Vat Exercises

1. A tax on business is
a. Direct tax
b. Indirect tax
c. Property tax
d. None of the above
2. One of the folloin! is not a "a#or business internal revenue taxes in the tax code
a. Value added tax
b. Excise tax
c. Inco"e tax
d. Percenta!e tax
$. Value added tax is a %an&
a. Indirect tax
b. Direct tax
c. Pro!ressive tax
d. 'e!ressive tax
(. In value added taxation) this is not a re*uire"ent for taxability of service+
a. In the course of business
b. Perfor"ed ithin or outside the Philippines
c. ,onsideration received actually or constructively
d. -upply of service is not exe"pt fro" VA.
/. ,harlene is an operator of par0in! lots. 1hat business tax is due on his inco"e tax fro"
the business+
a. 2ro0er3s tax
b. ,aterer3s tax
c. ,o""on carrier3s tax
d. Value added tax
4. 5r. 6 is a lessor of real property and personal property %cars&. .he tax that he pays is
a. Excise tax
b. Value added tax
c. Percenta!e tax
d. None of the above
7. 5r. - 5a!ler i"ported ci!arettes fro" the 8nited -tates for sale in the Philippines. 1hat
business taxes in the Philippines are due+
a. VA.) excise tax) other percenta!e tax
b. VA. and excise tax
c. Other percenta!e tax and excise tax
d. VA. and percenta!e tax1hich of the folloin! is not exe"pt fro" VA.
a. I"portation in their ori!inal state of a!ricultural and "arine food products
b. I"portation of passen!er or car!o vessel "ore than /)999 tons to be used by the
i"porter hi"self as operator thereof:
c. I"portation of personal and household e;ect belon!in! to residents of the Philippines
returnin! fro" abroad:
d. I"portation of non<food a!ricultural products in their ori!inal state by a pri"ary
producer.
=. One of the folloin! transactions by a VA. re!istered person does not result to output vA.
a. ,ash sales
b. -ales on account
c. -ales and leasebac0
d. Export sales
,o"putation of VA. payable
>. .su0uba ,o"pany) a VA. re!istered business) had the folloin! data durin! the *uarter:
Export sales 1)=1/)9
99
Do"estic sales %tax included& 1)2$2)9
99
Purchases of !oods for export 472)99
9
Purchases of !oods for do"estic sales $2$)12
9
Purchases of supplies on do"estic sales)
exclusive of tax
12()=/
9
Assu"in! that the input taxes paid on purchases of !oods for export are clai"ed as tax
credit) the VA. payable by .su0uba ,o"pany is
a. 12)=>/
b. 19)$>=
c. 177)=>/
d. =()=>/
19.In *uestion no. 1() assu"in! that the input taxes attributable to export sales are bein!
clai"ed as refund) the a"ount refundable is
a. 72)999
b. 12)=>/
c. =()=>/
d. ?ero
11.@oey) a non VA. taxpayer) purchased "erchandise orth 11)299) VA. inclusive) fro" 1illie)
a VA. re!istered seller. .he passed on VA. of 1)299 on the purchase is
a. An expense
b. Part of the cost of purchase
c. A tax credit
d. I!nored
12.Altura sold !oods at an invoice value of 12$)299 to 2eltran on account. 2eltran sold the
sa"e !oods to ,antoria for 1($)999 %exclusive of tax& cash. All of the" are VA. re!istered
taxpayers. .he accountin! entry to record the sales in the boo0s of 2eltran is
a. ,ash 149)149
-ales 1($)999
Output .ax %1($)999 x 12A& 17)149
b. ,ash 1($)999
-ales 1($)999
c. ,ash 149)149
-ales 149)149
d. ,ash 1($)999
-ales 12/)=(9
Output .ax 17)149
1$..he #ournal entry in the purchase boo0s of 2eltran in No. 17 is
a. Purchases 119)999
Input .ax %12$)299 x $B2=& 1$)299
Accounts Payable 12$)299
b. Purchases >4)=99
Accounts Payable >4)=99
c. Purchases =$)499
Input tax 1$)299
Accounts Payable >4)=99
d. Purchases 119)999
Accounts Payable 119)999
1(.In *uestion no. 17) assu"in! that ,antoria is not sub#ect to VA.. In the sale of the !oods by
2eltran to ,antoria<
a. 2eltran should record debit ,ash 12/)=(9
b. 2eltran should record debit ,ash of 1($)999 in his boo0s.
c. ,antoria should debit purchases of 12/)=(9 and a debit Input tax of 17)149
d. ,antoria should debit Purchases of 1($)999
1/.-tate"ent 1C in case tax exe"pt products are sold do"estically to a VA. re!istered
person) the VA. otherise due on such product shall be considered as Input .ax creditable
a!ainst his output tax payable
-tate"ent 2C export sales by a VA. re!istered person are sub#ect to Dero<ratin! and so he
can clai" and en#oy a crdit for the tax invoiced to hi" on his purchases. If he is not VA.
re!istered) his export sales are exe"pt) but he is not entitled to tax credit for inputs.
a. 2oth state"ents are true
b. 6alse) true
c. 2oth state"ents are false
d. .rue) false
Nu"ber 21<2$ are based on the folloin! infoC
.ransaction 1< an a!ricultural food producer sells his products in their ori!inal state to a
food processor ho also buys pac0a!in! "aterials and containers fro" a "anufacturerB
supplier
.ransaction 2< the food processor transfor"s the food products into processed foods and
sells to a holesalerB exporter
.ransaction $< the exporter sells the !oods to forei!n buyers.
.ransaction (< the holesaler delivers the "erchandise to retailers
.ransaction /<the retailers sell the !oods to households or ulti"ate consu"ers
14.2ased on the infor"ation above) hich transaction is VA. exe"pt+
a. .ransaction 1
b. .ransaction 2
c. .ransaction $
d. .ransaction (
17.1hich transaction is Dero rated+
a. .ransaction 1
b. .ransaction 2
c. .ransaction $
d. .ransaction (
1=.2ased on the infor"ation above) the Vat are absorbed by
a. 6ood processor
b. 1holesalerBexporter
c. 'etailer
d. EouseholdsB ulti"ate consu"er
1>.2uboy a !overn"ent e"ployee) ate in one fast food chain in Dipolo! ,ity. Ee as issued
the folloin! receipt:
Freenich<Dipolo! ,ity 2ranch %9$4>&
'iDal Ave. ,or Gacaya -t.) Dipolo! ,ity
.IN H 999<$$$<1($<=7> VA.
PO-O1 -NC (//4=4
2I' Per"it NoC 1774<=>7<47/($<(//
-ervin! H 91
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
19B27B2997 14C2$ APP O' H /4(/47=7=
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
1 -OGO -PE 5G =$.99
1 I,EANFE JG'F ,K 12.99
I ite" %s& >$.99
VA.able =$.9(
VA.<exe"pt 9.99
12 A VA. >.94
.O.AG D8E 93.00
,A-E /99.99
,EANFE D8E 407.00
.his serves as your O66I,IAG 'E,EIP..
2ased on the receipt issued above
a. .he a"ount of =$.9( represents the input tax of the fastfood chain
b. .he input tax deductible fro" the output tax of 2uboy is >.>4
c. .he total invoice price of >$ is inclusive of the 12A VA.
d. 2uboy has been sub#ected to VA. tice: Lrst on th >$ and second) on the >.>4
Nu"ber 2/<24 are based on the ;. info:
29..he pastry shop sells ca0es and pastry ite"s to ell<0non hotels around the 5etro 5anila
area. .he hotels are alloed credit based on the trac0 record of the hotels. .he total
a"ounts received or receivable fro" sales by the Pastry shop in the 2
nd
*uarter of 299=
ere 22()999) includin! the value added tax. -eventy Lve percent of the sales are
nor"ally on account. Eo "uch is the value added tax on the sales for the 2
nd
*uarter of
299=+
a. 29)999
b. 2()999
c. 24)==9
d. 1/)999
21..he account title to best reMect the value added tax in the precedin! nu"ber is
a. -ales tax payable
b. Value added tax payable
c. Input tax
d. Output tax
22.,ruD) a trader) "ade the folloin! transactions of !oods) exclusive of VA.) durin! the
second *uarterC
,ash -ales 299)9
99
Open account sales 199)9
99
,onsi!ned !oods
deliveredC
April
1/
199)9
99
5ay
1/
199)9
99
@une
1/
199)9
99

.he output tax for the second *uarter is<
a. (9)999
b. (=)999
c. 49)999
d. $4)999
2=<$9
5on!olia ,o"pany) a VA. re!istered business has the folloin! data in its boo0s on @uly)
299=C
Do"estic
-ales
79>)/9
9
-ales returns 24)(99
Foods shipped on consi!n"ent %net of tax&C
8nits 8nit Price
@uly / 2/ 22)999
@une / 29 22)999
5ay / 12 22)999
Foods ithdran for use by the
co"pany
$=)/9
9
Foods ta0en as pay"ent to
creditor
24)>/
9
6rei!ht and Insurance of !oods ()47/
PurchasesC
'a 5aterials (=()9
99
-upplies 41)49
9
,apital !oods 49)/9
9
-alaries of e"ployees 2$/)9
99
Durin! the "onth) one consi!nee re"itted cash net of 29A co""ission representin! the
pay"ent for Lve units delivered on @une /.
Another consi!nee re"itted cash of 229)999) !ross of 29 A co""ission) representin!
pay"ent for 19 units sold in @uly. Other than the co""ission) 5on!olia ,o"pany !ave / A
discountBrebate to the consi!nee for sellin! ten units in a one "onth period.
2$..he output tax in @uly is
a. 12()(/9
b. 121)9/9
c. 141)194
d. 1$()2//
2(..he input tax is
a. 41)97=
b. 7$)2>$
c. 4/)((9
d. none of the above
2/..he a"ount of VA. payable is
a. =7)=1$
b. 4>)$/9
c. 44)/2/
d. 7=)(9(.(4
24.A creditable input tax alloed on one ho beco"es sub#ect to VA. for the Lrst ti"e
a. Presu"ptive input tax
b. transactional input tax
c. excess input tax
d. total input tax
27.Isaac ,o"pany) a nely VA. re!istered business) has the folloin! data in @anuary %all
a"ounts are inclusive of tax&.
5erchandise inventory 29()9
99
Actual VA. paid on the
inventory
14)99
9
-ales) total invoice
a"ount
(4>)9
99
Purchases /7)(9
9
6ifty percent %/9A& of the "erchandise inventory on @nauary 1 ere purchased fro" non<
VA. re!istered sellers.
.he VA. payable by Isaac ,o"pany is
a. $9)199
b. 2=)199
c. $)>49
d. ()>/9
2=.An oner of heavy e*uip"ent is en!a!ed in e*uip"ent rental. It used to be VA. exe"pt
because its annual receipts never exceeded 1)/99)999. On @anuary 2) 299= it decided to
re!ister under the VA. syste". .he folloin! data ere fro" the Lrst *uarter endin!
5arch $1) 299=.
'ental fro" heavy e*uip"ent of 12A
VA.
$$4)9
99
Purchases of supplies %6ebruary& !ross
of VA.
112)9
99
Inventory of suppliesC
-ub#ect to VA. @an 1) 299= /9)(9
9
Not sub#ect to VA. 49)99
9
VA. paid on the inventory of supplies)
@an 1) 299=
/)(99
.he VA. payable for the *uarter endin! 5arch 299= is<
a. 12)171
b. $$)7>2
c. 1=)499
d. 22)>>2
2>.-tate"ent 1C .ransport of passen!ers and car!o by do"estic air or sea vessels fro" the
Philippines to a forei!n country is sub#ect to VA. at a rate of 9 A.
-tate"ent 2C transport of passen!ers and car!o by do"estic air or sea vessels fro"
5indanao to GuDon and Visayas) vice versa) is sub#ect to VA. at a rate of 12A.
a. true) false
b. false) true
c. false) false
d. true) true
$9.2eth had the folloin! receipts durin! the "onth %exclusive of tax&C
passen
!er
,ar!o
@eepney 1 29)999
@eepney 2 $9)999
2us 1/)999 =)/99
-ea vessel 1)/99)9
99
=99)9
99
,essna plane for
hire
=99)99
9
/49)9
99
.he output tax durin! the period is
a. 14()229
b. ((1)999
c. 2=$)=99
d. ((9)229
$1.Inside @ob -ecurity A!ency is en!a!ed in the sellin! of security services to various clients.
Durin! the "onth of Dece"ber) it billed on of its clients of the folloin!
5onthly salary 4)99
9
1$ th "onth
pay
4)99
9
A!ency fee at
1/ A
1)=9
9
---BPhilhealth $99
Geave ith pay (/9
. o t a l 1()/
/9
2ased on the folloin! data) ho "uch is the Output VA. payable of Inside @ob -ecurity
A!ency
a. 1)7(4.99
b. 1)//=.>$
c. 1)((9.99
d. 1)(7=./7
$2.2onnevie is a real estate dealer. Durin! the "onth of Nove"ber 299=) he sold three %$&
lots under the folloin! ter"sC
Got 1 Got 2 Got $
-ellin! price 2/9)9
99
299)9
99
$99)9
99
,ost 1/9)9
99
1$9)9
99
17/)9
99
FainBloss 199)9
99
79)99
9
12/)9
99
.er"sC
Donpay"ent)
Nov /
2/)99
9
/9)99
9
(9)99
9
Due<
Dec / 2/)99
9
29)99
9
29)99
9
@an to Dec 299> 299)9
99
1$9)9
99
2(9)9
99
All a"ounts indicated above do not include the tax.
.he VA. in Nove"ber is
a. 24)/99
b. $1)=99
c. $()=99
d. >9)999
$$.2ased on the infor"ation !iven in no. $7) the VA. for the "onth of Dece"ber is
a. /)(99
b. ()/99
c. 19)999
d. None
$(.Di"a!iba ,onstruction ,o"pany entered into a contract ith the !overn"ent to construct
an ediLce for a total contract price of 2/)999)999. Durin! the "onth) the !overn"ent paid
19)999)999 of hich it ithheld / A Lnal ithholdin! tax. Eo "uch is the VA. payable by
the co"pany on the !overn"ent contract+
a. 1/9)999
b. =/9)999
c. 9
d. 1)999)999
$/.1hich of the folloin! state"ents is not correct+
a. transitional input tax is 2A of the value of the inventory or the actual VA. paid)
hichever is hi!her
b. a"ounts received fro" services perfor"ed by an individual pursuant to an e"ployee<
e"ployer relationship are exe"pt fro" VA.
c. export sales by VA. re!istered persons are not sub#ect to VA.
d. Export sales by persons ho are not VA. re!istered are VA. exe"pt
$4..ransaction by a VA. re!istered taxpayer hich is not sub#ect to VA.C
a. 6orei!n currency deno"inated sale
b. export sale
c. transaction dee"ed sale
d. sale of service rendered in forei!n countries.
$7.-tate"ent 1C .here is a VA. in an i"portation by an i"porter<"erchant even if he does not
intend to sell the i"ported article.
-tate"ent 2C a person ho is exe"pt fro" VA. "ay re!ister under the VA. syste"
a. false) false
b. false) true
c. true) false
d. true) true
$=.<< VA. is i"posed on !oods brou!ht into the Philippines) hether for use in business or not
<< In the case of !oods i"ported into the Philippines by a VA. exe"pt person hich are
subse*uently sold to taxable persons) the latter shall be considered the i"porter thereof
and shall be liable for VA. due on such i"portation
a. true) true
b. false) false
c. false) true
d. true)false
$>.,elebrado) VA. re!istered taxpayer) has the folloin! data on i"portation in 299=C
6or
sale
On
use
Invoice cost %Exchan!e rate N1CPhp (4& N
/)4/9
N =/9
,usto" duties 12A 19A
6rei!ht 29)99
9
()999
Insurance 2=)99
9
()2/9
Other char!es before release fro" custo"
house
7)999 2)/99
6acilitation fee 19)99
9
/)999
6rei!ht fro" custo" house to arehouse
%net of VA.&
12)99
9
1)299
Assu"in! the custo" duties are deter"ined on the basis of the *uantity of volu"e of the
!oods) the VA. on the i"portation is
a. $1)249
b. $7)2=/
c. (7)>=1.74
d. (()7(2
(9.In no. (() ho "uch is the VA. payable if the i"ported !oods for sale ere sold for
44/)999 %inclusive of tax& 19 days after its delivery to the arehouse<
a. 2=)27>.((
b. $2)2>=
c. 17)/(9
d. 2/)94=
(1.'obin P.) i"ported a car fro" the 8-A for his personal use. .otal landed cost is Php
2/9)999 %about N/)999& includin! custo" duties of Php /9)999. VA. payable is
a. 2/)999
b. $9)999
c. 19)999
d. none) because i"portation is for
personal use.
(2.Gavadena ,onstruction ,orporation) is a VA. re!istered !eneral construction co"pany. Its
data for the *uarter are revealed beloC
,ontract
1<
'esidential house
,ontract Price 1)299)999
Php
,ollection durin! the
"onth
414)999
Php
,ontract
2<
1arehouse
,ontract Price 1)999)999
Php
Percenta!e of
co"pletion
79A
,ollection durin! the
"onth
229)9=9
I"portation of construction e*uip"ents fro" @apanC
Invoice cost) @apan %1NC
Php ((&
N7)/99
Value per 2ureau of
custo"s
Php
$(9)999
,usto"s duties $/)999
6rei!ht and insurance 17)999
Purchases of "aterialsC
6ro" VA. re!istered
persons
224)2
(9
6ro" non<VA. re!istered
persons
124)/
99
'evenue fro" rent of e*uip"ent to another contractorC 17)>29.
Assu"in! the custo" duties ere based on the *uantity of the !oods i"ported) the VA.
due on the i"portation is<
a. (4)=49
b. /2)249
c. (/)=(9
d. (4)9/9
($..he VA. payable by Gavadena ,o"pany durin! the *uarter is
a. 21)(29
b. 1>)299
c. 4)(/9
d. 29)(99
((.2ata) a VA. re!istered person had the folloin! dataC
Price actually paid for the period
Price actually paid for the !oods bou!ht fro" @apan P
499)99
9
'elated insurance pre"iu"s and frei!ht fro" @apan 199)99
9
,usto" duties a"ount to (9A of dutiable a"ount
Other i"port char!es and expenses a"ount to 129A of
custo" duties
.he VA. on i"portation is
a. =2)/49
b. 1(/)>29
c. 1$/)$49
d. 1/7)>29
(/.Pato!ro0 ,o"pany contracted ith -apotiDe ,onstruction ,orporation to ,onstruct the
for"er3s buildin! here only the labor ill be supplied by the latter. .he data on the
construction %inclusive of tax& durin! the "onth are as follosC
Pro!ress billin!s by -apotiDe ,o"pany P499)999
Pay"ent to -apotiDe ,o"pany /9()999
Purchase of "aterials by Pato!ro0 ,o. ((2)(99
1hich of he folloin! is false+
a. construction in pro!ress is not depreciated until the asset is placed in service.
b. for purposes of clai"in! input tax) as a purchase of service) the value of hich shall be
deter"ined based on the pro!ress billin!s.
c. the input tax credit on the labor contracted shall be reco!niDed on the "onth the
pay"ent as "ade based on the pro!ress billin!s
d. once the input tax has already been clai"ed hile the construction is still in pro!ress)
no additional input tax can be clai"ed upon co"pletion of the asset hen it has been
reclassiLed as a depreciable capital asset and depreciated.
(4.Aileen) a @apanese residin! in the Philippines bou!ht !ar"ents fro" ,ua ,orporation) a
do"estic corporation) and exported the sa"e to @apan. .otal value of export is 199)999.
VA. %output tax& due on the transaction is
a. 19)999
b. /)999
c. none) because 9A applies
d. none) because the sale is exe"pt fro" VA.
(7.O;sprin! ,orporation is a VA. re!istered dealer of appliances. .he folloin! data are for
the "onth of OctoberC
-ales) total invoice value P/)=99)9
99
Purchases) net of input taxes 2)=29)99
9
-ales return 299)999
Purchases return) net of input tax $99)999
Deferred input taxes %carried over fro"
third *uarter
>)/99
.he VA. payable for the "onth of Oct by co"pany is
a. $29)999
b. 2=/)/99
c. =9)999
d. 2==)199
(=..he folloin! are the data of ,ity Appliances 5ar0etin! ,o"pany for October) 299=C
-ales upto Oct 1/) total invoice
value
P244)9
99
Purchases upto Oct 1/) net of
input taxes
21/)99
9
Additional infoC
On October 14) 299=) ,ity Appliances co"pany retired fro" its business and the inventory
valued at 1>9)999) net of input taxes) as ta0en and transferred to Ne ,ity Appliances
,o"pany. .here is deferred input taxes fro" the third *uarter of P$)/99. Eo "uch is the
total value added taxes due and payable by ,ity Appliances 5ar0etin! ,o"pany in its
operations in October and its retire"ent fro" business+
a. 22)/99
b. 22)999
c. 4)$/9
d. 2/)$/9
/(<//
Fabriel Pan!a Auto 'epair -hop) VA. re!istered) had the folloin! data in its boo0s durin!
the periodC
'eceiptsC
6ro" Auto repair =/)4
29
6ro" ashin! and !reasin! (/)(
2/
'ei"burse"ent by custo"er on pay"ents "ade to VA. "achine shops ()$/
9
Pay"ents received for lubricants) oils and Muid provided by the shop to cars
under!oin! repair
/)7=
9
Disburse"entsC
Electric bill $)//
9
1ater bill 2)$=
9
-alaries of e"ployees 1/)9
99
Pay"ents "ade to "achine shops) non VA. ()$/
9
Purchase of lubricants) oils and Muids $)99
9
Purchase of capital !oods %life<19 years& 2()9
99
(>..he output tax a"ount to<
a. 14)(1>
b. 14)>(1
c. 1()449
d. 1/)124
/9..he VA. payable is
a. >)(9(
b. 12)7/$
c. >)(/>
d. 4)>7>
/1..axpayers ho beca"e VA. re!istered persons upon exceedin! the "ini"u" turn<over of
1./"illion in any 12<"onth period) or ho voluntarily re!ister even if their turnover does
not exceed 1./ "illion shall be entitled to a transitional input tax on the inventory on hand
as of the e;ectivity of their VA. re!istration on the folloin!) exceptC
a. -upplies for use in the course of taxpayer3s trade or business
b. Foods hich have been "anufactured by the taxpayer
c. Foods in process for sale
d. ,apital !oods bein! used in the operation of the business
/7 to 49
-u"ilco) a "anufacturer of reLned su!ar) beca"e sub#ect to VA. e;ective Dece"ber 1) 299=.
Durin! the "onth) the folloin! are its dataC
'eLned su!ar ithdran fro" reLnery)
inclusive of VA.
>2()9
99
Purchases of<
-upplies fro" VA. re!istered suppliers $=)/9
9
Pac0a!in! "aterials) VA. inclusive 27)94
9
-u!ar cane fro" planters $/9)9
99
1ater bill 12)99
9
-alaries of oOcials and e"ployees 1/9)9
99
Inventory per balance sheet) Dec 1) 299=
Pac0a!in! "aterials 17)=7
/
-upplies purchased fro" VA. re!istered
persons
1()=/
9
-upplies purchased fro" non VA.
re!istered suppliers
()7/9
/2..he presu"ptive input tax is<
a. $/)999
b. /)2/9
c. 1$)=49
d. 1()999
/$..he transitional input tax is
a. $)/94.2/
b. 2)>7/
c. 4/(./9
d. 2)>>=.99
/(..he total creditable input taxes is
a. 2()/$9./(
b. 1$)=2=.99
c. >2)>$/.99
d. 22)>$/.99
//..he VA. payable is
a. 41)94/.99
b. 79)172.99
c. 7()(4>.(4
d. 4>)=1/.99
/4.An i"porter ishes to ithdra its i"portation fro" the 2ureau of ,usto"s. .he i"ported
!oods ere sub#ected to a 19A custo"s duty in the a"ount of 12)/99 and to other
char!es in the a"ount of >)/99. .he value added tax due is
a. 12)/99
b. 17)4(9
c. 1$)$4(
d. 1()799
/7.Ka0a is a contractor. -he entered into a contract o 5arch 1) 299= hich as co"pleted on
5arch $1) 299=. -he received the total value of the contract a"ountin! to //9)999 on
5arch $1) 2997. Ka0a spent for the "aterials used in the contract hich she ac*uired fro"
the VA. re!istered suppliers costin! 1/9)999. All a"ounts are exclusive of VA..
.he VA. payable by KAKA for the "onth of 5arch is
a. 1/)999
b. (9)999
c. (=)999
d. />)/99
/=.Archie) a nely VA. re!istered taxpayer is a lessor of poles to telephone and cable
co"panies. Durin! the "onth of @anuary 299=) Archie had the folloin! receipts fro"
custo"ersC
-ecurity deposit fro" custo"er , 119)9
99
'et inco"e in @anuary fro" various
custo"ers
==)99
9
Prepaid rentals received fro" custo"er ,
%feb to @une&
1$2)9
99
Goan to Archie fro" custo"er 2 =2)/9
9
Durin! the "onth) a portion of the security deposit for the faithful co"pliance by custo"er
, of its obli!ations to the lessor as applied to rental for @anuary in the a"ount of 11)999.
At the be!innin! of the year) Archie had 2/2)999 orth of inventory of supplies and
"aterials for use in the business. VA. paid on the be!innin! inventory is $)/99.
.he output tax of Archie in @anuary is
a. 2()7/9
b. 21)999
c. 2=)/99
d. $>)/99
/>.In no. 4$) the input tax on Archie is
a. /)9(9
b. None
c. 21)999
d. ()149
49.5arinda is a VA. re!istered !rocery oner and su!ar dealer. -he sub"itted lists of
inventory as of Dece"ber $1) 2997 to the 'evenue District OOcer as follosC
Frocery ite"s) total value $2/)999
'a cane su!ar) total value 2//)999
In @anuary 299=) she had the folloin! sales and purchases
-ales Purchas
es
Frocery %total invoice
value&
1)9(2)/
2/
4/9)199
-u!ar %excludin! VA.& (=9)99
9
(29)999
.he VA. due for @anuary) 299= is
a. $/)47/.99
b. (2)9(/./(
c. (1)47/.$1
d. 4)47/.24
47<4=
Foodboo0s Educational supply) VA. re!istered) is en!a!ed in the business of sellin! boo0s)
school supplies and !ift ite"s. .he folloin! are the record of its purchases and sales
durin! the "onth of October %inclusive of tax&C
-ale of school supplies /49)9
99
-ale of boo0s 299)9
99
-ale of !ift ite"s $$4)9
99
Purchases of school supplies and !ift ite"s (94)9
99
Purchases of boo0s 174)9
99
Purchase of co"puter used in taxable and exe"pt
transactions
21)11
2
41..he creditable input tax on the purchase of co"puter is
a. 2)(99.29
b. 1)>29./9
c. 24)(99.4/
d. 1)=9>.49
42..he VA. payable is
a. /9)4>9.(9
b. $()199./9
c. $4)/99.99
d. ($)2=9.2/
4$..ala co"pany had the folloin! data for the 1
st
*uarter of 299= %VA. exclusive&
.axable sales 499)9
99
Exe"pted sales $99)9
99
?ero rated sales 199)9
99
Input tax hich cannot be directly attributed to any of
the above sales
/9)99
9
.he VA. payable for the *uarter is
a. (2)999
b. $7)999
c. $2)999
d. 22)999
4(.,o"bined ,o"pany operates a VA. business and a non VA. business durin! the "onth) its
boo0s revealed the folloin! record of sales and purchases
-ales %VA. business& 499)9
99
-ales %non<VA. business& 299)9
99
Purchases %VA. business& (91)/
99
Purchases %non VA. business& =9)99
9
Purchases %VA. and non VA.
businesses
4()99
9
.he VA. payable by ,o"pany is
a. 7)449
b. 4)949
c. 1$)/99
d. 1=)949
4/.Excel co"pany operates to lines of business. 2usiness A is sub#ect to VA.) hile 2usiness
2 is not. Data for the "onth are as follosC
-ales<
VA. business) VA. included /49)9
99
Non<VA. business 199)9
99
Purchases<
5erchandise) VA. business) VA. included 1/()9
99
5erchandise) non VA. business) VA. included 47)19
9
,apital !oods) VA. business) VA. included $()77
4
,apital !oods) non VA. business) VA. included 27)/9
9
,apital !oods) for use in both business) VA.
included
/4)99
9
'ent of store) VA. business) VA. included 1()/4
9
'ent of arehouse) VA. P non<VA. business)
VA. excluded
4)299
6rei!ht of !oods) %VA. and non VA. business&)
VA. included
2)/74
.elephone bills) VA. and non<VA.) VA. included 1)42(
.he input tax on 2usiness A is<
a. 27)2=1
b. 2$)7(7
c. 2$)247
d. 1=)=7/
44.In no. 71) the VA. payable by Excel co"pany is<
a. 1>)9$/
b. 29)7$$
c. 29)2/$
d. $2)21>
7$<7/
5ildred enterprises) a VA. re!istered trader had the folloin! data durin! the last *uarter
of the yearC
Purchas
es
-ales
October 427)29
9
$>2)9
99
Nove"b
er
/>>)29
9
=42)(
99
Dece"b
er
>/>)41
4
7=>)4
99
All of the a"ounts indicated above are VA. inclusive.
47..he a"ount of VA. payable by 5ildred for the "onth of October is
a. 2/)299
b. 14)/99
c. 2)999
d. None
4=..he VA. payable for the "onth of Nove"ber is
a. 29$)/99
b. 2=)299
c. $)999
d. None
4>..he VA. payableB%excess& tax for the last *uarter is
a. %1=)214&
b. 1=)214
c. 49)>99
d. none
74<7=
.he boo0s of accounts of 6ran0lin ,orporation) VA. re!istered ) revealed the folloin! data
in 2997C
Deferred input taxes)
@une 2997
4)299
-alesC
@uly 429)9
99
Au!ust ($9)9
99
-epte"ber /(9)9
99
PurchasesC
@uly /9=)9
99
Au!ust ($2)9
99
-epte"ber $1()/
99
79.VA. payable for @uly is
a. 1$)((9
b. 7)2(9
c. 11)299
d. /)999
71..he VA. payable for Au!ust is
a. %4)((9&
b. %2(9&
c. None
d. 7)999
72..he VA. payable for -epte"ber is
a. 24)/=9
b. 27)949
c. 29)=49
d. $()9>9
7$.6elicisi"a had the folloin! dataC
,ase 1 ,ase 2
-ales) net of VA. 1)>99)9
99
1)=99)9
99
Purchases of !oods for sale)
exclusive of VA.
1)249)9
99
1)499)9
99
Purchases of "achines %VA. not
included&
1)((9)9
99
>99)99
9
5achine life 4 years $ years
.he a"ounts of VA. payableBexcess tax are as follosC
%a& %b& %c& %d&
,ase
1
/()99
9
7$)>2
9
7$)>
29
Non
e
,ase
2
%=()99
9&
%=()99
9&
29)9
99
non
e
7(.Gavinia had the folloin! data in @ulyC
-ales of !oods %excludin! VA.& 2)/(9)9
99
Purchases of !oods %net of VA.& 1)(/9)9
99
Purchases of capital !oods %invoice
a"ount&
5achine 1 %useful life of 4 years& >7()(9
9
5achine 2 %useful life of $ years& 47)299
.he VA. payable in @uly is
a. 129)=49
b. 1>)299
c. $$)499
d. %(9)=99&
=1 to =2
.he folloin! data %net of tax& of ,hristine co"pany are as follosC
1
st
*uarter
-ales 799)99
9
Purchases /99)99
9
Purchase of "achinery %6eb& 1)/99)9
99
8nutiliDed input tax as of end of
1
st
*uarter
(9)999
2
nd
*uarter
-ales 1)/99)9
99
purchases 299)99
9
7/.6or the Lrst *uarter) An!el ,o"pany ill result to aBan<
a. VA. payable of 72)999
b. Excess tax of 22)999
c. Excess tax of 1>4)999
d. VA. payabe of 22)999
74..he VA. payable for the 2
nd
*uarter is<
a. 1/4)999
b. 1$()999
c. 12/)999
d. None
77..he data durin! the second *uarterC
Output .ax $/)9
99
Input .ax 1>)9
99
VA. paidC
April $)99
9
5ay ()/9
9
Excess input tax) 1
st

*uarter
2)(9
9
.he VA. payable %or excess tax to be carried over& is
a. 4)199
b. 14)999
c. =)/99
d. None
7=.A ne business"an consulted you relative to the Llin! of tax return and pay"ent of his
business tax. .he business is VA. re!istered althou!h he is expectin! to earn an annual
!ross receipts ran!in! fro" >99)999 to 1)299)999 only. .hese are his *uestionsC
1. hat business tax should be paid by hi"+
2. hen is the deadline for Llin! the tax return for the "onth of 5ay+
$. hen is the deadline for the pay"ent of the business tax for the "onth of @une %or
second *uarter&+
1hich of the folloin! choices ould be the correct advice+
Questions
1 2 $
a
.
VA. @une
29
@uly
2/
b
.
VA. @une
2/
@uly
2/
c
.
Non
VA.
@une
29
@uly
2/
d
.
Non
VA.
@une
29
@uly
29
=/<=4
.he ,ity Fovern"ent of In!a has the folloin! purchases for the "onth of Au!ust 299>
fro" VA. suppliers of !oods andBor servicesC
Purchase of !oods fro" -ina store an "erchandise %inclusive of VA.& 11)299
Purchase of services fro" Da"an -ervices) Inc /4)999
7>..he a"ount payable to -ina after ithholdin! taxes of VA. and inco"e tax is
a. 11)299
b. 19)499
c. >)(99
d. 19)/99
=9..he a"ount payable to Da"an -ervices Inc. after ithholdin! taxes of VA. and inco"e tax
is
a. /4)999
b. /9)999
c. /2)/99
d. /$)/99
VA. Exercises
.rue or false
1. A VA. re!istered person ho issues a VA. invoice for a VA. exe"pt sale but fails to
display on the invoice the ter" VA. Exe"pt shall be sub#ect to VA. on that sale.
2. .he input tax of a VA. purchaser is the output tax of the VA. seller
$. -ervices rendered to persons en!a!ed in International shippin! or air transport
operations are sub#ect to 12A VA..
(. .he excess of output VA. over the input VA. is a current asset of the taxpayer
/. .he input VA. on purchase of capital !oods valued at 2)999)999 shall be spread over 49
"onths )or the life of the asset) hichever is shorter) sub#ect to 79A cap.
4. Persons en!a!ed in sale of services "ay also be alloed to clai" tax credit on
presu"ptive input tax.
7. Fross receipts on services rendered by all franchise !rantees are sub#ect to franchise
tax.
=. .
>. .
19.A physician is not sub#ect to VA. because in exercisin! his professional services he is
not en!a!in! hi"self in business.
11..here is no creditable input tax on sales to !overn"ent or any of its political
subdivisions) instru"entalities or a!encies) includin! !overn"ent<oned or controlled
corporations.
12.If the invoice price is inclusive of VA.) the a"ount !iven is "ultiplied by $B2= to !et the
VA. co"ponent thereon.
1$.A taxpayer ho operates a VA. and a non<VA. business cannot clai" input tax credit on
purchases of !oods to be used in his VA. business.
1(.Any input tax attributable to Dero<rated sales by a VA. Jre!istered person "ay at his
option be refunded or applied for a tax credit certiLcate hich "ay be used in the
pay"ent of internal revenue taxes.
1/.2an0s and other ban0in! institutions are sub#ect to VA..
14.I"portation of !oods are sub#ect to VA. even if the intention of the i"porter is to use
the i"ported !oods for personal purposes.
17..he !ross receipts derived fro" exercise of a profession and fro" other lines of vatable
business shall be co"bined for purposes of deter"inin! the threshold of 1)/99)999
1=..he account Output .ax "ust appear in the current liability section of the balance
sheet.
1>. Gease of copyri!ht on taxation boo0s are sub#ect to VA..
29.Input tax) bein! a tax) is an expense on the part of purchaser and is deductible fro"
!ross inco"e for purposes of co"putin! the net inco"e.
21.VA. is a re!ressive tax.
22.-yste" loss on electricity that are bein! char!ed by electric cooperatives to consu"ers
are sub#ect to 12A VA..
2$.Printin! of invoices and receipts %includin! delivery receipts& re*uires the approval of
2I'
2(.Purchases and sales are recorded in the boo0s of non<VA. taxpayer at an a"ount
hich is net of inputBoutput taxes
2/.A sale of poer or fuel hich is !enerated fro" solid aste is sub#ect to 9A VA..
1. true
2. true
$.f
(.f
/.f
4.f
7.f
=.
>.
19.f
11. true
12. true
1$. true
1(. true
1/.f
14. true
17. true
1=.f
1>. true
29.f
21.f
22. true
2$. true
2(.f
2/. true