CH7 – MCTP1

1. B – The sale of services is subject to 12% VAT based on the gross receipts
in the month of collection.
2. A – the sale of goods is subject to 12% VAT based on gross selling price in
the month of sale.
3. C – the fair value of properties received is the tax basis of the output VAT
on exchange of properties
4. D – the fair value or selling price whichever is higher is the tax basis of the
output VAT on sales of real properties
5. C – the fair value is the tax basis of the output VAT on sales of goods with
unreasonably lower selling price
6. A – The gross selling price is the tax basis of the output on installment
sales
7. C – the fair value is tax basis on the output of VAT on deemed sales
8. B –
9. B – Output tax is excluded in the gross selling price
10. C – Promissory note given by the buyer is excluded in gross receipts
11. D – The Appraisal value is not considered in the determination of the tax
base of the VAT on the sale of real properties
12. C – The sale of non-food agricultural or marine products is subject to
output tax
13. D – the gross receipts of non-life insurance companies is subject to output
tax
14. B – Gross receipts from residential dwelling with P15,000 monthly rental
is subject to the 12% regular output tax
15. C – Gross receipts from race track operations is not subject to the 12%
output tax