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Name: ______________________________

1.

2.

Which is incorrect?
a. A taxpayer whose annual gross receipts/sales exceed P
1,919,500 shall pay VAT even if not VAT registered
b. A taxpayer whose annual receipts/sales do not exceed P
1,919,500 but who is VAT registered shall pay Vat.
c. The same transaction may be subjected to both income
tax and VAT
d. Marginal income earners are both exempt from VAT and
income tax.

12. Refers to a local sale of service by VAT-registered person to a
person or entity who was granted indirect tax exemption under
the special laws or international agreement.
a. Automatic zero-rated transactions
b. Effective zero-rated transactions
c. VAT-exempt transactions.
d. Zero-rated transactions.

KATRINA invested P500, 000 in the shares of stock of Manila
Trading Corp. Later she sold the said shares for only P350, 000.
The corporation’s shares are listed and are traded in the local
stock exchange. The percentage tax on the sale is:
a. None
c. P 1, 750
b. P 2, 500
d. P 50, 000

13. Which of the following are zero-rated transactions?
a. Sale of services to Asian Development Bank
b. Sale of services to Internation Rice Research Institute
c. Sale of gold to Bangko Sentral ng Pilipinas
d. Sale of services to duly registered and accredited
enterprises with Philippine Economic Zone Authority.

(500,000x 0.5&)
3.

4.

5.

6.

The following accounting records reveal:
Accounts Receivable, Beginning
P 100,000
Accounts Receivable, Ending
110,000
Inventory, Beginning
50,000
Inventory, Ending
65,000
Purchases
90,000
Sales
250,000
Purchase Discount
5,000
Sales Return
10,000
Collections
200,000
Cost of Sales
70,000
How much is the vatable sales?
a. P 250,000
c. P 230,000
b. P 240,000
d. P 200,000
How much is the outout VAT?
a. P 27,600
b. P 28,800

c. P 30,000
d. P 24,000

How much is the input VAT?
a. P 10,200
b. P 10,800

c. P 8,400
d. None

The following events happen in a VAT enterprise:
June perfomance of services
July received an invoice amount of P 112,000
August paid the services.
When and how much input VAT will be claimed?
a. July, P12,000
c. August, P12,000
b. July, P13,440
d. August, P13,440

7.

A VAT enterprise had a VAT exempt transaction, however, it only
has a VAT invoice. As the accountant of the enterprise what will
you advise?
a. Stamp “VAT EXEMPT” on the duplicate VAT invoice.
b. Charge and collect output VAT from client
c. Charge output and refund to client
d. Error in transaction does not pay output

8.

When to file VAT return?
a. Monthly
b. Quarterly

9.

c. Yearly
d. Weekly

When will you submit the required sales summary list to the
BIR?
a. Attached with the monthly VAT return
b. Attached with the quarterly VAT return
c. Submit only if sales exceeds P 2,500,000
d. Submit even if sales do not exceed P 2,500,000

10. Who are allowed to withhold VAT from its VAT suppliers?
a. Entities, organization, business or corporation duly
registered with Philippine Economic Zone Authority.
b. Non-resident individuals and corporation.
c. Government or any of its instrumentalities including
government owned and controlled corporation.
d. Resident foreign corporation doing business in the
Phillippines.
11. Which of the following is subject to other percentage tax?
a. Business with annual gross receipts do not exceed P
1,919,500.
b. Unregistered VAT enterprises.
c. Businesses who are engaged in sale of services and
goods.

d.

Businesses who are engaged in importation.

14. What input taxes may be credietd?
a. Input taxes from non-VAT suppliers
b. Input taxes from purchase of direct labor
c. Input taxes from importation of goods for sale
d. Input taxes from importation of personal and household
effects.
15. Diety is non-stock, non-profit organization made an importation
of agricultural food product in its original state from a
Chinese farmer amounting to P 2,240,000. If you are the
Customs Collector, how will you treat such importation?
a. Subject to 12% VAT.
b. Subject to zero-rated VAT.
c. Exempted from VAT.
d. Subject to 3% other percentage tax.
16. Mr. San Diego approached you and asked for your professional
help with regard to a sale of his ancestral house and lot in the
amount of P 5,000,000. Your advise would be: Such transaction
will be subject to
a. 12% VAT
b. Zero-rated VAT
c. Exempt from VAT
d. 3% other percentage tax
(subject to 6% CGT, exempt VAT)
17. Which of the following is exempt from VAT?
a. Export sale by non-VAT individuals.
b. Foreign currency denominated transactions
c. Sale of services to entities duly registered with PEZA
d. Sale to Ramon Magsaysay Awards Foundation
(b,c,d subject to 0% VAT)
18. Construction by XYZ Construction Corp. of concrete barrier for
the Asian Development Bank in Ortigas Center to prevent car
bombs ramming the ADB gates along ADB Avenue in
Mandaluyong City is subject to what business tax?
a. 12% VAT
b. 0% VAT
c. Exempt from VAT
d. None of the above
19. Call Center operated by a domestic enterprises in Makati that
exclusively the reservations of a hotel chain which are all located
in North America. The services are paid for in US $ and duly
accounted for with the rulings of Bangko Sentral ng Pilipinas. Is
subject to:
a. 12% VAT
b. 0% VAT
c. Exempt from VAT
d. None of the above
20. Sale of orchids by a flower shop which raises its flower in
Tagaytay is subject to:
a. 12% VAT
b. 0% VAT
c. Exempt from VAT
d. None of the above
21. Which statement is considered correct?
a. An excise tax which imposes a tax based on weight or
volume capacity or any other physical unit of measurement
is called graduated tax.

Statement 1: Any person who is VAT-registered but enters into transactions which are exempt from VAT (mixed transactions) may opt that the VAT apply to his transactions which would have been exempt under Sec. Regular conduct or pursuit of a commercial or an economic activity by a non-stock. Excise tax c. Percentage tax may be imposed together with VAT. On his sales in the Philippines. magazines. Percentage tax b. Is a liability either of the tax-exempt importer or the nontax-exempt purchaser. Statement 2: A person subject to percentage tax is also subject to value-added tax. Which of the following statements is incorrect? a. Expenses incurred after the goods are released from customs custody are disregarded in computing VAT on importation. c. Importation of apples for personal consumption c. Which statement is not correct? Transactions considered “in the course of trade or business” and. b. Imported goods which are subject to excise tax are no longer subject to value-added tax. Income tax d. Should be paid prior to removal from customs custody. Isolated services in the Philippines by non-resident foreign persons.Name: ______________________________ b. b. d. Percentage tax b. (input tax on importation is availbale only for business related importation) 27. Which is the exception? a. Statement 2: A seller or lessor of VAT-subject goods. d. b. Alamid exported cigarettes to Taiwan for sale. Value-added tax d. Importation of grapes for sales Tax Rates Coverage Basis Tax Rate . He is also subject to the business tax of: a. Regular conduct or pursuit of a commercial or an economic activity by a stock private organization. Importation or sale of fish. b. Importation of books and any newspapers. Which statement is wrong? Value-added tax on importation of goods: a. Is not available as input tax even if related to business. Shall not pay the value-added tax because the transaction was exempt at the point of importation. In making sales. 31. Statement 2: Government entities engaged in commercial or economic activity are generally exempt from value-added tax. c. his tax is: a. a. 22. d. VAT on importation is paid to the Bureau of Customs before the imported good are released from its custody. 28. Which statement is correct? The value-added tax on an importation: a. One of the following statements is incorrect. review or bulletin. a. 32. b. A taxpayer whose annual gross receipts/sales do not exceed P 1. if he subsequently sells the goods to a non-tax-exempt purchaser. An excise tax which imposes a tax based on selling price or other specified value of the article is called ad valorem tax. d. None of these 23. Only II is true 33. c. c. Three of the following are exempt from the value-added tax. d. All of the above. the purchasernon-exempt person shall pay the VAT on such importation. A percentage tax which is imposed whether the transaction resulted in a gain or loss is called indirect tax. a. Both statements are wrong c. Both statements are correct b. c.500 but who is VAT-registered shall pay VAT. non-profit private organization. Is imposed on an importation for personal use. Excise tax c. b. Cantor is a VAT-registered manufacturer of liquors. Should be paid by the tax-exempt importer. Statement 1: Non-stock and non-profit private organizations which sell exclusively to their members in the regular conduct or pursuit of commercial or economic activity are not exempt from value-added tax.919. 34. b. prawn. d. d. Importation of agricultural and marine food products in their original state. c. A and B 25. When a person who enjoys a tax-exemption on his importation subsequently sells in the Philippines such imported articles to a non-exempt person. One of the following statements is incorrect. which is it? a. Imported goods which are subject to excise tax are no longer subject to VAT. A taxpayer whose annual gross receipts/sales exceed P 1. Which of the following importation is subject to VAT? a. 30. Statement 1: A person subject to excise tax is also subject to value-added tax. properties or services whose actual or expected gross sales and/or receipt do not exceed P1. d. c. Isolated sale of goods or services for a gross selling price or receipts of P 500. subject to the business taxes include: a. which of the three taxes listed below that he pays forms part of the gross selling price? a. b. Only the first statement is correct. 35. livestock and poultry feeds. None of these 24. the purchasernon-exempt person shall pay the VAT on such importation. Value-added tax d.500 for any 12-month period who registers under the VAT system shall be subject to zero rate on his exports. Both statements are correct. 109 (1) of the Tax Code as amended. Percentage tax b. Only the second statement is correct. Is imposed on an importation for sale or for use in business.500 shall pay VAT even if he is not VAT registered.919. Importation of bamboo poles d. When a person who enjoys tax-exemption on his importation subsequently sells in the Philippines such imported articles to non-exempt person. Both I and II are true b. For purposes of the value-added tax. Importation of petroleum products and their raw materials. Expenses incurred after the goods are released from Customs custody are disregarded in computing the VAT on importation d. a. Should be paid by the non-tax-exempt purchaser to whom the tax-exempt importer sells it. Statement 1 is wrong while Statement 2 is correct 26. Percentage tax maybe imposed together with excise tax. VAT on the importation is paid to the Bureau of Customs before the imported goods are released from its custody. therefore. Burgos is manufacturer of fermented liquors. 29. Importation of frozen meat b. He is subject to the value-added tax. Excise tax c. c. Only I is true d.919. Both I and II are false c.000. Statement 1 is correct while Statement 2 is wrong d. all taxes on the products and transactions are passed on to the buyers. Both statements are incorrect. c.

Name: ______________________________ Persons exempt from VAT Gross Sales or under Sec. commissions and discounts from lending activities as well as income from leasing on the basis of remaining maturities of instruments: • Medium term (over 2 years but not over 4 years) 3% • Long Term Maturity ο Over 4 years but 1% not over 7 years • Short term 5% maturity (not over 2 years) ο Over 7 years 0% • Medium term 3% maturity (over 2 years but not over 4 years) Life Insurance Companies Total premiums (except purely cooperative collected companies or associations) 5% • Long term maturity Agents of foreign insurance companies: (except reinsurance premium) 1% ο Over 4 years but not over 7 years Total premium collected 10% Total premium collected 5% Cockpits Gross receipts 18% Cabarets. Night or Day Clubs Gross receipts 18% Boxing exhibitions Gross receipts 10% Professional basketball games Gross receipts 15% Jai-alai and race track Gross receipts 30% 0% ο Over 7 years On Dividends 0% On royalties. 5% discounts and other items of gross income paid to finance companies and other financial intermediaries not performing quasi banking functions • Short term 5% maturity (not over 2 years) Interest. profits from exchange and all other items treated as gross income under Sec. real or personal. rentals 5% of properties. lessee or operator of the following: . gas and water utilities Banks and non-bank financing intermediaries On interest.000. commissions and discounts paid from their loan transactions from finance companies as well as income from financial leasing shall be taxed based on the remaining maturities of instruments: Franchise Grantees: Electric . 32 of the Code Proprietors.000 and did not opt to register asVAT taxpayer 3% Finance Companies International Carriers: International air/shipping carriers doing business in the Philippines Interest. 116 Receipts 3% Domestic carriers and keepers of garages Gross Receipts 3% Gross Receipts 3% Gross Receipts 2% Radio and television Gross Receipts broadcasting companies whose annual gross receipts of the preceding year do not exceed P 10.

exchanged or (IPO)/secondary public offering of shares of stock in closely held corporations otherwise disposed in accordance with the proportion of stocks sold. bartered. barter. exchanged or otherwise disposed A corporate issuer/stock broker. barter. bartered or exchanged or after listing in the stock exchange • Up to 25 % 4% • Over 25% but not 2% over 33 1/3% • Over 33 1/3 % [return to index] 1% . exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities Gross selling price ½ of 1% or gross value in money of shares of stocks sold.Name: ______________________________ (operators shall withheld tax on winnings) Every stock broker who effected a sale. whether domestic of foreign. exchange or other disposition through Initial Public Offering Gross selling price or gross value of in money of shares of stocks sold. bartered. engaged in the sale.