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TRANSFER AND BUSINESS TAXATION

HOMEWORK 006 (HW006)
PART I:
PROBLEM: VAT:

Compute the following in good form (double rule and encircle the final answer)

1. K imported a car from USA for her personal use. Total landed cost is P250,000, including
customs duties of P50,000. VAT on importation is

2. An importer wishes to withdraw its importation from the Bureau of Customs. The
imported goods were subjected to 10% customs duty in the amount of P12,500 and other
charges in the amount of P9,500. The VAT due is

3. The A Bakers sells cakes and pastry to well-known hotels in Metro Manila area. The
hotels are allowed credit based on the track record of the hotels. The sale by the store in
April 2021 was P224,000, including VAT. 75% of the sales are normally on account.
How much is the output tax for the month of April 2021?

4. A, a VAT-registered, made the following purchases during the month of January 2021:

Goods for sale, inclusive of VAT P224,000

Supplies, exclusive of VAT 20,000
Office air conditioner, total invoice amount 56,000
Home appliances for residence, gross of VAT 17,600
Repair of store, total invoice amount evidences by
ordinary receipt of the contractor 4,400

Creditable input taxes are

5. A taxpayer registered under the VAT system on January 1, 2020. His records during the
month show

Value of inventory as of Dec 31, 2020, purchased from VAT registered persons P50,000
VAT paid on inventory as of December 31, 2020 6,000
Value of inventory as of December 31, 2020, VAT exempt goods 60,000
Sales, net of VAT 140,000
Sales, gross of VAT 45,000
Purchases, net of VAT 70,000

VAT payable is

6. The following are the data of Urban Appliance Corporation, for the last quarter of 2020.

Sales up to December 15, total invoice value P336,000

Purchases up to December 15, net of input tax 215,000

Additional information:

On December 16, 2020, Urban Appliance Corporation retired from its business and the
inventory valued at P190,000 was taken and transferred to New Urban Appliance
Corporation. There is deferred input tax from the third quarter of P3,500.
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How much is the total VAT due and payable by Urban Appliance Corporation in its
operations in the last quarter and its retirement from business?

7. Assuming that New Urban Appliance Corporation has the following data for the first
quarter of 2021:

Sales, total invoice value P448,000

Purchases, total invoice value 224,000

How much is the VAT payable of New Urban Appliance Corporation for the first quarter
of 2021?

8. A, a VAT taxpayer billed his customer:

Selling Price P500,000

Value Added Tax 70,000
Total P570,000

The output tax is

9. Isaac Company, a newly VAT registered business, has the following data in January (all amounts are
inclusive of tax):
Merchandise inventory P204,000
Actual VAT paid on the inventory 16,000
Sales, total invoice amount 469,000
Purchases 57,400

Fifty percent (50%) of the merchandise inventory on January 1 were purchased from non-VAT
registered sellers.

10. Beth had the following receipts during the month (exclusive of tax):
Passenger Cargo
Jeepney 1 (Katas ng Saudi) P20,000
Jeepney 2 (Katas ng Saudi) 30,000
Bus (Sako Na Liner) 15,000 P8,500
Sea vessel 1,500,000 800,000
Cessna plane for hire 800,000 560,000
The output tax during the period is -

PART II
PERCENTAGE TAX
11. What are the requisites for the applicability of Section 116?
12. Discuss the VAT threshold for individual. (provide at least 5 sample transaction)
13. Why International Air Carriers and International Shipping Carriers exempted from VAT.
14. What are the kinds of income and rate under bank and non-bank financial intermediaries?
15. Discuss the highlights of the following:
a. RA 10378
b. RR 15-2013
c. RR 8-2008.
d. RR 16-2005.
e. RA 10963.
f. RR 6-2008
g. Section 28, NIRC
h. Section 116, NIRC
i. Section 118, NIRC
j. Section 119, NIRC
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k. Section 120, NIRC

l. Section 121, NIRC
m. Section 122, NIRC
n. Section 123, NIRC
o. Section 124, NIRC
p. Section 125, NIRC
q. Section 126, NIRC
r. Section 127, NIRC

PART III
Define the following:
a. Percentage tax
b. Gross Receipts
c. Self-employed under RA 10963
d. Professional under RA 10963
e. TNC or TNVS

Period of Submission: One (1) after the MECQ, 1159H (as per Memorandum No. 12, series of
2021 dated April 11, 2021)
FILE NAME: Surname, First Name, MI-MMDDYYYY-HW006
Note: (MMDDYYYY) = is the date of actual submission
Provide page number (example: 1/15, 2/15, 3/15…so on)
FORMAT: Handwritten at any size white bond or yellow pad
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Note: Provide signature over your name each page of your work at the
lower right side of your paper.