A non – resident foreign person performing isolated transaction in the Philippines shall be liable to VAT.

A non – resident lessor or foreign licensor who is not vat-registered is subject to VAT. T

A taxpayer may have two businesses where one is subjected to vat and the other is subjected to
percentage tax. T

A vat-taxable article may be exempt from vat. When the seller is not vat registered and the amount of
annual sales is equal or lesser than the vat threshold. T

A vat-taxable article may be subject to vat. T

An importation of goods by a non-profit charitable organization shall not be subject to the VAT. F

Custom duty duties and excise tax on importation, invoice price of the imported items and facilitation
expense are included in the computation of VAT on imported items. T

Expenses incurred after the goods are released from Customs custody are disregarded in computing VAT
on importation. T

For a person to be subjected to any business tax, it is necessary that he is regularly engaged in the conduct
or pursuit of an economic activity. F

Government entities engaged in commercial or economic activity are generally exempt from value-added
tax. F

Imported goods which are subject to excise tax are no longer subject to value-added tax. F

In the case of importation, the importer is not the one liable for the VAT but the person who shall buy the
imported goods. F

Isolated sale of goods or services. Only services in the Philippines by non-resident foreign persons. F

Lease of 8 residential units at P18,500 per month is subject to VAT. F

Manufacturers and importers of goods are subject to excise tax. F

Nonstock and nonprofit organizations which sell exclusively to their members in the regular conduct or
pursuit of commercial or economic activity are exempt from value-added tax. F

Services rendered in the Philippines by a non – resident foreign person shall be considered as being
rendered in the course of trade and business even if the performance is not regular. T

The gross receipts from rentals exceeding P15,000 per month per unit shall be subject to vat if the annual
gross receipts from said units including the gross receipts from units leased out for not more than P15,000
exceed P3,000,000. F

The importation by a person exempt from VAT is exempt from the tax whatever may be the ultimate
destination of the article imported.

The sale of two (2) adjacent residential lots in the course of trade and business to one buyer within the
same taxable year for P1,000,000 each is subject to VAT. T
The VAT on importation is always based on the dutiable value of the article imported, as determined by the
Bureau of Internal Revenue, including customs duties and excise taxes. F

VAT on importation is a liability, either of the tax exempt importer or the non-tax exempt purchaser. F

VAT on importation is paid to the Bureau of Customs before the imported goods are released from its
custody. T

VAT on importation should be paid by the non – tax exempt purchaser to whom the tax exempt importer
sells it. T

VAT on importation should be paid by the tax exempt importer, if he subsequently sells the goods to a non
– tax exempt purchaser. F

VAT on importation should not be paid if the importer is tax exempt but the imported article was
subsequently sold a non -exempt purchaser because the transaction was exempt at the point of
importation. F

When a person who enjoys tax-exemption on his importation subsequently sells in the Philippines such
imported articles to non – exempt person, the purchaser non – exempt person shall pay the VAT on such
importation. T

Without a business pursued in the Philippines (except importation) by the taxpayer, value added tax
cannot be imposed. T