Business Tax: VAT

Practice Exercises_Part 2

1. A taxpayer, who is a VAT-registered processor of canned sardines, has the following data:

Selling price, invoice price net of VAT P300,000

Costs, exclusive of VAT if applicable
Fresh sardines purchased from fisherman 20,000
Tomatoes purchased from farmers 7,000
Olive oil 8,000
Tin can 15,000
Paper labels 7,000
Cardboard for boxes 9,000

2. Mcdonald Corp. sold P1,120,000, vat inclusive, worth of goods to the Commission of Audit for their
annual seminar. Mcdonald’s purchases on the related sale to the government total P625,000, vat
exclusive. Determine the following:
a. Final VAT withheld
b. Standard input vat
c. Actual input vat

3. VAT Business:
Domestic sales P2,000,000
Export sales 3,000,000
Non-VAT Business – domestic sales 1,000,000
Purchases of goods, for VAT business 1,500,000
Purchases of goods, for non-VAT business 200,000
Purchases of services, for VAT and non-VAT business 900,000

a. Determine the VAT payable (Input VAT on export sales is credited against output VAT)
b. Determine the VAT payable (Input VAT on export sales is refunded)

4. The following are the balances per books of accounts:

Deferred input taxes, December 2015 P 15,000

Sales, January 2016 800,000
Purchases, January 2016 500,000
Sales, February 2016 400,000
Purchases, February 2016 60,000
Sales, March 2016 500,000
Purchases, March 2016 200,000

Determine the VAT Payable for the quarter: