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Answers / Solutions to Problems on Percentage Taxes and VAT, edition 2013 -2014

Vgl files, vgl files, sols to pt n vat 2013 - 2014
Problems in Chapter 13. percentage taxes sec.116 to 121.
Problem 1. Rainbow Corporation
a. Seller of Goods
Gross Sales Price
Less: Sales Returns, allowance
Net Sales Price
Pt rate
Percentage Tax Due

375,000
(16,500)
358,500
X 3%
10,755

Problem 2. Filipinas Company
a. Seller of Goods
Sales Price
Delivery Fees
Packaging, Handling Fees
Pt billed to customer
Gross Sales Price
Pt rate
Percentage Tax Due

78,650
1,350
950
2,428
83,378
X 3%
2,501.34

b. Seller of Services
Net Sales Price

358,500

Net Sales Receipts
Pt rate
Percentage Tax Due

293,000
X 3%
8,790

b. Seller of Services
Gross Sales Price
Rate of collection
Sales Receipts
Pt rate
Percentage Tax Due

83,378
65%
54,195
X 3%
1,625.87

Problem 3. Orlando Company
A, Seller of Goods
1st QTR
Gross sales Price
Less: Sales Ret., Allow. Disc.
Net Sales Price
Pt rate
Percentage Tax Due

2nd QTR
95,000
16,500
78,500
X 3%
2,355

85,000
0.00
85,000
X 3%
2,550

3rd QTR
113,000
9,000
104,000
X 3%
3,120

4th QTR

3rd QTR

4th QTR

100,000
12,000
88,000
X 3%
2,640

A, Seller of Services
1st QTR

2nd QTR

Cash Sales
Collections on credit Sales
Gross Sales Receipts
Less: Sales Ret. Allow. Disc.
Net Sales Receipts
Pt rate
Percentage Tax Due

?
?
95,000
(16,500)
78,500
X 3%
2,355

Problem 4. Matindi Corporation
a. Seller of Goods
Cash Sales
Credit Sales

35,000
62,500

Gross Sales
Less: Sales Ret. Allow. Disc.
Net Sales
Pt rate
Percentage Tax Due

97,500
(3,500)
94,000
X 3%
2,820

22

?
?
85,000
0.00
85,000
X 3%
2,550

54,000
26,000
80.000
(9,000)
71,000
X 3%
2,130

63,000
23,000
86,000
(12,000)
74,000
X 3%
2,220

b. Seller of Services
Cash Sales
Collections on credit Sales, Feb
Collections on credit sales, Mar
Gross Sales Receipts
Less: Sales Ret. Allow. Disc.
Net Sales Receipts
Pt rate
Percentage Tax Due

35,000
24,000
18,000
77,000
3,500
73,500
X 3%
2,205

100 734.770 X 3% 1.971 65.280.000 X 3% 544. IAC 11.200 197. ISC 720.700 P. 2 Total Gross Receipts Multiplied by % Tax Rate Percentage Tax Due Problem 8.QGR 98.200 X 3% 22.50 23 2nd QTR 175.000 18.500. compensation Oil and gas expenses QTRly Gross Receipts Pt rate Percentage Tax due Min.00 P14. (NVR) Caring and Maintenance Fees Tune Ups Minor Repairs Major Repairs Sales of Fuels. Seller of Services Min.950 Co. Mcanico . 1 Gross Receipts .900 9.789.300. Mahusay-Operator of School Buses Gross Receipts .00 P226.20 98.850 (8.200 197.200 197.780 56.560.800.700 34. Three Enterprises 76.710 Problem 6.690 6.500 24.600 164.000 7.760 113. Taxi Receipts net of expenses Comm.Problem 5. Jeepney 32.100 197.Bus No.300 17.500 23.165.100 197. A.Operator of Garage .400 Bus no.875. 010 Bus no 143 Bus no 211 Bus no 212 QTRly Gross Receipts Pt rate Percentage Tax due 98.600 164. C.380 12.Bus No.833.00 X 0.000 8.350 P102.800 164.03 P6.800 Collections of Prior Month-Service Sales Total Less: AR on SS .600 12.000 X 3% 248.290. Aguila Bus Company A.000 6.640 X 3% 3.00 67.June 2009 Taxable Gross Receipts PT rate PTdue 7.409.026 .100 657.100 1st QTR P.100 197. Greases.Mr.450 X 3% P2.400) P94.600 Problem 7-Mr.QGR Passenger fees Cargofees QTRly Gross Receipts Pt rate Percentage Tax due Co.000 X 3% 19. spare parts 2nd Q P158.

000 VATPerson TEB 3.0 0 367.Franchise Grantees.000 PT Rate/vat rate Business Tax Due Problem 9.10 8.5 8 68.750.700.000 X 0.00 2.25 0 X 0.877.200. To USA Telewriter Exchange to Canada 542.000 675.00 A TIB 702. Excellent Telephone Co. vgl files.000 212. DZBB 1.500.4 2 P26.000 Total Receipts Problem 10.2014 Problem 9.700 P82.10 63.00 0 X 0.000 702.675.680.320.000 P685.Vgl files. Person TEB TIB Gross Service Sales on domestic/national communication Gross Service Sales on Overseas Communication from Phil.680.000 685.000 .700 174.000 3.000 X 0.000 + 635.350. Hongkong Corp.GTC PT e. Franchise grantee NVRP Gross Billings on income as franchise grantee Collections on billings on income not covered by franchise Accts. China Corp.004.100.000 PT d.00 PT b.500 Taxable Base Multiplied by Gross Payments 717.00 0 537.200 % Tax Due Less: Payments included above-exempt Taxable Gross Payments 2.03 56.907.000 Vat person TIB 3.200 X 0.200 VAT RP 82.000) 635.907.250.340.000 = P13.000.000 1.292. bal.12 P12.600. MWSS 3.000 16.Rec.500 X 0.02 X 0.000/1.200 Problem 12.600.02 Business Tax Due 22.250 1.500 Taxable Base Multiplied by Tax Rates 1. . Mla.750.02 172. Gas Cash Sales Collections on Credit Sales 910.58 Allocated VC 685.5 0 VAT c. franchise holder Non-VAT Reg.12 Problem 11.000. sols to pt n vat 2013 . continuation VAT Due (Output Tax) Less: Vat Credit (VC) Vat Still Payable VAT RP (130.220 15.0 0 13.317.000 7.200 X 1/11 B TIB 702. 24 2.800 x 685.000 = 1. on income as franchise grantee Taxable Gross Receipts P765. PT a.837 70.122.000 X 0. Overseas Dispatch from Phil.00 0 1.Meralco 15.320.450.

On Long-term Maturity Rental Income.000 475.7 1 vat Problem 13.55 X 0. XYZ Banking Corp.000 520.000 X 0.256 Problems in Chapter 14.000 75.750 a. Deposit safety boxes 73.750 26.000 X 12/112 256.512.390.512.500 11. On Long Term-less 5 yrs c.258.88 1. On Med.01 18. percentage taxes sec.392. Sold through the local stock exchange Selling Price (575 x 265 shares) Multiplied by % Tax Rate 152.000 192.07 18.01 0.000 0.000 4.88 Total Percentage Taxes Due 25 b.55 1.040 Percentage Tax VAT 2. & Discounts Earned a.500 287.800 9.07 Total Percentage Tax due 10.07 5.410 Problem 14.110 b.01 Percentage Tax due 2.800 PT 0.05 0.500 X 0. Building / Offices Net Trading Gains Other Ordinary Income 260.250 137.05 0.10 X 1/11 2. Sold through the Initial Public Offering Selling Price (52 x 2.05 0.000 165.07 0. Gross Receipts on Local Communication Multiplied by the Tax Rates Business Taxes Due X 0. On Long Term-more5yrs Rental Income from PT Rate PT 375.375 X 0.50 0 Multiplied by the Collection rates Gross Receipts on Overseas Communications from Phil. Amount Interest. Problem 1. AMOUNT Interest Income on loans: a. ABC Banking Corp.600 shares) 135.200 27.000 0. Lease Inc.122 to 127.200 Multiplied by % Tax Rate X 0.606 50.113.07 0.005 Percentage Tax due 761.352 .950 Total Percentage Taxes Due 120. On medium term maturity c.000 250. On short term maturity b.07 0.0 X 0.05 0.650 19.600 750 17. Net Trading Gains PT Rate 216. Tibo Company-Resident Foreign a.12 151.000 285. Term 3 1/2yrs b.000 0. Commissions.000 395.65 X 65% 1.

00 X 0. Dividend Income from Stock Invest.000. b.50 Problem 4.000 Gross Receipts on Ins.640 12. e.02 74. VIR Corp.05 PT 730 2.000 X 0.000 Multiplied by % Tax Rate X 0.800. d.75 X 0.80 618.000. Sold through the Initial Public Offering Selling Price Multiplied by % Tax Rate b.250. Interest & Commissions on Loans Discount on lending activities Income from rental of appliances Other Gross Income Amount 14.180 Total Percentage Taxes 11. Premium Marine Insurance Premium Health & Accident Insurance Prem.00 933.00) 825.000 X 0.00 960.075.982.02 Percentage Tax due 7.000 165.510 632. Included Total Gross Insurance Premium Multiplied by Collection Rates Taxable Gross Receipts Multiplied by Tax Rate Business Taxes Due X 0.00 (0.12 620.50 1.750. a.500. a. Bahamas Insurance Company NLIPrem Life Ins Prem 825. Prem. Non-Life Ins.05 0. Premiums Multiplied by Tax Rates 447. Sold through the Local Stock Exchange Selling Price 275.650 23. c.930 6.00 Problem 3.000 Business Taxes Due VAT 26 PT .000.000 X 0.500.005 385.12 746.200 12.00 97084 VAT PT Problem 5.00 Gross Insurance Premium Less: Exempt Ins.700 Percentage Tax due Total Percentage Taxes Due 1. XYZ Corp. Life Insurance Collections on the ff: Ins.05 0.600 PT Rate 0.375 9.00 X 0.05 0. Prem.400 270.600 130.Problem 2. Property Insurance Premium 282.02 53. Life/Disability Ins.05 0.000 350.00) (27. Cuba Corporation-Insurance Co.600 58.

840 Fire Insurance (857000 x 40% x 90%) Marine Ins.800 2.000 2.840 X 0.000 615. (857000x15%x80%) Life Ins.600 2.600 0.B. Total Insurance Premium Collectible from the Insured 857.000 22.30 0. (857000x20%x60%) Total Gross Receipts Multiplied by PT Rate 561. 308.335 X 0.560 147.060 420.50 Problem 8. Taxes 4.800 0. Problem 9.000 0.000 65.000 440.12 Bus.600 35.000 588.Prem.02 1.000 762.000 X 0.Problem 6.480 700 Problem 7.000 70.10 Percentage Tax Due Life Insurance 102. Prem.000 150.000 595.408 474. Co.15 0.407.635.142.00 56. VGL Corp.000 4.000 818.335. Billiard Center Virgilio Disco Club PBA Basketball Movie Theater/Cinema Music Museum Letters (b). Mr.095.000 June 500.18 935. (e).000 75.000 195.314.690.000 May 450.000 Non-Life Ins.05 X 0. Persons liable to Amusement Taxes San Lazaro Race Track E.12 0. Lima Company – thru Agent of Foreign Ins.000 430. not thru Agent of FICA Non-Life Insurance 29.000 165.000 210.840 102.520 149.18 0.600 Insurance Policies taken directly Fire Insurance Premium Payment Life Insurance Premium Payment Life Insurance 35. Honduras.000 320.133.000 Taxable Gross Receipts Multiplied by % Tax Rates Percentage Taxes Paid 29.444 27 .000 Rate 0.900.117.240 3.12 0.000 215.-Night Club Entrance Fees Table Charges Corkage Fees on Drinks & Foods Entertainment Fees Sales of Foods & Drinks Collections on Credit Sales(F/D) Total Gross Receipts Multiplied by % Tax Rate Percentage Tax Due Amount 14.400 April 350.18 381. & (f) are subject to VAT.000 71.18 820.000 390.Ins.05 5.250 588. (857000x25%x70%) Misc.975 102.

Mr.00 PT Rate 0.666.00 Problems in Chapter 15.10 0. after cost.04 30.00 6.500.80 .00 3.Problem 10.00 6.00 4.000.000 0.00 7.00 7. before tax Multiplied by % Tax Rates WIN 1.824.10 0.00 5.000 1.67 17.90 684. Wines Gross Receipts Multiplied by Percentage Tax Rate Percentage Tax Due Less: Tax Credit Percentage Tax Still Payable 215.000. Owner of Horses Bombastic (net of % tax) Fantastic (before % tax) Introvoys (after % tax) Streetboys gross of%tax) Prizes Won 100.600 Percentage Taxes Due Place 0.778 15.940.541.Seller of Goods NVRP 28 1. Cupids Cocktail Lounge Show and Corkage Charges collected Sales of Foods/Beverages Multiplied by collection rate Cash Receipts on Foods/Beverages Sales of Liqours.00 Problem 11.400.00 800.10 PT 10.500.00 6.00 (15x2) x250 (40x4)x45 (12 x 350) 237. Resident bettor in horse races Gross Winnings.10 1.600.200 0.667 0.000. before tax Gross Winnings-net of 2500cost.200.85 382.60 (18x2)x17 5 1.600.000 0.00 150.04 256.18 230.20 (20 x 80) 735.04 Quinella 6.00 250. wines Multiplied by collection rate Cash Receipts on Liqours.500 760.10 Percentage Taxes Due 150.166.500.00 100.000.tax Multiplied by % Tax Rates Double 45.00 591.200.600 450.10 0.bef.67 Total B.00 163. percentage tax credits Problem 1.020.080.10 0.350.00 1.00 0.300.00 4.00 4.200. Masuerti .67 175.00 360.500.000.00 120.1000 X 0. Winnings/Prizes on Bets Gross Dividend-after cost.winnings on his racing activities A.00 7. before cost & tax Less: Cost of Winning Tickets Gross Winnings.666.04 0.378 Problem 2. Galaxy Store .200.300.00 66.10 59.00 0.00 25.282.400 215.00 0.00 7.00 Winning B E T S PLACE Forecast DOUBLE 7.

85 750 750 1. chapter15 PROBLEMS THEORIES A1 A2 A3 A4 A5 A6 A7 A8 28.30 850.400 1.795 3. billed to customers Gross Sales Less: Sales Returns.80 22.03 1.395 51.000 X 0. Neptune Enterprises .895 X 0.Seller of Goods .03) Percentage Tax Withheld by customers Percentage Tax Still Payable (Refundable) 50.03 1.Cash Sales of Goods Credit Sales of Goods Other Charges on Sales.900 47.610 X 0.Dwelling units.450 55.400 D -290.NVRP Purchase Price of Goods Sold Gross Profit Rate based on Cost Gross Profit from Sales Add: Purchased Price of Goods Sold Gross Sales Price of Goods Sold (28.600 760 57.(D) A (D) A C A B (D) B B9 B10 B11 B12 B13 B14 B15 B16 SOLUTION TO PROBLEMS ON VALUE ADDED TAX CHAPTER 18 Problem 1.30 Problem 3.500 (63. Allowances.668.15) ANSWERS TO REVIEW MATERIALS ON OTHER PERCENAGE TAXES.00 818.000 x 180%) Percentage Tax passed on to customers Gross Sales Price Less: Sales Returns & Discounts Net Sales Price Multiplied by % Tax Rate Percentage Tax Due Less: Tax Credit % Tax Paid on Original Return (25.700 19. YEAR 2013 29 C C C A A A (B) D .000 A B A A C C A D A9 A10 A11 A12 A13 A14 A15 B A D A D C B B1 B2 B3 B4 B5 B6 B7 B8 C A. SOS. Discounts Net Sales Multiplied by % Tax Rate Percentage Tax Due Less: Tax Credit Percentage Tax Still Payable 36.060 1.436.100.400 28.000 x 0.400 .

000 0.500.400 22. a) Weekly Vat Input Tax Payable 60.000 108.03 0.12 0.00 0.000 VAT X 0. 000 42.142.12 840. Allow.000 56.03 2.000 Rate 0. Non-Vat Registered Seller of Goods Sales Price of Goods to Vat Reg.142.000 0.000 PT X B.03 1.03 1.03 0.000 48.Disc. Gross Sales Multiplied by tax rate Business Tax Due NVRP 35. Cost Price of Services Purchased g.300.500. Purchase Price of Goods Less: Purchase Ret.03 300.000 896. Invoice Price of Goods Sold Total 2nd Week d.000 VAT X 4 1.400 Total Business tax Problem 3.000 150. Sales Price of Goods to Non-merchant cust.600 27.12 1. Disc. If 1 2 3 4 0.200 .400 X 12 / 112 2.000 7.500.12 52.200 77.000 45.000 Non-residential dwelling units 2. Gross Purchase Price of Mdse b.000) 100.000 1.000 PT X 3 1.000 90.14 18.800 30 67.000 48.400.12 12 / 112 12 / 112 Output Tax 120.000 42. Gross Purchase Price of Goods e.000 720. Invoice Price of Goods Purchased 4.800 100.000 PT X 0. Allow.000 448. Invoice Price of Goods Sold 3rd Week f.000 232.940.568 VRP 0.857. If residential dwelling units 1 2.000 160.600 X 0.000 PT X 0.86 156.800.03 0.000 45. Purchase Price of Supplies c.000 Problem 2.800 232.000 840. LGV Enterprises 1st Week a.000 60.800 77.000 4th Week i.000 Net Purchase Price 2. Sales Price of Merchandise Less: Sales Returns.400.120.600 22.000 (60.000 PT X 0. Sales of Merchandise h.000 1.000 PT X 2 1.500. Customers Sales Price of Goods to Non-Vat Reg.000 1.12 0.03 75.968 Amount 500. Net Sales Price k.12 12 / 112 12 / 112 0.800.00 22.000 120.000 156. Cust.A.000 54.400 85.800 132.100.86 78.000 54.

Less: Purchase Returns of Goods & Mat. Multiplied by VAT Rate Value Added Tax (Input TAX0 96. VRP Sales Price of Goods Less: Sales Returns.088 11. Allow.00 99.b. Net Sales Price of Goods Multiplied by VAT Rate Value Added Tax (Output Tax) Less: Vat Credits Input Taxes Vat Paid Prior Months of Qtr Total VAT Credits VAT Still Payable April 195. Seller of Services VRP Cash Sales Collection on Credit Sales Deposit for future contract of Services Sales. Net Purchase Price Multiplied by VAT Rate April 71.000 61.12 7.000 19. Allow.000 23. Apr X 12 / 112 .142. Disc. Monthly 556.657.000 0.800 3.000 Less: Sales Returns.12 Problem 6. 25.795.00 195.VRP..600 0.880 Note: The amounts on the last month of each calendar or fiscal quarter shall be on a cumulative amounts.248 396.600 Net Sales Price of Goods 305.12 23.000 86.000 99.12 June 198. Disc.800 Problem 4. Fiscal quarter Feb.360 64.76 353.400 186.795.000 0.rentals Sales Price of used/old office assets Gross Receipts Multiplied by VAT rate Value Added Tax (Output Tax) Less: Vat Credit (Input Tax) VAT Still Payable 193.320 31. 15.000 0.86 203. Panama Trading Co.20 Problem 5.312 11.000 0.000 247.760 140.312 + 10.14 Gross Purchase Price of Capital Goods/Mat.000 34.000 18.000 475.000 31.000 455. Net Purchase Price of Capital Goods & Mat. Venezuela Company .12 22.000 0.4000 May 210.600 67. Jamaica Corp.000 216.880 10.512 June C1.920 Purchase Price of Supplies Purchase Price of Services Total Less: Purchase Ret.96 7.392 8.000 34. 15.880 8. Disc. March Sales Price of Goods(Vat Inclusive) 320.088 11.400 Multiplied by VAT Rate X 12 / 112 X 12 / 112 31 F.821.400 0.000 25.12 Input Tax 8.808 X 0.824 May 65.000 15. M.20 39.616.088 15.512= 25.960 X 0.12 47.

500 165. 198.696.000 12.57 19.272 19.12 22. Net Purchase Price Multiplied by Tax Rate Input Taxes 32.000 Total 121.520 Actual Input Tax on Inventory 17. SOG Invoice Price of Merchandise-VAT inclusive Sales to Customers-net of sales returns Consignment Sales Mdse on consignment unsold 61-90 days Gross Sales Multiplied by tax rate Output Tax 397. SOG Invoice Price of Merchandise .86 = 39..842.932.000 465.400 185.932.57 48.100 X 0.339.43 32 .12 19.86 32.000 X 2% = P5.272 March 176.Value Added Tax (Output Tax) Less: Vat Credits Input Taxes Vat Paid Prior Months of Qtr Total VAT Credits VAT Still Payable Purchases (VAT Exclusive) Less: Purchase. Ret.VAT inclusive Sold to MNO Corp.86 22.722.900 582.500 X 12 / 112 57. Disc.000 Office Furniture 25.272 10.860 22.500 75.86 Locom of MI 12/31/12 P296.12 69. Sold to Other Customers Gross Sales Mulitplied by tax rate Output Tax Less: VAT Credits Purchase Price of Goods-Vat Exclusive Merchandise 75.200 330.000 538.792.920 TIT But claim actual IT on MI P17.860 F.000 66.43 Problem 7.86 Feb. M. XYZ Company & MNO Corporation XYZ Co.120.406.000 10.00 17.200 X 12 / 112 49.000 Multiplied by Tax Rate X 0.600 X 0.860 28.600 MNO Corporation.000 36.406. April 619.000 Service from VRP 21.852 10.678.57 + 28.600 Total VAT Credits VAT Still Payable 135.500 X 0.12 Input Tax 14.

000 x 112% = 274.000 x 12% = 33. 336000 x 12/112 = 36.400 C3.128.71 11. 412. Surinam Corp. 32.57 Less: VAT Credits 31.57 C6.000 27. 125.12 31. GSP IS 100% C1.9.71 265.400 C3.410.880 C4.600=31.280 + 33000 + 1848 = 52.600 – 9.285.000 x 220% = 275.500 Problem 8. mark up based on gross purchase price Output Tax 52.848 OT C6. 434.000 x 12% = 15.000 OT C4. 274.600 x 12/112 = 9.600 x 12/112 = 9. 17.000 34.848 GPP IS 30%.880 x 12/112 = 2. 145.000 VC 33 . 26.000 x 12% = 27. 9600 + 15000 + 7400 = 32. 89.600 IT C2. 125.32.000 OT C5.000 IT C3 (89.800 = 401.000 – 14. MU IS 80%. Seller of Goods VRP Output Tax 43. 9600 + 15000 + 7400 = 32. Granada Corp.000 IT C3 (89.00 GPP IS 100%.000 x 12% = 15.400 x 12% = 1. 125.000 x 12% = 33.000 x 12% = 17. 125.000 + 33000 + 1848 = 66.600 .600 Problem 9.200 X 12 / 112 14.00 Less: VAT Credits 32. 15.500 x 12% = 17.000 x 180% = 144. 245.780 Problem 10.000 / 30% = 266.848 32. VRP. please modify the wrong problem data and requirements shown after these solutions: Solutions to Case A.600.848 OT C6.000.500 = 397.600 C4.780 8.800 46.128.400 C2.128 OT C7. 17.000 OT C5. 230. MU IS 70%.000 C2.848 OT C7.667 X 12% = 32.600 + 2. mark up based gross sales price Output Tax Less: VAT Credits VAT Still Payable on 66.280 OT C4. 89.220 C1. 15.72 C!.600 C5.880 + 7.600 IT C2.400 + 1.000 VC Solutions to Case B. Guyana Company .428.500= 27.028. Multiplied by tax rate Input Tax Mdse purchase from VRP Multiplied by tax rate Input Tax Total Input Taxes VAT Still Payable 135.600) = 80.600) = 80.000 X 0.400 + 2.400 .485.028.00 VAT Still Payable 20. 27. GSP IS 180% C1. 401.Less: VAT Credits Purchase Price of Merchandise Mdse purchase from XYZ Co.600 x 12/112 = 43.00 VAT Still Payable 11.000 = 434.VRP Output Tax Less: VAT Credits VAT Still Payable 36.400 + 160.57 C1.400 x 12% = 1.000 x 220% = 275.

57 46.000 845. N.A.414.57 C4.015. C1.000 345.000 132.600 Landed cost of imported goods P125.105 IT C5.20 OT C2.614.000 356.912 Presumptive Input Tax C4.90 0.A.200 = 1.875 x 12% = 3. 25.29 = 12. Excellent Manufacturing Co.041.130 X 12% 698. Gross selling price of locally purchased goods with 80% mark up based on gross purchase price Case b.250 X 12/112 633.200 x 12 / 112 = 1.912 + 3.792.75 0. 835.75 0.000 1.400 The owner took home for his family use some items of imported goods worth P15. Toronto Enterprises Output Tax Less: VAT Credits VAT Still Payable 100.Problem10.583.600 165.900 1.200 x 39.198 X 7% 113.250.015.85 0. 750.200 OT C2.29 IT C6. 3.000 / 1.510 X 3% Problem 12.400 X 12/112 1.150 150.65 0.414. 25. Fish is a marine food product. vat credit and vat payable for each of the following cases/situations: Case a.841.792.750v X 2% 105.000 + 341.43 C1.70 0.500 175.841. 835.041. 13.000 x 12% = 100.000 = 835.93 + 3.500 = 28.98 34 .95 Cash Receipts 247.00 53.400 1.176.600 X 12% 140. not an agricultural food product.358. 546. 0.600 X 12/112 328.775 X 12/112 123.00 Gross selling price of imported goods with 120% margin based on landed cost Output tax paid for the first two months of the said quarter P7.SOG.80 0.800 x 4% = 3.074.20 12.785 x 12% = 65.250 X 12/112 750.145 X 12/112 119. Motel.22 Note. a vat registered person provided us its business information in a quarter in year 2013 as follows: Invoice price of local goods bought P89.860 132.95 0. hence no PIT Output Tax Less: VAT Credits VAT Still Payable 65.93 IT C3. VRP.598. Gross selling price of locally purchased goods with 70% mark up based on gross sales price Problem 11.PT SOS-12%Vat SOS-12%Vat SOS-12%Vat SOS-12%Vat SOG-12%Vat SOG-12%Vat SOS-12%Vat SOS-5% PT SOS-12%Vat SOS-3% PT Gross Sales 291.800 + 28. Resort Dealer/Distributor of Goods Producer/Manufacturer of Articles Contractor Life Insurance Company Beauty Salon / Hair Spa Operator of Taxis/Buses generally SOS-12%Vat SOS-12%Vat SOS.450 x 12 / 112 = 3.176. Various Business Establishments If silent.250 X 12% 394.614. 0.000 + 85.60 N. Based on Gross Sales Merchants Dealer of Securities Lending Investor Bank Finance Company Broker Restaurant / Caterer Hotel.200.57 = 53.583. 33.105 + 1.400 Required: Compute for the output tax.000 X 12% 356. Surinam Corp.22 53.57 IT Problem 13.800 Collection Rates 85%. 97. Please modify the problem data and requirements as follows: Surinam Corporation.200 C3.500 415.

292.094. Canada Enterprises Sales of Imported Goods 463.00 96.157.000 Other Import Chages & Expenses 87.00 (28.622. NVRP.000.00 35 275.00 Sales Price of Imported Goods Multiplied by tax rate Output Tax Less: VAT Credits VAT on Imported Goods Vat on Local Goods Total VAT Credits Excess VAT Credits Problem 2.0 0 46.0 0 X 0.100.000.000 Custom Duties 35. Chicago Import & Export Co.350.000 (15000 x 60) Transportation Charges on Imported Goods 42. _VRP Invoice Price of Imported Goods 900.00 Problem 3.12 40.200 Multiplied by tax rate X 0.00 211.12 VAT on Imported Goods 131.00 118.00 57.850.00 334.00 294.00 73.000 x 30% = 49. Dealer of Toys Dutiable Value Other Import Charges & Expenses Custom Duty (75% of DV) Landed Cost Multiplied by tax rate Input tax on importation Sales Price of local toys Sales Price of imported toys Gross Sales Multiplied by tax rate Percentage Tax Total Business Taxes Due 158. Co.00 17.00 X 0.359. 211.00 48. Cost Price of Jewelries from USA Ins.000 (500 x 60) Dutiable Value 972.500. Australia Mfg.00 17. 500 + 25800 + 6700 + 35000 + 7500 + 1500 + 2600 + 7600= 87200 Problem 4.29 40.000. Prem.00 145.651.000.12 35.900.500.000.500.000 x 35% = 73.850 C2.00 49.400. 165.00 39.304 C1.00 X 12/112 29.122.000.122.03 4.SOLUTION TO PROBLEMS IN VALUE ADDED TAX CHAPTER 19 Problem 1.200 Landed Cost 1.00 X 0.600.000 (700 x 60) Insurance Premium on Imported Goods 30.464.500 165. & Freight Cost Dutiable Value Custom Duties (35% of DV) Other Import Charges(30% of CP) Landed Cost Multiplied by tax rate Vat on Imported Goods C1.71) .300.

600 X 0.484.57 CP of Local Mdse Multiplied by tax rate Input Tax -Local Input Tax . Various Merchants a.000 X 0.000 x 34.000 X 0.800 + 26.00 6.00 295. 165.678.250 d.00 VAT Payable 1.700.000. Spain Corporation Taxable Sales Multiplied by tax rate Output Tax Less: VAT Credits VAT Still Payable C1.12 10.318 16.400 = 922.00 35.000 = 23.750 660.100 52.560. 700.000 x 12/112) Value Added Tax still payable 0.500 + 12.000 27.000. France Corporation Quarters 36 C1. Virginia Corporation .28 13.000 17.000 x 35%) Dutiable Value Custom Duties (65% of DV) Other Import Charges(30% X DV) Landed Cost Multiplied by tax rate VAT on Importation 20.05 8.900 .00 35.000.111.12 55.Multiplied by tax rate Output Tax Less: VAT Credits Dutiable Value Custom Duties (65% of DV) Legal Charges within BoC Landed Cost Input Vat on LC at 12 % I T on purchases(65.000 / 1.750 b.72 CP of Imported Goods Ins.800 C2.05 34.28 Problem 5.000 X 0.57 SOLUTION TO PROBLEMS IN VALUE ADDED TAX CHAPTER 20 Problem 1.400 Vat Credits Problem 2.470.250 156.208.152 6.700.318 C1. 910.05 12. GC Gross Payments Whholding VAT Pay .VRP Output Tax 17.rate Whholding Vat Payments Net Cash Payment 165.00 102.470 42.600 = 55. GC 695.00 158.Imported Total Input Taxes 84.550 8. 23.000 + 5.12 6. GA 242.678.000 x 12 / 112 = 17.448. PC Problem 3.Prem & Freight (20.900 c.964.100 229.57 Less: VAT Credits 16.650 X 0.000 7.

000 Excess Vat Credits (41.000 94.000 26.000. 87.200 C2. Paris Enterprise Output Tax on Actual Sales Output Tax on Transaction Deemed Sales Output Tax Less: VAT Credits Input Taxes on purchases of: Merchandise Raw Materials Capital Goods Supplies Services Real Property Total Excess Input Tax in Previous Qtr Output Tax paid in the last two mos.000 = 123.000 95.000 = 267.500 38. The amounts for Sept.000 65. N.000 = 258.000 31.000 + 95.) C1.500 655.000 Vat Credit C3.000 75.000 = 101.900 640.000 21.000 40.900 Problem 7.700 294.000 19.000 101. Aug.700 922.500 Problem 4. Withholding VAT Payments Vat paid in Original vat return Total VAT Credits Excess VAT Credits 60. Texas Corporation Output Tax Less: Vat Credits Vat Payable Months in 3rd quarter (not 2nd quarter) July August 96. Sept.000 Vat Credit C2.000 123. (28.000 (38.000.000 Output Tax C4. November and December. 41.000 + 82.000 The amounts for Dec.) C1.000 72.600 35. Is cumulative (inclusive of October.400 614.200 = 655.500 +527. 87.000 + 112. A.000 + 97. (inclusive of July.000 4th 934. 60.200) 3rd 693.000 241.000 Vat Credits Problem 6. December . Is cumulative.000 57.000 + 14.100 2nd 826.000 + 21.000 = 280.000 + 82.Output Tax Less: Vat Credits Vat Payable 1st 780.900 (96. Germany Company 37 O.800 + 96. J. 31. Boston Corporation Output Tax Less: Vat Credits October 60.000 November 95. Sept.000 3.000 Vat Credits Problem 5. 237.000 + 14.300 166.

00 21. B43. A14. B A23. B35. B28. C A30. B41. B36. B3. THEORIES ALL A. B13. B31. A16.200. B26. A2. A8. B A21. B A20.700 vs. D A27. B45. B32. B15. D vat A26. B. B10. B39. A15. B6. B A24. B44.00 6. A11. SET B. A9. B25. A31. D. A3. B B C B NO DATA A A C A D B D B A D A 38 B17. B42. C A28. 21. B30.B. B34. C A17. C A A D D D D D D B A B A D C B B33.300 (get higher) ANSWERS TO MCQ REVIEW MATERIALS ON VALUE ADDED TAX A1. B12.300. B21.500. B2. D . D A18.00 C1. A6.Output Tax on Sales of Mdse Less: VAT Credits Input Tax on Purchase of Mdse Input Tax paid on Inventories Presumptive Input VAT Total VAT Credits VAT Payable 14. B14. B8. B22. 285. B7. B27. B A19. A12.4 B5. A10.000 x 2% = 5. B40. B24. A13. B38. B23. B9. B37. B A32. A7. B19. PROBLEMS D B A C B A D B A D D C D A B B B1. B18. B29. A4. A A25. C A22. B11. B A29. A5. B20. SET A. B16.