CHAPTER 15

1. A VAT subject real state dealer sold a residential lot on January 15, 2011. The following
information was made available on the terms of sale:
Gross selling Price 3,000,000
Initial payments on January 15, 2011
(Consisting of down payment and installment
In the year of sale) 9,000,000
Balance to be paid in equal installment,
Installments starting February 15, 2011 2,100,000
The Zonal Value of the residual lot was 2,800,000

How much was the output tax on the January 15, 2011 using 12% VAT rate?
a. 360,000
b. 300,000
c. 108,000
d. None
2. Using the data in the preceding number, how much was the output tax on February 15,
2011 using 12% VAT rate?
a. 360,000
b. 300,000
c. 108,000
d. None
3. ABC Corporation sold a parcel of land to XYZ Company on July 2, 2011 for 1,000,000,
plus the output VAT, with a monthly installment payment of 10,000, plus the output
VAT. The zonal value of the subject property at the time of sale amounted to 1,500,000.
How much was the output tax on the installment payment?
a. 1,800
b. 1,,200
c. 1,000
d. 800
4. The following information taken from the books of a VAT-registered enterprise was
provided to you:
Domestic Goods 3,000,000
Sales of packaging materials to an export-oriented
Enterprise whose expert sales exceed 70% of
The total annual production 2,000,000
Local sales of goods to Asian Development Bank (ADB) 500,000
Consignment of goods (not returned within 60 days following
The date of consignment) 200,000
Goods transferred for the personal use of the owner 100,000

How much was the total taxable sales?

a. 3,000,000
b. 3,300,000
c. 3,800,000
 d. 5,800,000

5. Using the same data in the preceding number, how much was the output tax using 12%
VAT rate?
a. 360,000
b. 396,000
c. 456,000
d. 696,000
6. JP Corporation is a merchandising concern and has an inventory of goods for sale
amounting to 1,000,000. Ria Corporation, a real estate developer, exchanged its real
estate properties for shares of stocks of JP Corporation resulting to the acquisition of
corporate control.
How much was the output tax of JP Corporation using 12% VAT rate?
a. 120,000
b. 100,000
c. 80,000
d. None
7. Using the same data in the preceding number, how much was the output VAT of Ria
Corporation on the exchange of real properties held for sale valued at 1,000,000 for
shares of stock using 12% VAT rate?
a. 120,000
b. 100,000
c. 80,000
a. None
8. VS Corporation is a real estate dealer and has a real property for sale amounting to
1,000,000. Waldorf Corporation, a real estate developer, exchanged its real properties for
shares of stocks of VS Corporation resulting to the acquisition of corporate control.
How much is the output tax using 12% VAT rate?
a. 120,000
b. 100,000
c. 80,000
d. None

9. A VAT- registered trader made the following sales of goods during the second calendar
quarter of the current year:
Cash Sales 200,000
Open account sales 100,000
Installment sales (receipts, 40,000) 100,000
Consignment sales (not yet sold as of end of the quarter)
June 15
100,000
May 15
100,000
April 15
100,000
How much is the output tax for the quarter using 12% VAT rate?
 a. 60,000
b. 48,000
c. 40,800
d. 24,000
10. Butch, VAT-registered, made the following purchases during the month of January,
2011:
Goods for sale, inclusive of VAT
246,400
Supplies, exclusive of VAT 20,000
Office air-conditioner, total invoice price (est. life 3 is years) 56,000
Home appliances for residence, gross of VAT 17,920
Service for store repair, contractor not VAT-registered,
Total invoice amount 33,000
Service for painting of store, total invoice amount
Evidenced by ordinary receipt issued by contractor 4,480
How much was the total allowable input tax of Butch for the month using 12% VAT
rate?
a. 38,688
b. 35,337.6
c. 34,800
d. 34,542.86
11. The following data are taken from the books of accounts of a VAT-registered taxpayer:
Third quarter: sales 1,000,000
Purchases 800,000
Excess input VAT as of end of second quarter 25,000
Fourth Quarter: sales
1,500,000
Purchases 1,100,000

How much is the VAT payable (excess input tax) for the third quarter using 12% VAT
rate?
a. 36,000
b. 24,000
c. (5,000)
d. (I,000)
12. Using the same information, how much is the VAT payable for the fourth quarter using
12% VAT rate?
a. 48,000
b. 47,000
c. 11,000
d. None of the choices
13. The following data (net of VAT) are available:
Third quarter: sales 1,500,000
Purchases 800,000
Purchase of machinery
2,000,000
 Unutilized input VAT as of end of second quarter 97,000
Fourth Quarter: sales
2,000,000
Purchases 100,000

How much is the VAT payable (excess input tax) for the third quarter using 12% VAT
rate?
a. 83,000
b. 54,000
c. (25,000)
d. (16,000)
14. Using the same data in the preceding number how much is the VAT payable for the
fourth quarter using 12% VAT rate?
a. 203,000
b. 200,000
c. 191,000
d. 72,000

15. The following are the data of City Appliances Marketing Co. for the last quarter of 2011:
Sales up to December 15, total invoice value 319,200
Purchases for November up to December 15, net of input tax
215,000

Additional Information: On December 16, 2011, the City Appliances Marketing Co.
retires from its business. The inventory valued at 190,000 is taken and transferred to New
City Appliances Co. There is a deferred input tax of 3,500 for the third quarter.

How much is the total VAT due from the City Appliances Marketing Co. for its
operations in the last quarter and its retirement from business using 12% VAT rate?
a. 33,004
b. 28,900
c. 27,700
d. 27,089
16. Using the same data in the preceding number, and assuming that the New City
Appliances Co. has the following data for the first month of 2012:
Sales (including the inventory transferred from City
Appliances Marketing), total invoice value 336,000
Purchases, total invoice value 224,000

How much is the VAT payable (excess of input tax) for the first month of 2012 using
12% VAT rate?
a. 17,100
b. 12,000
c. (10,800)
d. (9,480)
 17. A taxpayer registered under the VAT system on January 2, 2011 after his sales exceeded
1,500,000 in the previous year. He became subject to VAT for the first time. The
following data were taken from his books:
Cost 60,000
Net realizable Value 50,000
VAT paid on December 31, 2010 inventory 6,000
Inventory, December 31, 2010 purchased from VAT-exempt seller 80,000
Sales, net of VAT 181,000
Purchases, net of VAT 70,000

How much was the VAT payable using 12% VAT rate?
a. 13, 320
b. 7,320
c. 5, 892.86
d. 4,992.86
18. Sweet Tooth, Inc. manufactures refine sugar. The following selected data are taken from
its books:
Sale of refined sugar, net of VAT
2,000,000
Purchase of sugar cane from farmers 500,000
Purchase of packaging materials, gross of VAT
784,000
Purchase of labels, gross of VAT
112,000
Advance payment of VAT before release from refinery 60,000
How much is the VAT payable using 12% VAT rate?
a. 124,000
b. 84,000
c. 64,000
d. 20,000
19-23. is based on the following: A VAT-registered trader has the following transactions:

Sale of good to private entities, net of 12% VAT

2,500,000
Purchases of goods sold to private entities, gross of 12% VAT
896,000
Sales to a government owned corporation (GOCC),
Net of 12% VAT
1,000,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000

19. How much is the withholding VAT?

a. 120,000
b. 70,000
c. 50,000
d. None
20. How much is the standard input tax?
a. 120,000
b. 70,000
c. 50,000
d. None
21. What is the treatment of the excess actual input VAT attributable to sale to GOCC?
a. Input tax credit
b. Expense or cost
c. Income
d. None
22. How much is the creditable input Tax on sale to private entities?
a. 176,000
b. 96,000
c. 70,000
d. None
23. How much is the VAT payable?
a. 244,000
b. 204,000
c. 120,000
d. None
24. A VAT-registered taxpayer engaged the services of a non-resident service provider. The
contact price was 500,000 which were paid by the VAT-registered taxpayer in full. How
much was the amount of withholding VAT to be withheld by the VAT-registered
taxpayer using 12% VAT rate?
a. 60,000
b. 50,000
c. 35,000
d. 25,000
25. Using the same data in the preceding number, how much input tax could be claimed as
credit by the VAT-registered taxpayer using 12% VAT rate?
a. 60,000
b. 50,000
c. 35,000
d. 25,000
26. Off Pring Corporation is a value-added tax registered dealer of appliances. The following
data for the last quarter of the current year:
Sales, total invoice value 6,921,600
Purchases, net of input taxes 5,500,000
Sales returns (based on total invoice value) 224,000
Purchase returns, net of input taxes 300,000
Deferred input taxes (carried over from the third quarter of the current year
9,500

How much is the value-added tax due for the last quarter of the current year using the
12% VAT rate?
a. 170,212
 b. 150,956.94
c. 84,100
d. 72,100
27. A VAT-registered taxpayer engaged in the supply of services has the following data
taken from its books for the month of January 2011:
Accounts receivable, January 1, 2011 560,000
Sales on account for the month of January 1,000,000
Cash Sales for the month of January 300,000
Accounts receivable, January 31, 2011
784,000

How much is the input tax for the month of January, 2011 using the 12% VAT rate?
a. 156,000
b. 132,000
c. 129,000
d. 110,000
28. A VAT-registered contractor has the following selected VAT inclusive data for the
month of July , 2011:
Collections from contracts completed in 2010
560,000
Advances from contracts to be completed in 2012 336,000
Collections from contracts completed in
July, 2011, net of 10% retention on billings
which was deposited in the account of the contractor
by the contractee 221,760
Materials charged with the services rendered 112,000

How much is the output tax for the month of July, 2011 using 12% VAT rate?
a. 150,528
b. 134, 400
c. 131,760
d. 120,000
29. Hotel California, VAT-registered, offers different services to its guests. The following
data taken from the books of the taxpayer are for the first quarter of 2011:

REVENUES
COLLECTIONS
Hotel Rooms (local guests) 800,000 700,000
Dining Hall:
Sale of food and refreshments 1,000,000 850,000
Sale of wine, beer and liquor 700,000 600,000
Disco:
Sale of food and refreshments 600,000 550,000
Sale of wine, beer and liquor 500,000 450,000
How much is the output tax for the first quarter of 2011 using 12% VAT rate?
 a. 432,000
b. 378,000
c. 258,000
d. None of the choices
30. Stockhouse, a VAT-registered stockbroker and dealer in securities, has the following data
for the first quarter of the current year (net of applicable taxes):
Commissions received from representing buyers
200,000
Commissions received from representing sellers
300,000
Selling price of shares of stock:
Hope Corp. held as inventory 400,000
Faith Corp. held as investment
600,000
Acquisition Cost:
Hope Corp. held as inventory 300,000
Faith Corp. held as investment 350,000
Operating expenses connected with VAT-subject transactions:
Supplies bought from VAT-registered supplier 70,000
Salaries of employees 90,000
Electricity 5,000
Water 3,000
What is the VAT payable for the quarter using the 12% VAT rate?
a. 63,600
b. 63,600
c. 62,640
d. 51,840
31. Mr. C. Juan is a transportation contractor with contract to transport the products of CMP
Corp. to its outlets. For the month of April 2011, CMP paid Mr. Juan P371,250, net of the
1% expanded withholding income tax and the applicable VAT. During the month, Mr.
Juan has VAT-subject purchases of P336,000, gross of VAT. How much is Mr. Juan’s
VAT payable for the month of April, 2011 using 12% VAT rate?
a. P 8,196 c. P 9,000
b. P 8,500 d. P 13,500

32. A VAT-registered public works contractor has the following data on services rendered in
the Philippines for the first quarter of the current year (VAT-exclusive):
Contract price (foreign clients doing business
outside the Philippines) ($1:P50) $ 100,000
Contact price (private sector clients) P 5,000,000
Contract price (Government) 3,000,000
Collections from foreign clients $ 100,000
Collections from Government contracts 1,000,000
Collections from private sector clients 2,000,000
 Purchases during the quarter (used in private
sector clients contracts) 800,000
Payments for services of a VAT-registered sub-
contractor (used in Government contracts) 400,000
Purchases during quarter (used in private sector
clients and government contracts only) 300,000

How much is the VAT payable for the quarter using 12%
VAT?
a. P190,000 c. P120,000
b. P170,000 d. None

33. Dayag Builderz was a contractor. It entered into a contract on December 31, 2011, which
was completed on March 15,2012. It received the total value of the contract including
materials charged with the services amounting to P5,500,000 on March 25, 2012. Dayag
Builderz spent for the materials used in the contract which it acquired from value-added
tax registered suppliers costing P1,500,000.

During the month of January 2012, it purchased an equipment with a contract price of
P2,500,000 and paid P500,000 as down payment. The estimated life of the equipment is 4
years.

How much the value-added tax payable for the quarter ending March 31, 2012 using 12%
VAT rate assuming all the data were exclusive of VAT?
a. P465,000 c. P360,000
b. P461,250 d. P180,000

34. An owner of a warehouse, which used to be VAT-exempt because its annual receipts
never exceeded P1,500,000, decided to register under the VAT system on January 2,
2011. The following data were from the first quarter ending March 31,2011:

Rental form warehousing services, net of 12% VAT P336,000

Purchases of supplies (February), gross of VAT 112,000
Inventory of supplies, January 1, 2010 100,000
VAT on the inventory of supplies, January 1, 2010 10,000

How much was the VAT payable for the quarter ending March 2011?
a. P26,320 c. P14,000
b. P18,320 d. None of the choices
35. Robin P. imported a car from the USA for his personal use. Total landed cost is
250,000(about $5,952) including customs duties of 50,000. VAT payable using 12% rate
is:
a. 30,000
b. 25,000
c. 10,000
d. None
36. An importer wishes to withdraw its importation from the Bureau of Customs. The
imported goods are subjected to 10% customs duties in the amount of 12,500 and to other
charges in the amount of 9,500. The Value-added tax due using 12% rate is:
a. 12,500
b. 13,364
c. 14,000
d. 17,640
37. Babes corp. imported an article from Japan. The invoice value of the imported article was
1,000,000 yen (1 yen=0.35) the following were incurred in connection with the
importation:
Insurance P 15,000
Freight 10,000
Postage
5,000
Wharfage dues
7,000
Arrastre charges 8,000
Brokerage Fee 25,000
Facilitation fee
3,000

The imported article was subject to P50, 000 customs duties and to P30, 000 excise tax.
After the release from the Bureau of Customs, Babes Corporation paid P5, 000, net of
VAT, for trucking to a warehouse in Quezon City. Is also paid warehousing rent of P10,
000, net of VAT.

a. 60,360
b. 60,000
c. 51,600
d. 50,400
38. Using the same information in the preceding number assuming the imported article was
sold by the importer for P700, 00, net of VAT, how much was the VAT payable using 12
VAT rate?
a. 22,200 c. P20,000
b. 21,840 d. None of the choices

39. The following data pertain to n VAT-registered taxpayer for February:

Sales, total invoice price P 896,000
Domestic purchases from a VAT supplier, gross of VAT P 268,800

In January, there is an importation of goods to be sold, with a landed cost of P200,000.

There are no sales in January.

How much is the value-added tax in February using 12% VAT rate?
a. P43, 200 c. P67,200
b. 51,264 d. P72,000