BSA 2105 Atty. F. R.

Soriano
VALUE-ADDED
VAT Exercises – 3 (Transactions deemed sale, presumptive input tax, transitional input tax)

1. Mr. Amor Carinioso is a VAT-registered taxpayer who is engaged in the trading of garments. His
records for the month of January 2020, VAT not yet included, show the following information:
Cash sales P 575,000.00
Charge sales 748,000.00
Consignment of goods
1 to 60 days from the date the goods were consigned 104,000.00
More than 60 days from the date the goods were consigned 65,000.00
Returns and allowances 25,0
Cash sales 00.00
Charge sales 30,000.00
Goods consigned
1 to 60 days from the date the goods were consigned 4,000.00
More than 60 from the date the goods were consigned 2,000.00
Discounts on charge sales on terms indicated in the sales
invoice availed of by customers 8,000.00
Your review of other documents revealed the following data:
a. Not yet reflected in the foregoing information were remittances, exclusive of VAT, during
the month on goods consigned as follows:
On goods consigned 60 days or earlier P 20,000.00
On goods consigned more than 60 days earlier 23,000.00
b. Mr. Carinioso transferred for his personal use and that of his family garments with a total
invoice price of P11,200.
Required: Compute the output tax for the month of January, 2020.
2. The following transactions, VAT not yet included, pertain to Twona Cannery Corporation, a VAT-
registered enterprise engaged in the processing of sardines, for the month of January 2019:
Sales for the month P 700,000.00
Purchases
Fish from fishermen (exclude from presumptive input 200,000.00
tax) 10,000.00
Glass containers* 15,000.00
Tomato sauce in cans* 20,000.00
Olive oil in glass bottles* 4,000.00
Pickles in glass bottles* 3,000.00
Paper labels from printers* 8,000.00
Pepper, carrots, garlic and bay leaves from farmers
*From VAT-suppliers
Required: Compute the VAT payable for the month.
3. Mr. Juanito Lacarin, proprietor of Johnny Walker Enterprises, started business operations in 2018
as a non-VAT taxpayer. By the end of the year, his sales exceeded P3,000,000.00 prompting him
to register as a VAT taxpayer starting 2019. The following data pertain to his inventory as of
December 31, 2018:
Goods for sale (purchased from VAT suppliers)
Inventory value P 95,000.00
Actual input taxes paid on such goods 1,500.00
Supplies used in business (purchased from VAT suppliers)
Inventory value 12,000.00
Actual input taxes paid on the supplies 1,000.00
Goods and supplies purchased from non-VAT suppliers
Cost 20,000.00
Inventory value 24,000.00
For the month of January, 2019, sales and purchases amounted to P430,000.00 and P220,000.00,
respectively, VAT not yet included.

FS2021-013
Required: Compute the VAT payable (or excess of input taxes over output taxes) for January
2019.

FS2021-013