1) I. Taxes are broader than custom duties.
II.Tariff and custom duties are different; not
synonymous.
• True True
• True False
• False False
• False True
5) Luffy purchased inventory/ goods from X
Supplier worth 100,000, net of any tax. Later,
Luffy sold the goods to Y Corp at 40% mark up
based on cost. All amounts are net of taxes.
Luffy and Y Corp are NON VAT. But, X Supplier
is VAT registered (125). What is the OPT (3%)
of Luffy?
2) I. Importation of laptop for “personal use”
only of Asta from USA is not subject to VAT
because Asta is not engaged in business.
II. Importation of laptop for “business use” only
of Asta from USA is exempt from VAT
• 4,704
• 4,200
• 5,600
• 3,750
• None of the above
• True True
• True False
• False False
• False True
6) I. When an article (sin products) is
subjected to Excise tax, that article shall not
be subject to VAT nor to OPT.
3) X, owner of ABC company. The company
sells product X. The product was purchased
from Cebu. The items were sold in Manila. The
items were stored in warehouse located in
Marawi. There are some sales transactions in
marawi, but, it is only 10% of the sales in
manila. The principal office of X is in
Zamboanga. Where should X register his
business? (and file his tax returns)
• Manila
• Cebu
• Marawi
• Zamboanga
• Bataan
• None of the above
4.) X sold product X to customer Y worth
1,000. The sale is subjected to VAT of 12%
and OPT of 3%; thus, total amount charged to
Y is 1,153.60. Assuming that X is a VAT
registered tax payer, how much is the overcharge or over statement of tax collected from
Y?
• 33.60
• None because the sale is subjected to VAT and
OPT
• 153.60
• None because X is engaged in business
• None of the above
II. ABC Corp manufactured alcohol products in
2020. ABC sold the products to its retailers.
ABC sold the produced alcohol product to X
Corp for 1M, net of any tax. X sold the alcohol
products to its customers. Thus, X is liable
also to excise tax.
• True True
• True False
• False False
• False True
7) I. “ALL business transactions” in the
Philippines are either subject to VAT or OPT
(not both).
II. When a transaction is VAT exempt (A- AA
of Sec 109), the transaction is subject to zero
rated VAT or 0% VAT.
• True True
• True False
• False False
• False True
8) Registration with BIR must be
• On or after the commencement of his business
• Whenever he transfers to another revenue district,
within 30 days from the date of transfer
• Either of the two
• None of the above
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9) X, owner of ABC company. The company
sells product X. The product was purchased
from Cebu. The items were sold in Manila.
The items were stored in warehouse located
in Marawi. The principal office of X is in
Zamboanga. X registered his business to BIR,
however, X has no sales transaction in Jan to
June 2020 due to COVID-19. Thus,
• NO need file tax return for business tax since there
is no business tax
• NO need file tax return for business tax since there
is no operations
• NO need file tax return for business tax since its is
pandemic period
• Need to file tax return
• None of the above
10) If a Non resident person was hired by a
Local Company for one-time rendition of
services worth 200,000, net of any tax, then,
the transaction is subject to VAT. The net pay
of the Local Company to Non resident person
will be? (cash to be paid to Non resident
foreign person)
• 200,000
• 224,000
• 24,000
• 150,000
• None of the above
11) I. A tax-exempt entity that sells VATsubject goods shall also be exempt from VAT
II. Pasig City Govt sold VAT-subject goods
shall be exempt from VAT because the
Government cannot tax itself
(irrespective of the disposition of its net
income and whether or not it sells exclusively
to members or their guests), or government
entity.
• True True
• True False
• False False
• False True
13) I. Services as defined in this Code
rendered in the Philippines by nonresident
foreign persons shall not be considered as
being rendered in the course of trade or
business because that person is NON resident
of the Philippines. II. In general, isolated
transactions are not subject to business tax
except when performed by a non-resident
persons not engaged in business in the Phil.
• True True
• True False
• False False
• False True
14) I. An item or transaction that is subjected to VAT
may also be subjected to OPT. II. All manufacturers
and importers are subject to excise tax.
• True True
• True False
• False False
• False True
15) OPT cannot be transferred to buyer.II.
OPT transferred to buyer shall not be included
as part of gross receipts that will be subjected
to OPT.
• True True
• True False
• False False
• False True
• True True
• True False
• False False
• False True
12) I. If a Non resident person was hired by a
Local Company for one-time rendition of
services worth 200,000, net of any tax, the
transaction is not subject to VAT.
II. The phrase "in the course of trade or
business" means the “regular” conduct or
pursuit of a commercial or an economic
activity, including transactions incidental
thereto, by any person regardless of whether
or not the person engaged therein is a nonstock, nonprofit private organization
16) I. ABC Corp manufactured fruit juice that
are good for kids. ABC sold the products to X
Corp. Thus, there must be an excise tax to be
imposed to ABC for the production of fruit
juice. II. Specific Tax - refers to excise tax
which is not based weight or volume capacity
or any other physical unit of measurement
• True True
• True False
• False False
• False True
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17) Luffy purchased inventory/ goods from X
Supplier worth 100,000, net of any tax. Later,
Luffy sold the goods to Y Corp at 40% mark
up based on cost. All amounts are net of
taxes. Luffy and X Supplier are VAT
registered 912%) ; BUT Y corp, customer- is
NON VAT. What is the VAT payable of Luffy?
• 6,816
• 4,800
• 16,800
• None or zero because the output is equal to input
• None of the above
18) Those imposed upon onerous transfers
such as sales, barter, transfer and
importation; imposed on the gross selling
price or gross receipts in the course of trade
or business
• Tariff / custom duties
• Income tax
• Transfer tax
• None of the above
19) X bought liquors and cigarettes from Y,
producer in Manila. X later on, sold them to Z
worth 1,000, exclusive of any tax. Assuming
that X is a VAT registered tax payer (12% VAT
rate) and the excise tax on these sin products
is 10% under RA 10963. How much is the
excise tax to be paid by X?
21) I. When a transaction is subjected to
Business tax, it will be exempted from Income
Tax; to avoid double taxation as prohibited by
law. II. There are VAT (business tax) collected
by BOC.
• True True
• True False
• False False
• False True
22) X sold product X to customer Y worth
1,000. The sale is subjected to VAT of 12%
and OPT of 3%; thus, total amount charged to
Y is 1,153.60. Thus,
• X is correct for imposing the two business taxes to
Y
• Y must accept the billings of X of 1,153.60, a buyer
in good faith
• X is not correct because there is no excise tax
• None of the above
23) X, rendered services to Y worth 10,000
(exclusive of any taxes). Y paid only 90% of
the services and the balance is on credit. X
wants to charge the OPT to Y (as part of its
billings to Y). Assuming that the OPT was
transferred to Y, what will be the OPT payable
by X to BIR?
• 100
• 112
• 120
• 10
• None of the above
• 300
• 270
• 309
• 278.1
• None or zero
• None of the above
20) X, owner of ABC company. The company
sells product X. The product was purchased
from Cebu. The items were sold in Manila.
The items were stored in warehouse located
in Marawi. There are some sales transactions
in marawi, but, it is only 10% of the sales in
manila. The principal office of X is in
Zamboanga. How much is the total
registration fee that he must pay to BIR?
24) X bought liquors and cigarettes amounting
to 500 (exclusive of any tax) from Y, a VAT
registered (12% VAT rate) producer in Manila.
X later on, sold them to Z at sales price of
1,000, exclusive of any tax. Assuming that X
is a VAT registered tax payer (12% VAT rate)
and the excise tax on these sin products is
10%. How much must be collected by X from
Z?
• 500 per year
• 1,000 per year
• 1,500 per year
• 500; one time payment
• None of the above
• 1,232
• 1,120
• 1,100
• 1,000
• None of the above
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25) I. Sale of services by a Government
Owned or controlled corporation (GOCC) is
VTA exempt.II. BDO, bank, operating in
manila has Annual gross receipts of 10M. The
VAT threshold is 3M. BDO must be subjected
to VAT bec its Annual Gross receipts
exceeded the threshold of 3M.
• True True
• True False
• False False
• False True
26) I. Business taxes collected by BIR are
called national taxes and it includes DST. II.
ALL transactions, whether personal or in the
course of trade, are subject to Business tax.
• True True
• True False
• False False
• False True
27) I. Transactions like sales may be
subjected to VAT and also to income tax. II. A,
a student, sold his cellphone to B. A shall
imposed a VAT to B on sale of his cellphone.
• True True
• True False
• False False
• False True
29) I. Sale of old trucks by a Construction
company that were previously used in
company’s operations are not subject to VAT
because the tax payer is a construction
company rendering services and it is not in
the ordinary course of trade. II. Sale of
residential house / family home of Asta,
owner, employee of Mc Do, shall be subject to
VAT.
• True True
• True False
• False False
• False True
30) X bought liquors and cigarettes amounting
to 500 (exclusive of any tax) from Y, a VAT
registered (12% VAT rate) producer in Manila.
X later on, sold them to Z worth 1,000,
exclusive of any tax. Assuming that X is a
VAT registered tax payer (12% VAT rate) and
the excise tax on these sin products is 10%. If
OPT rate on sale of goods under sec 116 is
3%; what will be the Percentage tax of X?
• 36.96
• 33
• 33.6
• 30
• None of the above
28) X, producer of motor vehicle. He produced
two units with selling price of 80,000 per unit
(without any taxes included). Assuming that
the excise tax on these items is 4% and X is a
VAT registered tax payer (12% VAT rate).
What must be the total selling price of two
units inclusive of all business taxes?
• 89,600
• 186,368
• 179,200
• 156,240
• None of the above
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