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COLLEGE OF MARY IMMACULATE d. A VAT registered taxpayer whose annual VAT-subject

Poblacion, Pandi, Bulacan gross sales or receipts do not exceed P3,000,000
ASSIGNMENT – Value Added Tax (VAT) 7. Optional registration for VAT is irrevocable for a period of:
2nd Semester, AY 2022 – 2023 a. One (1) year c. Five (5) years
b. Three (3) years d. Seven (7) years
________________ _______________ _____
SURNAME FIRST NAME M.I 8. Which of the following taxpayers is barred from cancelling its
optional VAT registration?
COURSE: __BSA__ YR. & SEC. __4___ a. International common carriers
b. Operators of amusement places
DATE: _04/01/2023_ TEACHER: __J.P. LEE____ c. Export-oriented enterprises
d. Radio and television franchisees
TAX REVIEW (TAXREV)
BSA 4th Year (Saturday, 8:00AM – 11:00AM) 9. The VAT on importation is paid:
a. The non-resident seller monthly
I - MULTIPLE CHOICE. b. The resident buyer monthly
c. The non-resident seller before release of goods from
1. Who is statutorily liable for the payment of VAT? customs custody
a. Seller d. The resident buyer before release of goods from
b. Buyer customs custody
c. Seller or Buyer, at the option of the government.
d. Seller and Buyer 10. Statement 1: Incidental and isolated transactions may be
subject to VAT.
2. Yoona is a student at the Review School of Caring Educators Statement 2: A VAT-registered supermarket selling general
(ReSCARe). She sold her unused iPhone to her friend for merchandise sells one of its cash registers. The sale is
P30,000, and with those amounts she saved P10,000, and subject to VAT.
spent P20,000 to buy a cheaper phone. How much is Yoona’s a. Only Statement 1 is true.
VAT payable? b. Only Statement 2 is true.
a. 0. Yoona is not engaged in business. c. Both Statements are true.
b. 0. Yoona is not VAT-registered. d. Both Statements are not true.
c. 1,200, computed as 12% of the amount she has saved.
d. 3,600, computed as 12% of the price at which her friend 11. Statement 1: A sale is not in the course of trade or business
bought the phone. is generally not subject to VAT.
Statement 2: An importation not in the course of trade or
3. Statement 1: A privilege store is not subject to VAT. business is generally not subject to VAT.
Statement 2: If a store engages in any business activity during a. Only Statement 1 is true.
a feast that lasted for one week, it shall be subject to VAT. b. Only Statement 2 is true.
a. Only Statement 1 is true. c. Both Statements are true.
b. Only Statement 2 is true. d. Both Statements are not true.
c. Both Statements are true.
d. Both Statements are not true. 12. Gross selling price is the appropriate VAT base for:
a. Sale of goods or properties
4. Statement 1: A privilege store operator is not required to file b. Sale of services (based on gross receipts)
percentage tax returns. c. Importation (based on landed cost)
Statement 2: A privilege store operation is not required to file d. Lease of properties (based on gross receipts)
an income tax return.
a. Only Statement 1 is true. 13. Gross receipts is the appropriate VAT base for all of the
b. Only Statement 2 is true. following, except:
c. Both Statements are true. a. Sale of services c. Sale of securities
d. Both Statements are not true. b. Lease of properties d. Importation

5. In order to be subject to the requirement of VAT registration,
a business must have:
a. Gross sales or receipts exceeding ₱3,000,000
b. Gross sales or receipts of at least ₱3,000,000
c. Gross sales or receipts, other than those that are
exempt under Section 109, exceeding ₱3,000,000
d. Gross sales or receipts, other than those that are exempt
under Section 109, of at least ₱3,000,000
6. Which among the following taxpayers can avail of the 8% flat
rate of income tax?
a. A non-VAT registered taxpayer whose annual VAT-
subject gross sales or receipts exceed P3,000,000
b. A non-VAT registered taxpayer whose annual VAT-
subject gross sales or receipts do not exceed
P3,000,000
c. A VAT registered taxpayer whose annual VAT-subject
gross sales or receipts exceed P3,000,000
14. In case of barter, sale, or exchange of real property, gross
selling price means:
a. Zonal value or assessed value, whichever is higher.
b. Fair market value or consideration, whichever is
higher.
c. Zonal value or consideration, whichever is higher.
d. Appraised value or assessed value, whichever is higher.
15. Statement 1: If an item sold is subject to both value-added tax
and excise tax, the gross selling price includes the excise tax
paid.
Statement 2: Gross selling price is the amount of money
received by the seller in a sales transaction.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both Statements are true.
d. Both Statements are not true.

16. All of the following are requisites for discount to be allowed as
a deduction from the selling price, except:
a. Determined and granted at the time of sale.
b. Recorded in the seller’s books of accounts.
c. Subject to condition
d. Amount of discount is reflected in the invoice.
17. Maria and Clara entered into a contract of sale of car.
Negotiations were made on March 1, 2021. They were able
to agree on the price via text message on April 1, 2021. They
signed the contract on May 1, 2021, and constructive delivery
of the car was made a week after on May 8, 2021. When shall
VAT be recognized from the transaction?
a. March 1, 2021 c. May 1, 2021
b. April 1, 2021 d. May 8, 2021
18. A sale is a sale on a deferred-payment basis if:
a. The down payment is at least 25% of the gross selling
price.
b. The down payment exceeds 25% of the gross selling
price.
c. The initial payments are at least 25% of the gross selling
price.
d. The initial payments exceed 25% of the gross selling
price.
19. When does constructive receipt occur?
a. When the money is received by a construction worker.
b. When the seller has an unconditional right to receive the
payment due from the buyer.
c. When the seller has a legally enforceable right to
demand the payment due from the buyer such as when
the seller has already rendered the services agreed
upon.
d. When the money consideration or its equivalent is
placed at the control of the person who rendered the
service without restrictions by the payor.
20. Which of the following is an example of constructive receipt?
a. Deposit in the bank account of the seller by the buyer
which are made available to the seller of services
without restrictions
b. Making of a refundable deposit which shall be returned
to the buyer upon satisfactory completion of the services
rendered
c. Payment made by the buyer through checks, named
under the seller-payee, for the billed amount on services
rendered
d. Payment made by cash in a face-to-face transaction
21. The VAT base for non-life insurance companies is the total
premiums collected. This includes:
I. Payment in money
II. Payment in notes or credits
III. Payment in any substitute for money
a. I only c. I and III only
b. I and II only d. I, II, and III.
22. Which of the following items is a VAT-subject receipt by a
lessor?
a. Loan to the lessor
b. Option money for the property
c. Prepaid rentals if the lessor uses the accrual method of
accounting
d. Security deposit for the faithful performance of
certain obligations of the lessee
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23. Which of the following is not a transaction deemed sale?
a. Retirement from or cessation of business
b. Change of ownership of the business
c. Incorporation of a single proprietorship
d. Change of control of a corporation by the acquisition
of the controlling interest of such corporation by
another stockholder
24. Which of the following is a VAT-subject event?
a. Change in the trade or corporate name of the business
b. Approval of a request for cancellation of registration
due to a desire to revert to exempt status after the
lapse of three (3) consecutive years from the time of
registration by a person who voluntarily registered
c. Merger of corporations
d. Consolidation of corporations
25. Consignment of goods are transactions deemed sale:
a. If actual sale is not made within sixty (60) days
following the date such goods were consigned
b. If actual sale is not made within ninety (90) days following
the date such goods were consigned
c. If actual sale is not made within thirty (30) days following
the date such goods were consigned
d. If actual sale is not made within one hundred twenty
(120) days following the date such goods were
consigned
26. Statement 1: Gross receipts of a PRC-licensed doctor is
subject to VAT on professionals.
Statement 2: Gross receipts of a professional athlete is
subject to VAT on professionals.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both Statements are true.
d. Both Statements are not true.
27. In order to be zero-rated, the sale and actual shipment of
goods from the Philippines to a foreign country:
a. Must be paid for in Philippine pesos.
b. Must be paid for in acceptable foreign currency.
c. Must be FOB Shipping Point.
d. Must be FOB Destination.
28. Statement 1: ECOZONEs are separate customs territory by
fiction of law.
Statement 2: Sale to an entity located in an ECOZONE, even
though such entity is not qualified to avail income tax holiday
or 5% gross income tax, is a zero-rated sale.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both Statements are true.
d. Both Statements are not true.
29. Which of the following is an export-oriented enterprise?
a. Demi Corporation. Its export sales exceed 50% of the
total annual production of the preceding taxable year.
b. Ariana Corporation. Its export sales exceed 70% of
the total annual production of the preceding taxable
year.
c. Miley Corporation. Its export sales exceed 50% of the
total annual production of the three preceding taxable
year.
d. Selena Corporation. Its export sales exceed 70% of the
total annual production of the three preceding taxable
year.
30. Which of the following products is VAT exempt?
a. Rabbits c. Anacondas
b. Dogs d. Fighting cocks
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31. Which of the following is a zero-rated sale? 34. Sale of which of the following products is not exempt from
a. Sale of raw materials or packaging materials to a VAT?
nonresident buyer for delivery to a resident to be used in a. Shrimp c. Raisins
manufacturing, processing, packaging or repacking in b. Cactus d. Bananas
the Philippines of the said buyer’s goods and paid for in
acceptable foreign currency and accounted for in 35. Lydia Mila is engaged in the sale of chicken in various forms.
accordance with the rules and regulations of the Bangko The following are Lydia Mila’s sales:
Sentral ng Pilipinas (BSP).
b. Sale of raw materials or packaging materials to a Live chickens ₱8,510,000
nonresident buyer for delivery to a resident local Fighting cocks 300,000
export-oriented enterprise to be used in Fresh chicken meat 210,000
manufacturing, processing, packaging or repacking
Cut chicken meat 7,700,000
in the Philippines of the said buyer’s goods and paid
for in acceptable foreign currency and accounted for Boiled chicken meat 2,220,000
in accordance with the rules and regulations of the Roasted chicken meat 510,000
Bangko Sentral ng Pilipinas (BSP). Smoked chicken meat 5,310,000
c. Sale of finished goods to a nonresident buyer for delivery Salted chicken meat 4,640,000
to a resident to be used in manufacturing, processing,
Chicken nuggets 2,130,000
packaging or repacking in the Philippines of the said
buyer’s goods and paid for in acceptable foreign Chicken cubes 4,970,000
currency and accounted for in accordance with the rules Chicken hotdog 4,500,000
and regulations of the Bangko Sentral ng Pilipinas (BSP). Total ₱41,000,000
d. Sale of finished goods to a nonresident buyer for delivery
to a resident local export-oriented enterprise to be used How much are the VAT-exempt sales?
in manufacturing, processing, packaging or repacking in a. 8,720,000 c. 29,100,000
the Philippines of the said buyer’s goods and paid for in b. 16,350,000 d. 29,400,000
acceptable foreign currency and accounted for in
accordance with the rules and regulations of the Bangko 36. Which of the following is a VAT-exempt item?
Sentral ng Pilipinas (BSP). I. Newspapers devoted principally for the publication
of local news and not national news.
32. Which of the following is not a zero-rated sale under the II. Books in electronic format
Omnibus Investments Code?
a. Sales to bonded manufacturing warehouse of export- a. I only c. Both I and II
oriented manufacturers b. II only d. Neither I nor II.
b. Sales to the government of the Philippines BIR Ruling 083-2014
c. Sales to export processing zones https://www.bir.gov.ph/index.php/archive/2014-bir-
d. Sales to registered export traders operating bonded rulings.html
trading warehouses Page 8 – CPAR handouts
https://www.divinalaw.com/dose-of-law/printed-
33. Lakas Tama Company is a domestic corporation engaged in digital-publication/
the generation and distribution of electricity from various
sources. The following are the sales of Lakas Tama of 37. Which of the following is a VAT-exempt sale of services?
electricity with source indicated: I. Transport of cargoes by international carriers from
Philippines to abroad
Source Amount II. Transport of passengers by international carriers
Coal ₱7,440,000 from Philippines to abroad
III. Transport of cargoes by domestic carriers from
Fossil Fuel 4,860,000
Philippines to abroad
Hydroelectric 5,960,000
Wind 6,330,000 a. I only c. I and II only
Total ₱24,590,000 b. II only d. I, II, and III.

How much is Lakas Tama’s zero-rated sales? 38. Input VAT from sale of services may be claimed:
a. 5,960,000 a. Upon perfection of sale
b. 6,330,000 b. Upon consummation of sale
c. 12,290,000 c. Upon rendering of services
d. 24,590,000 d. Upon payment
Hydro 5,960 + Wind 6,330 = 12,290 Input VAT (upon payment) / Output VAT (upon
Coal & fossil fuel = VATable collection)

Mining/Oil & Gas Company (Production of coal/oil/gas) = 39. Which of the following purchase of vehicles may give rise to
VAT exempt under the Coal Operating Contract/Service input tax credit?
Contract (PD 87– oil/gas development act of 1972; PD 972 I. Purchase of a delivery truck amounting to
– coal development act of 1976) ₱1,800,000
II. Purchase of a car for top management amounting to
Example: PNOC EC (Seller) to Powerplant (Buyer) = VAT Exempt ₱2,600,000
Powerplant/Generation companies (Seller) to Customers = VATable III. Purchase of a car by those proprietor for his own
personal use, ₱2,000,000
Renewable Energy (Solar, hydro, wind, geothermal, biogas) =
electricity generated = VAT zero-rated
a. I only c. I and II only
RA 9513 – Renewable Energy Act of 2008
b. II only d. I, II, and III

40. Which of the following manufacturers/processors can claim
presumptive input VAT?
a. Processor of salt
b. Processor of sardines
c. Processor of rice
d. Processor of eggs
41. The base of computation of presumptive input VAT
a. Gross value of raw materials
b. Gross value of primary agricultural inputs
c. Gross value of agricultural and marine inputs
d. Gross value of raw materials proportionately applied to
the registered operations of the taxpayer
42. Standard input VAT applies to:
a. Sale of refined sugar
b. Sale to government
c. Change from non-VAT registered taxpayer to VAT-
registered taxpayer
d. Transactions deemed sale
43. In order to claim input VAT from purchases of services, the
proper documentation is:
a. VAT invoice
b. VAT official receipt
c. VAT statement of account
d. VAT delivery receipt
44. Which of the following is an attachment to the quarterly VAT
return?
a. Alpha list of payees
b. Summary list of sales
c. Audited financial statements
d. Certificate of registration
45. For manual filers, the deadline for filing of the monthly VAT
declaration is:
a. 10th day of the following month
b. 15th day of the following month
c. 20th day of the following month
d. 25th day of the following month
46. Which of the following is not characteristic of value added
tax?
a. It is an excise tax.
b. It is a national tax.
c. It is a proportional tax.
d. It is a direct tax.
47. Under the TRAIN Law, what is the quantitative threshold in
order for non-VAT registered seller of goods or services to be
subjected to value added tax?
a. Gross sales of receipts exceeding ₱3,000,000 during
the year or in any 12-month period.
b. Gross sales or receipts exceeding ₱1,919,500 during the
year or in any 12-month period.
c. Gross sales or receipts amounting to at least ₱3,000,000
during the year or in any 12-month period.
d. Gross sales or receipts amounting to at least ₱1,919,500
during the year or in any 12-month period.
48. In which of the following transactions is a non-VAT registered
taxpayer-seller not allowed to claim creditable input VAT?
a. Sales of goods subject to 12%-VAT
b. Sales of goods subject to 0%-VAT
c. Sales of goods exempt from VAT
d. All of the above
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49. Which of the following sales transactions by a VAT registered
taxpayer-seller is subject to 12%-VAT?
a. Sale of goods in a foreign country and paid for in
acceptable foreign currency
b. Sale of goods to Asian Development Bank or
International Rice Research Institute
c. Sale of goods to cooperative registered with
Cooperative Development Authority
d. Sale of goods to diplomatic missions and other agencies
or instrumentalities granted tax immunities
50. Which of the following fees is subject to value-added tax?
a. Salaries of professor teaching in College of Law
b. Professional fee of CPA reviewer in a Review Center
c. Wages of rank-and-file employee in government agency
d. Fee paid to agricultural contract growers and milling for
others of palay into rice, corn into grits, and sugar cane
into raw sugar
51. Which of the following transactions is not a transaction
deemed sale and therefore it will not be subject to VAT?
a. Distribution of property dividends to stockholders in the
form of inventories
b. Dacion en pago to creditors in the form of investment
property
c. Consumption by the sole proprietor of existing goods of
the business
d. Transfer of assets of corporations to another
corporation due to merger or consolidation
52. What is the tax base for computation of output VAT on
rendition of services?
a. Gross receipts c. Gross sales
b. Gross service revenue d. Landed value
53. Which of the following sales of real property is subject to
VAT?
a. Sale of land by a college professor
b. Sale of real properties for low-cost housing and
socialized housing as defined by R.A. 7279
c. Sale of commercial lot valued as ₱1,500,000 and
below
d. Sale of residential house and lot valued at ₱2,500,000
and below
54. Which of the following lease shall be subject to VAT?
a. Lease with monthly rental exceeding ₱15,000 but the
annual aggregate of rental does not exceed ₱3,000,0000
b. Lease with monthly rental does not exceed ₱15,000 but
the annual aggregate of rentals exceeds ₱3,000,0000
c. Lease with monthly rental exceeding ₱15,000 and the
annual aggregate of rentals exceeds ₱3,000,0000
d. Lease with monthly rental not exceeding ₱15,000 and
the annual aggregate of rentals does not exceed
₱3,000,0000
55. Which of the following sale of medicine is subject to VAT?
a. Sale of drugs and medicines prescribed for diabetes
b. Sale of drugs and medicines prescribed for flu
c. Sale of drugs and medicines prescribed for high
cholesterol
d. Sale of drugs and medicines prescribed for hypertension
56. How many days must lapse from the date of consignment to
consignee in order for the consigned goods to be considered
transaction deemed sale to the consignor?
a. If actual sale to final consumer is not made within 30 days
following the date such goods were consigned.
b. If actual sale to final consumer is not made within 40 days
following the date such goods were consigned.
c. If actual sale to final consumer is not made within 50 days
following the date such goods were consigned.
d. If actual sale to final consumer is not made within 60
days following the date such goods were consigned.

57. If a person who is a non-VAT-registered issues an invoice or
receipt showing his TIN, followed by the word "VAT", what is
the extent of his tax liability to the said transaction?
I. Other applicable percentage taxes
II. Output VAT due on the transaction without the benefit
of input tax credit
III. 50% surcharge
a. I and III only c. II and III only
b. I and II only d. I, II and III
58. In which of the following creditable input VAT is payment of
the input VAT not necessary for the crediting of input VAT?
a. Transitional input VAT c. Either A or B
b. Presumptive input VAT d. Neither A nor B
59. Which of the following persons is not liable to pay Output
VAT?
a. Those who are VAT-registered taxpayers.
b. Importers of goods not in the ordinary course of
business.
c. Franchise grantees of radio/and or TV broadcasting
whose gross annual receipts do not exceed
P10,000,000
d. Those engaged in the selling or leasing of goods,
property or services whose gross sales or gross
receipts during the year or in any 12-month period
exceeds P3,000,000
60. Sale of which of the following items is subject to 12% Output
VAT?
a. Sale of roasted chicken c. Sale of bagasse
b. Sale of corn grits d. Sale of salted egg
61. Importation of which of the following items is subject to 12%
Output VAT?
a. Importation of fertilizers
b. Importation of feeds for aquarium fish
c. Importation of seeds, seedlings and fingerlings
d. Importation of poultry feeds
62. Which of the following rendition of services is subject to 12%
Output VAT?
a. Laboratory services made by medical clinic to patients
b. Dental services by Dental clinic to patients
c. Check-up services by Pediatrician to patients
d. Accommodation services by hospital to patients
63. Which of the following shall be considered transactions
deemed sale to be subjected to 12% Output VAT?
a. Change in the control of a corporation
b. Change in the trade or corporate name of a business
c. Either A or B
d. Neither A nor B
64. Which importation by an OFW is subject to 12% VAT?
a. Importation of professional instruments and implements
b. Importation of vehicle
c. Importation of tools of trade, occupation or employment
d. Importation of wearing apparel
65. Which of the following sale is subject to 12% VAT?
a. Sale, importation, printing, or publication of books and
any newspaper, magazine, review, or bulletin which
appears at regular interval with fixed prices for
subscription and sale, and which is devoted principally
to the publication of paid advertisements.
b. Sale of books, newspapers, magazines in electronic
format.
c. Either A or B
d. Neither A nor B
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66. Which of the following is subject to VAT?
a. Export sales by persons who are not VAT-registered
b. Export sales by VAT-registered persons
c. Either A or B
d. Neither A nor B
67. Which rendition of services is not subject to VAT?
a. Transportation services by domestic common carries by
air relative to cargoes from one place to in the
Philippines to another place in the Philippines
b. Transportation services by domestic common carries by
sea relative to passengers from one place to in the
Philippines to another place in the Philippines
c. Transportation services by domestic common carries by
land relative to cargoes from one place to in the
Philippines to another place in the Philippines
d. Transportation services by domestic common
carries by land relative to passengers from one
place to in the Philippines to another place in the
Philippines
68. Which of the following sales of electricity is subject to VAT?
a. Sale of power or fuel generated thru renewable sources
of energy
b. Sale of electricity by MERALCO
c. Both A and B
d. Neither A nor B
69. Which of the following is subject to VAT?
a. Insurance commissions in a non-life insurance policy
b. Insurance commissions in a life insurance policy
c. Both A and B
d. Neither A nor B
70. Which of the following is a characteristic of a value added
tax?
a. Indirect tax c. Local tax
b. Property tax d. Specific tax
71. Which of the following products will not allow the
manufacturer to claim presumptive input VAT?
a. Sardines c. Milk
b. Cooking oil d. Coffee
72. What is the period given by law to BIR Commissioner to
decide on VAT Refund under Enhanced VAT Refund
system?
a. Within 120 days from the filing of VAT Refund
Application
b. Within 90 days from the filing of VAT Refund
Application
c. Within 30 days from the filing of VAT Refund
Application
d. Within 60 days from the filing of VAT Refund
Application
73. What is the amount of transitional input VAT?
a. 8% of beginning inventory of goods, materials and
supplies or the actual value-added tax paid on such
goods, materials and supplies, whichever is higher
b. 4% of beginning inventory of goods, materials and
supplies or the actual value-added tax paid on such
goods, materials and supplies, whichever is higher
c. 2% of beginning inventory of goods, materials and
supplies or the actual value-added tax paid on such
goods, materials and supplies, whichever is higher
d. 6% of beginning inventory of goods, materials and
supplies or the actual value-added tax paid on such
goods, materials and supplies, whichever is higher
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74. Which of the following transactions does not entitle the The schedule of payments is broken down below:
businessman to claim tax credit in Input VAT? January 1, 2021 4,000,000
a. Zero-rated VAT-subject transaction June 1, 2021 4,000,000
b. 12% VAT-subject transaction January 1, 2022 4,000,000
c. Transaction subject to OPT (other percentage January 1, 2023 4,000,000
taxes) January 1, 2024 4,000,000
d. None of the above TOTAL 20,000,000

75. Which of the following sale is exempted from output VAT? 80. How much is the output VAT to be recognized on January 1,
a. Sale of commercial lot at a price of P1,000,000 2021?
b. Sale of industrial lot at a price of P500,000 a. 0 c. 1,200,000
c. Sale of residential lot at a price P1,500,000 b. 480,000 d. 2,400,000
d. None of the above The company, being a non-real estate dealer, rule on
installments sales do not apply. Thus, entire 20M is subject to
76. What is the quantitative threshold for monthly rental of VAT on January 1, 2021 (date of sale).
residential unit to be exempted from output VAT?
a. not exceeding P12,000 per month 81. How much is the output VAT to be recognized on January 1,
2022?
b. not exceeding P15,000 per month
a. 0 c. 1,200,000
c. not exceeding P20,000 per month
b. 480,000 d. 2,400,000
d. not exceeding P10,000 per month
82. Assuming Interpretativa Company is a real estate dealer,
Items 77 to 79 are based on the following information:
how much is the output VAT to be recognized on January 1,
Namjoon is engaged in the manufacture and sale of butter
2021?
pancakes. Namjoon purchased P2,500,000 worth of raw
a. 0 c. 960,000
materials, VAT-exclusive, from VAT-registered local suppliers.
b. 480,000 d. 2,400,000
During the taxable year 2021, it was able to generate export
Jan 1 payment 4M + June 1 payment 4M = 8M / 20M = 40%
sales of P2,000,000, and domestic sales of P2,500,000 for its
Under the Installment sales, initial payments should not exceed
pancakes.
25%. Since initial payments exceeded 25%, the entire output
VAT is recognized at the time of sale.
77. Is Namjoon required to be a VAT-registered taxpayer?
a. Yes, because his sales breached the P3,000,000
Items 83 to 84 are based on the following information:
threshold.
Boar Brand Corporation is a domestic corporation engaged in
b. Yes, because his VAT-subject sales breached the the manufacturing of milk products. Boar Brand had the following
P3,000,000 threshold. transactions for the quarter:
c. No, because his sales have not breached the
P3,000,000 threshold. VAT Exclusive
d. No, because an exporter need not be a VAT-registered amounts
taxpayer. Sold milk to retailers 48,000,000
Disposed a milk evaporator machine 10,000,000
78. Assuming Namjoon is not required to be a VAT-registered (Cost is P50,000,000, proceeds are
taxpayer and remains to be a non-VAT registered taxpayer, P60,000,000)
which of the following statements is true? Distributed milk to its shareholders as 14,000,000
I. Namjoon is liable for percentage tax under Section part of their property dividends
116 (3%, temporarily 1% under CREATE Act) Transferred a milking machine to a 8,000,000
II. Namjoon is liable to pay value-added taxes. creditor as payment of debt
III. Namjoon cannot claim input tax credit from his
purchases. 83. How much is output VAT for the taxable quarter?
a. I and III only c. I and Il only a. 5,760,000 c. 14,400,000
b. II and III only d. I, II, and III. b. 9,600,000 d. 15,600,000

79. Assuming Namjoon is required to be a VAT-registered Sold to milk retailers 48,000,000

taxpayer and remains to be a non-VAT registered taxpayer, Disposed a milk evaporator machine 60,000,000
which of the following statements is true? Distributed milk to its shareholders 14,000,000
I. Namjoon is liable the percentage tax under Section Transferred a milking machine to a creditor 8,000,000
116 (3%, temporarily 1% under CREATE Act) TOTAL 130,000,000
II. Namjoon is liable to pay value-added taxes. x 12%
III. Namjoon cannot claim input tax credit from his 15,600,000
purchases.
a. I and III only c. I and Il only 84. Which of the following statements is true regarding the
b. II and III only d. I, II, and III. distribution of milk to the shareholders of Boar Brand?
I. Boar Brand Corporation shall withhold a final
withholding tax of 10% assuming their shareholders
are resident citizens.
Items 80 to 82 are based on the following information: II. Boar Brand Corporation shall issue an official receipt
Interpretativa Company, a VAT-registered service provider, in favor of its shareholders.
provides premium translations of documents and manuscripts
into any language. Due to the presence of online services such a. Only Statement 1 is true.
as Google Translate, now Interpretativa is suffering from b. Only Statement 2 is true.
substantial losses. Interpretativa decided to sell its land that it c. Both statements are true.
uses in its business located in Cagayan de Oro at a price of d. Both statements are not true.
P20,000,000.
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Items 85 to 86 are based on the following information: Route Amount VATABLE ZERO-
Intelligent Solutions, Inc., sells its computers on a consignment (12%) RATED
basis. This quarter, it had the following sales: Manila to Cebu 2,300,000 2,300,000 276,000

Cebu to Manila 7,460,000 7,460,000 895,200

Direct sales 14,000,000
Manila to Davao 8,490,000 8,490,000 1,018,800
Sales through consignees 38,000,000 Davao to Manila 5,900,000 5,900,000 708,000
52,000,000 Manila to Seoul 6,060,000 6,060,000 0
Seoul to Manila 5,870,000
On the other hand, the ending inventory of Intelligent Solutions Manila to Tokyo 4,550,000 4,550,000 0
consist of the following: Tokyo to Manila 5,650,000
Total 46,280,000 2,898,000 10,610,000
LCNRV Selling Price
Located on the factory 1,400,000 1,960,000 Items 90 to 93 are based on the following information:
warehouse Farm Solutions, Inc., sold the following items to farmers for the
With the possession of 800,000 1,120,000 taxable quarter ending June 30, 2021:
consignees, consigned 30
days ago Fertilizers 3,200,000
With the possession of 770,000 1,078,000 Pesticides 2,260,000
consignees, consigned 50 Seeds 3,040,000
days ago Seedlings 6,050,000
With the possession of 480,000 672,000 Farm equipment 18,730,000
consignees, consigned 70 TOTAL 33,280,000
days ago
3,450,000 4,830,000 90. How much is Farm Solutions, Inc.'s output VAT?
a. 0 c. 2,518,800
All selling prices listed are VAT-exclusive prices. b. 2,247,600 d. 3,244,800
Pesticides 2,260,000 + Farm equip 18,730,000 = 20,990,000 x
85. How much is output VAT? 12% = 2,518,800
a. 6,297,600 c. 6,450,000
b. 6,320,640 d. 6,584,400 91. When should Farm Solutions file its VAT return for the
taxable quarter ending June 30, 2021?
Direct sales 14,000,000 a. July 10, 2021 c. July 25, 2021
Sales through consignees 38,000,000 b. July 20, 2021 d. August 29, 2021
consigned 70 days ago 672,000
TOTAL 52,672,000 92. Assuming Farm Solutions is an agricultural cooperative,
x 12% = 6,320,460 which of the following sales are exempt from VAT?
I. Sale of processed meat products to non-members of
86. What document should Intelligent Solutions, Inc. issue in the cooperative. The meat products are produce of
relation to its P38,000,000 sale through consignees. the members.
a. Invoice with name of the buyers indicated. II. Sale of processed meat products to members of the
b. Invoice with name of the consignees indicated. cooperative. The meat products are produce of non-
c. Official receipt with name of the buyers indicated. members.
d. Official receipt with name of the consignees indicated. a. I only c. Both I and II
b. II only d. Neither I nor II.
Items 87 to 89 are based on the following information:
Philippine Airlines is a domestic corporation engaged in the 93. Assuming Farm Solutions is an agricultural cooperative, and
transport of cargo and passengers. The following are the routes the farmers are its members, how much is Farm Solutions'
that PAL flew and the corresponding amounts it received for the output VAT?
rendering of such services: a. 0 c. 2,518,800
b. 2,247,600 d. 3,244,800
Route Amount
Manila to Cebu P 2,300,000 Items 94 to 95 are based on the following information:
The Business and Accounting College of Sampaloc (BACS) is a
Cebu to Manila 7,460,000 stock educational institution duly registered with the Department
Manila to Davao 8,490,000 of Education and Commission on Higher Education.
Davao to Manila 5,900,000
Manila to Seoul 6,060,000 During the quarter, it had the following receipts:
Seoul to Manila 5,870,000
Manila to Tokyo 4,550,000 Amount
Tokyo to Manila 5,650,000 Tuition fees from students 70,700,000
Total P 46,280,000 Lease payments by private 7,450,000
concessionaires
87. How much are the zero-rated sales? Grants and donations from alumni 5,740,000
a. 0 c. 11,520,000 83,890,000
b. 10,610,000 d. 22,130,000
All of the receipts were used by BACS for educational purposes.
88. How much is Philippine Airlines' output VAT? It was able to establish a five-story library building and improve
a. 0 c. 4,280,400 its science and computer laboratories with the amount it has
b. 2,898,000 d. 5,553,600 received.

89. How much is Philippine Airlines' common carriers tax? 94. Compute for the output VAT of BACS.
a. 0 c. 1,070,100 a. 0 c. 894,000
b. 724,500 d. 1,388,400 b. 688,800 d. 1,582,800
7,450,000 x 12% = 894,000
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95. If BACS is a non-stock non-profit educational institution, how Items 98 to 100 are based on the following information:
much is BACS' output VAT? Ralph is the sole proprietor of a VAT-registered t-shirt printing
a. 0 c. 894,000 business. During the taxable month of September 2018, he
b. 688,800 d. 1,582,800 made the following transactions:

Items 96 to 97 are based on the following information: Transaction Value

The Daily Publisher is a publishing house, and it has several Importation of clothing for personal use 189,000
publications. The following are the publications, their description, Importation of clothing to be resold in business 1,240,000
and their corresponding sales for the taxable quarter ending Importation of printers 975,000
September 30, 2018. Domestic purchase of t-shirt ink 880,000
Payment for maintenance services rendered 358,000
Name of Publication Description Amount for business
Daily newspaper The Daily Reader the 180,000,000
TOTAL 3,642,000
covering news for the day
Fashion weekly Lifestyle and fashion 45,000,000
magazine which covers 98. How much is input VAT?
the latest trends, a. 265,800 c. 414,360
published weekly b. 371,400 d. 437,040
Job hunt Posts classified 30,000,000
advertisements from Importation of clothing to be resold in business 1,240,000
various companies, Importation of printers 975,000
published twice monthly Domestic purchase of t-shirt ink 880,000
Wedding Essentials Magazine solely devoted 18,000,000
Payment for maintenance services rendered 358,000
for marriage ideas,
published monthly TOTAL 3,453,000
International Journal of Scholarly review of 2,500,000 x 12% = 414,360
Jurisprudence developments in the legal
profession, published 99. Which of the following statements is true regarding Ralph's
quarterly importation of clothing for personal use?
TOTAL 275,500,000 a. Ralph is not required to pay any VAT because the
clothing is for personal use.
96. How much is output VAT? b. Assuming Ralph is a non-VAT registered taxpayer,
a. 0 c. 5,760,000 Ralph is not required to pay the VAT on importation.
b. 3,600,000 d. 9,000,000 c. Ralph is required to pay VAT but cannot claim any
30,000,000 x 12% = 3,600,000 input tax credit on the VAT he has paid.
d. Ralph is required to pay VAT considering that the item
97. If Daily Publisher is a non-VAT registered taxpayer, which of imported is the same item that he regularly sells.
the following statements is true?
a. Daily Publisher will pay 3% percentage tax. 100. If Ralph is a non-VAT registered taxpayer, how much can
b. Daily Publisher can claim input VAT on its purchase of be claimed as input VAT?
paper from VAT-registered suppliers. a. 0 c. 414,360
c. Daily Publisher can claim input VAT on the salaries it b. 265,800 d. 437,040
paid to its employee.
d. Daily Publisher is not liable to pay VAT.

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