ASSIGNMENT #4

Mr. Avocado is a real estate dealer:

Consideration on the sale per Deed of Sale P4,000,000

BIR Zonal Value P 4,200,000

Market value per Tax declaration P 4,500,000

Payments were made as follow:

October 5, 2020 (date of sale) P 500,000

December 5, 2020 P 500,000

February 5, 2021 P 1,500,000

March 5,2021 P 1,500,000

1.) How much is the VAT as shown in the Deed of Sale?

4,500,000 x 12% = 540,000

ANSWER: 540,000

2.) How much is the output VAT on October 5, 2020 collection?

500,000/ 4,000,000 x 540,000 = 67,500

ANSWER: 67,500

3.)How much is the output VAT on December 5, 2020 collection?

500,000 / 4,000,000 x 540,000 = 67,500

ANSWER: 67,500

4.)How much is the VAT payable on March 5, 2021?

1,500,000/ 4,000,000 x 540,000 = 202,500

ANSWER: 202,500
ASSIGNMENT #4