1.

The following are taken from the records of Ato Corporation, a VAT-Registered business for Year 2011:
Income Tax Expense P 665,000
Input VAT on Purchases 120,000
Sales Returns 60,000
Sales Discounts due to prompt payments 150,000
Gain on Sale of Capital Assets-subjected to Normal Tax 50,000
Operating Expenses before Taxes 990,000
Community Tax 10,000
How much is the sale subject to RVAT? How much is the VAT due?
2. Katrina bought a camera detection machine from Japan as capital goods. The machine has an invoice cost of
P2,000,000. The custom duty is 50% of the invoice cost and the excise tax is 20% of the invoice cost and custom duty.
How much is the VAT due and payable?
3. Mr. Noel Dagdag, a senior citizen, bought medicine and paid P7,168. Assuming that he was granted a senior citizen’s
discount, how much is the original amount of sales?
4. The following data pertain to a VAT-registered taxpayer for September 2012:
Sales P 896,000
Domestic purchases from a VAT supplier, gross of VAT 268,000
In August 2012, there is an importation of goods to be sold, with a landed cost of P200,000. There are no sales in
August 2012. How much is the Value-Added Tax in September 2012?
5. Ato Corporation, a VAT-registered corporation, reported the following transactions related to sales of its inventory:
Total purchase per VAT invoice P 336,000
List price of products sold 600,000
Trade discount 100,000
Cash discounts if paid upon delivery 5%
Cash discounts if paid within 10 days upon delivery 3%
Operating expense 25,000
Ato Corporation paid upon delivery. How much is the output tax? How much is the Vat Payable?
6. A Co. is a nonVAT franchise grantees engaged in services that provides transport of passengers. A Co's records during
the year shows the following:
Gross receipts during the year, including VAT P 8,960,000
Operating expenses, including VAT 2,240,000
Income tax still due and payable 2,100,000
How much is the total business tax of A Co including surcharge?
7. Mport Corporation imported a siopao-making machine for resale at a 50% mark-up of the total landed cost. Related
information regarding the purchased of the machine is as follows:
Purchase price P 1,000,000
Duty tax 250,000
Excise tax 150,000
Transportation cost 60,000
Insurance cost 40,000
Total landed cost P 1,500,000
Additional cost incurred after release of the machine from the Bureau of Customs, P100,000. How much is the net
VAT payable if the machine is sold to VB Bakeshop during the taxable year?
8. X, a nonVAT-registered person, shows the following sales and expenditures during the last quarter of the taxable year:
Sales P 5,000,000
Sales returns 100,000
Sales discounts due to prompt payment 200,000
Purchases - VR supplier, including VAT 1,120,000
Importation of goods, including VAT 672,000
Capital depreciable goods, including VAT 1,344,000
How much is the amount of creditable input VAT?
9. A Co. is a nonVAT franchise grantees engaged in services that provides transport of passengers. A Co's records during
the year shows the following:
Gross receipts during the year, including VAT P 8,960,000
Operating expenses, including VAT 2,240,000
Income tax still due and payable 2,100,000
How much is the total business tax of A Co including surcharge?
10. Compurepairs Services was asked by the BIR to repair the bureau's computer machines used in the office. The repair
service fee amounted to P100,000. If Compurepairs Services is a VAT business, how much is the total amount of taxes
to be withheld by the BIR?
11. In its 4th year of business operation, the income tax return of MB Corporation showed an income tax due of P300,000.
Other information is shown as follows:
Total purchases per VAT invoice P 5,600,000
Standard input VAT 210,000
 Final VAT 150,000
1% CWT on sales of goods 90,000
How much is the net VAT payable of MB Corporation? P375,000
12. Flash Donaire, a resident Filipino, signed an endorsement contract as a professional endorser amounting to
P4,480,000, including VAT. How much is the net cash to be received by Flash Donaire after creditable tax inclusive of
VAT? P3,880,000
13. A VAT domestic common carrier reported the following gross receipts during the year:
From the transport of:
Passengers by sea P 2,500,000
Passengers by land 2,000,000
Cargoes by sea 1,000,000
Cargoes by sea 500,000
Input VAT 180,000
What is its net VAT payable? P360,000
14. Show Foods, a VAT business, imported a siomai machine from Japan. The following data were obtained related to the
importation:
Declared purchase price P 1,500,000
Fair market value of machine 1,800,000
Freight charges 180,000
Insurance charges 90,000
Duty tax 360,000
Excise tax 60,000
Expenses incurred before the release of machine from Bureau of Customs 10,000
How much is the VAT on importation? P300,000
15. A Non-VAT registered person reported the following during the year:
Export sales P 10,000,000
Sales of agricultural food products - original state 6,000,000
Gross receipts derived from millings of palay 2,000,000
Domestic sales 2,000,000
How much is the VAT-exempt transactions? P18,000,000.
16. During the quarter, a VAT-registered business reported the following:
Gross sales:
Cash sales P 500,000
Credit sales 800,000
Sales returns 100,000
Sales discounts due to prompt payment 50,000
Goods used for promotion 40,000
Sale of obsolete inventories 60,000
Consigned goods (unsold after 60 days) 100,000
How much is the Output VAT for the quarter? P163,200
17. Star Plan, Inc., a VAT-registered pre-need company, showed the following reports during the taxable year:
Gross Receipts Contribution to
Trust Fund
Educational plan P 10,000,000 P 4,000,000
Pension plan 8,000,000 3,000,000
Life and memorial plan 7,000,000 3,000,000
How much is the amount of output VAT assuming that the gross receipts are VAT exclusive? P1,800,000
18. MC Trading reported the following during the year 2012:
January to September:
Sales P 1,900,000
Percentage tax payment 57,000
On October 2012, MC registered under VAT system with beginning inventory amounting to P500,000. The actual input
VAT related to the said inventory was P9,000. Sales and purchases related to VAT operation from October to December
31, 2012 were as follows:
Purchases, including VAT P 1,120,000
Sales, including VAT 896,000
How much is the VAT payable at the end of the year? P137,000
19. SMC, a VAT-registered business, reported the following business operations during the year:
Sales of beverages to regular customers P 50,000,000
Export sales beverages 25,000,000
Sales of fertilizers 15,000,000
Sales to Philippine government 10,000,000
Purchases, including VAT 44,800,000
Operating expenses, including VAT 2,240,000
 How much is the net VAT payable? P2,220,000.
20. Campus Furniture, Inc., a VAT-registered business, reported the following results of operation during the quarter:
Sales to regular customers P 3,000,000
Export sales 1,000,000
Sales to government 1,000,000
Purchases, inclusive of VAT 3,360,000
Operating expenses, including VAT 560,000
Cost of sale 2,800,000
How much is the VAT payable during the quarter? P24,000
21. Philippine Airlines (PAL) transports passengers within and outside the Philippines. PAL reported the following gross
receipts during the taxable year:
Gross receipts from transport of
Within Without
Passengers P 20,000,000 P 15,000,000
Cargoes 10,000,000 5,000,000
If PAL has a total input VAT of P2,400,000 for its entire operation within and outside the Philippines, how much is the
net VAT payable? P1,200,000
22. DC Realty sold a house and lot to Manny for a contract price of P10,000,000 plus VAT with the following terms of
payment:
Year Particulars Amount
1 Down payment P 2,500,000
2 First installment 3,750,000
3 Second installment 3,750,000
The contract stipulates that if the buyer fails to pay on time, a surcharge of 5% and interest of 12% per annum shall
be imposed on the buyer. Assuming that Manny was 3 months late in paying the second installment, how much is the
amount of VAT collectible from the buyer? P486,000
23. During the quarter, a VAT-registered business reported the following:
Gross sales:
Cash sales P 500,000
Credit sales 800,000
Sales returns 100,000
Sales discounts due to prompt payment 50,000
Goods used for promotion 40,000
Sale of obsolete inventories 60,000
Consigned goods (unsold after 60 days) 100,000
How much is the Output VAT for the quarter? P163,200
24. Star Plan, Inc., a VAT-registered pre-need company, showed the following reports during the taxable year:
Gross Receipts Contribution to
Trust Fund
Educational plan P 10,000,000 P 4,000,000
Pension plan 8,000,000 3,000,000
Life and memorial plan 7,000,000 3,000,000
How much is the amount of output VAT assuming that the gross receipts are VAT exclusive? P1,800,000