Chapter 2

Matching Type
1.

1. Refers to the sale, barter, exchange

and/or lease of goods or properties,
including transactions deemed sale
and the performance of service for
consideration, whether in cash or in
kind.
2. Means the total amount of money or
its equivalent which the purchaser
pays or is obligated to pay to the
seller in consideration of the sale,
barter or exchange of the goods or
properties, excluding the VAT. The
excise tax, if any, on such goods or
properties shall form part of the gross
selling price.
3. Subject to zero percent VAT rate.
4. It is a tax on consumption levied on
the sale, barter, exchange or lease of
goods or properties and services in
the Philippines and on importation of
goods into the Philippines.
5. Usual amount of VAT payed.
6. Taxes apply to goods manufactured
or produced in the Philippines for
domestic sales or consumption or for
any other disposition and to things
imported.
7. A fee assessed against businesses at
each step of the production and
distribution process, usually whenever
a product is resold or value is added
to it.
8. A primary source of tax revenue in
many developed countries.
9. Year
Vat
was
introduced
to
Philippines.
10. Is arrived at by deducting input tax
credits from output tax.

A. VAT Payable
B. 1988
C. Taxable Sales
D. 12 %
E. Gross Selling Price
F. Value Added Tax
G. Excise Tax
H. Zero Rated Sales
I. 1956

2. Problems
3.
A. Compute the VAT Payables
4.
1. Total Vatable Sales (VAT exclusive) = P100,000
5. Total purchases with VAT receipts (VAT exclusive) = P70,000
6.
7.
8.
9.
10.
11.
12.
2. Total Vatable Sales (VAT inclusive) = P112,000
13. Total purchases with VAT receipts (VAT inclusive) = P78,400
14.
15.
16.
17.
18.
19.
20. B.
21.
3. A manufacturer printed the price of his goods as $120 per article. He allowed a
discount of 30% to the wholesaler who in his turn allowed a discount of 20% on the
printed price to the retailer. If the prescribed rate of sales tax on the goods is 10%
and the retailer sells it to the consumer at the printed price then find the value added
tax paid by the wholesaler and the retailer.
22.
23.
4. A shopkeeper sells an article at its marked price $ 7500 and charges sales-tax at the
rate of 12% from the customer. If the shopkeeper pays a VAT of $ 180, calculate the
price inclusive of tax paid by the shopkeeper.
24.
25.
26.
5. Kylie buys an article for $ 10000 and pays 7% tax. He sells the same article for $
13000 and charges 9% tax. Find the VAT paid by Kylie.