Problem 1

Pedro Rosales, non-VAT registered lessor of residential and commercial units,

had the following date for the 1st and 2nd quarters of 2021
Gross Receipts
1st quarter 2nd quarter
Lease of Residential Units
>Monthly rental of 13,000/unit 2,500,000.00 2,300,000.00
>Monthly rental of 18,000/unit 1,000,000.00 1,200,000.00
Lease of commercial units 2,300,000.00 2,400,000.00
Input VAT from VAT suppliers 150,000.00 120,000.00

1. How much is the business tax due for the 1st quarter of Mr. Pedro?
Residential unit 1,000,000.00
commercial unit 2,300,000.00
total 3,300,000.00
VAT rate 12%
VAT Payable 396,000.00

2. How much is the business tax due for the 2nd quarter of Mr. Pedro?
Residential unit 1,200,000.00
commercial unit 2,400,000.00
total 3,600,000.00
VAT rate 12%
VAT Payable 432,000.00

3. How much is the business tax due for the 2nd quarter of mr. Pedro assuming
he registered as a VAT taxpayaer at the start of the 2nd quarter?

Output VAT 432,000.00

Input VAT (120,000.00)
VAT Payable 312,000.00
4. Assuming Mr. Pedro is vat registered instead of non-vat-registered, how much is
his business tax due for the 1st quarter?

Output VAT 396,000.00

Input VAT (150,000.00)
VAT Payable 246,000.00

Problem 2
In 2020, Anthony purchase a condominium unit from his friend, Ronald (condo unit owner)
for P3,000,000 and a parking lot from the subdivision developerfor 800,000. The correct VAT is?

Parking lot 800,000.00

12%
Ooutput VAT 96,000.00

Problem 3
In 2021, Anthony purchase a condominium unit from Landmaster corporation for 2,500,000 including
a parking space for 800,000. The correct amount of vat is?

Parking lot 800,000.00

12%
Output VAT 96,000.00

Problem 4
Kler Corporation is a VAT registered entity and a holder of license to operate issued by FDA to manufacture
medical-grade PPE components such as coveralls, gown, surgical cap, surgical mask, n-95 mask, scrub suits,
goggles and face shield for COVID-19 prevention. During the period of April to June 2021, the company
had the following transactions:
Importation of raw materials (not locally available) 2,000,000.00
other residential dwelling
3,199,200
 importaion of capital equipment 25,000,000.00
importation of raw materials (locally available) 1,000,000.00
sale or transfer of raw materials to an affiliated
company which is also a holder of
license to operate issue by FDA 500,000.00

How much is the amount of vatable transaction, if any?

importation of raw materials (locally available) 1,000,000.00

RR 4-2021

Problem 5 OUTPUT VAT

On January 5, 2021, Pinoy Food corporation, vat registered, sold on account goods for 112,000 inclusive of vat.
The term was 2/10, n/30. Payment was made on January 10, 2021. The total amount due is?

SP without discount (tax base) 100,000.00

cash dicsount (2,000.00)
vat 12,000.00
total amount due 110,000.00

Problem 6
XYZ Corporation (VAT Reg) has the following data for the month of March Output VAT
Gross sales (vat exclusive) 8,000,000.00 Less: Input VAT
Sales Return 400,000.00 VAT Payable

Goods shipped on consignment (net) Output VAT

Units Amount Sales (8M-400T) x 12%
25-Mar 40 10,000.00 Sales -consignment (Mar & Feb)
14-Feb 30 10,000.00 (20+10) x 10,0000 x 12%
8-Jan 29 10,000.00 Transactions deemed sale
Jan 8 cosnsinment (29 x 10,000 x 12%)
Goods withdrawn for use by the company 50,000.00 Goods withdrawn
912,000.00

36,000.00

34,800.00
6,000.00
goods taken as payment to creditor 30,000.00 goods taken as payment to credit
purchases for the month of (net of vat) Total output VAT
Goods 600,000.00
Supplies 75,000.00 Input VAT
Capital goods (life 4 years) 1,100,000.00 Purchases
freight and insurance 8,500.00 Goods
Salaries of employees 385,000.00 Supplies
Freight & Ins
Additional information:
>Received cash representing payment for 10 untis delivered on February 14. Capital goods (1,100,000 x 12%) /48 mos
The amount received was net of 10% commission. Total Input VAT
>A consignee reported and remitted P200,000 (gross of 10% commission) TOTAL VAT PAYABLE
representing 20 units sold from goods consigned in March

The vat payable for the month of March shall be

Problem 7
The following are the data of Cebu International for the last quarter of 2020
sales up to Dec 15 (invoice value) 380,800.00 Output VAT
purchases up to dec 15 (net) 150,000.00 Sales 340,000.00
Inventory 190,000.00
On Dec 16, 2020, the company retired from its business and the inventory valued at total sales 530,000.00
190,000 remained unsold. There is a deferred input tax fromt eh third quarter of 3,500. 0.12
Output VAT 63,600.00
How much is the total VAT payable of Cebu international?
Input VAT
Purchases 150,000.00
VAT 0.12
Input VAT 18,000.00
Deferred input 3,500.00
INPUT VAT 21,500.00
VAT Payable 42,100.00
 3,600.00
992,400.00

600,000.00
75,000.00
8,500.00
683,500.00 82,020.00
2,750.00
(84,770.00)
907,630.00

invoice value means inclusive of VAT

Problem 8
Wella, a vat registered lessor of commercial spaces received P1,337,500 rentals during
2021 from various clients, net of the 5% creditable withholding tax on rental income.
1. How much is the correct output VAT?
2. Assume that in the precedin number, Wella is a non-vat registered lessor,
how much is the correct business tax?

Invoice Value
Tax Base 1,250,000.00
VAT 150,000.00
Payable 1,400,000.00
WHT 5% 62,500.00
Amount Received 1,337,500.00 (95% +12%VAT)

Problem 9
Lexmark Power Corp. imported an article from Japan. The invoices value of the imported articales
was $7,000 ($1-P50). However, customs officials valued the imported article for P500,000 Vatable transaction on importation
The following additional costs were incurred in connection with the importaion Imported article 500,000.00
insurance 15,000.00 insurance 15,000.00
freight 10,000.00 freight 10,000.00
postage 5,000.00 postage 5,000.00
wharfage 7,000.00 wharfage 7,000.00
arrastre charges 8,000.00 arrastre charges 8,000.00
brokerage fees 25,000.00 brokerage fees 25,000.00
facilitation fee 3,000.00 bribe custom duty 50,000.00
excise tax 30,000.00
The imported article was imposted P50,000 customs duty and P30,000 excise tax. 650,000.00
The company likewise spent P50,000 for trucking fee from the customs warehouse VAT RATE 12%
to its warehouse in Quezon city. The carrier is a vat-registered entity VAT on importation 78,000.00

1. The VAT on importation is?

IFBOC will not provide

Imported article 350,000.00

insurance 15,000.00
freight 10,000.00
postage 5,000.00
wharfage 7,000.00
arrastre charges 8,000.00
brokerage fees 25,000.00
custom duty 50,000.00
excise tax 30,000.00
500,000.00
VAT RATE 12%
VAT on importation 60,000.00
2. Base on the preceding number, if the imported article was sold for P800,000 (exclusive of VAT),
the vat payable is?

Output VAT(800,000 X 12%) 96,000.00

Input VAT on importation (78,000.00)
Input VAT on freight (6,000.00)
VAT Payable 12,000.00

3. Assume the BOC did not provide the valuation for the imported article, the vat on importation is?
4. base on the preceding number, if the imported article was sold for P800,000, VAT exclusive, the VAT payable is
Output VAT(800,000 X 12%) 96,000.00
Input VAT on importation (60,000.00)
Input VAT on freight (6,000.00)
VAT Payable 30,000.00

PROBLEM 10
Pedro, VAT registered, made the following purchases during the month of January 2021 VAT
Goods for sale, inclusive of VAT 246,000.00 26,357.14
Supplies, exclusive of VAT 20,000.00 2,400.00
Packaging materials, total invoice amount 56,000.00 6,000.00
home appliances for residence, gross of VAT 17,920.00 - for personal use
office machines (5pcs), 4 years useful life, net of VAT 2,000,000.00 5,000.00
39,757.14
The creditable input tax for the month should be

Problem 10 Presumtive VAT OF 4%

Mantika corp, A vat registered crop, is a producer of cookin oil from coconut and corn
it had the followin data for the month of Janauary 2021
Sales, gross of vat 784,000.00
corn and coconut, dec 31, 2020 50,000.00
Purchases of corn and coconut on Jan 1 2021 330,000.00
corn and coconut, Jan 31, 2021 20,000.00
Purchase from VAT suppliers, vat inclusive
Packaging materials 56,000.00
supplies 16,800.00

The VAT payable for january 2021 is

Output VAT (784,000 x 12/112) 84,000.00

Less Input VAT
Presumptive input VAT (330,000 X 4%) (13,200.00)
Packaging (56,000 x 12/112) (6,000.00)
supplies (16,800 x 12/112) (1,800.00)
63,000.00

Problem 11 Transitional Input VAT

An owner of warehouse, which used to be vat exempt, because its annual receipt never
exceeded 3M, decided to register under VAT system on Jan 2, 2021. The following
data were from the 1st quarter ending march 31, 2021 VAT
Rental from warehousing services, net of vat 336,000.00 40,320.00
purchases of supplies in February, gross of vat 112,000.00 (12,000.00)
inventory of supplies, january 1, 2021 100,000.00
vat on inventory of supplies, jan 1, 2021 10,000.00 (10,000.00)
How much was the vat payable for the quarter ending March 2021? 18,320.00
100,000 X 2%

Problem 12 Standard input VAT

A VAT-registered trader has the following transactions during 2021:
sale of goods to private entities, net of VAT 2,500,000.00 300,000.00
Purchases of goods sold to private entities gross of vat 896,000.00 (96,000.00)
sale to a government owned corporation, net of vat 1,000,000.00 120,000.00
 purchases of goods to GOCC net of VAT 700,000.00 (84,000.00)
240,000.00
Govt. 5% WHT 50,000.00
1. How much is the output tax? PAYABLE 190,000.00
Output VAT = (2.5M + 1M) X 12% 420,000.00
2. How much is the standard input tax?
NIL - Standard input VAT is no longer computed
but if in 2020 7% of sales to gov.

3. how much is the creditable input VAT? 180,000

4. How much is the input tax closed to income ro expense?
NIL

5. How much is the vat payable to BIR?