TAXATION 6- Value-Added Taxes

Pre-test

1. The following exempt goods are subject to VAT, except:

a. Agricultural or marine food products in original state
b. Livestock and poultry for human consumption
c. Breeding stock and genetic materials
d. Refined sugar in the sugarmill
2. Dagat Inc. purchased the following from abroad
Sea shells and coral décor 320,000
Tuna and Salmon 120,000
Compute the taxable importation.
a. 0 b. 120,000 c. 200,000 d. 320,000
3. Jess arrived from Wuhan, China with an immigration visa. He brought with him the following:
10 pieces of IPhone X 1,500,000
5 desktop PCs 200,000
1 piece of used laptop 30,000
1 piece of used calculator 10,000
Compute the taxable importation
a. 1,700,000 b. 1,740,000 c. 40,000 d. 0
4. AFAM imported various personal and household effects with a value aggregating 400,000. 320,000 of these
were subjected to 8% duty by the BOC. What is the VAT on importation?
a. 0 b. 41, 472 c. 42,240 d. 48,000
5. S Mugler Co. imported goods for domestic sale as shown below:
Invoice amount (1 CND= P 100) CND 20,000
Other costs in the PH port P 70,000
Other cost before withdrawal of goods, 85,000
(including facilitation fee of 5,000)
Custom duties 10%
Freight from port to warehouse 20,000
Compute the custom duties
a. 200,000 b. 207,000 c. 207,500 d. 80,000
6. Based on the preceding problem, compute the VAT on importation
a. 282,840 b. 80,000 c. 207,000 d. 0
7. Pinoy Corp is a licensed franchisee of Kano Corp, non-resident foreign franchisor. During the month, Kano is
due to pay 800,000 royalties. Compute the amount due to Pinoy Corp.
a. 0 b. 96,000 c. 100,000 d. 85,714
8. Assuming the contract price is VAT-inclusive, the amount due to Pinoy Corp is:
a. 0 b. 96,000 c. 100,000 d. 85,714
9. Before shipment, Jess had the machine customized in Saudi for 500,000. The generator had a total landed cost
of 1,200,000. The supplier installed the generator at a cost of 220,000. Compute the total landed cost
a. 0 b. 1,200,000 c. 1,700,000 d. 1,920,000
10. Based on the preceding problem, compute the total amount due to the BIR:
a. 0 b. 144,000 c. 26,400 d. 170,400
11. Venus Drug made the following sales during the quarter
Senior Citizens PWDs Others
Vitamins and minerals 300,000 20,000 500,000
Insulin 200,000 100,000 400,000
Other meds 100,000 140,000 300,000
Digital BP 50,000 20,000 150,000
Therapy equipment 80,000 290,000 210,000
Compute the exempt sales for Senior citizens
a. 730,000 b. 290,000 c. 240,000 d. 400,000
12. Compute the exempt sales for PWDs
a. 730,000 b. 290,000 c. 240,000 d. 400,000
13. Compute the exempt sales for PWDs
a. 730,000 b. 290,000 c. 240,000 d. 400,000
14. A credit cooperative which transacts business only with members reported the following sales during the
month
Related Unrelated
 Sales from member 200,000 100,000
Sales from non-members 120,000
Compute the amount subject to business tax
a. 120,000 b. 100,000 c. 320,000 d. 0
15. Based on the preceding problem, compute the VAT due
a. 14,400 b. 12,000 c. 38,400 d. 0
16. A, an employee, sold a residential lot for 2,000,000. Compute the VAT due:
a. 0 b. 240,000 c. 200,000 d. 124,000
17. The National Housing Authority sells a low-cost housing with a price of 1,000,000 per unit. Compute the
amount subject to VAT
a. 0 b. 1,000,000 c. 450,000 d. 180,000
18. Linog Realty sold a residential house and lot for 1,800,000 together with a parking lot for 200,000 to a buyer.
The amount subject to VAT is
a. 0 b. 200,000 c. 2,000,000 d. 1,800,000
19. XYZ Co., VAT taxpayer, supplies papers to US Embassy. During the quarter, XYZ made total deliveries of
500,000. What is the amount subject to VAT?
a. 0 b. 500,000 c. 240,000 d. 100,000
20. VAT seller made the following sales for the month:
Customer Selling Price Fair Value
A 150,000 180,000
B 200,000 190,000
C 102,000 150,000
Compute the tax basis.
a. 500,000 b. 452,000 c. 520,000 d. 350,000
21. Compute the Output VAT
a. 60,000 b. 54,240 d. 62,400 d. 42,000
22. VAT service provider had the following revenue and collection:
Revenue Collection
Billings 300,000 200,000
Service Fee 200,000 50,000
Advances 200,000

Compute the Output VAT

a. 60,000 b. 54,000 c. 62,400 d. 52,240
23. VAT registered grocery operator withdrew the following for personal use:
FV Book Value
Fruits and Vegetables 10,000 16,000
Canned Goods 18,000 15,000
Compute the Output VAT
a. 2,160 b, 1,200 c. 3,000 d. 3,100
24. J, a VAT taxpayer, is closing his business. He had an inventory amounting to 200,000. Compute the Output
VAT
a. 0 b. 24,000 c. 200,000 d. 12,000
25. A had an output VAT of 230,000 for the month. He also made the following purchases during the month:
Goods from Non-VAT suppliers 280,000
Goods from VAT suppliers with VAT invoices 224,000
Importation of grapes and apples 300,000
Importation of merchandise, VAT inclusive 896,000
Services from VAT suppliers, ordinary receipt 120,000
Compute the creditable input VAT
a. 24,000 b. 96,000 c. 120,000 d. 110,000
26. Compute the VAT due
a. 230,000 b. 126,000 c. 110,000 d. 120,000
27. B opted to be a VAT taxpayer. He had the following inventory:
VAT exempt goods 80,000
Vatable goods (non-VAT suupliers) 40,000
Equipment (VAT supplier) 112,000
Compute the input VAT
a. 0 b. 800 c. 18,240 d. 13,440
28. Sardinas Corp. produces hot chilli sardines. The following manufacturing cost for the month:
 Cost Input VAT
Sardines 800,000
Chili 50,000
Tomatoes 400,000
Ordinary Salt 20,000
Tin Can and Label 180,000 21,600
Compute the creditable Input VAT
a. 18,800 b. 40,400 c. 21,600 d. 32,400
29. C Co. had the following transactions, net of any VAT, in the third quarter:
July August September
Sales 1,200,000 1,100,000 1,200,000
Purchases
Goods 700,000 400,000 850,000
Equipment (3 years life) 900,000
Unutilized input VAT last quarter was 50,000.

Compute the VAT due on August

a. 10,000 b. (24,000) c. 94,000 d. 84,000
30. Compute the VAT payable on September
a. 10,000 b. 136,000 c. 28,000 d. 18,000
b.