Professional Documents
Culture Documents
BUSTAMANTE BSMA-3
COMPREHENSIVE EXAMINATION SET
3. Which is incorrect?
A. A taxpayer whose, annual gross receipts or sales exceed P 1,919,500 shall pay
VAT even if not VAT registered.
B. A taxpayer whose annual receipts or sales do not exceed 1,919,500 but who is
VAT registered shall pay VAT.
C. The A non-resident lessor or foreign licensor who is not VAT-registered is
subject to vat.
D. An individual taxpayer whose gross sales or receipts do not exceed P 100,000
is exempt from VAT provided
he pays the 3% other percentage tax.
A. Yes, because their aggregate gross receipts/sales exceeded the vat threshold
of P 1,919,500.
B. No, because for purposes of vat threshold, husband and wife shall be
considered as separate taxpayers.
C. Yes, because their gross receipts/sales are not specifically exempt from vat
as provided in the Tax Code.
D. None of the above
8. Taxpayers who are qualified to optionally registermay apply for vat registration
not later than how many days before the beginning of the calendar quarter?
A. 10 days
B. 20 days
C. 25 days
D. 30 days
10.D' Lion Transport Corporation has land, sea and air transport operations. To
improve its services, which of the following importation is subject to vat? I.
20 units of airconditioned buses
II.12 units of life-saving, safety and rescue equipment for shipping transport
operation
III. 12 airplanes
IV. 8 ships
A. I only
B. II only
C. I and II only
D. All of the above
14.Farmers products (FP) is a buyer and miller of agricultural products. During the
first quarter, its transactions are recorded as follows: FP milled its purchase
for productions of rice and corn grits with an output of 80% and sold the products
to various retailers for P30 per kilo of palay and P 20 per kilo of corn grits.
Units Costs/kg.
Purchase of palay 500,000kg 15
Purchase of corn 200,000kg 8
Milling of palay of 4,000,000kg 2
Milling corns of customer 3,000,000kg 2
15.Which of the following sale or importation of goods shall not be exempt from
VAT?
A. Fertilizers
B. Seeds, seedlings and fingerlings
C. Fish, prawn, livestock and poultry feeds, including ingredients, whether
locally produced or imported, used in the manufacture of finished feeds
D. Specialty feeds.
19.In cases where a lessor has several residential units for lease, some are
leased out for a monthly rental per unit not exceeding P 12,800 while others
are leased out for more than P 12,800 per unit, his tax liability will be:
A. The gross receipts from rentals not exceeding P 12,800 per month per unit
shall be exempt from vat regardless of the aggregate annual gross receipts.
B. The gross receipts from rentals exceeding P 12,800 per month per unit shall
be subject to vat if the annual gross receipts from said units including the
gross receipts from units leased out for not more than P 12,800 exceed P
1,919,500.
C. Both statements are correct.
D. Both statements are incorrect
20.A real estate dealer sold two (2) adjacent residential lots in the city for a
price of P 1,000,000 each, or a total price of P 2,000,000, to a vendee who
intends to erect his residential house thereon.
The sale shall be classified as a:
A. 12% VAT transactions
B. 0% VAT transactions
C. VAT exempt transactions
D. None of the foregoing
21.A subdivision developer sold five (5) residential house and lots, each to
different vendees, for P 3,000,000 per lot, or a total sales of P 15,000,000 for
the taxable period.
22. Camella realty corporation sold the following real properties during the 2017
taxable year:
24.The value added tax due on the sale of taxable goods, property and services by
any person whether or not he has taken the necessary steps to be registered.
A. input tax
B. output tax
C. excise tax
D. sales tax
25.Gross selling price includes all of the following except one. Which
one?
A. Total amount which the purchaser pays to the seller.
B. Total amount which the purchaser is obligated to pay to the
seller.
C. Excise tax.
D. Value-added tax.
26.Which of the following is not deductible from Gross Selling Price for vat
purposes?
A. Discounts determined and granted at the time of sale, which are expressly
indicated in the Invoice, the amount thereof forming part of the gross sales
duly recorded in the books of accounts.
B. Discount determined and granted after the agreed sales quota is met by the
buyer.
C. Sales discount indicated in the invoice at the time of sale, the grant of
which is not dependent upon the happening of a future event, deductible within
the same month or quarter given.
D. Sales returns and allowances for which a proper credit or refund was made
during the month or quarter to the buyer for sales previously recorded as
taxable sales.
27.On January 5, 2013, Towell Co, VAT-registered, sold on account goods for P
112,000. The term was: 2/10, n/30. Payment was made on January 10, 2016. The
total amount due is:
A. P 110,000
B. P 107,800
C. P 112,000
D. P 109,760
28.Mr. Andres, VAT-registered real estate dealer, transferred a parcel of land held
for sale to his son as gift on account of his graduation. For VAT purposes, the
transfer is:
A. Not subject to VAT because it is a gift
B. Subject to VAT because it is a deemed sale transaction
C. Not subject to VAT because it is subject to gift tax
D. Subject to VAT because it is considered an actual sale
A. 12% vat
B. 0%vat
C. exempt from vat
D. 3% OPT
35.The following are zero-rated, if paid for in acceptable foreign currency and
accounted for in accordance with the rules and regulations of the Bangko Sentral
ng Pilipinas prior to TRAIN Law, except one:
A. Sale and actual shipment of goods from the Philippines to a foreign country.
B. Sale of raw materials or packaging materials to a non-resident buyer for
delivery to a resident local export-oriented enterprise.
C. Sale to a non-resident of goods (except automobile and non-essential goods)
assembled or manufactured in the Philippines for delivery to a resident in the
Philippines.
D. None of the above.
36.Which is not a requisite of "foreign currency denominated sales" for sales made
prior to 2018?
A. The sales exceed an aggregate foreign exchange value of $US 1,000.
B. The buyers are Filipinos abroad, returning overseas Filipino or other
nonresidents of the Philippines.
C. The goods are paid for in convertible foreign currency inwardly remitted through
the banking system in the Philippines.
D. The goods are assembled or made in the Philippines for household or personal
use.
41.CG Corporation is a vat registered entity with the following data for a taxable
month;
Domestic sales P 500,000
Transaction deemed sales 500,000
Export sales 500,000
Sales to DEF, an export oriented enterprises 500,000
(2/3 of DBF's annual output is actually exported)
Purchases (invoice cost from vat 224,000
registered entities)
Purchases (invoice cost from non-vat 100,000
registered entities)
The vat payable of CG should be
A. P 180,000
B. P 156,000
C. P 120,000
D. P 108,000
42.The vat on importation of goods which are subsequently used or sold in the
course of trade or business by a vat registered importer shall be treated as
I. Tax credit
II.Inventoriable cost
III. Expense
A. I only
B. II only
C. III only
D. no of the above
45.Using the above data, the amount of vat to be remitted to the BIR should
be
A. P 12,000
B. P 30,000
C. P 106,000
D. P 84,000
46.World Power Corp, imported an article from Japan. The invoice value of the
imported articles was $7,000 ($1- P50). The following were incurred in connection
with the importation:
Insurance P 15,000
Freight from Japan 10,000
Postage 5,000
Wharfage 7,000
Arrastre charges 8,000
Brokerage fee 25,000
Facilitation fee 3,000
The imported article was imposed P 50,000 customs duty and P30,000 excise tax. The
Company spent P 5,000 for trucking from the customs warehouse to its warehouse in
Quezon City. The carrier is not subject to VAT.
The VAT on importation is:
A. P 60,000
B. P 42,000
C. P 60,600
D. P 80,000
47.Based on the preceding number, if the imported article was sold for P800,000,
VAT exclusive, the VAT
payable is:
A. P 24,000
B. P 12,000
C. P 36,000
D. P 11,040
48. Sofia had the following data for the month of June (all amounts are vat
exclusive):
CASE 1 CASE 2
Sales P 1,900,000 P 1,800,000
Purchases of goods for sale 1,260,000 1,600,000
Purchases of Machines 1,440,000 900,000
Machine life 6 years 3 years
The amounts of vat payable (excess tax) shall be:
A B C D
CASE 1 P 54,000 P 73,920 P 73,920 None
CASE 2 (84,000) (84,000) 20,000 None
50.All of the following are allowed presumptive input tax, except for one.
A. Processor of sardines, mackerel and milk,
B. Manufacturer of refined sugar and cooking oil.
C. Producers/manufacturers of packed noodles.
D. Supplier of books and other school supplies.
52.Taxpayers who became VAT registered persons upon exceeding the minimum turn-over
of P3,000,000 in any 12-month period, or who voluntarily register even If their
turnover does not exceed P3,000,000 shall be entitled to a transitional input tax
on the inventory on hand as of the effectivity of their vat registration on the
following, except;
a. Supplies for use in the course of taxpayer's trade or
business'
b. Goods which have been manufactured by the taxpayer
c. Goods in process for sale
d. Capital goods being used in the operation of the business
53.Transitional input tax can be claimed as deduction from output tax. Which of
the following statements is correct?
a. It can be claimed by a vat registrable person.
b. It can be claimed by a taxpayer who registered as vat taxpayer from the
inception of business.
c. It can be claimed by a taxpayer who is initially subject to vat and subsequently
cancelled his vat registration.
d. It can be claimed by a taxpayer who is initially paying percentage tax and
subsequently registered as vat taxpayer.
55.A taxpayer registered under the VAT system on January 1, 2018, His records
during the month show:
Value of inventory as of December 31,
2013 purchased from VAT-registered persons P 112,000
VAT paid on inventory as of December 31, 2013 12,000
Value of inventory as of December 31,
2013 purchased, from non-VAT persons 518,000
Sales, net of VAT 240,000
Sales, gross of VAT 45,920
Purchases, net of VAT 70,000
Purchases of VAT exempt goods 50,000
VAT payable is:
a. P 23,080
b. P 25,320
c. P 12,720
d. P 12,320
56.Carlito, a VAT registered grocery and sugar dealer submitted the following data
as of Dec. 31, 2017.to the Revenue District Officer;
Grocery items, total value P 350,000
Raw sugar cane, total value 150,000
During the month of January 2018, first month as a VAT-registered taxpayer, he had
the following sales and purchases:
Sales Purchases
Grocery, total invoice value P 1,195,040 P 708,400
Raw sugar cane, (Excluding VAT) 570,000 320,000
The VAT payable for the first month is:
A. P 29,400
B. P 47,400
C. P 45,140
D. P 36,500
57.Dong Inc., a manufacturer, had the following data for the first month of 2018:
(First year as a VAT Taxpayer)
Sales:
Export P 2,000,000
Domestics (Without VAT) 1,000,000
Purchases, excluding VAT:
Raw Materials 300,000
Services 100,000
Machinery (estimated useful life 2 years) 400,000
On January 1, 2018, the company had inventories and taxes paid thereon as
follows: Cost VAT Paid
Raw Materials P 120,000 P 2,000
Supplies 40,000 4,000
During the month, raw materials were purchased from another enterprise with a total
invoice value of P 61,600, not included above.
The VAT payable by Dong Inc. is:
A. P 72,000
B. P 57,000
C. P 11,000
D. P 66,000
59.The withholding agent of creditable value added tax is required to remit the
amount of value added tax withheld within
A. 25 days following the end of month the withholding was made
B. 20 days following the end of month the withholding was made
C. 15 days following the end of month the withholding was made
D. 10 days following the end of month the withholding was made
66.A VAT-registered trader has the following transactions for the month of July
2014:
Sale of goods to private entities, net of VAT P 2,500,000
Purchases of goods sold to private entities, gross of 12% VAT 896,000
Sales to a government owned corporations (GOCC), net of VAT 1,500,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000
Purchases of Machineries, gross of VAT, useful life is 6 years 11,200,000
How much is the VAT payable to the BIR?
A. P 280,000
B. P 224,000
C. P 191,500
D. P 300,000
67.Based on the preceding number, how much is the input tax closed to expense
(income)?
A. P 13,500
B. P 21,000
C. (P 13,500)
D. (P 21,000)
69.Based on the preceding number, suppose B is also a GOCC, how much is the VAT
payable by PISC to the BIR?
A. P 120,000
B. P 50,000
C. P 24,000
D. 0
71.The amount of input vat not available for tax credit but may be recognized as
cost or expense is;
A. P 60,000
B. P 70,000
C. P 80,000
D. P 140,000
73.Based on the preceding number, if the refundable input taxes were not refunded
but used as tax credit, the VAT due is;
A. P 576,000
B. P 697,888
C. P 666,888
D. P 570,000
74.But assuming further that the taxpayer opted to claim them as refund, the VAT
due is:
A. P 576,000
B. P 697,888
C. P 746,888
D. P 620,000
75.Data from the books of accounts of a VAT taxpayer for a
month: Domestic Exports
Sales P 2,000,000 8,000,000
Purchases:
From VAT Suppliers;
Goods for sale 600,000 2,400,000
Supplies & services 90,000 360,000
From Suppliers paying percentage tax;
Goods for sale 100,000 *1,500,000
Supplies & services 20,000 80,000
If the input taxes attributable to zero-rated sales are claimed as tax credit, the
net value-added tax refundable is:
A. P 136,000
B. P 203,924.70
C. P 145,000
D. P 174,000
77.Based on the preceding number, how much input tax can be claimed by
Rommel?
A. P 600,000
B. P.12,500
C. P 150,000
D. P 0
The 3 bedroom unit sold for cash had a zonal value of P5,000,000 and the 2 bedroom
unit had a fair market value per Tax Declaration of P3,000,000, How much is the
output tax for the month?
A. P 920,000
B. P 900,000
C. P 1,020,000
D. P 1,080,000
79.Bahay Kubo Inc. is a real estate dealer. Details of its sales during the year
showed the following:
Date of sate June 2, 2014
Consideration in the deed of sale P 5,000,000
Fair market value in the assessment 4,800,000
rolls
Zonal Value 5,200,000
Schedule of payments:
June 2, 2014 1,000,000
June 2, 2015 2,000,000
June 2, 2015 2,000,000
How much is the output tax to be recognized for the June 2, 2015
payment?
A. P 0
B. P 24,000
C. P 249,600
D. P 624,000
80.Assuming that the scheduled payment on June 2, 2014 is P 2,000,000, how much is
the output tax to be recognized for the June 2, 2016 payment?
A. P 0
B. P 24,000
C. P 249,600
D. P 624,000
Use the following data for the next two (2) questions:
JJ is a real estate dealer. During the month of October 2016, he sold three (3)
commercial lots under the following terms:
Lot 1 Lot 2 Lot 3
Selling Price P 250,000 P 200,000 P 300,000
Cost 150,000 130,000 175,000
Gain/Loss 100,000 70,000 125,000
Terms:
Down, Oct. 5 25,000 50,000 40,000
Due
12/05/ 2016 25,000 20,000 20,000
Year 2017 200,000 130,000 240,000
Zonal Value 350,000 260,000 250,000
81.How much is the Output tax for the month of October?
A. P 26,500
B. P 34,800
C. P 31,800
D. P 40,200
83.Data for a trader with one line of business subject to value added tax and another
line of business not subject to value added tax (amounts presented are gross of vat
if applicable);
Sales, vat business P 896,000
Sales, non-vat business 200,000
Purchases of goods, vat business 224,000
Purchases of goods, non-vat business 33,600
Purchase of depreciable asset, for 112,000
use in vat and non-vat business
Purchases of supplies, for vat and 2,240
non vat business
Rental of premises, for vat and non 22,400
vat business, from non-vat lessor
The value added tax payable is
A. P 59,808
B. P 62,208
C. P 82,608
D. P 86,208
84.Tore Inc., a building contractor, showed to you the following data for the
month of August 2015;
Cash received, gross of VAT 2,240,000
Receivables, net of VAT 3,000,000
Advances on other contracts still 1,000,000
unearned (w/o VAT)
Unpaid Purchases:
For materials, VAT excluded 500,000
For supplies, VAT excluded 100,000
For services of sub-contractors (VAT included) 1,848,000
Payments for purchases made in July:
Materials, gross of VAT 369,500
Services of subcontractors, net of VAT 495,000
How much is the value added tax payable?
A. P 360,000
B. P 228,600
C. P 330,000
D. P 90,000
85.Cebu Airlines is a corporation organized in the Philippines. It has the
following data for the taxable
Year 2013:
Passengers Fare (Net of VAT):
Flights from Philippines to Hongkong P 8,000,000
Flights from Hongkong to Philippines 8,000,000
Domestic Flights (gross of 2% withholding tax) 3,000,000
86.If a dealer in securities sold shares in the local stock exchange, what
business tax will apply to such transaction?
A. VAT based on Gross Selling Price
B. VAT based on gain
C. Capital Gains Tax
D. Stock Transaction Tax of ½ of 1%
87.Fist statement: Unused input tax of persons whose registration had been cancelled
may be converted into tax credit certificate which may be used in payment of
other NIRC taxes
Second Statement: Refund or tax credit certificate shall be granted within 25
days from the date of submission of complete documents.
A. Both statements are correct.
B. Both statements are incorrect.
C. Only the first statement is correct.
D. Only the second statement is correct.
90.Lola Lita, a senior citizen, bought a medicine with a selling price of P9,520
inclusive of VAT, How much is the net amount to be paid by Lola?
A. P 8,500
B. P 7,616
C. P 6,916
D. P 6,800
92.Lola Trining brought her granddaughter to Jollibee for a treat. Her granddaughter
requested that they both order kiddie meals so that the latter will have two (2)
new toys since each meal have a free one. The price of each meal is P 120 net of
VAT. How much is the amount due from Lola Trining?
A. P 268.8
B. P 230.4
C. P 240
D. P 192
93.The ABC Corporation, a vat registered taxpayer sold to Lolo Sot, a senior
citizen and to his wife, Ana, a person with disability, as follows;
Lolo Sot Ana
Grilled blue martin P 150 P 150
Tokwat baboy 128
Pinaputok na tilapia 134
Seafood soup 100 100
Pineapple juice 64
Buko pandan 70
P 448 P 448
The prices above are based on menu prices inclusive of vat. The output tax due
is
A. P38.40
B. P48
C. P96
D. nil
The following input taxes were passed-on by vat suppliers to Alpha Corporation
during the month:
Input vat on goods sold to private P 120,000
entities and individuals
Input vat on sale of exempt goods 20,000
Input vat on sate to the government 100,000
97.The amount of input vat not available for tax credit but may be recognized as
cost or expense is;
A. P 20,000
B. P 50,000
C. P 62,000
D. Nil
98. Which of the following non-life insurance companies shall not be subject to
VAT?
99. Which of the following milling jobs shall not be exempt from
VAT?