UNIVERSITY OF SANTO TOMAS

IAC 17 - Integrated Review Course in Taxation

VALUE ADDED TAX (VAT)

MULTIPLE CHOICE EXERCISES

a. No, because his gross receipts/sales in each

1. Statement 1: For a person to be subjected to VAT, it business do not exceed the vat threshold of
is necessary that he is regularly engaged in the P3,000,000.
conduct or pursuit of an economic activity. b. Yes, because if a professional, aside from the
Statement 2: A non-resident foreign person performing practice of his profession, also derives revenue
isolated service in the Philippines shall be liable to VAT. from other lines of business which are
A. B. C. D. otherwise subject to VAT, the same shall be
Statement 1 True True False False combined for purposes of determining whether
the threshold has been exceeded.
Statement 2 True False True False
c. No, because he is not vat registered
d. None of the above
2. Statement 1: Nonstock and nonprofit private
organizations which sell exclusively to their members 6. LBJ made the following sales during the 12-month
in the regular conduct or pursuit of commercial or period:
economic activity are exempt from value-added tax. Sales, VAT taxable transactions P2,500,000
Statement 2: Government entities engaged in Sales, VAT zero-rated transactions 400,000
commercial or economic activity are generally exempt Sales, VAT exempt transactions 100,000
from value-added tax

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Total P3,000,000

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a. Both statements are correct.
b. Both statements are incorrect. Which of the following statements is correct?

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c. Only the first statement is correct. eH w a. LBJ may not register under the VAT system
d. Only the second state statement is correct. because his sales from VAT taxable transactions
did not exceed P3,000,000.

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3. Which is incorrect? b. LBJ may not register under the VAT system
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a. A taxpayer whose annual gross receipts or sales because his sales from VAT taxable and zero-rated
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exceed P3,000,000 shall pay VAT even if not VAT transactions did not exceed P3,000,000.
registered. c. LBJ is required to register because his total 12-
b. A taxpayer whose annual receipts or sales do not month sales exceeded P3,000,000.
exceed P3,000,000 but who is VAT registered shall d. None of the foregoing.
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pay VAT.
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c. The A non-resident lessor or foreign licensor who is 7. Taxpayers who are qualified to optionally register may
not VAT-registered is subject to vat.
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apply for vat registration not later than how many days
d. An individual taxpayer whose gross sales or before the beginning of the calendar quarter?
receipts do not exceed P100,000 is exempt from a. 10 days c. 25 days
VAT provided he pays the 3% other percentage b. 20 days d. 30 days
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tax.
ed d

8. If a radio and/or television broadcasting company who

4. In 2018, Mr. Uro’s gross receipts from his practice of is not mandatorily required to register under the VAT
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profession is P2,600,000 while his wife has gross sales system chose to be a VAT taxpayer. Its choice is:
of P2,200,000 derived from her trading business. a. Revocable after 2 years
Assuming they are not vat registered, will they be b. Revocable after 3 years
subject to vat?
c. Revocable after 5 years
is

a. Yes, because their aggregate gross receipts/sales

exceeded the vat threshold of P3,000,000. d. Irrevocable
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b. No, because for purposes of vat threshold,

husband and wife shall be considered as separate Use the following data for the next two (2) questions:
taxpayers. In 2018, Pedro signified his intention to be taxed at 8%
c. Yes, because their gross receipts/sales are not income tax rate on gross sales in his 1st quarter income tax
specifically exempt from vat as provided in the return. His total gross sales during the year exceeded the
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Tax Code. vat threshold of P3M. The following quarterly data were
d. None of the above provided by Pedro:
Q1 Q2 Q3 Q4/Annual
Sales P500,000 P500,000 P2,000,000 P3,500,000
5. In 2018, the following gross receipts/sales were Cost of (300,000) (300,000) (1,200,000) (1,200,000)
recorded by Apol B: sales
Gross receipts from practice of P1,850,000 Gross 200,000 200,000 800,000 2,300,000
profession Income
Gross receipts from transport of 1,450,000 Operating (120,000) (120,000) (480,000) (720,000)
goods and cargoes expenses
Gross sales from trading activities 675,000 Net P80,000 P80,000 P320,000 P1,580,000
taxable
income
Assuming Apol B is non-vat registered, will he be
subject to vat?
9. How much is Pedro’s total business tax due for the
year?

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 a. P90,000 c. P510,000 b. true, false d. false, true
b. P195,000 d. nil
17. Determine the business taxes in 2018 of the following:
10. Assuming the 3M threshold was breached on the I.Lease of residential units with a monthly rental per unit
month of October, Pedro shall register under the vat not exceeding P15,000 (regardless aggregate
system not later than: annual gross rentals).
a. September 30, 2018 II.Lease of residential units with a monthly rental per unit
b. October 31, 2018 exceeding P15,000 but the aggregate of such
c. November 30, 2018 rentals during the year do not exceed P3,000,000.
d. December 31, 2018 III.Lease of commercial units regardless of monthly rental
per unit.
11. An importer of flowers from abroad: A B C D
a. Is liable for VAT, if it registers as a VAT person.
I None None None Vat
b. Is exempt from VAT, because the goods are
II Vat OPT OPT Vat
treated as agricultural products.
III Vat OPT Vat Vat
c. Is exempt from VAT, provided that his total
importation of flowers does not exceed
18. In cases where a lessor in 2018 taxable year has
P3,000,000. several residential units for lease, some are leased out
d. Is liable for VAT, despite the fact that it did not for a monthly rental per unit not exceeding P15,000
register as a VAT person and his total annual sales while others are leased out for more than P15,000 per
of flowers do not exceed P3,000,000. unit, his tax liability will be:
a. The gross receipts from rentals not exceeding
12. Which of the following shall be exempt from vat? P15,000 per month per unit shall be exempt from
a. Services of banks. vat regardless of the aggregate annual gross
b. Services of money changers and pawnshops. receipts.
c. Services of credit cooperatives b. The gross receipts from rentals exceeding P15,000

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per month per unit shall be subject to vat if the

er as
d. All of the above
annual gross receipts from said units including the

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gross receipts from units leased out for not more
13. Which of the following transactions is exempt from
eH w than P15,000 exceed P3,000,000.
value-added-tax?
c. Both statements are correct.
a. Medical services such as dental and veterinary

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d. Both statements are incorrect
services rendered by professionals.
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b. Legal services.
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19. In 2018, a real estate dealer sold two (2) adjacent

c. Services arising from employee-employer
residential lots in the city for a price of P800,000 each,
relationship.
or a total price of P1,600,000, to a vendee who intends
d. Services rendered by domestic air transport
to erect his residential house thereon.
companies.
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The sale shall be classified as a:

a. 12% VAT transactions
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14. Which of the following sale or importation of goods

b. 0% VAT transactions
shall not be exempt from VAT?
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c. VAT exempt transactions

a. Fertilizers
d. None of the foregoing
b. Seeds, seedlings and fingerlings
c. Fish, prawn, livestock and poultry feeds, including
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20. A subdivision developer sold five (5) residential house

ingredients, whether locally produced or imported,
and lots, each to different vendees, for P3,000,000 per
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used in the manufacture of finished feeds

lot, or a total sales of P15,000,000 during 2019
d. Specialty feeds.
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taxable year. These sales shall be:

a. Subject to 12% VAT transactions
15. Which of the following transactions is exempt from
b. Classified as zero-rated transactions
value added tax.
c. Under VAT exempt transactions
a. Sale by an art gallery of literary works, musical
d. None of the foregoing
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composition, work of art and similar creations, or

devices performed for the production of such
21. Camella realty corporation sold the following real
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works.
properties during the 2019 taxable year:
b. Medical, dental hospital and veterinary professional
2 units of residential house and lot P6,000,000
services.
at P3,000,000 each
c. Sale of cotton and cotton seeds in their original
4 residential lots at P2,000,000 each 8,000,000
state.
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1 commercial lot at P3,000,000 3,000,000

d. Sale of books and any newspaper, magazine,
review or bulletin, which appears at regular
How much is the total amount of transactions subject
intervals with, fixed prices for subscription and sale
to VAT?
which is not devoted principally to the publication
a. P6,000,000 c. P11,000,000
of paid advertisements.
b. P8,000,000 d. P17,000,000
16. Statement 1: Sale by agricultural cooperatives to non-
22. Which of the following transactions of a VAT-registered
members can only be exempted from VAT if the
seller is not subject to VAT?
producer of the agricultural products sold is the
a. Remaining inventory upon retirement from
cooperative itself. If the cooperative is not the
business
producer (e.g. trader), then only those sales to its
b. Sale of company’s used car to its officers
members shall be exempted from VAT.
c. Sale of goods or services to the national
Statement 2: Sale or importation of agricultural food
government
products in their original state is exempt from VAT
d. Sale of residential lot amounting to P1,000,000
irrespective of the seller and buyer thereof.
a. true, true c. false, false

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23. The value added tax due on the sale of taxable goods,
property and services by any person whether or not he How much is the output tax?
has taken the necessary steps to be registered. a. P348,000 c. P264,000
a. input tax c. excise tax b. P216,000 d. P108,000
b. output tax d. sales tax
30. The following are the data of Davao Appliances
24. Gross selling price includes all of the following, except: Marketing Co. for the last quarter of 2018:
a. Total amount which the purchaser pays to the Sales up to December 15, total
seller. invoice value P380,800
b. Total amount which the purchaser is obligated to Purchases up to December 15, net
pay to the seller. of input taxes 150,000
c. Excise tax.
d. Value-added tax. Additional information:
On December 16, 2018, the Company retired from its
25. Which of the following is not deductible from Gross business and the inventory valued at P190,000
Selling Price for vat purposes? remained unsold. There is a deferred input tax from
a. Discounts determined and granted at the time of the third quarter of P3,500.
sale, which are expressly indicated in the invoice,
the amount thereof forming part of the gross sales How much is the total value-added taxes payable by
duly recorded in the books of accounts. Davao Appliances Marketing Co.?
b. Discount determined and granted after the agreed a. P42,100 c. P22,800
sales quota is met by the buyer. b. P21,500 d. P19,300
c. Sales discount indicated in the invoice at the time
of sale, the grant of which is not dependent upon 31. Evelyn, a trader of appliances, made the following
the happening of a future event, deductible within sales of goods during the month of March 2018,
the same month or quarter given. exclusive of VAT:
d. Sales returns and allowances for which a proper Cash sales P 200, 000

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credit or refund was made during the month or Open account sales 100, 000

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quarter to the buyer for sales previously recorded Installment sales 100, 000

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as taxable sales. Note: Receipt from installment
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26. On January 5, 2018, Towell Co., VAT-registered, sold
sales is P20,000
Consignment made: (net of VAT)

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on account goods for P112,000, gross of VAT. The January 15, 2018 100, 000
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term was: 2/10, n/30. Payment was made on January February 15, 2018 200, 000
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10, 2018. The total amount due is: March 15, 2018 300, 000
a. P110,000 c. P112,000 Output tax is:
b. P107,800 d. P109,760 a. P60,000 c. P72,000
b. P40,800 d. P64,800
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27. Mr. Andres, VAT-registered real estate dealer,

transferred a parcel of land held for sale to his son as 32. Construction by Mikee-Mega Builders (MMB) of
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gift on account of his graduation. For VAT purposes, concrete barrier for the Asian Development Bank
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the transfer is: (ADB) in Ortigas Center to prevent car bombs from
a. Not subject to VAT because it is a gift ramming the ADB gates along ADB avenue in
b. Subject to VAT because it is a deemed sale Mandaluyong City is subject to what business tax?
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transaction a. 12% vat c. exempt from vat

c. Not subject to VAT because it is subject to gift tax b. 0%vat d. 3% OPT
ed d

d. Subject to VAT because it is considered an actual

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sale 33. Any input tax attributable to zero-rated sales by a

VAT-registered person may at his option be:
28. One of the following is not a transaction deemed sale: a. Deducted from output tax
a. Transfer, use or consumption not in the course of b. Refunded
business of goods or properties originally intended c. Converted into tax credit certificate which may be
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for sale or for use in the course of business. used in payment of internal revenue taxes.
b. Distribution or transfer to shareholders or investors d. All of the above
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of goods or properties as share in the profits of a

VAT-registered person or creditors in payment of 34. Tax credit for input taxes shall be allowed if:
debt. a. Both the seller and the purchaser are VAT-
c. Retirement from or cessation from business with registered
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respect to all goods on hand as of the date of such b. Either one of the seller or the purchaser is VAT-
retirement or cessation. registered.
d. Consignment of goods if actual sale is made within c. Neither one of the seller or the purchaser is VAT-
60 days following the date such goods were registered as long as VAT invoice is issued.
consigned. d. The seller is VAT-registered regardless of whether
the purchaser is VAT-registered or not.
29. Genson Distribution Inc., a VAT taxpayer, had the
following data in a month: 35. Which statement is not correct?
Cash sales P200,000 a. The excess input taxes of a taxable month arising
Open account sales 500,000 from domestic sales may be carried over to the
Consignment: succeeding month.
0 to 30 days old (on which there b. The excess input taxes of a taxable quarter arising
were remittances from from domestic sales may be carried over to the
consignees of P200,000) 600,000 succeeding quarter.
31 to 60 days old 700,000 c. The excess input taxes of a taxable period arising
61 days old and above 900,000 from domestic sales is refundable.

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 d. The excess input taxes of a payable period arising
from exports sales may be refunded. 41. Using the above data, the amount of vat to be
remitted to the BIR should be
36. Magnifeco Corp. is a VAT-registered dealer of a. P12,000 c. P106,000
appliances. The following data are for the last quarter b. P30,000 d. P84,000
of 2018:
Sales, total invoice value P6,920,000 42. World Power Corp. imported an article from Japan. The
Purchases, net of input taxes 5,500,000 invoice value of the imported articles was $7,000 ($1-
Sales return, total invoice value 200,000 P50). The following were incurred in connection with
Purchase return, net of VAT 300,000 the importation:
Deferred input taxes (carried over from the Insurance P 15,000
third quarter of 2018) 12,000 Freight from Japan 10,000
Postage 5,000
The value added tax payable for the last quarter of Wharfage 7,000
2018 by Magnifeco Corp. is: Arrastre charges 8,000
a. P84,000 c. P108,000 Brokerage fee 25,000
b. P96,000 d. P130,500 Facilitation fee 3,000

37. CG Corporation is a vat registered entity with the The imported article was imposed P50,000 customs
following data for a taxable month: duty and P30,000 excise tax.
Domestic sales P500,000
Transaction deemed sales 500,000 The Company spent P5,000 for trucking from the
Export sales 500,000 customs warehouse to its warehouse in Quezon City.
Sales to DEF, an export oriented 500,000 The carrier is not subject to VAT.
enterprises The VAT on importation is:
(2/3 of DEF’s annual output is actually a. P60,000 c. P60,600
exported) b. P42,000 d. P80,000

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Purchases (invoice cost from vat 224,000

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registered entities) 43. Based on the preceding number, if the imported article

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Purchases (invoice cost from non-vat 100,000 was sold for P800,000, VAT exclusive, the VAT payable
registered entities)
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a. P24,000 c. P36,000

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The vat payable of CG should be b. P12,000 d. P11,040
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a. P180,000 c. P120,000
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b. P156,000 d. P108,000
44. Sofia had the following data for the month of June (all
38. The vat on importation of goods which are amounts are vat exclusive):
subsequently used or sold in the course of trade or CASE 1 CASE 2
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business by a vat registered importer shall be treated Sales P1,900,000 P1,800,000

as Purchases of goods 1,260,000 1,600,000
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I. Tax credit for sale

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II. Inventoriable cost Purchases of 1,440,000 900,000

III. Expense machines
a. I only c. III only Machine life 6 years 3 years
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b. II only d. none of the above

ed d

The amounts of vat payable(excess tax) shall be:

39. Which of the following statements is incorrect? (a) (b) (c) (d)
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a. VAT on importation is paid to the Bureau of CASE 1 P54,000 P73,920 P73,920 None
Customs before the imported goods are released CASE 2 (84,000) (84,000) 20,000 None
from its custody.
b. When a person who enjoys tax-exemption on his 45. Maymay, VAT-registered, made the following
importation subsequently sells in the Philippines
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purchases during the month of January, 2018:

such imported articles to non-exempt persons, the Goods for sale, inclusive of VAT P 246,400
purchaser-non-exempt person shall pay the VAT
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Supplies, exclusive of VAT 20, 000

on such importation. Packaging materials, total invoice
c. Expenses incurred after the goods are released amount 56, 000
from Customs custody are disregarded in Home appliances for residence,
computing VAT on importation. gross of VAT 17,920
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d. Imported goods which are subject to excise tax are Office machines (5 pcs.), 8 years 2,000,000
no longer subject to value-added tax. useful life, net of VAT

40. Bryan, vat registered person, imported machines from Repair of store amounted to P20,000, no supporting
Australia as follows: official receipt. Creditable Input taxes are:
Machine Acquisition Cost Purpose a. P38,800 c. P37,440
A P100,000 Personal use b. P34,800 d. P35,520
B 200,000 Business use
C 300,000 For sale 46. All of the following are allowed presumptive input tax,
except for one.
The importations were subjected to 50% excise tax a. Processor of sardines, mackerel and milk.
based on purchase price. Machine C was sold for b. Manufacturer of refined sugar and cooking oil.
P1,000,000 exclusive of vat. How much is the vat c. Producers/manufacturers of packed noodles.
paid to the BOC? d. Supplier of books and other school supplies.
a. P108,000 c. P54,000
b. P90,000 d. P36,000

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47. Mantika Corp., a VAT-registered Corp., is a producer of
cooking oil from coconut and corn. It had the following 52. Dong Inc., a manufacturer, had the following data for
data for the month of January 2018: the first month of 2018: (First year as a VAT Taxpayer)
Sales:
Sales, gross of VAT P784,000 Exports P2,000,000
Corn & Coconut, 12-31-17 50,000 Domestics (Without VAT) 1,000,000
Purchases of Corn & Coconut 330,000 Purchases, excluding VAT:
Corn & Coconut, 1-31-18 20,000 Raw Materials 300,000
Purchases from VAT suppliers, VAT Services 100,000
included: Machinery
Packaging Materials 56,000 (estimated useful life 2 years) 400,000
Supplies 16,800
On January 1, 2018, the company had inventories and
The value-added tax payable for the month: taxes paid thereon as follows:
a. P56,060 c. P60,650 Cost VAT Paid
b. P54,900 d. P63,000 Raw Materials P120,000 P2,000
Supplies 40,000 4,000
48. Taxpayers who became VAT registered persons upon
exceeding the minimum turn-over of P3,000,000 in During the month, raw materials were purchased from
any 12-month period, or who voluntarily register even another enterprise with a total invoice value of
if their turnover does not exceed P3,000,000 shall be P61,600, not included above.
entitled to a transitional input tax on the inventory on
hand as of the effectivity of their vat registration on The VAT payable by Dong Inc. is:
the following, except; a. P72,000 c. P11,000
a. Supplies for use in the course of taxpayer’s trade b. P57,000 d. P66,000
or business
b. Goods which have been manufactured by the 53. What institution is required to deduct and withhold a

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final VAT of 5% on the purchase of goods or services

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taxpayer
subject to VAT?
c. Goods in process for sale

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a. National government or any political subdivision

business
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d. Capital goods being used in the operation of the thereof
b. Government-owned or controlled corporations

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c. Both (a) and (b)
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49. Transitional input tax can be claimed as deduction d. Neither (a) nor (b)
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from output tax. Which of the following statements is

correct? 54. The withholding agent of creditable value added tax is
a. It can be claimed by a vat registrable person. required to remit the amount of value added tax
b. It can be claimed by a taxpayer who registered as withheld within
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vat taxpayer from the inception of business. a. 25 days following the end of month the withholding
c. It can be claimed by a taxpayer who is initially was made
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subject to vat and subsequently cancelled his vat b. 20 days following the end of month the withholding
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registration. was made

d. It can be claimed by a taxpayer who is initially c. 15 days following the end of month the withholding
paying percentage tax and subsequently registered was made
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as vat taxpayer. d. 10 days following the end of month the withholding

was made
ed d

50. Which of the following shall be included in the

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beginning inventory for purposes of determining the 55. A VAT-registered supplier sold goods amounting to
transitional input vat? P500,000 to a government-controlled corporation
a. Goods purchased for resale in the ordinary course during a particular quarter. Which of the following
of trade or business. statements is incorrect in relation to the sale in
relation to the sale of goods?
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b. Materials purchased for further processing which

have not yet undergone processing a. The sale is subject to final withholding VAT.
c. Goods which have been manufactured by the b. The government-controlled corporation will
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taxpayer withhold P25,000 withholding VAT.

d. All of the above c. The government-controlled corporation shall remit
the withholding of VAT to the BIR within 10 days
51. A taxpayer registered under the VAT system on following the end of the month the withholding was
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January 1, 2018. His records during the month show: made.

Value of inventory as of December 31, d. The VAT-registered supplier may refuse the
2017 purchased from VAT-registered P112,000 withholding of VAT as long as it is willing to pay
persons the full 12% VAT.
VAT paid on inventory as of December 31,
2017 12,000 Use the following data for the next two questions:
Value of inventory as of December 31, A VAT-registered trader has the following transactions:
2017 purchased, from non-VAT persons 518,000 Sales of good to private entities, P2,500,000
Sales, net of VAT 240,000 net of VAT
Sales, gross of VAT 45,920 Purchases of goods sold to 896,000
Purchases, net of VAT 70,000 private entities, gross of 12%
Purchases of VAT exempt goods 50,000 VAT
Sales to a government owned 1,000,000
VAT payable is: corporation (GOCC), net of VAT
a. P23,080 c. P12,720 Purchases of goods sold to 700,000
b. P25,320 d. P12,320 GOCC, net of 12% VAT

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56. How much is the output tax? 65. The amount of input vat not available for tax credit but
a. P300,000 c. P420,000 may be recognized as cost or expense is:
b. P120,000 d. nil a. P60,000 c. P80,000
b. P70,000 d. P140,000
57. How much is the standard input tax?
a. P20,000 c. P50,000 66. Leomar, a VAT-registered person has the following
b. P70,000 d. nil data:

58. How much is the creditable input tax? Export sales, total invoice amount P3,000,000
a. P166,000 c. P70,000 Domestic sales, total invoice amount 6,720,000
b. P96,000 d. P180,000 Purchases used to manufacture Goods
for export and domestic sales:
59. How much is the input tax closed to (expense) Raw Materials, VAT inclusive 616,000
income? Supplies, VAT inclusive 448,000
a. P14,000 c. (P14,000) Equipment, VAT exclusive 300,000
b. P34,000 d. (P34,000)
The amount of input tax which can be refunded or
60. How much is the VAT payable to the BIR? converted into tax credit certificates at the option of
a. P404,000 c. P204,000 Leomar is:
b. P390,000 d. nil a. P120,000 c. P39,600
b. P118,800 d. P50,000
61. A VAT-registered trader has the following transactions
for the month of July 2019: 67. Based on the preceding number, if the refundable
Sale of goods to private entities, P2,500,000 input taxes were not refunded but used as tax credit,
net of VAT the VAT due is:
Purchases of goods sold to 896,000 a. P576,000 c. P666,888

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private entities, gross of 12% b. P697,888 d. P570,000

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VAT

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Sales to a government owned 1,500,000 68. But assuming further that the taxpayer opted to claim
corporation (GOCC), net of VAT
Purchases of goods sold to
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700,000
them as refund, the VAT due is:
a. P576,000 c. P746,888

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GOCC, net of 12% VAT b. P697,888 d. P620,000
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Purchases of Machineries, gross 11,200,000
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of VAT, useful life is 6 years 69. Data from the books of accounts of a VAT taxpayer for
a month:
How much is the VAT payable to the BIR? Domestic Exports
a. P280,000 c. P191,500 Sales P2,000,000 8,000,000
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b. P224,000 d. P300,000 Purchases:

From VAT Suppliers:
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62. Based on the preceding number, how much is the Goods for sale 600,000 2,400,000
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input tax closed to (expense) income? Supplies & services 90,000 360,000
a. (P13,500) c. P13,500 From Suppliers
b. P21,000 d. (P21,000) paying percentage tax:
y

Goods for sale 100,000 1,500,000

Supplies & services 20,000 80,000
ed d

63. PISC, a vat- registered government owned or

controlled corporation (GOCC), sold goods to Alpha
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Corporation, a private company. Selling price is If the input taxes attributable to zero-rated sales are
P1,000,000 while the cost (all purchased from vat- claimed as tax credit, the net value-added tax
registered suppliers) is P800,000. How much is the refundable is:
VAT-payable by PISC? a. P136,000 c. P145,000
b. P203,924.70 d. P174,000
is

a. P120,000 c. P24,000
b. P50,000 d. P0
70. Rommel is an operator of taxi cabs. During a particular
Th

Use the following data for the next two questions: month, he purchased from Mahindra, a VAT-registered
Alpha Corporation (vat registered) has the following data car dealer, 10 sedan type units for a total selling price
for the month: of 5 million pesos. The estimated useful life of each
Sales – private entities P2,000,000 vehicle is four (4) years. How much will be the amount
sh

Sales – vat exempt goods 1,000,000 due from Rommel?

Sales – government 1,000,000 a. P5,600,000 c. P5,000,000
b. P5,150,000 d. P4,480,000
The following input taxes were passed-on by vat suppliers
to Alpha Corporation during the month: 71. Based on the preceding number, how much input tax
Input vat on taxable goods P80,000 can be claimed by Rommel?
Input vat on sale of exempt goods 20,000 a. P600,000 c. P150,000
Input vat on sale to the government 40,000 b. P12,500 d. P0
Input tax on depreciable capital 160,000
goods not directly attributable to any 72. Kaktus Realty Inc. developed a condominium in Manila.
specific activity (monthly amortization During the month of January 2013, it had the following
for 60 months) data (VAT included,if applicable):

64. The vat payable for the month is Selling Price

a. P40,000 c. P160,000 Cash sale of a 3 bedroom unit P5,040,000
b. P80,000 d. nil Sale of parking lot 560,000

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 Installment sale of 2 bedroom
unit (initial payments exceed The value added tax payable is
25% of the selling price) 3,920,000 a. P59,808 c. P82,608
b. P62,208 d. P86,208
The 3 bedroom unit sold for cash had a zonal value of
P5,000,000 and the 2 bedroom unit had a fair market 78. Tore Inc., a building contractor, showed to you the
value per Tax Declaration of P3,000,000. following data for the month of August 2015:
Cash received, gross of VAT 2,240,000
How much is the output tax for the month? Receivables, net of VAT 3,000,000
a. P920,000 c. P1,020,000 Advances on other contracts still 1,000,000
b. P900,000 d. P1,080,000 unearned (w/o VAT)

73. Bahay Kubo Inc. is a real estate dealer. Details of its Unpaid Purchases:
sales during the year showed the following: For materials, VAT excluded 500,000
For supplies, VAT excluded 100,000
Date of sale June 2, 2018 For services of sub-contractors 1,848,000
Consideration in the deed of sale P5,000,000 (VAT included)
Fair market value in the assessment 4,800,000
rolls Payments for purchases made in
Zonal Value 5,200,000 July:
Schedule of payments: Materials, gross of VAT 369,600
June 2, 2018 1,000,000 Services of subcontractors, net of 495,000
June 2, 2019 2,000,000 VAT
June 2, 2020 2,000,000
How much is the value added tax payable?
How much is the output tax to be recognized for the a. P360,000 c. P330,000
June 2, 2020 payment? b. P228,600 d. P90,000

m
a. P0 c. P249,600

er as
b. P24,000 d. P624,000 79. Cebu Airlines is a corporation organized in the

co
Philippines. It has the following data for the taxable
eH w
74. Assuming that the scheduled payment on June 2, 2018
is P2,000,000, how much is the output tax to be
year 2018:

o.
recognized for the June 2, 2020 payment? Passengers Fare (Net of VAT):
rs e
a. P0 c. P249,600 Flights from Philippines to P8,000,000
ou urc

b. P24,000 d. P624,000 Hongkong

Flights from Hongkong to 8,000,000
Use the following data for the next two (2) questions: Philippines
JJ is a real estate dealer. During the month of October Domestic Flights (gross of 2% 3,000,000
o

2018, he sold three (3) commercial lots under the withholding tax)
following terms:
aC s

Lot 1 Lot 2 Lot 3 Fares from cargoes & mails (Net

vi re

Selling Price P250,000 P200,000 P300,000 of VAT):

Cost 150,000 130,000 175,000 Flights from Philippines to P1,000,000
Gain/Loss 100,000 70,000 125,000 Hongkong
y

Terms: Flights from Hongkong to 1,500,000

Down, Oct. 5 25,000 50,000 40,000 Philippines
ed d

Due: Domestic Flights (gross of 2% 800,000

ar stu

12/05/ 2016 25,000 20,000 20,000 withholding tax)

Year 2017 200,000 130,000 240,000 Other Income:
Zonal Value 350,000 260,000 250,000 Interest income from bank 800,000
deposits
75. How much is the Output tax for the month of October? Rent income 500,000
is

a. P26,500 c. P31,800
b. P34,800 d. P40,200 How much is the Output Tax?
Th

a. P456,000 c. P420,000
76. The Output tax for December is b. P516,000 d. P0
c. P5,400 c. P6,600
d. P4,500 d. none 80. If a dealer in securities sold shares in the local stock
sh

exchange, what business tax will apply to such

77. Data for a trader with one line of business subject to transaction?
value added tax and another line of business not a. VAT based on Gross Selling Price
subject to value added tax (amounts presented are b. VAT based on gain
gross of vat if applicable): c. Capital Gains Tax
Sales, vat business P896,000 d. Stock Transaction Tax of 6/10 of 1%
Sales, non-vat business 200,000
Purchases of goods, vat business 224,000 81. The Commissioner or his authorized representative is
Purchases of goods, nonvat 33,600 empowered to suspend the business operations and
business temporarily close the business establishment of any
Purchase of depreciable asset, for 112,000 person for:
use in vat and non vat business a. Failure to issue receipts or invoices of a VAT-
Purchases of supplies, for vat and 2,240 registered entity.
non vat business b. Failure to file a VAT-return for VAT-registered
Rental of premises, for vat and non 22,400 person as required by the tax code.
vat business, from non vat lessor

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 c. Understatement of taxable sales or receipts by
thirty percent (30%) or more of his correct
taxable sales or receipts for the taxable quarter
d. All of the above

82. Lola Lita, a senior citizen, bought a medicine with a

selling price of P9,520 inclusive of VAT. How much is
the net amount to be paid by Lola?
a. P8,500 c. P6,916
b. P7,616 d. P6,800

83. Lolo Sot, a senior citizen went to Jollibee to treat his 4

grandchildren on account of his retirement. They
consumed food and beverages with gross amount of
P1,120 inclusive of VAT. How much is amount to be
paid by lolo Sot?
a. P896 c. P1,056
b. P920 d. P1,100

84. Lola Trining brought her granddaughter to Jollibee for

a treat. Her granddaughter requested that they both
order kiddie meals so that the latter will have two (2)
new toys since each meal have a free one. The price of
each meal is P120, net of VAT. How much is the
amount due from Lola Trining?
a. P268.8 c. P240
b. P230.4 d. P192

m
er as
85. Gabriana Clinic, a VAT-registered entity, performed a

co
prosthetic surgery on the legs of Loyd, a person with
eH w
disability. The total cost of medical operation inclusive
of vat was P560,000 . Being a disabled person, Loyd

o.
received 20% discount from Gabriana. How much is
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the total amount to be paid by Loyd?
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a. P400,000 c. P500,000
b. P448,000 d. P560,000

Use the following data for the next two questions:

o

Alpha Corporation (vat registered) has the following data

for the month:
aC s

Sales – private entities and P2,000,000

vi re

individuals (10% to senior

citizens)
Sales – vat exempt goods 1,000,000
y

Sales – government 1,000,000

ed d

The following input taxes were passed-on by vat suppliers

ar stu

to Alpha Corporation during the month:

Input vat on goods sold to private P120,000
entities and individuals
Input vat on sale of exempt goods 20,000
Input vat on sale to the government 100,000
is

86. The vat payable for the month is

Th

a. P216,000 c. P96,000
b. P108,000 d. P36,000

87. The amount of input vat not available for tax credit but
sh

may be recognized as cost or expense is:

a. P20,000 c. P62,000
b. P50,000 d. nil

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