Assignment - VAT Computation

Instruction: Please write your solution and answer in a piece of paper. Kindly double rule your
final answer. We will check your answer on Tuesday, October 6, 2020. After checking your
answer, take a picture and send it to my gmail: jeremaeannceriaco@gmail.com with a subject of
ASSIGNMENT – VAT COMPUTATION.

1. All amounts given are VAT not included:

A, Non-VAT taxpayer, sells to B, VAT taxpayer
P60,000
B, VAT taxpayer, sells to C, VAT taxpayer 90,000
C, VAT taxpayer, sells to D, VAT taxpayer, an exporter
150,000
D, VAT taxpayer, exports 300,000

Compute the Value added tax, if any, of A, B, C, and D. Show your solutions. (10 points)
2. A VAT subject real estate dealer sold a residential lot on January 15, 2007. The following
information was made available on the terms of the sale:
Gross selling price P3,000,000
Initial payments on January 15, 2007 (consisting of down
payment and instalment in the year of sale) 900,000
Balance to be paid in equal instalment, instalments starting
February 15, 2007 2,100,000

The zonal value of the residual lot was P2,800,000

a. How much was the output tax on January 15 2007 using 12% VAT rate? Show your
solution. (5 points)
b. How much was the output tax on February 15, 2007 using 12% VAT rate? Show your
solution. (5 points)

3. Mr. C is a VAT registered person, with the following data for a taxable month, VAT not
included: Sales, domestic, to consumers – P600,000;
Sales, direct exports – P300,000;

Purchases, total invoice cost, from VAT registered persons:

Of goods of P550,000; and
of services of P330,000.

a. How much is the sales subject to the value added tax? (2 points)
b. How much is the Value-added Tax payable of Mr. C? (3 points)

4. How much is the input tax from purchases in a month of fixed assets in the following
cases:
a. A purchase in May of Php 200,000. (2points)
b. A purchase in June of Php 1,200,00, life of the asset is 3 years. (2 points)
 c. Purchases in October of: (5 points)
Asset No. 1 – Php 300,000
Asset No. 2 – Php 500,000
Total of Php 800,000
d. Purchase in November: (5 points)
Asset no. 1 – Php 900,000, useful life of 5 years
Asset No. 2 – Php 500,000, useful life of 6 years
Total of Php 1,400,000

5. Taxpayer became subject to value-added tax on January 1, 2019, by registering under the
VAT system.
2018 Jan. 2019
Net Sales Php 1,000,000 Php 100,000
Net purchases from VAT supplier 400,000 60,000
Inventory, end 22,000 10,000

How much is the VAT payable at the end of January 2019? (5 points)

6. An importer wishes to withdraw its importation from the Bureau of Customs. The
imported goods were subjected to a 10% customs duty in the amount of Php 12,500 and
to other charges in the amount of Php 9,500.
a. How much is the Total Landed Cost? (3 points)
b. How much is the value added tax due? (3 points)

7. Data for: October November December

Gross Sales Php 800,000 Php 900,000 Php 2,000,000
Purchases 900,000 200,000 1,800,000
How much is the VAT Payable on October, November and December? (5 points)

8. Sales, exports Php 900,000

Sales, domestic 100,000
Purchases from VAT suppliers 360,000
Purchases from VAT suppliers of goods sold in the Philippines 55,000

Compute the VAT payable of export and domestic sales and purchases separately. (5
points)

9. Receipts of a Contractor Company, VAT not included:

Contract price on work complete as of 12/31/2019
(total contract price of Php 6,000,000)
Cash received Php 4,000,000
Accounts Receivable 2,000,000
Advances on contract price, still unearned as of 12.31.2019 500,000
Payments for:
Services performed by VAT sub-contractors 1,000,000
Materials purchased from VAT suppliers 2,000,000
 Salaries of employees 300,000

How much is the VAT Payable? (5 points)

10. Taxpayer is a manufacturer subject to VAT.

Sales of manufacturing products P14,000,000
Purchases from VAT sellers, VAT not included:
Materials and supplies for use in production 4,000,000
Machine with useful life of 4 years 400,000
Land 3,000,000
Costs during the month on warehouse in
Progress of construction, VAT not included:
Materials purchased during the month P 4,000,000
Progress billings paid to the contractor (services) 2,000,000

How much is the VAT Payable? (5 points)