterprise made the following sales:
Sales to domestic missions, P2,000,000
Sales to ecozone-registered enterprise, $50,000
Conversion rate: P42=$1
What is the zero-rated sales?
Select one:
a. P2,000,000
b. P4,100,000
c. P2,100,00
d. P0
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Your answer is correct.
The correct answer is: P4,100,000
Question 19
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Statement 1: VAT paid in the first two months of the quarter is deductible against
the output VAT for the entire quarter.
Statement 2: The VAT paid in a quarter is deductible against the output VAT of
future quarters of the taxable year.
Which is correct?
Select one:
a. Both statements are correct
b. Both statements are incorrect
c. Statement 2 only
d. Statement 1 only
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Your answer is correct.
The correct answer is: Statement 1 only
Question 20
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A VAT-registered taxpayer with several businesses had the following sales:
Last 12 months
Current month
Sales of fertilizers and feeds
P1,800,000
P200,000
Sales of equipment
1,500,000
150,000
Input VAT on processed foods
140,000
13,000
What is the VAT payable for the current month?
Select one:
a. P5,000
b. P0
c. P18,000
d. P29,000
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Your answer is correct.
The correct answer is: P5,000
Question 21
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7-5-03.
A VAT-registered realtor sold a commercial building at a selling price
of P20 million payable over 20 monthly installments of P1 million. A sample monthly
bill of the realtor shows the following:
Installment due
P1,000,000
Output VAT
144,000
Invoice price
P1,144,000
What is the fair value of the property sold?
Select one:
a. P20 million
b. P22 million
c. P24 million
d. P30 million
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Your answer is correct.
The correct answer is: P24 million
Question 22
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Which is not a tax credit against net VAT payable?
Select one:
a. Final VAT withheld
b. Monthly VAT payments
c. Standard input VAT
d. Advanced VAT
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Your answer is correct.
The correct answer is: Standard input VAT
Question 23
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Statement 1: The input VAT on non-depreciable vehicles shall be claimed in the
month purchased.
Statement 2: The input VAT on construction-in-progress shall be claimed in the
month billing is paid.
Which is correct?
Select one:
a. Statement 2 only
b. Both statements are incorrect
c. Both statements are correct
d. Statement 1 only
Feedback
Your answer is correct.
The correct answer is: Statement 2 only
Question 24
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Which is incorrect with foreign currency-denominated sales?
Select one:
a. Title to the goods must pass to the buyer outside Philippine territory
b. The remittance of the proceeds of the sale must be accounted for under Central
bank rules
c. The goods must be destined for consumption abroad
d. The sale must be paid for in acceptable foreign currency
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Your answer is correct.
The correct answer is: Title to the goods must pass to the buyer outside Philippine
territory
Question 25
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Mr. Makabulos is a percentage taxpayer. He bought goods billed at an invoice price
of P20,160 from a VAT-registered taxpayer. Mr. Makabulos sold the goods in the same
month at a price of P42,000. How much input VAT is claimable by Mr. Makabulos?
Select one:
a. P0
b. P2,160
c. P2,419
d. P160
Feedback
Your answer is correct.
There is no indication in the problem that the taxpayer is also a VAT-taxpayer. As
a rule, percentage taxpayers are non-VAT taxpayers, and hence, cannot claim input
VAT.
The correct answer is: P0
Question 26
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An insurance company had the following gross receipts during a month:
Cash collection from life premiums, P1,800,000
Notes receivable from life premiums, P200,000
Cash collection from non-life premiums, P1,100,000
Notes receivable from non-life premiums, P300,000
What is the output VAT?
Select one:
a. P180,000
b. P0
c. P132,000
d. P360,000
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Your answer is correct.
The correct answer is: P132,000
Question 27
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Question text
A VAT taxpayer had the following transactions during the first calendar quarter of
the year:
Purchase of goods in January but were paid in February, P50,000
Purchase of services rendered in January but were paid in February, P80,000
Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March, P250,000
All amounts are exclusive of VAT.
What is the creditable input VAT in February?
Select one:
a. P9,600
b. P39,600
c. P45,600
d. P15,600
Feedback
Your answer is incorrect.
P80,000 x 12% = P9,600 input VAT on services paid for the month.
The correct answer is: P9,600
Question 28
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A Philippine company exported goods for $140,000 to a non-resident customer. The
payment, however, was not inwardly remitted. The same was remitted to its home
office abroad.
Which is correct?
Select one:
a. The sale is subject to 12% VAT.
b. The sale is a zero-rated sale.
c. The sale is an exempt sale.
d. The sale is subject to 3% percentage tax.
Feedback
Your answer is correct.
To be subject to zero-rating, the proceeds of export sales must be inwardly
remitted and accounted for under the rules of the BSP. Export sales that do not
conform to zero-rating requirements are exempt.
The correct answer is: The sale is an exempt sale.
Question 29
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Which of the following can be claimed as VAT refund?
Select one:
a. Input VAT on export sales
b. Advanced input VAT
c. Input VAT on domestic purchases
d. Input VAT on sales to the government
Feedback
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The correct answer is: Input VAT on export sales
Question 30
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What is the tax basis of the output VAT on installment sales?
Select one:
a. Fair value or gross selling price whichever is higher
b. Gross receipts
c. Gross selling price
d. Fair value of property sold
Feedback
Your answer is correct.
The correct answer is: Gross selling price
A non-large taxpayer shall filed the application for effective zero-rating with the
Select one:
a. BIR Regional director where the taxpayer is registered
b. Revenue district officer having jurisdiction over the principal place of
business
c. International Tax Affairs Division of the BIR
d. Audit Information, Tax Exemption and Incentive Division of the BIR
Feedback
Your answer is incorrect.
The correct answer is: Audit Information, Tax Exemption and Incentive Division of
the BIR
A real property developer exchanged one of its land inventories with a zonal value
of P2 million and assessed value of P1.5 million for the stocks of another
corporation.
What is the output VAT on the exchange?
Select one:
a. P0
b. P214,286
c. P240,000
d. P180,000
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Your answer is correct.
The correct answer is: P240,000
Question 2
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Gregoria Sugar Corporation (SGC) buys sugar cane from farmers and processes it into
refined sugar. During a month, SGC made the following purchases:
Cane sugar, P1.8 million
Other supplies, excluding VAT, P300,000
Other supplies, including VAT, P112,000
A total of 2,000 bags were produced, of which 1,500 were sold at a price of P1,600
per bag in the same month.
SGC paid the advanced VAT on the production in accordance with the BIR�s prescribed
new base price for refined sugar.
What is the total credit against output VAT (including the advanced VAT) for the
month?
Select one:
a. P318,000
b. P324,000
c. P456,000
d. P480,000
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Your answer is correct.
The correct answer is: P456,000
Question 3
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A VAT-taxpayer exported P1,000,000 worth of goods. It incurred P36,000 input VAT on
such sales. What is the creditable input VAT?
Select one:
a. P70,000
b. P0
c. P50,000
d. P36,000
Feedback
Your answer is correct.
The correct answer is: P36,000
Question 4
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Antique Enterprises, a VAT taxpayer, sold the following to various exporters in
July 2020:
Sales to
Amount
BOI-registered entity with domestic sales
P2,000,000
BOI-registered entity with no domestic sales
2,500,000
Export-oriented enterprise (60% export last year)
1,000,000
Export-oriented enterprise (90% export last year)
1,500,000
Total
P7,000,000
Assuming that the BIR and DOF has not yet fully implemented the new VAT refund
system, what is the zero-rated sales?
Select one:
a. P4,000,000
b. P2,500,000
c. P1,500,000
d. P5,000,000
Feedback
Your answer is correct.
The correct answer is: P4,000,000
Question 5
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A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P600
b. P0
c. P6,720
d. P6,520
Feedback
Your answer is correct.
The correct answer is: P600
Question 6
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Statement 1: Services to non-residents are always subject to zero-rated VAT if
rendered abroad.
Statement 2: Services to residents may be subject to zero-rating if paid for in
acceptable foreign currencies.
Which statement is correct?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Statement 2 only
d. Both statements are incorrect
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Your answer is correct.
The correct answer is: Both statements are incorrect
Question 7
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A VAT-registered supplier sold goods amounting to P500,000 to a government-owned
corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale of the goods?
Select one:
a. The sale is subject to final withholding VAT.
b. The government-owned corporation shall remit the final VAT withheld to the BIR
within 10 days following the end of the month the withholding was made.
c. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
d. The government-owned corporation will withhold P25,000 withholding VAT.
Feedback
Your answer is correct.
The correct answer is: The VAT-registered supplier may refuse the withholding of
VAT as long as it is willing to pay the full 12% VAT.
Question 8
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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?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Both statements are incorrect
d. Statement 2 only
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Your answer is correct.
The correct answer is: Both statements are correct
Question 9
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A VAT-registered export trader purchased and sold an equipment. The details of the
purchase and sale are follows:
Export sales, P400,000
Purchases, P200,00
Input VAT, P12,000
What is the gross income for taxation purposes?
Select one:
a. P224,000
b. P200,000
c. P188,000
d. P212,000
Feedback
Your answer is correct.
400,000 � 200,000 = 200,000
The Input VAT is claimable as tax credit or tax refund.
The correct answer is: P200,000
Question 10
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Which of these is excluded in the gross selling price?
Select one:
a. Contract price
b. Output tax
c. Delivery charges
d. Excise tax
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Your answer is correct.
The correct answer is: Output tax
Question 11
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Mr. Agueda, a VAT-registered taxpayer, owns a mini-store with the following sales
in the past 12 months:
Sales of meat and vegetables
P1,800,000
Sales of cooked rice and viands
1,200,000
Sales of snacks and soft drinks
500,000
Which is correct?
Select one:
a. Mr. Agueda shall pay percentage tax on all sales.
b. Mr. Agueda shall pay percentage tax on the sales of rice, viands, snacks and
soft drinks.
c. M. Agueda shall pay VAT on all sales.
d. Mr. Agueda shall pay VAT on the sales of rice, viands, snacks and soft drinks.
Feedback
Your answer is correct.
The correct answer is: Mr. Agueda shall pay VAT on the sales of rice, viands,
snacks and soft drinks.
Question 12
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Lapu-lapu, 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 plus P7,200 VAT.
What is the creditable input VAT in the February VAT return and in the quarterly
VAT return of March 2020?
Select one:
a. P7,200 and P7,200
b. P0 and P0
c. P259,200 and P259,200
d. P7,200 and P14,400
Feedback
Your answer is correct.
Only input VAT incurrect or paid in the course of business can be claimed.
The correct answer is: P0 and P0
Question 13
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Agoncillo Delata, Inc., a sardines canning Company, had the following purchases as
inputs for its manufacturing operations during a month:
Tin cans, exclusive of VAT, P80,000
Tomatoes, P150,000
Sardines, P200,000
Labels, exclusive of VAT, P20,000
What is the total creditable input VAT of Agoncillo for the month?
Select one:
a. P18,000
b. P14,000
c. P6,000
d. P15,600
Feedback
Your answer is correct.
The correct answer is: P18,000
Question 14
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The presumptive input VAT is
Select one:
a. 2% of primary agricultural input
b. 4% of primary agricultural or marine input
c. 2% of primary marine input
d. 4% of primary agricultural input
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Your answer is correct.
The correct answer is: 4% of primary agricultural input
Question 15
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The summary list is required for
Select one:
a. Large taxpayers
b. Non-large taxpayers
c. VAT taxpayers
d. Non-VAT taxpayers
Feedback
Your answer is correct.
The correct answer is: VAT taxpayers
Question 16
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Which of the following input VAT can be claimed as tax refund?
Select one:
a. Input VAT traceable to export sales
b. Input VAT traceable to exempt sales
c. Input VAT traceable to sales to the government
d. Input VAT traceable to regular sales
Feedback
Your answer is correct.
The correct answer is: Input VAT traceable to export sales
Question 17
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A seller of goods had the following sales:
Sales:
Unprocessed agricultural food products, P200,000
Processed agricultural products, P300,000
Non-food products, P500,000
Input VAT:
Purchase of goods and supplies, P28,000
Purchase of equipment (4-year life), P24,000
What is the VAT payable?
Select one:
a. P67,500
b. P44,000
c. P68,000
d. P48,800
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Your answer is correct.
The correct answer is: P48,800
Question 18
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A VAT-registered trader reported the following during the month:
Export sales, P800,000
Domestic sales, P1,200,000
Purchases, P1,000,000
The VAT payable is
Select one:
a. P72,000
b. P24,000
c. P120,000
d. P60,000
Feedback
Your answer is correct.
The correct answer is: P24,000
Question 19
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Statement 1: The VAT due and payable on regular sales is always positive.
Statement 2: The VAT due and payable on export sales is always negative.
Which statement is generally correct?
Select one:
a. Both statements are incorrect
b. Statement 1 only
c. Both statements are correct
d. Statement 2 only
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Your answer is correct.
The correct answer is: Statement 2 only
Question 20
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What is the tax basis of the output VAT on sales of services?
Select one:
a. Gross selling price
b. Fair value or gross selling price whichever is higher
c. Gross receipts
d. Fair value
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Your answer is correct.
The correct answer is: Gross receipts
Question 21
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Which of the following is not subject to output tax when sold by a realty dealer?
Select one:
a. Sale of investment in stocks
b. Exchange of properties held for sale in settlement of debt
c. Sale of properties held for sale
d. Sale of properties used in business
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Your answer is correct.
The correct answer is: Sale of investment in stocks
Question 22
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A non-large taxpayer shall filed the application for effective zero-rating with the
Select one:
a. BIR Regional director where the taxpayer is registered
b. Revenue district officer having jurisdiction over the principal place of
business
c. International Tax Affairs Division of the BIR
d. Audit Information, Tax Exemption and Incentive Division of the BIR
Feedback
Your answer is incorrect.
The correct answer is: Audit Information, Tax Exemption and Incentive Division of
the BIR
Question 23
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7-5-06.
A VAT-registered seller of goods reported the following in a month:
Cash sales, P200,000
Credit sales, P300,000
Installment sales, P400,000
Consignment sales (30 days old), P100,000
What is the output VAT?
Select one:
a. P108,000
b. P24,000
c. P72,000
d. P60,000
Feedback
Your answer is correct.
The correct answer is: P108,000
Question 24
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Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
Select one:
a. I and II only
b. II and III only
c. I, II and III
d. I and III only
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Your answer is correct.
The correct answer is: I and II only
Question 25
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No input VAT is creditable on
Select one:
a. Regular sales
b. Exempt sales
c. Export sales
d. Government sales
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Your answer is correct.
The correct answer is: Exempt sales
Question 26
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A Philippine company exported goods for $140,000 to a non-resident customer. The
payment, however, was not inwardly remitted. The same was remitted to its home
office abroad.
Which is correct?
Select one:
a. The sale is an exempt sale.
b. The sale is subject to 3% percentage tax.
c. The sale is a zero-rated sale.
d. The sale is subject to 12% VAT.
Feedback
Your answer is correct.
To be subject to zero-rating, the proceeds of export sales must be inwardly
remitted and accounted for under the rules of the BSP. Export sales that do not
conform to zero-rating requirements are exempt.
The correct answer is: The sale is an exempt sale.
Question 27
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The sale of services to the following cannot qualify for zero-rating
Select one:
a. Sale to a non-resident not engaged in business abroad
b. Sale to a resident person doing business in the Philippines
c. Sale to a non-resident person engaged in business abroad
d. Sale to a resident export-oriented enterprise
Feedback
Your answer is correct.
The correct answer is: Sale to a resident person doing business in the Philippines
Question 28
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Question text
Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the treatment of the difference between actual input VAT and standard input
VAT?
P20,000 expense
Question 29
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Statement 1: VAT paid in the first two months of the quarter is deductible against
the output VAT for the entire quarter.
Statement 2: The VAT paid in a quarter is deductible against the output VAT of
future quarters of the taxable year.
Which is correct?
Select one:
a. Both statements are correct
b. Statement 2 only
c. Statement 1 only
d. Both statements are incorrect
Feedback
Your answer is correct.
The correct answer is: Statement 1 only
Question 30
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The following sales and purchases were taken from the books of accounts of a VAT
taxpayer:
April
May
June
Sales
P625,000
P400,000
P600,000
Purchases
400,000
420,000
200,000
What is the VAT payable in June?
Select one:
a. P48,000
b. P72,000
c. P72,600
d. P45,600
Which is a likely source of a creditable input VAT?
Select one:
a. Purchase of goods from aliens who are not engaged in business abroad
b. Purchase of goods from non-VAT registered persons engaged in business
c. Purchase of goods from VAT persons without invoices
d. Purchase of goods from persons not engaged in business
Feedback
Your answer is correct.
The correct answer is: Purchase of goods from aliens who are not engaged in
business abroad
Question 2
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What is the tax basis of the output VAT on sales of goods with unreasonably lower
selling prices?
Select one:
a. Fair value or gross selling price whichever is higher
b. Fair value
c. Gross selling price
d. Gross receipts
Feedback
Your answer is correct.
The correct answer is: Fair value
Question 3
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A VAT-registered taxpayer made the following sales:
Sales destination
Terms
Payment
China
FOB destination
$10,000
Malaysia
FOB destination
P450,000
Hongkong
FOB shipping point
HKD800,000
Philippines
FOB shipping point
P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
Select one:
a. P820,000
b. P1,270,000
c. P1,570,000
d. P420,000
Feedback
Your answer is correct.
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.
The correct answer is: P820,000
Question 4
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The summary list is required for
Select one:
a. Non-VAT taxpayers
b. Non-large taxpayers
c. VAT taxpayers
d. Large taxpayers
Feedback
Your answer is correct.
The correct answer is: VAT taxpayers
Question 5
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To which of the following is a sale not subject to zero-rated VAT?
Select one:
a. Ecozone Entities
b. Government agencies
c. Philippine National Red Cross
d. Philippine Amusement and Gaming Corporation
Feedback
Your answer is correct.
The correct answer is: Government agencies
Question 6
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7-5-03.
A VAT-registered realtor sold a commercial building at a selling price
of P20 million payable over 20 monthly installments of P1 million. A sample monthly
bill of the realtor shows the following:
Installment due
P1,000,000
Output VAT
144,000
Invoice price
P1,144,000
What is the fair value of the property sold?
Select one:
a. P22 million
b. P30 million
c. P20 million
d. P24 million
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Your answer is correct.
The correct answer is: P24 million
Question 7
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Which is not a constructive export?
Select one:
a. Sales to export-oriented enterprises
b. Sales to diplomatic missions
c. Direct export to a foreign country
d. Sale to ecozone enterprises
Feedback
Your answer is correct.
The correct answer is: Direct export to a foreign country
Question 8
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Question text
Which of the following selling prices is considered unreasonably lower?
Select one:
a. Fair value = P400,000; Selling price = P300,000; Discount = 100,000
b. Fair value = P500,000; Selling price = P380,000; Discount = 120,000
c. Fair value = P200,000; Selling price = P240,000; Discount = None
d. Fair value = P250,000; Selling price = 172,500; Discount = 77,500
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Your answer is correct.
The correct answer is: Fair value = P250,000; Selling price = 172,500; Discount =
77,500
Question 9
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Question text
A non-VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P6,520
b. P600
c. P6,720
d. P0
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Your answer is correct.
The correct answer is: P600
Question 10
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Question text
Which of the following can be claimed as VAT refund?
Select one:
a. Input VAT on sales to the government
b. Input VAT on domestic purchases
c. Advanced input VAT
d. Input VAT on export sales
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The correct answer is: Input VAT on export sales
Question 11
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Question text
A service provider had the following data during the month:
Revenue, including VAT, P268,800
Gross receipts, including VAT, P180,000
Input VAT, P12,000
Assuming the taxpayer is VAT-registrable, the VAT payable is
Select one:
a. P9,600
b. P7,286
c. P16,800
d. P19,286
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The correct answer is: P19,286
Question 12
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Question text
A refining company processes raw sugar of clients into table sugar for a fee.
During the period it processed P10,200,000 worth of refined sugar and charged a
processing fee of P1,000,000.
What is the allowable presumptive input VAT for the sugar refiner?
Select one:
a. P0
b. P408,000
c. P40,000
d. P448,000
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Your answer is correct.
A processor of sugar for others is not allowed to claim presumptive input VAT.
The correct answer is: P0
Question 13
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Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
Select one:
a. I and II only
b. I, II and III
c. II and III only
d. I and III only
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The correct answer is: I and II only
Question 14
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Which of the following properties may be included in the basis of the 2%
transitional input VAT?
Select one:
a. Land or building classified as property held for use
b. Land and other properties not subject to depreciation
c. Building subject to periodic provision for depreciation
d. Land or building classified as inventory held for sale
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The correct answer is: Land or building classified as inventory held for sale
Question 15
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A VAT taxpayer had the following transactions during the first calendar quarter of
the year:
Purchase of goods in January but were paid in February, P50,000
Purchase of services rendered in January but were paid in February, P80,000
Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March, P250,000
All amounts are exclusive of VAT.
What is the creditable input VAT for the quarter?
Select one:
a. P15,600
b. P45,600
c. P6,000
d. P39,600
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The correct answer is: P45,600
Question 16
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Question text
Gomez Marketing bought a building to house its retail activities. The following
relate to its sales and input VAT during the quarter:
Sales of goods
P3,000,000
Export sales
1,500,000
Sales of VAT-exempt goods
500,000
Total sales, exclusive of VAT
P5,000,000
Input VAT carry-over in the prior quarter
P
60,000
Input VAT on purchase of vatable goods
150,000
Input VAT on building (20-year life)
180,000
VAT paid in prior months
80,000
The building was acquired on the second month of the quarter.
What is the VAT payable?
Select one:
a. P130,000
b. P64,000
c. P0
d. P70,000
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The correct answer is: P64,000
Question 17
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The following gross receipts and input VAT relate to a non-profit and non-stock
charitable institution in the month:
Contributions from the public, P8,000,000
Government grant, P1,000,000
Sales of gift shop items, P900,000
Rental of vacant premises, P1,000,000
Input VAT related to shop and rental operations, P112,000
Input VAT related to non-profit operations, P428,000
What is the VAT payable?
Select one:
a. P0
b. P116,000
c. P768,000
d. P840,000
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The correct answer is: P116,000
Question 18
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A Philippine company exported goods for $140,000 to a non-resident customer. The
payment, however, was not inwardly remitted. The same was remitted to its home
office abroad.
Which is correct?
Select one:
a. The sale is subject to 12% VAT.
b. The sale is an exempt sale.
c. The sale is a zero-rated sale.
d. The sale is subject to 3% percentage tax.
Feedback
Your answer is correct.
To be subject to zero-rating, the proceeds of export sales must be inwardly
remitted and accounted for under the rules of the BSP. Export sales that do not
conform to zero-rating requirements are exempt.
The correct answer is: The sale is an exempt sale.
Question 19
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6-4-07.
A taxpayer had the following purchases of vatable goods, exclusive of
VAT:
Purchases from non-VAT suppliers, P180,000
Purchases from VAT suppliers, P1,000,000
What is the input VAT?
Select one:
a. P107,143
b. P126,429
c. P141,600
d. P120,000
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The correct answer is: P120,000
Question 20
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Which is vatable?
Select one:
a. Gross receipt of medical practitioners
b. Sales of fertilizers, seeds and seedlings
c. Sales of agricultural or marine food products
d. Sale of books
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Your answer is correct.
The correct answer is: Gross receipt of medical practitioners
Question 21
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Which statement is correct?
Select one:
a. A VAT-registered taxpayer must pay VAT on services subject to percentage tax
b. Parent and subsidiary companies are considered one taxpayer for business tax
purposes
c. For purposes of the VAT threshold, both exempt sales and receipts from services
subject to percentage tax must be included
d. Husband and wife are considered separate taxpayers for business tax purposes
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The correct answer is: Husband and wife are considered separate taxpayers for
business tax purposes
Question 22
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Statement 1: As a rule, percentage tax is paid monthly.
Statement 2: VAT is paid monthly and quarterly.
Which is correct?
Select one:
a. Both statements are correct
b. Statement 1 only
c. Both statements are incorrect
d. Statement 2 only
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The correct answer is: Statement 2 only
Question 23
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A VAT-registered professional review school had the following receipts during the
month:
Tuition fees, P800,000
Miscellaneous fees, P100,000
Sale of snacks, P150,000
Reviewer salaries, P300,000
Purchase of supplies, exclusive of VAT, P150,000
Other expenses, inclusive of P16,000 VAT, P220,000
What is the VAT payable?
Select one:
a. P2,000
b. P110,000
c. P92,000
d. P0
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The correct answer is: P92,000
Question 24
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The excess of creditable input VAT over output VAT is
Select one:
a. Input VAT carry-over
b. VAT payable
c. Standard input VAT
d. VAT refundable
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The correct answer is: Input VAT carry-over
Question 25
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What is the tax basis of the output VAT on deemed sales?
Select one:
a. Fair value or gross selling price whichever is higher
b. Fair value
c. Gross selling price
d. Gross receipts
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The correct answer is: Fair value
Question 26
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Abra Company, a maintenance contractor, had the following receipts from the
following clients in June 2020:
Receipt from Development Bank of the Philippines, P1,000,000
Receipts from Oceania, an international carrier, P1,200,000
Receipts from International Rice Research Institute, P800,000
What is the total zero-rated sales or receipts?
Select one:
a. P0
b. P800,000
c. P2,000,000
d. P3,000,000
Feedback
Your answer is correct.
Receipts from Oceania, P1,200,000
Receipts from IRRI, P800,000
The correct answer is: P2,000,000
Question 27
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Which of these entities is subject to zero-rating on the sale of renewable sources
of energy?
Select one:
a. Generation companies
b. Transmission companies
c. Distribution companies
d. All of the above
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The correct answer is: Generation companies
Question 28
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A VAT-taxpayer made the following sales during the quarter:
Domestic sales of VAT-exempt goods, P1,200,000
Domestic sales of vatable goods, P900,000
Export sales, P800,000
What is the output VAT?
Select one:
a. P348,000
b. P204,000
c. P252,000
d. P108,000
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Your answer is correct.
The correct answer is: P108,000
Question 29
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Baltazar opted to be registered as a VAT taxpayer effective on the third quarter of
the year. He had the following analysis of beginning inventory for the month of
July:
Purchases from non-VAT suppliers, P210,000
Purchases from VAT suppliers, P22,400
How much is the transitional input VAT?
Select one:
a. P4,648
b. P24,900
c. P4,600
d. P2,400
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Your answer is correct.
The correct answer is: P4,600
Question 30
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Baltazar Corporation had the following sales in the past 12-month period
Home office sales
P4,000,000
Branch 1 sales
1,200,000
Branch 2 sales
1,000,000
Which is correct?
Select one:
a. Home office shall pay VAT
b. Branch 1 and branch 2 shall pay percentage tax
c. The home office and branches shall all pay VAT
d. Home office shall pay VAT while the branches shall pay percentage tax.
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Your answer is correct.
The correct answer is: The home office and branches shall all pay VAT
Started on Thursday, 7 May 2020, 10:22 AM
State Finished
Completed on
Thursday, 7 May 2020, 10:29 AM
Time taken 7 mins 4 secs
Grade 30.00 out of 30.00 (100%)
Question 1
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A VAT-registered seller of goods had the following sales and purchases, exclusive
of VAT:
Sales, P800,000
Sales returns and allowances, P20,000
Purchases, P600,000
Purchase returns and allowances, P40,000
The VAT payable is
Select one:
a. P21,600
b. P24,000
c. P0
d. P26,400
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Your answer is correct.
The correct answer is: P26,400
Question 2
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Which is vatable?
Select one:
a. Department store
b. Meat vendor
c. Cooperative
d. Fruit dealer
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Your answer is correct.
The correct answer is: Department store
Question 3
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Which is deemed sales transaction subject to VAT?
Select one:
a. Distribution of property as dividend by a VAT taxpayer
b. Consumption of inventory for business use
c. Retirement of business by a non-VAT taxpayer
d. Dacion en pago of properties by a person not engaged in business
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Your answer is correct.
The correct answer is: Distribution of property as dividend by a VAT taxpayer
Question 4
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A VAT-registered seller indicated the following in a VAT invoice evidencing the
sale of vegetables:
Selling price of P5,000, plus output VAT of P600, for a total amount due of P5,600.
What is the output VAT?
Select one:
a. P6,720
b. P0
c. P600
d. P6,250
Feedback
Your answer is correct.
The correct answer is: P600
Question 5
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Which of the following is subject to output tax if sold by a person not engaged in
business?
Select one:
a. Sale of merchandise in the course of business
b. Sale of personal residence
c. Sale of car
d. Sale of investment in stocks
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Your answer is correct.
The correct answer is: Sale of merchandise in the course of business
Question 6
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Florentino Corporation is a local export-oriented enterprise engaged in the
business of manufacturing of sardines. In 2020, it sold to Mr. Wu Han of China
under the terms FOB shipping point.
Mr. Wu Han wants a specialized packaging materials for his sardines. He ordered the
said packaging materials from another Philippine company, Luna Packaging, Inc.
(LPI). It was agreed that LPI will deliver the packaging materials to Florentino
Corporation so that the latter can use the same for the sardines to be delivered to
Mr. Wu Han in China.
What is the tax treatment of the sale of LPI to Mr. Wu Han?
Select one:
a. Subject to 12%
b. Exempt
c. Subject to 3%
d. Subject to 0%
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The correct answer is: Subject to 0%
Question 7
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Agoncillo Delata, Inc., a sardines canning Company, had the following purchases as
inputs for its manufacturing operations during a month:
Tin cans, exclusive of VAT, P80,000
Tomatoes, P150,000
Sardines, P200,000
Labels, exclusive of VAT, P20,000
What is the total creditable input VAT of Agoncillo for the month?
Select one:
a. P6,000
b. P14,000
c. P18,000
d. P15,600
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Your answer is correct.
The correct answer is: P18,000
Question 8
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Magbanua Corporation is a parent corporation with two subsidiaries with the
following sales in the past 12 months:
Magbanua Corporation
P4,000,000
Subsidiary A sales
1,200,000
Subsidiary B sales
1,000,000
Which is not correct?
Select one:
a. Magbanua Corporation shall pay VAT.
b. All companies in the group shall pay VAT.
c. Subsidiary A and Subsidiary B shall pay percentage taxes.
d. Magbanua Corporation shall pay VAT while Subsidiary A and Subsidiary B shall pay
percentage taxes.
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Your answer is correct.
The correct answer is: All companies in the group shall pay VAT.
Question 9
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The output VAT on government sales is
Select one:
a. 12% of the value added
b. 12% of sales
c. 0% of sales
d. None
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Your answer is correct.
The correct answer is: 12% of sales
Question 10
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To which of the following is a sale not subject to zero-rated VAT?
Select one:
a. Philippine Amusement and Gaming Corporation
b. Philippine National Red Cross
c. Ecozone Entities
d. Government agencies
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Your answer is correct.
The correct answer is: Government agencies
Question 11
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Palma Company sold to the government goods it purchased for P400,000 for P550,000.
What is to be included in the calculation of the taxable income of Palma Company?
Select one:
a. P20,500 loss or expense
b. P9,500 loss or expense
c. P9,500 gain
d. P20,500 gain
Feedback
Your answer is correct.
Actual input VAT = 12% x P400,000 = P48,000. Standard input VAT = P38,500 => loss
or an item of deduction of P9,500.
The correct answer is: P9,500 loss or expense
Question 12
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Artemio Builders won a government contract to build a bridge at a contract price of
P80 million.
During a month, it had the following expenditures in connection with the contract:
Construction supplies, P2,500,000
Employee salaries, P500,000
Depreciation expense, P300,000
Artemio billed the government P4 million for partial project completion which
government settled in the same month.
What is the treatment of the difference between actual input VAT and standard input
VAT?
Select one:
a. P20,000 gain
b. P50,000 expense
c. P20,000 expense
d. P50,000 gain
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The correct answer is: P20,000 expense
Question 13
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A sales was invoiced by a VAT-seller at P500,000. What is the output VAT?
Select one:
a. P0
b. P53,571
c. P60,000
d. P50,000
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Your answer is correct.
The correct answer is: P53,571
Question 14
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Full input VAT credit is allowed on
I.
Regular sales
II.
Export sales
III.
Exempt sales
Select one:
a. I, II and III
b. I and II only
c. II and III only
d. I and III only
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Your answer is correct.
The correct answer is: I and II only
Question 15
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A non-VAT registered radio broadcasting company collected a total of P800,000
during a month.
What is the output VAT?
Select one:
a. P96,000
b. P0
c. P48,000
d. P85,714
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Your answer is correct.
The correct answer is: P0
Question 16
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Which of the following input VAT carry-over is creditable against output VAT of the
quarterly VAT return?
Select one:
a. Those arising the first month after the quarter
b. Those arising from the prior quarter
c. Those arising from the first month of the quarter
d. Those arising from the second month of the quarter
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Your answer is correct.
The correct answer is: Those arising from the prior quarter
Question 17
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Which is not a constructive export?
Select one:
a. Sale to ecozone enterprises
b. Sales to export-oriented enterprises
c. Sales to diplomatic missions
d. Direct export to a foreign country
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The correct answer is: Direct export to a foreign country
Question 18
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For a taxpayer subject to a 30% tax rate, compute respectively the tax benefits of
a P60,000 input VAT deduction and a P40,000 input VAT credit.
Select one:
a. P60,000;
b. P60,000;
c. P18,000;
d. P18,000;
Feedback
Your answer
Tax benefit
P40,000 tax
P40,000
P12,000
P40,000
P12,000
is correct.
of P60,000 x 30% = P18,000
credit x 100% = P40,000
The correct answer is: P18,000; P40,000
Question 19
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In order that an invoice will qualify as a VAT invoice or receipt for purposes of
claiming input tax, it must contain the following, except
Select one:
a. The date of transaction
b. The address of the supplier of goods, properties or services
c. The description, quantity and unit cost of the goods or properties or nature of
service
d. The VAT registration number
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Your answer is correct.
The correct answer is: The address of the supplier of goods, properties or services
Question 20
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Which of the following is not subject to the requirement to pay advanced VAT?
Select one:
a. Sugar refineries which process sugar for their own accounts
b. Owners of harvested timber
c. Millers of flour
d. Wheat traders
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Your answer is correct.
The correct answer is: Wheat traders
Question 21
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Which is required to deduct and withhold a final VAT of 5% on the purchase of goods
or services subject to VAT?
I.
National government or any political subdivision hereof
II.
Government-owned or controlled corporations
III.
Private corporations
Select one:
a. I and III only
b. II and III only
c. I and II only
d. I, II and III
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Your answer is correct.
The correct answer is: I and II only
Question 22
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Which is not subject to zero-rating?
Select one:
a. Sale of goods to an international transport operator
b. Sale under the internal export programs of the government
c. Export of automobiles to a local export-oriented enterprise
d. Sale to the USAID
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Your answer is correct.
The correct answer is: Export of automobiles to a local export-oriented enterprise
Question 23
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Albay Corporation had the following sales in March 2020:
Sale to an export-oriented enterprise, P2,000,000
Sales to a BOI-registered enterprise, P3,000,000
Assuming that the new VAT refund system is already in place, what is the total
effectively zero-rated sales?
Select one:
a. P3,800,000
b. P0
c. P3,000,000
d. P5,000,000
Feedback
Your answer is correct.
The sale to an export-oriented enterprise is a constructive export even if not
actually exported. The sales to a BOI enterprise are considered export sales if the
latter exports 100% of its produce.
The correct answer is: P5,000,000
Question 24
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A VAT-registered taxpayer purchased goods which was invoiced by the seller as
follows:
Selling price, P50,000
Output VAT, P6,000
What is the claimable input VAT?
Select one:
a. P0
b. P6,720
c. P6,000
d. P7,200
Feedback
Your answer is correct.
The correct answer is: P6,000
Question 25
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A VAT-registered bookstore had the following revenues during a month:
Commission income on sales of books, P300,000
Sales of books held as inventory, P400,000
Sale of school supplies, P900,00
What is the output VAT?
Select one:
a. P108,000
b. P192,000
c. P144,000
d. P156,000
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Your answer is correct.
The correct answer is: P108,000
Question 26
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All of these are vatable, except
Select one:
a. Brokers
b. Engineering contractors
c. Employees
d. Lawyers
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Your answer is correct.
The correct answer is: Employees
Question 27
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Which is creditable?
Select one:
a. Input VAT
b. Input VAT
c. Input VAT
d. Input VAT
Feedback
traceable to vatable sales
evidenced by an ordinary receipt
incurred on personal purchases
on exempt sales
Your answer is correct.
The correct answer is: Input VAT traceable to vatable sales
Question 28
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A seller of goods reported the following in the month:
Cash sales
P450,000
Credit sales (40% collected)
650,000
Installment sale (30% collected)
400,000
Total sales, exclusive of VAT
P1,500,000
Purchases of goods, VAT-inclusive
P448,000
Purchases of equipment, VAT-inclusive
P1,008,000
What is the VAT payable?
Select one:
a. P0
b. P130,200
c. P24,000
d. P132,000
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Your answer is correct.
The correct answer is: P24,000
Question 29
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A VAT taxpayer have the following data:
Sales:
To the government, P250,000
To non-profit institutions, P350,000
To registered ecozone export traders, P200,000
To persons engaged in business, P700,000
To persons not engaged in business, P500,000
Purchases and payments, inclusive of VAT, P1,512,000.
Actual input VAT of P20,000 is traceable to the sales to the government.
What is the VAT payable?
Select one:
a. P56,500
b. P78,000
c. P54,000
d. P0
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Your answer is correct.
The correct answer is: P56,500
Question 30
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What is the tax basis of the output VAT on sales of goods with unreasonably lower
selling prices?
Select one:
a. Gross selling price
b. Fair value or gross selling price whichever is higher
c. Fair value
d. Gross receipts
Feedback
Your answer is correct.
The correct answer is: Fair value