1. In value added taxation, this is not a requirement for taxability service.

a. Consider received actually or constructively

b. Performed within or outside the Philippines
c. Supply of service is not exempt from VAT.
d. In the course of business
2. Statement 1: A taxpayer whose gross sales or receipts exceeded the amount of
P3,000,000 shall pay VAT even if he is not VAT registered, consequently, he is entitled
to input taxes.
Statement 2. importer of goods for personal use is not subject to VAT if he is not-VAT
registered.
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
3. Which statement is correct?
a. Zero rated sales are exempt from the VAT
b. A person whose sales or receipts do not exceed P 250.000 is exempt from VATand
OPT.
c. A person who issues a VAT invoice on a VAT exempt transaction is nevertheless
subject to VAT on the said transaction.
d. Entities which are exempt from income tax are also exempt from VAT
4. Which of the following is subject to VAT?
a. Sale of smoked fish
b. Sale of lechon
c. Sale of shells and coral products by a dealer.
d. Sale of newspaper.
5. The allowable transitional input tax is
a. The lower between 2% of the value of beginning inventory or actual VAT paid on such
inventory.
b. The higher between 2% of the value of beginning inventory or actual
such inventory
c. The actual VAT paid on the beginning inventory
d. 2% of the value of beginning inventory.
6. The VAT due on the sale of taxable goods, property and services by any person
whether or not he has taken the necessary steps to be registered.
a. Input tax
b. Output Tax
c. Excise tax
d. Sales tax
7. One of the following is not an activity subject to VAT
a Sale in retail of goods by a dealer
b. Sale of bamboo poles by a dealer
c. Sublease of real property in the course of business
d. Importation of ordinary feeds for poultry chicken
8. A resident citizen had the following Properties in Mexico, Pampanga Properties in Hong
Kong What is the amount subject to Philippine property tax?
a 3,500,000
b. 2,000,000
c. 1,500,000
d.0
9. Which of the following forms of escapes will more likely to result in loss of revenue to
the government?
a. Shifting
b. Capitalization
c. Transformation
d.Tax exemption
10. Tax minimization cannot be achieved by
a. Tax planning
b. Selection of transaction
c. Maximization of tax credits and loss carry-overs
d. Offsetting of losses and income of subsidiaries
11. The following are kinds of value added taxes, which is not included?
a. VAT on sale of goods or properties
b. VAT on Importation of goods
c. VAT on Importation of goods
d. VAT on exchange of foreign currencies
12. A non-VAT registered entity and whose sales for the year did not exceed VAT
threshold
a. Exempt from VAT
b. Subject to 0% VAT
c. Subject to percentage tax
d. Subject to 12% VAT
13. Which of the following statement is correct?
1. VAT maybe imposed together with other percentage tax
II. Vat maybe imposed together with excise tax
III. Vat and any percentage maybe imposed together with income tax
a. II only
b. III only
c. II and III only
d. I, II and III
14. Who among the following is not subject to VAT?
a. VAT registered person whose gross sales do not exceed P3.000.000
b. A non-resident lessor or foreign licensor who is not VAT registered
c. Any person wo is required to rgister under the VAT system but failed to
register
d. None of the above
 15. Which of the following taxes describes the valued-added tax?
a. Income tax
b. Sales tax
c. Indirect tax
d. Personal tax
16. Baldo is certified public accountant. He applied for work and was hired by Bruno
Corporation which is engaged in Business Process Outsourcing (BPO) handling
accounting work for US entities. He was paid for his services. How should Baldo treat
such payment for business tax purposes?
a. Subject to 12% VAT
b. Subject to percentage tax
c. Exempt from VAT and Percentage tax
d. It is a zero-rated transaction
17. As to tax rate, value-added tax is an example of
a. Graduated tax
b. Progressive tax
c. Regressive tax
d. Proportional tax
18. Hanep is a manufacturer of fermented liquors. In making sales, all taxes on the products
and transactions are passed on to the buyers. For purposes of the value added tax, which
of the following taxes below that he pays forms part of the gross selling price?
a. Excise tax
b. Value-added tax
c. Percentage tax
d. None of the above
19. The following shall be allowed as deductions from gross selling price, which is not?
a. Discounts determined and granted at the time of sales
b. Sales returns and allowances
c. Freight-out
d. None of the above
20. Under the Tax Code, the following are major internal revenue business taxes,
which one is not?
a. Excise tax
b. Income tax
c. Value-added tax
d. Other percentage tax
21. Which among the following is correct?
a. A taxpayer who is subject to percentage tax on his gross receipts will also be
subject to income tax on his net income
b. All VAT-exempt taxpayers shall be subject of other percentage taxes
c. Both "a" and b"
d. Neither "a" and "b"
22. If the VAT is not billed separately in the document of sale, the selling price or the
consideration therein shall be deemed
a. Exclusive of VAT
b. Inclusive of VAT
 c. VAT exempt
d. Zero rate
23. What does the acronym VAT stand for?
a. Value And Tax
b. Variety Added Tax
c. Property
d. Acquisition/spending
24. VAT is a tax on
a. Income
b. Company profit
c. Property
d. Acquisition/spending
25. What kind of tax Is VAT
a. Depends upon the types of goods or services
b. Direct tax
c. Indirect tax
d. None of the above
26. It is a tax on the purchase/sale of a good or service
a. Income tax
b. Estate tax
c. Value added tax
d. Excise tax
27. Which statement is wrong?
a. There is a transitional input tax from purchase of goods or properties
b. There is a transitional input tax from purchases of services
c. There is a transitional input tax from purchases of materials
d. There is a transitional input tax from purchases of supplies.
28. When to file a VAT return?
a. Monthly
b. Quarterly
c. Semi annually
d. Annually
29. Sale of orchids by a flower shop which raises its flower in Tagaytay City is
subject to
a. 12% VAT
b. 0% VAT
c. Exempted from VAT
d. None of the above
30. Which statement is correct about value-added tax on goods or properties sold?
a. It is based on gross sales and not on net sales
b. May be due even if the goods or properties were not actually sold.
c. Does not cover good exported
d. It forms part of selling expense of the trader
1. The following are kinds of
value added taxes, which is
not included?
a. VAT on sale of goods or
properties
b. VAT on importation of
goods
c. VAT on sale of
services/use or lease of
properties
d. VAT on exchange of
foreign currencies
2. A non-VAT registered
entity and whose sales for
the year did not exceed VAT
threshold
a. Exempt from VAT
b. Subject to 0% VAT
c. Subject to percentage tax
d. Subject to 12% VAT
3. Which of the following
statement is correct?
I. VAT maybe imposed
together with other
percentage tax
II. Vat maybe imposed
together with excise tax
III. Vat and any percentage
maybe imposed together
with income tax
a. II only
b. III only
c. II and III only
d. I, II and III
4. Who among the
followidng is not subject to
VAT?
a. VAT registered person
whose gross sales do not
exceed P3,000,000
b. A non-resident lessor or
foreign licensor who is not
VAT registered
c. Any person wo is required
to rgister under the VAT
system but failed to
register
d. None of the above
5. Which of the following
taxes describes the valued-
added tax?
a. Income tax
b. Sales tax
c. Indirect tax
d. Personal tax
6. Baldo is certified public
accountant. He applied for
work and was hired by
Bruno Corporation which is
engaged in Business Process
Outsourcing (BPO)
1. The following are kinds of
value added taxes, which is
not included?
a. VAT on sale of goods or
properties
b. VAT on importation of
goods
c. VAT on sale of
services/use or lease of
properties
d. VAT on exchange of
foreign currencies
2. A non-VAT registered
entity and whose sales for
the year did not exceed VAT
threshold
a. Exempt from VAT
b. Subject to 0% VAT
c. Subject to percentage tax
d. Subject to 12% VAT
3. Which of the following
statement is correct?
I. VAT maybe imposed
together with other
percentage tax
II. Vat maybe imposed
together with excise tax
III. Vat and any percentage
maybe imposed together
with income tax
a. II only
b. III only
c. II and III only
d. I, II and III
4. Who among the
followidng is not subject to
VAT?
a. VAT registered person
whose gross sales do not
exceed P3,000,000
b. A non-resident lessor or
foreign licensor who is not
VAT registered
c. Any person wo is required
to rgister under the VAT
system but failed to
register
d. None of the above
5. Which of the following
taxes describes the valued-
added tax?
a. Income tax
b. Sales tax
c. Indirect tax
d. Personal tax
6. Baldo is certified public
accountant. He applied for
work and was hired by
Bruno Corporation which is
engaged in Business Process
Out