Name: Date:

Course/Yr.: Score

I. True or False. Write T if the statement is correct and F if the statement is incorrect.
1. Domestic sea or air carriers are vatable on their transport of passengers or cargoes.
2. The VAT payable is computed as output VAT less 3% percentage tax.
3. The accounting period for business tax is called the taxable year.
4. All services specifically subject to percentage tax are taxed at a rate of 3%.
5. Bookstore are totally exempt from VAT.
6. International carriers are vatable on their transport of cargoes or baggage.
7. The taxable quarters of an individual are patterned after that of the calendar quarter.
8. The taxable quarters of a corporation adopting a fiscal year for income tax purpose shall be synchronized
with its fiscal year.
9. Schools are subject to VAT.
10. Hospitals are subject to VAT.
11. Franchise grantees of transport operations are subject to percentage tax.
12. Franchise grantees of the government on utilities are subject to percentage tax.
13.
Real estate brokerage is considered a sale of goods or properties rather than sale of services.
14. Self-employed professionals rendering services to clients are engaged in business.
15. The percentage tax of banks is called premium tax.
16. Leasing or distribution of cinematographic films is a sale of services.
17. Bussinesses for mere subsistence have gross receipts not exceeding P100,000 per year.
18. Consultants are exempt from VAT because their services are akin to employment.
19. The overseas communication tax applies to both incoming and outgoing dispatch of messages or
communication.
20. Domestic arilines are exempt from VAT on their transport of passengers.
21. The sale of processed agricultural products is vatable.
22. The sale of water by water utility franchise grantees is subject to VAT.
23. The sale of electricity by electricity utility franchise grantees is subject to VAT.
24. The sale of an adjacent lot to the same buyer shall be treated as one.
25.
The leasing of residential units is exempt from VAT if the annual rentals do not exceeding P15,000 per unit.
26. The sale of stocks by a dealer through PSE is subject to percentage tax.
27. The sale of residential dwelling by a non-dealer is subject to VAT if the selling price per unit does not
exceed P3,199,200.
28. A business which is not registered is exempt from business taxes.
29. The sale of stocks directly to buyers is subject to percentage tax.
30. The sale of adjacent dwellings to different buyers shall be aggregated as one.

II. Multiple choice:

1. A VAT registered taxpayer, reported P200,000 sales in the month of May. His annual sales never exceeded P1,800,000.
Compute his percentage tax.
a. P0 c. P24,000
b. P6,000 d. P54,000

2. A taxpayer owns a cargo-truck for rent. During the month, it generated total receipts of P40,000 deom various clients. The
percentage tax is
a. P0 c. P2,000
b. P1,200 d. P4,800

3. Cagayan Ferry Boats transport passengers and cargoes between the islands of Palaui and Sta Ana. It earned a total of
P120,000 in March 2020 excluding P10,000 freight cargoes.

What is the percentage tax if Cagayan Ferry Boats registered respectively as a non-VAT taxpayer and as a VAT taxpayer?
a. P0; P0 c. P3,900; P3,600
b. P3,600; P0 d. P3,900; P0
4. An operator of car with chauffeurs for hire had the following financial results of operations during a month:
Total collections 240,000.00
Less:
Fuel 100,000.00
Other car supplies 24,000.00
Driver's salaries 20,000.00 144,000.00
Net Income 96,000.00

What is the percentage tax?

a. P2,880 c. P4,320
b. P4,200 d. P7,200

5. An international carrier, recorded the following taxable receipts during a month for outgoing flights:
From booking agencies in
Philippines Abroad Total
Passengers 2,000,000.00 3,000,000.00 5,000,000.00
Mails and baggage 500,000.00 1,200,000.00 1,700,000.00
Total 2,500,000.00 4,200,000.00 6,700,000.00

Compute for the percentage tax:

a. P15,000 c. P60,000
b. P51,000 d. P75,000

6. A cellular company had the following receipts:

From domestic calles 2,000,000.00
Incoming calls to the Philippines 3,000,000.00
Outgoing calls abroad 2,500,000.00

What is the percentage tax?

a. P0 c. P165,000
b. P75,000 d. P250,000

7. A proprietor has a pet shop. In April 2020, he made a sales of P300,000 from sales of pets, P120,000 for pet feeds, and
P20,000 for pet toys. He is also a practicing veterinarian. He derived additional P80,000 professional fees.

Compute the exempt sales.

a. P0 c. P440,000
b. P80,000 d. P520,000

8. During a quarter, a cockpit operator collected P200,000 from gate receipts, P240,000 from tongs and P300,000 from
business concessionaires inside the cockpits. Total winnings on derby sets totalled P2,400,000. What is the amusement tax?
a. P0 c. P111,000
b. P74,000 d. P133,200

9. A corporation sells bread to various stores and makes P150,000 monthly sales on the average. During the month, it made
total sales of P200,000 out of which only P160,000 was collected. Compute the percentage tax.
a. P0 c. P4,800
b. P4,500 d. P6,000

10. A proprietor a mini-store with sales in any 12-month period not exceeding P1,900,000. She shall pay
a. Percentage tax c. Excise tax
b. VAT d. Percentage tax and excise tax

11. A non-VAT registered operator of jeepney, reported a total receipt of P200,000 during a month, including P20,000
rentals for cargo transport. Compute the percentage tax.
a. P0 c. P6,000
b. P5,400 d. P6,600

12. A restaurant reported the following revenues and receipt in May 2020:
Rice and viands 120,000.00
 Soft drinks 10,000.00
Snacks 30,000.00
Total 160,000.00

Compute the exempt sales.

a. P0 c. P150,000
b. P120,000 d. P160,000

13. An insurance corporation has the following receipts and receivables from its insurance products:
Life Property Total
Cash and check collections 1,000,000.00 500,000.00 1,500,000.00
Promissory notes 200,000.00 100,000.00 300,000.00
Total 1,200,000.00 600,000.00 1,800,000.00

Compute for the premiums tax.

a. P20,000 c. P30,000
b. P24,000 d. P36,000

14. A bank reported the following receipts during the month:

Interest income:
1 to 3 year loan 1,200,000.00
3 to 5 year loan 800,000.00
6 to 8 year loan 600,000.00
8 to 10 year loans 400,000.00
Total 3,000,000.00

Compute for the gross receipts tax.

a. P100,000 c. P80,000
b. P110,000 d. P70,000

15. In a recently completed race, the following are the winning tickets:
Straight bets - P40,000, 20 tickets at P100 per ticket
Combination bets - P20,000, 2 tickets at P200 per ticket

Compute the percenatge tax to be withheld on the winnings.

a. P0 c. P4,584
b. P3,800 d. P5,760

16. A seller of goods had the following details of sales and collections during the month:
Receivables, beginning 200,000.00
Gross sales 400,000.00
Less: collection 500,000.00
Receivables, end 100,000.00

What is the amount subject to business tax?

a. P500,000 c. P300,000
b. P400,000 d. P200,000

17. An international air carrier, collected a total of P30,000,000 from transport of passengers during the month. It also
collected a total of P5,000,000 from transport of mails and baggage. Compute the percentage tax.
a. P0 c. P900,000
b. P150,000 d. P1,050,000

18. A non-VAT corporation leases commercial spaces to various businesses. During a month, it received P142,500 rentals,
net of 5% creditable withholding tax. Compute the percentage tax.
a. P0 c. P4,275
b. P4,061 d. P4,500

19. A private hospital admitted a senior citizen. Total amount due before discharge was P112,000. Compute the output VAT.
a. P0 c. P12,000
 b. P9,600 d. P13,440

20. A store made the following sales during the month:

Frozen meat 30,000.00
Frozen fish 20,000.00
Processed foods 220,000.00
Household appliances and furniture 250,000.00
Total 520,000.00

Determine the vatable sales.

a. P0 c. P470,000
b. P220,000 d. P520,000