MULTIPLE CHOICE – PROBLEMS: PART 1

1. A non-VAT taxpayer sold goods for P20,000. Half of which is paid by the buyer
who gave a promissory note for the balance. The output VAT is
a. P 0
b. P 1,200
c. P 2,400
d. P 4,800
2. A VAT-taxpayer sold goods for P40,000 which excludes a P 1,000 delivery
charge and VAT. The buyer paid P 30,000 downpayment and promised to pay
the P11,000 balance plus the VAT in 30 days.

What is the output VAT?

a. P 4,920
b. P 4,800
c. P 3,600
d. P 0
3. A VAT-taxpayer complied the following for the purpose of filing his BIR Form
2550M:

Sales to VAT taxpayers P 200,000

Sales to non-VAT taxpayers 150,000
TOTAL P350,000
What is the output VAT?

a. P 0
b. P 18,000
c. P 24,000
d. P 42,000

4. A VAT-registered car dealer sold the following goods to a relative

Selling Price P 300,000

Fair market value 500,000
What is the output VAT?
a. P 0
b. P 36,000
c. P 42,000
d. P 60,000
5. A VAT-registered realty dealer sold a parking lot at the following terms:

Zonal value (fair value) P 2,000,000

Less: 10% discount 200,000
Selling price P 1,800,000

Compute the output VAT.

a. P 0
b. P 168,000
c. P 216,000
 d. P 240,000
6. A VAT-registered seller sold various merchandise at wholesale price exclusive
of VAT:

Product total retail price P 300,000

Less: Trade discount (10%) 30,000
Product wholesale price P 270,000
Less: Cash discount (5%)* 13,500
NET PRICE DUE IN 15 DAYS P 256,500

*If the customer pays in 15 days

What is the output VAT?

a. P 0
b. P 30,780
c. P 32,400
d. P 36,000

7. A non-VAT taxpayer prepared the summary of sales for the purpose of filling
his BIR Form 2551M:

Sales to VAT-taxpayers P 200,000

Sales to non-VAT taxpayers 150,000
TOTAL 350,000
Compute the output VAT.
a. P 0
b. P 18,000
c. P 24,000
d. P 42,000
8. Mr. Venta is a VAT-registered seller of “Hot Siopao”. During the month, it sold
a total of P400,000 out of which P300,000 were paid by customers. During
the month he made a total collection of P420,000 inclusive of collection of
past accounts.

Compute the output VAT.

a. P 50,400
b. P 48,000
c. P 36,000
d. P 0
9. A VAT-registered practicing lawyer disclosed the following during the month:

Total professional fees billed P 800,000

Total professional fees collected 600,000
Advances by certain clients 200,000

Compute the output VAT.

a. P 120,000
b. P 96,000
c. P 72,000
 d. P 0

10.A VAT-service provider prepared the following lists of cash collections during
the month:

Gross receipts inclusive of VAT P 504,000

Client advances 200,000
Proceeds of bank loan 300,000
TOTAL P 1,014,000
Compute the output VAT.
a. P 54,000
b. P 78,000
c. P 84,800
d. P 108,643

MULTIPLE CHOICE – PROBLEMS: PART 2

1. A VAT-seller of goods billed the following to a customer:

List price P 800,000

Trade discount 125,000
NET PRICE P 675,000
The credit term for the sale was 2%/15, n 60 days.

What is the output VAT?

a. P 96,000
b. P 81,000
c. P 79,380
d. P 70,875

2. A VAT-seller of goods reported the following during the month:

Gross sales P 500,000

Less:
Cash discount for early P 50,000
payment
Sales returns 20,000 70,000
Net sales P 430,000
What is the output VAT for the month?
a. P 51,600
b. P 54,000
c. P 57,600
d. P 60,000

3. A restaurant which also caters for special events had the following data which
may be relevant in filing its BIR Form 2550M:

Gross receipts from customers P 500,000

 Gross receipts from advanced 50,000
reservations
Client balances evidenced by 70,000
promissory note
TOTAL P 620,000
Compute the output VAT.
a. P 60,000
b. P 66,000
c. P 68,400
d. P 74,400
4. A VAT-seller merely indicated an amount of P300,000 on a bill without
separately indicating the VAT thereon.
What is the output VAT?
a. P 0
b. P 32,143
c. P 36,000
d. P 40,000
5. A VAT-seller indicate the following in a VAT invoice evidencing the sale of
vegetables:

Selling price P 5,000

Output VAT 600
Total amount due P 5,600
What is the output VAT?
a. P 0
b. P 600
c. P 6,520
d. P 6,720
6. IN the immediately preceding problem, compute the output VAT assuming the
sale is made by a non-VAT seller.
a. P 0
b. P 600
c. P 6,520
d. P 6,720
7. A VAT taxpayer had the following invoiced sales during the first quarter of
2015:

January P 280,000
February 347,200
March 313,600
What is the reportable output VAT in January, February and March,
respectively?
a. P 33,600; P 41,664; P 37,632
b. P 33,600; P 41,664; P 112,896
c. P 30,000; P 37,200; P 33,600
d. P 30,000; P 37,200; P 100,800
8. A real property dealer sold an agricultural lot for P2,500,00 with the following
values:
 Appraisal value P 3,000,000
Zonal value 2,000,000
Assessed value 1,500,000
Compute the output VAT.
a. P 180,000
b. P 240,000
c. P 300,000
d. P 360,000
9. A VAT-registered building contractor who reports under the calendar year
basis had the following billings and collections (inclusive of VAT) regarding its
construction contracts:

BILL COLLECTION
June P 448,000 P 403,200
July 504,000 453,600
August 336,000 302,400
What is the output Vat in June and July?
a. P 53,760; P 114,240
b. P 48,000; P54,000
c. P 43,200; P 91,800
d. P 43,200; P 48,600
10.In the immediately preceding problem, what is the output VAT in August?
a. P 138,000
b. P 124,200
c. P 36,000
d. P 32,400

MULTIPLE CHOICE – PROBLEMS: PART 3

1. In June 2014, a realty dealer sold a residential lot for P2,000,000. The lot had
a fair value of P2,500,000 at the date of sale. The buyer agreed to pay in P
100,000 monthly instalment June 2014.
What is the output VAT in June 2014 and July 2014, respectively?
a. P 300,000; P 0
b. P 240,000; P 0
c. P 15,000; P 15,000
d. P 12,000; P 12,000
2. On April 2015, a VAT-registered realty developer sold a condominium unit at a
selling price of P3,600,000. The buyer agreed to pay in 36 monthly
instalments. The property had a zonal value of P4,000,000 and assessed
value of P3,000,000 at the date of sale.

What is the output VAT on every installment?

a. P 13,333
b. P 12,000
c. P 10,000
d. P 0
3. A VAT-registered realtor sold a commercial building at a selling price of
P20,000,000 payable over 20 monthly instalment of P1,000,000. A sample
monthly bill of the realtor depicts the following:

Installment due P 1,000,000

Plus: Output VAT 144,000
Invoice price P 1,144,000
What is the fair value of the property sold?
a. P 20,000,000
b. P 22,000,000
c. P 24,000,000
d. P 30,000,000
4. A realtor sold a commercial land for P 1,500,000 on November 2014. 20%
downpayment was required and the balance was due on 20 monthly
instalment of P60,000 starting December 2014.
What is the output VAT for November and the quarter ending December
2014?
a. P 180,000; P 180,000
b. P 36,000; P 43,200
c. P 36,000; P 7,200
d. P 180,000; P 0
5. A real property developer exchanged one of its land inventory with a zonal
value of P 2,000,000 and assessed value of P 1,500,000 for the stocks of
another corporation.
What is the output VAT on the exchange?
a. P 0
b. P 180,000
c. P 214,286
d. P 240,000
6. A VAT-registered seller of goods reported the following in a month:

Cash sales P 200,000

Credit sales 300,000
Installment sales 400,000
Consignment sales (30 days old) 100,000
TOTAL P 1,000,000
Compute the output VAT.
a. P 24 000
b. P 60 000
c. P 72 000
d. P 108 000
7. A VAT-registered seller received the following statements from its consignees:

Gross price P 500 000

Less:
Commission (20%) 100 000
Freight charger 20 000
NET REMITTANCE P 380 000
What should be the output VAT in the sales?
 a. P 44 000
b. P 45 600
c. P 57 600
d. P 60 000
8. A VAT-seller had the following summaries of sales and consignment in a April:

Cash sales P 200 000

Credit sales 150 000
Sales reported by consignees 250 000
Unsold January consignment 50 000
Unsold February consignment 30 000
Unsold March consignment 40 000
Unsold April consignment 65 000
Assuming that the rules on deemed sale was properly applied in prior
months, what is the output VAT for April?
a. P 42 000
b. P 75 600
c. P 78 000
d. P 81 600
9. Delfin Corporation, a security dealer, declared the following dividends in
March 2015:

Cash dividend P 1 200 000

Property dividend 800 000
The property dividend represents various merchandise inventories.

Compute the output VAT.

a. P 0
b. P 96 000
c. P 144 000
d. P 240 000
10.After consecutive year of persistent losses, Luigi Corporation decided to
liquidate its business. It has the following items in its possession upon
termination of operations:

Book Value Fair Value

Receivables P 1 200 000 P 1 200 000
Investments 200 000 400 000
Inventories 600 000 700 000
Properties and equipment 1 200 000 800 000
Compute the output VAT on the deemed sale transaction.
a. P 0
b. P 168 000
c. P 216 000
d. P 240 000

MULTIPLE CHOICE – PROBLEMS: PART 4

1. Mr. Yaobang is a VAT-registered professional. He also owns a hotel and a
professional practice. He instructed his accounting staff to indicate in
hotel receipts as zero-rated.
During the month, he had the following receipts from its business and
exercise of profession:

Gross receipts from profession P 1 000 000

Gross receipts from hotel 800 000
TOTAL P 1 800 000
Compute the output VAT.
a. P 0
b. P 96 000
c. P 120 000
d. P 216 000
2. Mang Juan applied for the cancellation of his VAT registration. His
application was granted by the BIR. At that time, he had the following
inventories of vatable goods:

Supplies, bought from non-VAT suppliers P 50 000

Supplies, bought from VAT suppliers 80 000
Merchandise, bought from VAT suppliers 100 000
Merchandise, bought from non-VAT 20 000
suppliers
TOTAL 250 000
Compute the output VAT on the deemed sales.
a. P 0
b. P 8 400
c. P 21 600
d. P 30 000
3. A VAT-registered farm supply dealer sold the following during a month:

Fertilizers P 200 000

Corn seeds 250 000
Farm equipment 1 200 000
Pesticides 300 000
TOTAL P 1 950 000
What is the output VAT?
a. P 234 000
b. P 204 000
c. P 180 000
d. P 144 000
4. A VAT-registered bookstore had the following revenues during a month:

Commission income on sales of books P 300 000

Sales of books held as inventory 400 000
Sales of school supplies 900 000
TOTAL 1 600 000
Compute the output VAT.
 a. P 192 000
b. P 156 000
c. P 144 000
d. P 108 000
5. A VAT taxpayer made the following sales during the quarter:

Domestic sales:
Sales of VAT-exempt goods P 1 200 000
Sales of vatable goods 900 000
Export sales 800 000
What is the output VAT?
a. P 348 000
b. P 252 000
c. P 204 000
d. P 108 000
6. Oval corporation owns a coliseum which caters to large indoor events. The
coliseum had the following receipts during a month:
SOURCE OF GROSS RECEIPTS AMOUNT

Professional basketball games P 400 000

Professional boxing competitions 500 000
Amateur basketball games 100 000
Amateur boxing competitions 150 000
Musical concerts 250 000
Religious gatherings 50 000
Other special events or gatherings 120 000
TOTAL P1570 000
What is the output VAT?
a. P 188 400
b. P 168 214
c. P 80 400
d. P 71 786
7. King Bank presented the following gross receipts during the quarter:

Interest income-short term loans P 4 000 000

Interest income-long term loans 1 200 000
Rental of ROPA 800 000
Processing fees 200 000
TOTAL P 6 200 000
Compute the output VAT.
a. P 0
b. P 107 143
c. P 120 000
d. P 744 000
8. Phil-Air is a domestic air carrier with both domestic and international
operations. During a month, it had the following gross receipts.

Domestic operations
Transport of passengers P 40 000 000
 Transport of cargoes 12 000 000
International operations
Transport of passengers P 30 000 000
Transport of cargoes 8 000 000
Compute the output VAT.
a. P 1 440 000
b. P 4 800 000
c. P 6 240 000
d. P 10 800 000
9. Cebu Ferries has a fleet of ship traversing the island of Bohol and Cebu. It
reported the following total receipts during a month:

Transport of passengers P 8 000 000

Transport of cargoes and baggage 1 000 000
TOTAL P 9 000 000
Compute the output VAT.
a. P 0
b. P 120 000
c. P 960 000
d. P 1 080 000
10.Victor Lines is a VAT-registered operator of buses. During the month, it had
the following total receipts:

Transport of passengers P14 000 000

Transport of cargoes and baggage 1 000 000
TOTAL P 15 000 000
Compute the output VAT.
a. P 0
b. P 120 000
c. P 1 680 000
d. P 1 800 000
11.Mr. Asuncion is a non-VAT registered operator of 40 taxis. During a month,
he collected a total receipts of P 1 300 000 under the “boundary” system.
Compute the output VAT.
a. P 0
b. P 278 572
c. P 312 000
d. P 321 000
12.A non-VAT registered radio broadcasting company collected a total of P
800 000 during a month. Compute the output VAT.
a. P 0
b. P 48 000
c. P 85 714
d. P 96 000
13.A VAT registered real property dealer sold the following during a quarter:

House and Lot – 2B-A P 2 000 000

House and Lot – 2B-D 3 000 000
House and Lot – 2C-E 4 000 000
 Residential Lot – 1A 1 000 000
Residential Lot – 2B 2 000 000
TOTAL SALES P 12 000 000
Compute the total output VAT.
a. P 0
b. P 720 000
c. P 1 080 000
d. P 1 320 000
14.A VAT-registered dealer sold two residential units to the same buyer with
the following separate prices:

House and Lot – 1C-A P 1 500 000

House and Lot – 1C-B 2 000 000
What is the output VAT?
a. P 0
b. P 180 000
c. P 240 000
d. P 420 000
15.A VAT-registered realty dealer sold the following adjacent residential lots
to the same buyer. The separate deed of sale had the following respective
prices:

Residential Lot – 2A P 800 000

Residential Lot – 2B 900 000
What is the output VAT?
a. P 0
b. P 96 000
c. P 108 000
d. P 204 000
16.An insurance company had the following gross receipts during a month:

Cash collections from life premiums P 1 800 000

Notes receivable for life premiums 200 000
Cash collections for non-life premiums 1 100 000
Note receivable for non-life premiums 300 000
What is the output VAT?
a. P 0
b. P 360 000
c. P 180 000
d. P 132 000

ANSWER KEY

T or F (1)

1. T
2. F
3. F
 4. F
5. T
6. F
7. T
8. F
9. F
10.T
11.F
12.T
13.F
14.T
15.F
16.F
17.F
18.F
19.T
20.F

T or F 2
1. T
2. T
3. T
4. T
5. T
6. F
7. F
8. F
9. F
10.F
11.T
12.T
13.T
14.T
15.T
16.T
17.F
18.F
19.T
20.F

Multiple choice – Theory: Part 1

1. B
2. A
3. C
4. D
5. C
6. A
7. C
8. B
9. B
 10.C
11.D
12.C
13.D
14.B
15.C

Multiple choice – Theory: Part 2

1. D
2. B
3. C
4. C
5. C
6. C
7. C
8. D
9. D
10.C
11.A
12.A
13.A
14.A
15.A

Multiple choice – Problems: Part 1

1. A
2. A
3. D
4. D
5. D
6. C
7. A
8. B
9. B
10.B

Multiple choice – Problems: Part 2

1. B
2. C
3. B
4. B
5. B
6. B
7. D
8. C
9. D
10.D

Multiple choice – Problems: Part 3

1. A
 2. A
3. C
4. D
5. D
6. D
7. D
8. B
9. B
10.B

Multiple choice – Problems: Part 4

1. D
2. D
3. C
4. C
5. D
6. C
7. A
8. C
9. D
10.B
11.A
12.A
13.B
14.D
15.A
16.D