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Quiz 4 vat business tax 1322
Tax Law (University of the Philippines System)
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SYSTEMS PLUS COLLEGE FOUNDATION
COLLEGE OF BUSINESS
Angeles City
BUSINESS AND TRANSFER TAXATION
Quiz on Value-Added Tax
Name:
I.
Section:
Score:
/40
MULTIPLE CHOICES. (2 points each)
1. First Statement- Nonstock and nonprofit private organizations which sell exclusively to their
members in the regular conduct or pursuit of commercial or economic activity are exempt from
value-added tax.
Second Statement- Government entities engaged in commercial or economic activity are
generally exempt from value-added tax.
a. Both statements are correct.
b. Both statements are incorrect.
c. C. Only the first statement is correct.
d. Only the second state statement is correct.
2. First Statement: If the tax is billed separately in the inventory, the VAT shall be determined by
multiplying the gross selling price including the amount intended to cover the tax by the factor
12/112
Second Statement: If the tax is billed erroneously, the VAT shall be determined by multiplying
the gross selling price including the tax billed erroneously by the factor 12/112
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second state statement is correct.
3. First statement: Unused input tax of persons whose registration had been cancelled may be
converted into tax credit certificate which may be used in payment of other NIRC taxes.
Second statement: refund or tax credit certificate shall be granted within 25 days from the date of
submission of compete documents.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
4. First statement: VAT taxpayers including corporations use calendar quarters for VAT purposes
Second statement: withholding of VAT is done only when the buyer is the government or any of
its political subdivisions.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
5. First statement: a taxpayer whose gross sales or receipts exceeded the amount of P 1.5M shall pay
VAT even if he is non VAT-registered.
Second statement: importers of goods for personal use is not subject to value-added tax if he is
not VAT-registered.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
6. One of the following statements is incorrect.
a. Imported goods which are subject to excise tax are no longer subject to value-added tax.
b. VAT on importation is paid to the Bureau of Customs before the imported goods are released
from its custody.
c. Expenses incurred after the goods are released from Customs custody are disregarded in
computing VAT on importation.
d. When a person who enjoys tax-exemption on his importation subsequently sells in the
Philippines such imported articles to non-exempts person, the purchaser-non-exempt person
shall pay the VAT on such importation.
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7. Gross selling price includes all of the following except one. Which one?
a. Total amount which the purchaser pays to the seller.
b. Total amount which the purchaser is obligated to pay to the seller.
c. Excise tax.
d. Value-added tax.
8. One of the following is not an export sale.
a. Sale to bonded manufacturing warehouse of export-oriented manufacturers and to export
processing zones.
b. Sale to foreign military bases, diplomatic missions or agencies and/or instrumentalities
granted tax immunities, of locally manufactured assembled or repacked products whether
paid for in foreign currency or not.
c. Sale of gold to Bangko Sentral ng Pilipinas
d. Exportation of goods on consignment.
9. Tax credit for input taxes shall be allowed if:
a. Both the seller and the purchaser are VAT-registered
b. Either one of the seller or the purchaser is VAT-registered
c. Neither one of the seller or the purchaser is VAT-registered as long as VAT invoice is issued.
d. The seller is VAT-registered regardless of whether the purchaser is VAT-registered or not.
10. The allowable transitional input tax is:
a. The lower between 2% of the value of beginning inventory or actual VAT paid on such
inventory.
b. The higher between 2% of the value beginning inventory or actual VAT paid on such
inventory.
c. The actual VAT paid on the beginning inventory
d. 2% of the value of beginning inventory
11. All of the following are allowed presumptive input tax, except for one.
a. processor of sardines, mackerel and milk
b. manufacturer of refined sugar and cooking oil
c. producers/manufacturers of packed noodles
d. suppliers of books and other school supplies
12. Which of the following input taxes can be refunded, converted into tax credit certificates or
carried over to the next quarter at the option of the VAT-registered taxpayer?
a. input tax on purchase of capital goods.
b. input tax on importation of supplies
c. input tax on zero-rated sales of goods or services
d. input tax on purchase of real properties
13. A VAT-registered supplier sold goods amounting to P500,000 to a government-controlled
corporation during a particular quarter. Which of the following statements is incorrect in relation
to the sale in relation to the sale of goods?
a. The sale is subject to creditable withholding VAT.
b. The government-controlled corporation will withhold P25,000 withholding tax.
c. The government-controlled corporation shall remit the withholding of VAT to the BIR within
10 days following the end of the month the withholding was made.
d. The VAT-registered supplier may refuse the withholding of VAT as long as it is willing to pay
the full 12% VAT.
14. Joanne Corp. a VAT manufacture submitted the following data for the last month of 2009: (All
figures are at total invoice value)
Material purchases
295,568
Purchase returns
19,600
Sales, local
362,880
Sales returns, local
30,240
Foreign currency denominated sales
170,000
Purchase from BOI registered enterprises
33,264
The VAT payable is:
a. 22,680
b. 25,920
c. 2,508
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d. 3,564
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15. RunningMan Co. is a manufacturer of beer. During a particular quarter, it had the following
transactions (net of VAT):
January 4, 2009: Consigned beer to a retailer in Quezon City amounting to P200,000
February 14, 2009: Exported P1,000,000 worth of beer to Japan.
February 27, 2009: President of Agua Pataranta celebrated his birthday, consuming
P50,000 worth of beer given to him by the company as a birthday gift.
March 20,2009 Declared property dividend of one case beer for every 10 shares,
amounting to P150,000
*Additional information: From January to March, domestic sales to wholesalers amounted to
P600,000. No beer was returned by the consignee until the end of the quarter:
The output tax for the quarter is:
a. 72,000
b. 192,000
II.
c. 120,000
d. 60,000
PROBLEM SOLVING. (2 points each)
16. Violet Corp. is a VAT-registered dealer of appliances. The following data are for the lastquarter
of 2017:
Sales, total invoice value
6,920,000
Purchases, net of input taxes
5,500,000
Sales return
200,000
Purchase return
300,000
Deferred input taxes(carried over from the third quarter of 2017)
12,000
The value added tax payable for the last quarter of 2009 by Violet Corp. is: 84,000
17. Tarantula Realty Corp. sells real property in the course of its business. During the month of April
2017, it had sold a lot under the following terms (including VAT):
Total contract price
1,120,000
Downpayment, 4-10-2017
112,000
First installment, 4-30-2017
112,000
The output VAT in April 2017 is:
24,000
18. A VAT- registered person is engaged in the sale of VAT taxable goods and at the same time is also
engaged in non-VAT business, in the same business establishment. During the quarter it made
P300,000 sale plus value-added tax of P36,000. The sales of the non-VAT business amounted to
P200,000 with a separate percentage tax of P6,000 for a total of P206,000. During the same
quarter, repairs on the building amounted to P50,000 plus value tax of P6,000. Supplies purchased
for common use amounted to P10,000 value-added tax of P1,200. The creditable input tax is:
4,320
19. Using the data above, the VAT payable is:
31,680
20. On January 5, 200A, Laylu Co., VAT-registered, sold on account goods for P112,000 to Vinmar
Corp. The term was: 2/10, n/30. Payment was made on January 10, 200A. The total amount due
110,000
is:
---Goodluck and God bless--Prepared by:
Patrick R. Cura, MICB, CB, RCA, CAT, CPA, RBP
Instructor
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