VALUE ADDED TAX QUIZZER

1. A tax on business is
a. Direct tax c. Property tax
b. Indirect tax d. None of the above

2. One of the following is not a major business internal revenue taxes in the tax code
a. Value added tax c. Income tax
b. Excise tax d. Percentage tax

3. Value added tax is a (an)

a. Indirect tax c. Progressive tax
b. Direct tax d. Regressive tax

4. In value added taxation, this is not a requirement for taxability of service?

a. In the course of business
b. Performed within or outside the Philippines
c. Consideration received actually or constructively
d. Supply of service is not exempt from VAT

5. Charlene is an operator of parking lots. What business tax is due on his income tax from the business?
a. Broker’s tax c. Common carrier’s tax
b. Caterer’s tax d. Value added tax

6. Mr. F is a lessor of real property and personal property (cars). The tax that he pays is
a. Excise tax c. Percentage tax
b. Value added tax d. None of the above

7. Which of the following is not exempt from VAT

a. Importation in their original state of agricultural and marine food products
b. Importation of passenger or cargo vessel more than 5,000 tons to be used by the importer himself as operator thereof;
c. Importation of personal and household effect belonging to residents of the Philippines returning from abroad;
d. Importation of non-food agricultural products in their original state by a primary producer.

8. Mr. S Magler imported cigarettes from the United States for sale in the Philippines. What business taxes in the
Philippines are due?
a. VAT, excise tax, other percentage tax
b. VAT and excise tax
c. Other percentage tax and excise tax
d. VAT and percentage tax

9. One of the following transactions by a VAT registered person does not result to output vAT
a. Cash sales c. Sales and leaseback
b. Sales on account d. Export sales

10. Tsukuba Company, a VAT registered business, had the following data during the quarter;
Export sales 1,815,000
Domestic sales (tax included) 1,232,000
Purchases of goods for export 672,000
Purchases of goods for domestic sales 323,120
Purchases of supplies on domestic sales, exclusive of tax 124,850

Assuming that the input taxes paid on purchases of goods for export are claimed as tax credit, the VAT payable by
Tsukuba Company is
a. 12,895 c. 177,895
b. 10,398 d. 84,895

11. In question no. 10, assuming that the input taxes attributable to export sales are being claimed as refund, the amount
refundable is
a. 72,000 b. 12,895
c. 84,895 d. Zero
12. Joey, a non VAT taxpayer, purchased merchandise worth 11,200, VAT inclusive, from Willie, a VAT registered seller.
The passed on VAT of 1,200 on the purchase is
a. An expense c. A tax credit
b. Part of the cost of purchase d. Ignored

13. Altura sold goods at an invoice value of 123,200 to Beltran on account. Beltran sold the same goods to Cantoria for
143,000 (exclusive of tax) cash. All of them are VAT registered taxpayers. The accounting entry to record the sales in
the books of Beltran is
a. Cash 160,160
Sales 143,000
Output Tax (143,000 x 12%) 17,160
b. Cash 143,000
Sales 143,000
c. Cash 160,160
Sales 160,160
d. Cash 143,000
Sales 125,840
Output Tax 17,160

14. The journal entry in the purchase books of Beltran in No. 13 is

a. Purchases 110,000
Input Tax (123,200 x 3/28) 13,200
Accounts Payable 123,200
b. Purchases 96,800
Accounts Payable 96,800
c. Purchases 83,600 Input tax 13,200
Accounts Payable 96,800
d. Purchases 110,000
Accounts Payable 110,000

15. In question no. 13, assuming that Cantoria is not subject to VAT. In the sale of the goods by Beltran to Cantoria-
a. Beltran should record debit Cash 125,840
b. Beltran should record debit Cash of 143,000 in his books.
c. Cantoria should debit purchases of 125,840 and a debit Input tax of 17,160
d. Cantoria should debit Purchases of 143,000

16. Statement 1: in case tax exempt products are sold domestically to a VAT registered person, the VAT otherwise due on
such product shall be considered as Input Tax creditable against his output tax payable
Statement 2: export sales by a VAT registered person are subject to zero-rating and so he can claim and enjoy a
crdit for the tax invoiced to him on his purchases. If he is not VAT registered, his export sales are exempt, but he is
not entitled to tax credit for inputs.
a. Both statements are true c. Both statements are
b. False, true false
d. True, false

Number 17-19 are based on the following info:

Transaction 1- an agricultural food producer sells his products in their original state to a food processor who also
buys packaging materials and containers from a manufacturer/ supplier
Transaction 2- the food processor transforms the food products into processed foods and sells to a wholesaler/
exporter
Transaction 3- the exporter sells the goods to foreign buyers.
Transaction 4- the wholesaler delivers the merchandise to retailers
Transaction 5-the retailers sell the goods to households or ultimate consumers

17. Based on the information above, which transaction is VAT exempt?

a. Transaction 1 c. Transaction 3
b. Transaction 2 d. Transaction 4

18. Which transaction is zero rated?

a. Transaction 1 c. Transaction 3
b. Transaction 2 d. Transaction 4
19. Based on the information above, the Vat are absorbed by
a. Food processor c. Retailer
b. Wholesaler/exporter d. Households/ ultimate consumer

20. Buboy a government employee, ate in one fast food chain in Dipolog City. He was issued the following receipt;

Greenwich-Dipolog City Branch (0369)

Rizal Ave. Cor Lacaya St., Dipolog City
TIN # 000-333-143-879 VAT
POSO1 SN: 455686
BIR Permit No: 1776-897-67543-455

Serving # 01
-------------------------------------------------------------------------------
10/27/2007 16:23 APP OR # 564567878
-------------------------------------------------------------------------------
1 SOLO SPE ML 83.00 1
XCHANGE –LRG CK 12.00

I item (s) 93.00

VATable 83.04
VAT-exempt 0.00
12 % VAT 9.06
TOTAL DUE 93.00

CASH 500.00
CHANGE DUE 407.00
This serves as your OFFICIAL RECEIPT.

Based on the receipt issued above

a. The amount of 83.04 represents the input tax of the fastfood chain
b. The input tax deductible from the output tax of Buboy is 9.96
c. The total invoice price of 93 is inclusive of the 12% VAT
d. Buboy has been subjected to VAT twice; first on th 93 and second, on the 9.96

Number 21-22 are based on the ff. info:

21. The pastry shop sells cakes and pastry items to well-known hotels around the Metro Manila area. The hotels are
allowed credit based on the track record of the hotels. The total amounts received or receivable from sales by the
Pastry shop in the 2nd quarter of 2008 were 224,000, including the value added tax. Seventy five percent of the sales
are normally on account. How much is the value added tax on the sales for the 2 nd quarter of 2008?
a. 20,000 c. 26,880
b. 24,000 d. 15,000

22. The account title to best reflect the value added tax in the preceding number is
a. Sales tax payable c. Input tax
b. Value added tax payable d. Output tax

23. Cruz, a trader, made the following transactions of goods, exclusive of VAT, during the second quarter:
Cash Sales 200,000
Open account sales 100,000
Consigned goods delivered: April 15 100,000
May 15 100,000
June 15 100,000

The output tax for the second quarter is-

a. 40,000 c. 60,
b. 48,000 00
0
d. 36,
00
0
 Number 24-26 are based on the ff. info:
Mongolia Company, a VAT registered business has the following data in its books on July, 2018:

Domestic Sales 709,500

Sales returns 26,400

Goods shipped on consignment (net of tax):

Units Unit Price
July 5 25 22,000
June 5 20 22,000
May 5 12 22,000

Goods withdrawn for use by the company 38,500

Goods taken as payment to creditor 26,950
Freight and Insurance of goods 4,675
Purchases:
Raw Materials 484,000
Supplies 61,600
Capital goods 60,500
Salaries of employees 235,000

During the month, one consignee remitted cash net of 20% commission representing the payment for five units
delivered on June 5.

Another consignee remitted cash of 220,000, gross of 20 % commission, representing payment for 10 units sold in
July. Other than the commission, Mongolia Company gave 5 % discount/rebate to the consignee for selling ten
units in a one month period.

24. The output tax in July is

a. 124,450 c. 161,106
b. 121,050 d. 134,255

25. The input tax is

a. 61,078 c. 65,440
b. 73,293 d. none of the
above
26. The amount of VAT payable is
a. 87,813 c. 66,525
b. 69,350 d. 78,404.46

27. A creditable input tax allowed on one who becomes subject to VAT for the first time
a. Presumptive input tax c. excess input tax
b. transactional input tax d. total input tax

28. Isaac Company, a newly VAT registered business, has the following data in January (all amounts are inclusive of tax).

Merchandise inventory 204,000

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 Jnauary 1 were purchased from non-VAT registered sellers.

The VAT payable by Isaac Company is

a. 30,100 c. 3,
b. 28,100 9
6
0
d. 4,
9
5
0
29. An owner of heavy equipment is engaged in equipment rental. It used to be VAT exempt because its annual receipts
never exceeded 1,500,000. On January 2, 2018 it decided to register under the VAT system. The following data were
from the first quarter ending March 31, 2018.
Rental from heavy equipment of 12% VAT 336,000
Purchases of supplies (February) gross of VAT 112,000
Inventory of supplies:
Subject to VAT Jan 1, 2008 50,400
Not subject to VAT 60,000
VAT paid on the inventory of supplies, Jan 1, 2018 5,400

The VAT payable for the quarter ending March 2018 is-
a. 12,171 c. 18,600
b. 33,792 d. 22,992

30. Statement 1: Transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign
country is subject to VAT at a rate of 0 %.
Statement 2: transport of passengers and cargo by domestic air or sea vessels from Mindanao to Luzon and
Visayas, vice versa, is subject to VAT at a rate of 12%.
a. true, false c. false, false
b. false, true d. true, true

31. Beth had the following receipts during the month (exclusive of tax):
passenger Cargo
Jeepney 1 20,000
Jeepney 2 30,000
Bus 15,000 8,500
Sea vessel 1,500,000 800,000
Cessna plane for hire 800,000 560,000
The output tax during the period is
a. 164,220 c. 283,800
b. 441,000 d. 440,220

32. Inside Job Security Agency is engaged in the selling of security services to various clients. During the month of
December, it billed on of its clients of the following
Monthly salary 6,000
13 th month pay 6,000
Agency fee at 15 % 1,800
SSS/Philhealth 300
Leave with pay 450
Total 14,550

Based on the following data, how much is the Output VAT payable of Inside Job Security Agency
a. 1,746.00 c. 1,440.00
b. 1,558.93 d. 1,478.57

33. Bonnevie is a real estate dealer. During the month of November 2008, he sold three (3) lots under the following terms:
Lot 1 Lot 2 Lot 3
Selling price 250,000 200,000 300,000
Cost 150,000 130,000 175,000
Gain/loss 100,000 70,000 125,000
Terms:
Downpayment, Nov 5 25,000 50,000 40,000
Due-
Dec 5 25,000 20,000 20,000
Jan to Dec 2009 200,000 130,000 240,000

All amounts indicated above do not include the tax.

 The VAT in November is
a. 26,500 c. 34,
b. 31,800 80
0
d. 90,
00
0

34. Based on the information given in no. 37, the VAT for the month of December is
a. 5,400 c. 10,000
b. 4,500 d. None

35. Dimagiba Construction Company entered into a contract with the government to construct an edifice for a total
contract price of 25,000,000. During the month, the government paid 10,000,000 of which it withheld 5 % final
withholding tax. How much is the VAT payable by the company on the government contract?
a. 150,000 c. 0
b. 850,000 d. 1,000,000

36. Which of the following statements is not correct?

a. transitional input tax is 2% of the value of the inventory or the actual VAT paid, whichever is higher
b. amounts received from services performed by an individual pursuant to an employee-employer relationship are
exempt from VAT
c. export sales by VAT registered persons are not subject to VAT
d. Export sales by persons who are not VAT registered are VAT exempt

37. Transaction by a VAT registered taxpayer which is not subject to VAT:

a. Foreign currency denominated sale
b. export sale
c. transaction deemed sale
d. sale of service rendered in foreign countries.

38. Statement 1: There is a VAT in an importation by an importer-merchant even if he does not intend to sell the imported
article.
Statement 2: a person who is exempt from VAT may register under the VAT system

a. false, false
b. false, true
c. true, false
d. true, true

39. -- VAT is imposed on goods brought into the Philippines, whether for use in business or not
-- In the case of goods imported into the Philippines by a VAT exempt person which are subsequently sold to
taxable persons, the latter shall be considered the importer thereof and shall be liable for VAT due on such
importation

a. true, true
b. false, false
c. false, true
d. true,false

40. Celebrado, VAT registered taxpayer, has the following data on importation in 2018:
For sale Own use
Invoice cost (Exchange rate $1:Php 46) $ 5,650 $ 850
Custom duties 12% 10%
Freight 20,000 4,000
Insurance 28,000 4,250
Other charges before release from custom house 7,000 2,500
Facilitation fee 10,000 5,000
Freight from custom house to warehouse (net of VAT) 12,000 1,200
Assuming the custom duties are determined on the basis of the quantity of volume of the goods, the VAT on the
importation is
a. 31,260 c. 47,981.76
b. 37,285 d. 44,742

41. In no. 40, how much is the VAT payable if the imported goods for sale were sold for 665,000 (inclusive of tax) 10
days after its delivery to the warehouse-
a. 28,279.44 c. 17,540
b. 32,298 d. 25,068

42. Robin P., imported a car from the USA for his personal use. Total landed cost is Php 250,000 (about $5,000) including
custom duties of Php 50,000. VAT payable is
a. 25,000 d. none, because importation is for personal
b. 30,000 use.
c. 10,000

43. Lavadena Construction Corporation, is a VAT registered general construction company. Its data for the quarter are
revealed below:
Contract 1- Residential house
Contract Price 1,200,000 Php
Collection during the month 616,000 Php
Contract 2- Warehouse
Contract Price 1,000,000 Php
Percentage of completion 70%
Collection during the month 220,080

Importation of construction equipments from Japan:

Invoice cost, Japan (1$: Php 44) $7,500
Value per Bureau of customs Php 340,000
Customs duties 35,000
Freight and insurance 17,000

Purchases of materials:
From VAT registered persons 226,240
From non-VAT registered persons 126,500

Revenue from rent of equipment to another contractor: 17,920.

Assuming the custom duties were based on the quantity of the goods imported, the VAT due on the importation is-
a. 46,860
b. 52,260
c. 45,840
d. 46,050

44. The VAT payable by Lavadena Company during the quarter is

a. 21,420
b. 19,200
c. 6,450
d. 20,400

45. Bata, a VAT registered person had the following data:

Price actually paid for the period
Price actually paid for the goods bought from Japan P 600,000
Related insurance premiums and freight from Japan 100,000
Custom duties amount to 40% of dutiable amount
Other import charges and expenses amount to 120% of custom duties

The VAT on importation is a.

82,560
b. 145,920
c. 135,360
d. 157,920
46. Patogrok Company contracted with Sapotize Construction Corporation to Construct the former’s building where only
the labor will be supplied by the latter. The data on the construction (inclusive of tax) during the month are as follows:

Progress billings by Sapotize Company P600,000

Payment to Sapotize Company 504,000 Purchase of
materials by Patogrok Co. 442,400
Which of the following is false?
a. construction in progress is not depreciated until the asset is placed in service.
b. for purposes of claiming input tax, as a purchase of service, the value of which shall be determined based on the
progress billings.
c. the input tax credit on the labor contracted shall be recognized on the month the payment was made based on the
progress billings
d. once the input tax has already been claimed while the construction is still in progress, no additional input tax can be
claimed upon completion of the asset when it has been reclassified as a depreciable capital asset and depreciated.

47. Aileen, a Japanese residing in the Philippines bought garments from Cua Corporation, a domestic corporation, and
exported the same to Japan. Total value of export is 100,000. VAT (output tax) due on the transaction is a. 10,000
b. 5,000
c. none, because 0% applies
d. none, because the sale is exempt from VAT

48. Offspring Corporation is a VAT registered dealer of appliances. The following data are for the month of October:

Sales, total invoice value P5,800,000

Purchases, net of input taxes 2,820,000
Sales return 200,000
Purchases return, net of input tax 300,000
Deferred input taxes (carried over from third quarter 9,500

The VAT payable for the month of Oct by company is

a. 320,000 c. 80,000
b. 285,500 d. 288,100

49. The following are the data of City Appliances Marketing Company for October, 2018:

Sales up to Oct 15, total invoice value P266,000

Purchases upto Oct 15, net of input taxes 215,000

Additional info:
On October 16, 2018, City Appliances company retired from its business and the inventory valued at 190,000, net
of input taxes, was taken and transferred to New City Appliances Company. There is deferred input taxes from the
third quarter of P3,500. How much is the total value added taxes due and payable by City Appliances Marketing
Company in its operations in October and its retirement from business?

a. 22,500 c. 6,3
b. 22,000 50
d. 25,
35
0

Numbers 50 – 51 are based on the following info:

Gabriel Panga Auto Repair Shop, VAT registered, had the following data in its books during the period:

Receipts:
From Auto repair 85,620
From washing and greasing 45,425
Reimbursement by customer on payments made to VAT machine shops 4,350
Payments received for lubricants, oils and fluid provided by the shop to cars undergoing repair 5,780

Disbursements:
Electric bill 3,550
 Water bill 2,380
Salaries of employees 15,000
Payments made to machine shops, non VAT 4,350
Purchase of lubricants, oils and fluids 3,000
Purchase of capital goods (life-10 years) 24,000

50. The output tax amount to-

a. 16,419 b. 16,941
c. 14,660 d.
15,126
51. The VAT payable is
a. 9,404 c. 9,45
b. 12,753 9
d. 6,97
9

52. Taxpayers who became VAT registered persons upon exceeding the minimum turn-over of P3 million in any
12month period, or who voluntarily register even if their turnover does not exceed P3 million 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

Numbers 53 – 56 are based on the following info:

Sumilco, a manufacturer of refined sugar, became subject to VAT effective December 1, 2008. During the month, the
following are its data:

Refined sugar withdrawn from refinery, inclusive of VAT 924,000

Purchases of-
Supplies from VAT registered suppliers 38,500
Packaging materials, VAT inclusive 27,060
Sugar cane from planters 350,000
Water bill 12,000
Salaries of officials and employees 150,000
Inventory per balance sheet, Dec 1, 2008
Packaging materials 17,875
Supplies purchased from VAT registered persons 14,850
Supplies purchased from non VAT registered suppliers 4,750

53. The presumptive input tax is-

a. 35,000 c. 13,860
b. 5,250 d. 14,000

54. The transitional input tax is

a. 3,506.25 c. 654.50
b. 2,975 d. 2,998.0
0
55. The total creditable input taxes is
a. 24,530.54 c. 92,935.00
b. 13,828.00 d. 22,935.00

56. The VAT payable is

a. 61,065.00 c. 74,469.
b. 70,172.00 46
d. 69,815.
00
 57. An importer wishes to withdraw its importation from the Bureau of Customs. The imported goods were subjected
to a 10% customs duty in the amount of 12,500 and to other charges in the amount of 9,500. The value added tax
due is
a. 12,500 c. 13,364
b. 17,640 d. 14,700

58. Kaka is a contractor. She entered into a contract on March 1, 2018 which was completed on March 31, 2018. She
received the total value of the contract amounting to 550,000 on March 31, 2017. Kaka spent for the materials
used in the contract which she acquired from the VAT registered suppliers costing 150,000. All amounts are
exclusive of VAT.

The VAT payable by KAKA for the month of March is

b. 15,000 c. 48,000
c. 40,000 d. 59,500

59. Archie, a newly VAT registered taxpayer is a lessor of poles to telephone and cable companies. During the month
of January 2018, Archie had the following receipts from customers:

Security deposit from customer C 110,000

Ret income in January from various customers 88,000
Prepaid rentals received from customer C (feb to June) 132,000
Loan to Archie from customer B 82,500

During the month, a portion of the security deposit for the faithful compliance by customer C of its obligations to
the lessor was applied to rental for January in the amount of 11,000.

At the beginning of the year, Archie had 252,000 worth of inventory of supplies and materials for use in the
business. VAT paid on the beginning inventory is 3,500.

The output tax of Archie in January is

a. 24,750 c. 28,500
b. 21,000 d. 39,500

60. In no. 59, the input tax on Archie is

a. 5,040
b. None
c. 21,000
d. 4,160

61. Marinda is a VAT registered grocery owner and sugar dealer. She submitted lists of inventory as of December 31,
2017 to the Revenue District Officer as follows:

Grocery items, total value 325,000

Raw cane sugar, total value 255,000

In January 2018, she had the following sales and purchases

Sales Purchases
Grocery (total invoice value) 1,042,525 650,100
Sugar (excluding VAT) 480,000 420,000

The VAT due for January, 2018 is

a. 35,675.00
b. 42,045.54
c. 41,675.31
d. 6,675.26

Numbers 62 – 63 are based on the following info:

Goodbooks Educational supply, VAT registered, is engaged in the business of selling books, school supplies and
gift items. The following are the record of its purchases and sales during the month of October (inclusive of tax):
 Sale of school supplies 560,000
Sale of books 200,000
Sale of gift items 336,000
Purchases of school supplies and gift items 406,000
Purchases of books 176,000
Purchase of computer used in taxable and exempt transactions 21,112

62. The creditable input tax on the purchase of computer is

a. 2,400.20 c. 26,400.
b. 1,920.50 65
63. The VAT payable is d. 1,809.6
0
a. 50,690.40 c. 36,500.
b. 34,100.50 00
d. 43,280.
25

64. Tala company had the following data for the 1st quarter of 2018 (VAT exclusive)

Taxable sales 600,000

Exempted sales 300,000
Zero rated sales 100,000
Input tax which cannot be directly attributed to any of the above sales 50,000

The VAT payable for the quarter is

a. 42,000 c. 32,000
b. 37,000 d. 22,000

65. Combined Company operates a VAT business and a non VAT business during the month, its books revealed the
following record of sales and purchases

Sales (VAT business) 600,000

Sales (non-VAT business) 200,000
Purchases (VAT business) 401,500
Purchases (non VAT business) 80,000
Purchases (VAT and non VAT businesses 64,000

The VAT payable by Company is

a. 7,660 c. 13,500
b. 6,060 d. 18,060

66. Excel company operates two lines of business. Business A is subject to VAT, while Business B is not. Data for the
month are as follows:

Sales-
VAT business, VAT included 560,000
Non-VAT business 100,000
Purchases-
Merchandise, VAT business, VAT included 154,000
Merchandise, non VAT business, VAT included 67,100
Capital goods, VAT business, VAT included 34,776
Capital goods, non VAT business, VAT included 27,500
Capital goods, for use in both business, VAT included 56,000
Rent of store, VAT business, VAT included 14,560
Rent of warehouse, VAT & non-VAT business, VAT excluded 6,200
Freight of goods, (VAT and non VAT business), VAT 2,576
included
Telephone bills, VAT and non-VAT, VAT included 1,624

The input tax on Business A is-

 a. 27,281 c. 23,26
b. 23,747 7
d. 18,87
67. In no. 66, the VAT payable by Excel company is- 5
a. 19,035 c. 20,25
b. 20,733 3
d. 32,21
9

Numbers 68 – 70 are based on the following info:

Mildred enterprises, a VAT registered trader had the following data during the last quarter of the year:

Purchases Sales
October 627,200 392,000
November 599,200 862,400
December 959,616 789,600

All of the amounts indicated above are VAT inclusive.

68. The amount of VAT payable by Mildred for the month of October is
a. 25,200 b. 16,500
c. 2,000 d. None

69. The VAT payable for the month of November is

a. 203,500 c. 3,00
b. 28,200 0
d. Non
70. The VAT payable/(excess) tax for the last quarter is e
a. (18,216) c. 60,9
b. 18,216 00
d. none

76-78
Numbers 71 – 73 are based on the following info:
The books of accounts of Franklin Corporation, VAT registered , revealed the following data in 2018:

Deferred input taxes, June 2018 6,200

Sales:
July 620,000
August 430,000
September 540,000
Purchases:
July 508,000
August 432,000
September 314,500

71. VAT payable for July is

a. 13,440 c. 11,20
b. 7,240 0
d. 5,000
72. The VAT payable for August is
a. (6,440) c. None
b. (240) d. 7,000

73. The VAT payable for September is

a. 26,580 c. 20,860
b. 27,060 d. 34,090

74. Felicisima had the following data:

Case 1 Case 2
Sales, net of VAT 1,900,000 1,800,000
 Purchases of goods for sale, exclusive of VAT 1,260,000 1,600,000
Purchases of machines (VAT not included) 1,440,000 900,000
Machine life 6 years 3 years

The amounts of VAT payable/excess tax are as follows:

(a) (b) (c) (d)

Case 1 54,000 73,920 73,920 None
Case 2 (84,000) (84,000) 20,000 none

75. Lavinia had the following data in July:

Sales of goods (excluding VAT) 2,540,000

Purchases of goods (net of 1,450,000
VAT)
Purchases of capital goods
(invoice amount)
Machine 1 (useful life of 6 974,400
years)
Machine 2 (useful life of 3 67,200
years)
The VAT payable in July is
a. 120,860 c. 33,600
b. 19,200 d. (40,800)
Numbers 76 – 77 are based on the following info:
The following data (net of tax) of Christine company are as follows:

1st quarter
Sales 700,000
Purchases 500,000
Purchase of machinery (Feb) 1,500,000
Unutilized input tax as of end of 1st quarter 40,000
2nd quarter
Sales 1,500,000
purchases 200,000

76. For the first quarter, Angel Company will result to a/an-
a. VAT payable of 72,000 c. Excess tax of
b. Excess tax of 22,000 196,000
d. VAT payabe of
77. The VAT payable for the 2nd quarter is- 22,000
a. 156,000 c. 125,000
b. 134,000 d. None

78. The data during the second quarter:

Output Tax 35,000
Input Tax 19,000
VAT paid:
April 3,000
May 4,500
Excess input tax, 1st quarter 2,400

The VAT payable (or excess tax to be carried over) is

a. 6,100 c. 8,500
b. 16,000 d. None

79. A new businessman consulted you relative to the filing of tax return and payment of his business tax. The business is
VAT registered although he is expecting to earn an annual gross receipts ranging from 900,000 to 1,200,000 only.
These are his questions:

1. what business tax should be paid by him?

 2. when is the deadline for filing the tax return for the month of May?
3. when is the deadline for the payment of the business tax for the month of June (or second quarter)?

Which of the following choices would be the correct advice?

Questions
1 2 3
a. VAT June 20 July 25
b. VAT June 25 July 25
c. Non VAT June 20 July 25
d. Non VAT June 20 July 20

Numbers 80 – 81 are based on the following info:

The City Government of Inga has the following purchases for the month of August 2009 from VAT suppliers of
goods and/or services:
Purchase of goods from Sina store an merchandise (inclusive of VAT) 11,200
Purchase of services from Daman Services, Inc 56,000

80. The amount payable to Sina after withholding taxes of VAT and income tax is
a. 11,200 c. 9,400
b. 10,600 d. 10,500

81. The amount payable to Daman Services Inc. after withholding taxes of VAT and income tax is
a. 56,000 c. 52,500
b. 50,000 d. 53,500
VALUE ADDED TAX QUIZZER

1. A tax on business is
a. Direct tax c. Property tax
b. Indirect tax d. None of the above

2. One of the following is not a major business internal revenue taxes in the tax code
a. Value added tax c. Income tax
b. Excise tax d. Percentage tax

3. Value added tax is a (an)

a. Indirect tax c. Progressive tax
b. Direct tax d. Regressive tax

4. In value added taxation, this is not a requirement for taxability of service?

a. In the course of business
b. Performed within or outside the Philippines
c. Consideration received actually or constructively
d. Supply of service is not exempt from VAT

5. Charlene is an operator of parking lots. What business tax is due on his income tax from the business?
a. Broker’s tax c. Common carrier’s tax
b. Caterer’s tax d. Value added tax

6. Mr. F is a lessor of real property and personal property (cars). The tax that he pays is
a. Excise tax c. Percentage tax
b. Value added tax d. None of the above

7. Which of the following is not exempt from VAT

a. Importation in their original state of agricultural and marine food products
b. Importation of passenger or cargo vessel more than 5,000 tons to be used by the importer himself as operator thereof;
c. Importation of personal and household effect belonging to residents of the Philippines returning from abroad;
d. Importation of non-food agricultural products in their original state by a primary producer.

8. Mr. S Magler imported cigarettes from the United States for sale in the Philippines. What business taxes in the
Philippines are due?
a. VAT, excise tax, other percentage tax
b. VAT and excise tax
c. Other percentage tax and excise tax
d. VAT and percentage tax

9. One of the following transactions by a VAT registered person does not result to output vAT
a. Cash sales c. Sales and leaseback
b. Sales on account d. Export sales

10. Tsukuba Company, a VAT registered business, had the following data during the quarter;
Export sales 1,815,000
Domestic sales (tax included) 1,232,000
Purchases of goods for export 672,000
Purchases of goods for domestic sales 323,120
Purchases of supplies on domestic sales, exclusive of tax 124,850

Assuming that the input taxes paid on purchases of goods for export are claimed as tax credit, the VAT payable by
Tsukuba Company is
a. 12,895 c. 177,895
b. 10,398 d. 84,895

11. In question no. 10, assuming that the input taxes attributable to export sales are being claimed as refund, the amount
refundable is
a. 72,000 b. 12,895
c. 84,895 d. Zero
12. Joey, a non VAT taxpayer, purchased merchandise worth 11,200, VAT inclusive, from Willie, a VAT registered seller.
The passed on VAT of 1,200 on the purchase is
a. An expense c. A tax credit
b. Part of the cost of purchase d. Ignored

13. Altura sold goods at an invoice value of 123,200 to Beltran on account. Beltran sold the same goods to Cantoria for
143,000 (exclusive of tax) cash. All of them are VAT registered taxpayers. The accounting entry to record the sales in
the books of Beltran is
a. Cash 160,160
Sales 143,000
Output Tax (143,000 x 12%) 17,160
b. Cash 143,000
Sales 143,000
c. Cash 160,160
Sales 160,160
d. Cash 143,000
Sales 125,840
Output Tax 17,160

14. The journal entry in the purchase books of Beltran in No. 13 is

a. Purchases 110,000
Input Tax (123,200 x 3/28) 13,200
Accounts Payable 123,200
b. Purchases 96,800
Accounts Payable 96,800
c. Purchases 83,600 Input tax 13,200
Accounts Payable 96,800
d. Purchases 110,000
Accounts Payable 110,000

15. In question no. 13, assuming that Cantoria is not subject to VAT. In the sale of the goods by Beltran to Cantoria-
a. Beltran should record debit Cash 125,840
b. Beltran should record debit Cash of 143,000 in his books.
c. Cantoria should debit purchases of 125,840 and a debit Input tax of 17,160
d. Cantoria should debit Purchases of 143,000

16. Statement 1: in case tax exempt products are sold domestically to a VAT registered person, the VAT otherwise due on
such product shall be considered as Input Tax creditable against his output tax payable
Statement 2: export sales by a VAT registered person are subject to zero-rating and so he can claim and enjoy a
crdit for the tax invoiced to him on his purchases. If he is not VAT registered, his export sales are exempt, but he is
not entitled to tax credit for inputs.
a. Both statements are true c. Both statements are
b. False, true false
d. True, false

Number 17-19 are based on the following info:

Transaction 1- an agricultural food producer sells his products in their original state to a food processor who also
buys packaging materials and containers from a manufacturer/ supplier
Transaction 2- the food processor transforms the food products into processed foods and sells to a wholesaler/
exporter
Transaction 3- the exporter sells the goods to foreign buyers.
Transaction 4- the wholesaler delivers the merchandise to retailers
Transaction 5-the retailers sell the goods to households or ultimate consumers

17. Based on the information above, which transaction is VAT exempt?

a. Transaction 1 c. Transaction 3
b. Transaction 2 d. Transaction 4

18. Which transaction is zero rated?

a. Transaction 1 c. Transaction 3
b. Transaction 2 d. Transaction 4
19. Based on the information above, the Vat are absorbed by
a. Food processor c. Retailer
b. Wholesaler/exporter d. Households/ ultimate consumer

20. Buboy a government employee, ate in one fast food chain in Dipolog City. He was issued the following receipt;

Greenwich-Dipolog City Branch (0369)

Rizal Ave. Cor Lacaya St., Dipolog City
TIN # 000-333-143-879 VAT
POSO1 SN: 455686
BIR Permit No: 1776-897-67543-455

Serving # 01
-------------------------------------------------------------------------------
10/27/2007 16:23 APP OR # 564567878
-------------------------------------------------------------------------------
1 SOLO SPE ML 83.00 1
XCHANGE –LRG CK 12.00

I item (s) 93.00

VATable 83.04
VAT-exempt 0.00
12 % VAT 9.06
TOTAL DUE 93.00

CASH 500.00
CHANGE DUE 407.00
This serves as your OFFICIAL RECEIPT.

Based on the receipt issued above

a. The amount of 83.04 represents the input tax of the fastfood chain
b. The input tax deductible from the output tax of Buboy is 9.96
c. The total invoice price of 93 is inclusive of the 12% VAT
d. Buboy has been subjected to VAT twice; first on th 93 and second, on the 9.96

Number 21-22 are based on the ff. info:

21. The pastry shop sells cakes and pastry items to well-known hotels around the Metro Manila area. The hotels are
allowed credit based on the track record of the hotels. The total amounts received or receivable from sales by the
Pastry shop in the 2nd quarter of 2008 were 224,000, including the value added tax. Seventy five percent of the sales
are normally on account. How much is the value added tax on the sales for the 2 nd quarter of 2008?
a. 20,000 c. 26,880
b. 24,000 d. 15,000

22. The account title to best reflect the value added tax in the preceding number is
a. Sales tax payable c. Input tax
b. Value added tax payable d. Output tax

23. Cruz, a trader, made the following transactions of goods, exclusive of VAT, during the second quarter:
Cash Sales 200,000
Open account sales 100,000
Consigned goods delivered: April 15 100,000
May 15 100,000
June 15 100,000

The output tax for the second quarter is-

a. 40,000 c. 60,
b. 48,000 00
0
d. 36,
00
0
 Number 24-26 are based on the ff. info:
Mongolia Company, a VAT registered business has the following data in its books on July, 2018:

Domestic Sales 709,500

Sales returns 26,400

Goods shipped on consignment (net of tax):

Units Unit Price
July 5 25 22,000
June 5 20 22,000
May 5 12 22,000

Goods withdrawn for use by the company 38,500

Goods taken as payment to creditor 26,950
Freight and Insurance of goods 4,675
Purchases:
Raw Materials 484,000
Supplies 61,600
Capital goods 60,500
Salaries of employees 235,000

During the month, one consignee remitted cash net of 20% commission representing the payment for five units
delivered on June 5.

Another consignee remitted cash of 220,000, gross of 20 % commission, representing payment for 10 units sold in
July. Other than the commission, Mongolia Company gave 5 % discount/rebate to the consignee for selling ten
units in a one month period.

24. The output tax in July is

a. 124,450 c. 161,106
b. 121,050 d. 134,255

25. The input tax is

a. 61,078 c. 65,440
b. 73,293 d. none of the
above
26. The amount of VAT payable is
a. 87,813 c. 66,525
b. 69,350 d. 78,404.46

27. A creditable input tax allowed on one who becomes subject to VAT for the first time
a. Presumptive input tax c. excess input tax
b. transactional input tax d. total input tax

28. Isaac Company, a newly VAT registered business, has the following data in January (all amounts are inclusive of tax).

Merchandise inventory 204,000

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 Jnauary 1 were purchased from non-VAT registered sellers.

The VAT payable by Isaac Company is

a. 30,100 c. 3,
b. 28,100 9
6
0
d. 4,
9
5
0
29. An owner of heavy equipment is engaged in equipment rental. It used to be VAT exempt because its annual receipts
never exceeded 1,500,000. On January 2, 2018 it decided to register under the VAT system. The following data were
from the first quarter ending March 31, 2018.
Rental from heavy equipment of 12% VAT 336,000
Purchases of supplies (February) gross of VAT 112,000
Inventory of supplies:
Subject to VAT Jan 1, 2008 50,400
Not subject to VAT 60,000
VAT paid on the inventory of supplies, Jan 1, 2018 5,400

The VAT payable for the quarter ending March 2018 is-
a. 12,171 c. 18,600
b. 33,792 d. 22,992

30. Statement 1: Transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign
country is subject to VAT at a rate of 0 %.
Statement 2: transport of passengers and cargo by domestic air or sea vessels from Mindanao to Luzon and
Visayas, vice versa, is subject to VAT at a rate of 12%.
a. true, false c. false, false
b. false, true d. true, true

31. Beth had the following receipts during the month (exclusive of tax):
passenger Cargo
Jeepney 1 20,000
Jeepney 2 30,000
Bus 15,000 8,500
Sea vessel 1,500,000 800,000
Cessna plane for hire 800,000 560,000
The output tax during the period is
a. 164,220 c. 283,800
b. 441,000 d. 440,220

32. Inside Job Security Agency is engaged in the selling of security services to various clients. During the month of
December, it billed on of its clients of the following
Monthly salary 6,000
13 th month pay 6,000
Agency fee at 15 % 1,800
SSS/Philhealth 300
Leave with pay 450
Total 14,550

Based on the following data, how much is the Output VAT payable of Inside Job Security Agency
a. 1,746.00 c. 1,440.00
b. 1,558.93 d. 1,478.57

33. Bonnevie is a real estate dealer. During the month of November 2008, he sold three (3) lots under the following terms:
Lot 1 Lot 2 Lot 3
Selling price 250,000 200,000 300,000
Cost 150,000 130,000 175,000
Gain/loss 100,000 70,000 125,000
Terms:
Downpayment, Nov 5 25,000 50,000 40,000
Due-
Dec 5 25,000 20,000 20,000
Jan to Dec 2009 200,000 130,000 240,000

All amounts indicated above do not include the tax.

 The VAT in November is
a. 26,500 c. 34,
b. 31,800 80
0
d. 90,
00
0

34. Based on the information given in no. 37, the VAT for the month of December is
a. 5,400 c. 10,000
b. 4,500 d. None

35. Dimagiba Construction Company entered into a contract with the government to construct an edifice for a total
contract price of 25,000,000. During the month, the government paid 10,000,000 of which it withheld 5 % final
withholding tax. How much is the VAT payable by the company on the government contract?
a. 150,000 c. 0
b. 850,000 d. 1,000,000

36. Which of the following statements is not correct?

a. transitional input tax is 2% of the value of the inventory or the actual VAT paid, whichever is higher
b. amounts received from services performed by an individual pursuant to an employee-employer relationship are
exempt from VAT
c. export sales by VAT registered persons are not subject to VAT
d. Export sales by persons who are not VAT registered are VAT exempt

37. Transaction by a VAT registered taxpayer which is not subject to VAT:

a. Foreign currency denominated sale
b. export sale
c. transaction deemed sale
d. sale of service rendered in foreign countries.

38. Statement 1: There is a VAT in an importation by an importer-merchant even if he does not intend to sell the imported
article.
Statement 2: a person who is exempt from VAT may register under the VAT system

a. false, false
b. false, true
c. true, false
d. true, true

39. -- VAT is imposed on goods brought into the Philippines, whether for use in business or not
-- In the case of goods imported into the Philippines by a VAT exempt person which are subsequently sold to
taxable persons, the latter shall be considered the importer thereof and shall be liable for VAT due on such
importation

a. true, true
b. false, false
c. false, true
d. true,false

40. Celebrado, VAT registered taxpayer, has the following data on importation in 2018:
For sale Own use
Invoice cost (Exchange rate $1:Php 46) $ 5,650 $ 850
Custom duties 12% 10%
Freight 20,000 4,000
Insurance 28,000 4,250
Other charges before release from custom house 7,000 2,500
Facilitation fee 10,000 5,000
Freight from custom house to warehouse (net of VAT) 12,000 1,200
Assuming the custom duties are determined on the basis of the quantity of volume of the goods, the VAT on the
importation is
a. 31,260 c. 47,981.76
b. 37,285 d. 44,742

41. In no. 40, how much is the VAT payable if the imported goods for sale were sold for 665,000 (inclusive of tax) 10
days after its delivery to the warehouse-
a. 28,279.44 c. 17,540
b. 32,298 d. 25,068

42. Robin P., imported a car from the USA for his personal use. Total landed cost is Php 250,000 (about $5,000) including
custom duties of Php 50,000. VAT payable is
a. 25,000 d. none, because importation is for personal
b. 30,000 use.
c. 10,000

43. Lavadena Construction Corporation, is a VAT registered general construction company. Its data for the quarter are
revealed below:
Contract 1- Residential house
Contract Price 1,200,000 Php
Collection during the month 616,000 Php
Contract 2- Warehouse
Contract Price 1,000,000 Php
Percentage of completion 70%
Collection during the month 220,080

Importation of construction equipments from Japan:

Invoice cost, Japan (1$: Php 44) $7,500
Value per Bureau of customs Php 340,000
Customs duties 35,000
Freight and insurance 17,000

Purchases of materials:
From VAT registered persons 226,240
From non-VAT registered persons 126,500

Revenue from rent of equipment to another contractor: 17,920.

Assuming the custom duties were based on the quantity of the goods imported, the VAT due on the importation is-
a. 46,860
b. 52,260
c. 45,840
d. 46,050

44. The VAT payable by Lavadena Company during the quarter is

a. 21,420
b. 19,200
c. 6,450
d. 20,400

45. Bata, a VAT registered person had the following data:

Price actually paid for the period
Price actually paid for the goods bought from Japan P 600,000
Related insurance premiums and freight from Japan 100,000
Custom duties amount to 40% of dutiable amount
Other import charges and expenses amount to 120% of custom duties

The VAT on importation is a.

82,560
b. 145,920
c. 135,360
d. 157,920
46. Patogrok Company contracted with Sapotize Construction Corporation to Construct the former’s building where only
the labor will be supplied by the latter. The data on the construction (inclusive of tax) during the month are as follows:

Progress billings by Sapotize Company P600,000

Payment to Sapotize Company 504,000 Purchase of
materials by Patogrok Co. 442,400
Which of the following is false?
a. construction in progress is not depreciated until the asset is placed in service.
b. for purposes of claiming input tax, as a purchase of service, the value of which shall be determined based on the
progress billings.
c. the input tax credit on the labor contracted shall be recognized on the month the payment was made based on the
progress billings
d. once the input tax has already been claimed while the construction is still in progress, no additional input tax can be
claimed upon completion of the asset when it has been reclassified as a depreciable capital asset and depreciated.

47. Aileen, a Japanese residing in the Philippines bought garments from Cua Corporation, a domestic corporation, and
exported the same to Japan. Total value of export is 100,000. VAT (output tax) due on the transaction is a. 10,000
b. 5,000
c. none, because 0% applies
d. none, because the sale is exempt from VAT

48. Offspring Corporation is a VAT registered dealer of appliances. The following data are for the month of October:

Sales, total invoice value P5,800,000

Purchases, net of input taxes 2,820,000
Sales return 200,000
Purchases return, net of input tax 300,000
Deferred input taxes (carried over from third quarter 9,500

The VAT payable for the month of Oct by company is

a. 320,000 c. 80,000
b. 285,500 d. 288,100

49. The following are the data of City Appliances Marketing Company for October, 2018:

Sales up to Oct 15, total invoice value P266,000

Purchases upto Oct 15, net of input taxes 215,000

Additional info:
On October 16, 2018, City Appliances company retired from its business and the inventory valued at 190,000, net
of input taxes, was taken and transferred to New City Appliances Company. There is deferred input taxes from the
third quarter of P3,500. How much is the total value added taxes due and payable by City Appliances Marketing
Company in its operations in October and its retirement from business?

a. 22,500 c. 6,3
b. 22,000 50
d. 25,
35
0

Numbers 50 – 51 are based on the following info:

Gabriel Panga Auto Repair Shop, VAT registered, had the following data in its books during the period:

Receipts:
From Auto repair 85,620
From washing and greasing 45,425
Reimbursement by customer on payments made to VAT machine shops 4,350
Payments received for lubricants, oils and fluid provided by the shop to cars undergoing repair 5,780

Disbursements:
Electric bill 3,550
 Water bill 2,380
Salaries of employees 15,000
Payments made to machine shops, non VAT 4,350
Purchase of lubricants, oils and fluids 3,000
Purchase of capital goods (life-10 years) 24,000

50. The output tax amount to-

a. 16,419 b. 16,941
c. 14,660 d.
15,126
51. The VAT payable is
a. 9,404 c. 9,45
b. 12,753 9
d. 6,97
9

52. Taxpayers who became VAT registered persons upon exceeding the minimum turn-over of P3 million in any
12month period, or who voluntarily register even if their turnover does not exceed P3 million 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

Numbers 53 – 56 are based on the following info:

Sumilco, a manufacturer of refined sugar, became subject to VAT effective December 1, 2008. During the month, the
following are its data:

Refined sugar withdrawn from refinery, inclusive of VAT 924,000

Purchases of-
Supplies from VAT registered suppliers 38,500
Packaging materials, VAT inclusive 27,060
Sugar cane from planters 350,000
Water bill 12,000
Salaries of officials and employees 150,000
Inventory per balance sheet, Dec 1, 2008
Packaging materials 17,875
Supplies purchased from VAT registered persons 14,850
Supplies purchased from non VAT registered suppliers 4,750

53. The presumptive input tax is-

a. 35,000 c. 13,860
b. 5,250 d. 14,000

54. The transitional input tax is

a. 3,506.25 c. 654.50
b. 2,975 d. 2,998.0
0
55. The total creditable input taxes is
a. 24,530.54 c. 92,935.00
b. 13,828.00 d. 22,935.00

56. The VAT payable is

a. 61,065.00 c. 74,469.
b. 70,172.00 46
d. 69,815.
00
 57. An importer wishes to withdraw its importation from the Bureau of Customs. The imported goods were subjected
to a 10% customs duty in the amount of 12,500 and to other charges in the amount of 9,500. The value added tax
due is
a. 12,500 c. 13,364
b. 17,640 d. 14,700

58. Kaka is a contractor. She entered into a contract on March 1, 2018 which was completed on March 31, 2018. She
received the total value of the contract amounting to 550,000 on March 31, 2017. Kaka spent for the materials
used in the contract which she acquired from the VAT registered suppliers costing 150,000. All amounts are
exclusive of VAT.

The VAT payable by KAKA for the month of March is

b. 15,000 c. 48,000
c. 40,000 d. 59,500

59. Archie, a newly VAT registered taxpayer is a lessor of poles to telephone and cable companies. During the month
of January 2018, Archie had the following receipts from customers:

Security deposit from customer C 110,000

Ret income in January from various customers 88,000
Prepaid rentals received from customer C (feb to June) 132,000
Loan to Archie from customer B 82,500

During the month, a portion of the security deposit for the faithful compliance by customer C of its obligations to
the lessor was applied to rental for January in the amount of 11,000.

At the beginning of the year, Archie had 252,000 worth of inventory of supplies and materials for use in the
business. VAT paid on the beginning inventory is 3,500.

The output tax of Archie in January is

a. 24,750 c. 28,500
b. 21,000 d. 39,500

60. In no. 59, the input tax on Archie is

a. 5,040
b. None
c. 21,000
d. 4,160

61. Marinda is a VAT registered grocery owner and sugar dealer. She submitted lists of inventory as of December 31,
2017 to the Revenue District Officer as follows:

Grocery items, total value 325,000

Raw cane sugar, total value 255,000

In January 2018, she had the following sales and purchases

Sales Purchases
Grocery (total invoice value) 1,042,525 650,100
Sugar (excluding VAT) 480,000 420,000

The VAT due for January, 2018 is

a. 35,675.00
b. 42,045.54
c. 41,675.31
d. 6,675.26

Numbers 62 – 63 are based on the following info:

Goodbooks Educational supply, VAT registered, is engaged in the business of selling books, school supplies and
gift items. The following are the record of its purchases and sales during the month of October (inclusive of tax):
 Sale of school supplies 560,000
Sale of books 200,000
Sale of gift items 336,000
Purchases of school supplies and gift items 406,000
Purchases of books 176,000
Purchase of computer used in taxable and exempt transactions 21,112

62. The creditable input tax on the purchase of computer is

a. 2,400.20 c. 26,400.
b. 1,920.50 65
63. The VAT payable is d. 1,809.6
0
a. 50,690.40 c. 36,500.
b. 34,100.50 00
d. 43,280.
25

64. Tala company had the following data for the 1st quarter of 2018 (VAT exclusive)

Taxable sales 600,000

Exempted sales 300,000
Zero rated sales 100,000
Input tax which cannot be directly attributed to any of the above sales 50,000

The VAT payable for the quarter is

a. 42,000 c. 32,000
b. 37,000 d. 22,000

65. Combined Company operates a VAT business and a non VAT business during the month, its books revealed the
following record of sales and purchases

Sales (VAT business) 600,000

Sales (non-VAT business) 200,000
Purchases (VAT business) 401,500
Purchases (non VAT business) 80,000
Purchases (VAT and non VAT businesses 64,000

The VAT payable by Company is

a. 7,660 c. 13,500
b. 6,060 d. 18,060

66. Excel company operates two lines of business. Business A is subject to VAT, while Business B is not. Data for the
month are as follows:

Sales-
VAT business, VAT included 560,000
Non-VAT business 100,000
Purchases-
Merchandise, VAT business, VAT included 154,000
Merchandise, non VAT business, VAT included 67,100
Capital goods, VAT business, VAT included 34,776
Capital goods, non VAT business, VAT included 27,500
Capital goods, for use in both business, VAT included 56,000
Rent of store, VAT business, VAT included 14,560
Rent of warehouse, VAT & non-VAT business, VAT excluded 6,200
Freight of goods, (VAT and non VAT business), VAT 2,576
included
Telephone bills, VAT and non-VAT, VAT included 1,624

The input tax on Business A is-

 a. 27,281 c. 23,26
b. 23,747 7
d. 18,87
67. In no. 66, the VAT payable by Excel company is- 5
a. 19,035 c. 20,25
b. 20,733 3
d. 32,21
9

Numbers 68 – 70 are based on the following info:

Mildred enterprises, a VAT registered trader had the following data during the last quarter of the year:

Purchases Sales
October 627,200 392,000
November 599,200 862,400
December 959,616 789,600

All of the amounts indicated above are VAT inclusive.

68. The amount of VAT payable by Mildred for the month of October is
a. 25,200 b. 16,500
c. 2,000 d. None

69. The VAT payable for the month of November is

a. 203,500 c. 3,00
b. 28,200 0
d. Non
70. The VAT payable/(excess) tax for the last quarter is e
a. (18,216) c. 60,9
b. 18,216 00
d. none

76-78
Numbers 71 – 73 are based on the following info:
The books of accounts of Franklin Corporation, VAT registered , revealed the following data in 2018:

Deferred input taxes, June 2018 6,200

Sales:
July 620,000
August 430,000
September 540,000
Purchases:
July 508,000
August 432,000
September 314,500

71. VAT payable for July is

a. 13,440 c. 11,20
b. 7,240 0
d. 5,000
72. The VAT payable for August is
a. (6,440) c. None
b. (240) d. 7,000

73. The VAT payable for September is

a. 26,580 c. 20,860
b. 27,060 d. 34,090

74. Felicisima had the following data:

Case 1 Case 2
Sales, net of VAT 1,900,000 1,800,000
 Purchases of goods for sale, exclusive of VAT 1,260,000 1,600,000
Purchases of machines (VAT not included) 1,440,000 900,000
Machine life 6 years 3 years

The amounts of VAT payable/excess tax are as follows:

(a) (b) (c) (d)

Case 1 54,000 73,920 73,920 None
Case 2 (84,000) (84,000) 20,000 none

75. Lavinia had the following data in July:

Sales of goods (excluding VAT) 2,540,000

Purchases of goods (net of 1,450,000
VAT)
Purchases of capital goods
(invoice amount)
Machine 1 (useful life of 6 974,400
years)
Machine 2 (useful life of 3 67,200
years)
The VAT payable in July is
a. 120,860 c. 33,600
b. 19,200 d. (40,800)
Numbers 76 – 77 are based on the following info:
The following data (net of tax) of Christine company are as follows:

1st quarter
Sales 700,000
Purchases 500,000
Purchase of machinery (Feb) 1,500,000
Unutilized input tax as of end of 1st quarter 40,000
2nd quarter
Sales 1,500,000
purchases 200,000

76. For the first quarter, Angel Company will result to a/an-
a. VAT payable of 72,000 c. Excess tax of
b. Excess tax of 22,000 196,000
d. VAT payabe of
77. The VAT payable for the 2nd quarter is- 22,000
a. 156,000 c. 125,000
b. 134,000 d. None

78. The data during the second quarter:

Output Tax 35,000
Input Tax 19,000
VAT paid:
April 3,000
May 4,500
Excess input tax, 1st quarter 2,400

The VAT payable (or excess tax to be carried over) is

a. 6,100 c. 8,500
b. 16,000 d. None

79. A new businessman consulted you relative to the filing of tax return and payment of his business tax. The business is
VAT registered although he is expecting to earn an annual gross receipts ranging from 900,000 to 1,200,000 only.
These are his questions:

1. what business tax should be paid by him?

 2. when is the deadline for filing the tax return for the month of May?
3. when is the deadline for the payment of the business tax for the month of June (or second quarter)?

Which of the following choices would be the correct advice?

Questions
1 2 3
a. VAT June 20 July 25
b. VAT June 25 July 25
c. Non VAT June 20 July 25
d. Non VAT June 20 July 20

Numbers 80 – 81 are based on the following info:

The City Government of Inga has the following purchases for the month of August 2009 from VAT suppliers of
goods and/or services:
Purchase of goods from Sina store an merchandise (inclusive of VAT) 11,200
Purchase of services from Daman Services, Inc 56,000

80. The amount payable to Sina after withholding taxes of VAT and income tax is
a. 11,200 c. 9,400
b. 10,600 d. 10,500

81. The amount payable to Daman Services Inc. after withholding taxes of VAT and income tax is
a. 56,000 c. 52,500
b. 50,000 d. 53,500