Chapter 9

true or false
1. Only only VAT registered taxpayers can claim input VAT
TRUE
2. There is no input but VAT from purchases made from non VAT registered suppliers
TRUE
3. The total consideration paid by purchasers to VAT taxpayers includes the selling price
and the VAT
TRUE
4. Registrable person can claim input VAT
FALSE
5. Those who cannot claim input VAT can deduct those input VAT as part of their costs or
expense

True as a rule , if the taxpayer is a VAT taxpayer, he cannot is not allowed to claim
input VAT as the deduction if the same is disallowed for credit already fund
6. Input VAT can be claimed as a tax credit or a deduction at the option of the taxpayer

False the option to credit or refund input VAT exists only in law on zero-rated sales
7. The term creditable input VAT means input VAT deductible from output VAT
True
8. Exempt persons who issue VAT invoices can claim input VAT
False
9. Input VAT is computed as 12/112 of the selling price of the seller
False ( 12% of selling price )
10.Input VAT may come from importation and domestic purchase
True
11.The purchase of exempt goods and services has no input VAT
True
12.If the VAT is not separately billed, It shall be computed as 12/112 of the selling price in
the sales document

True, the selling price in this statement is construed to mean the amount appearing in
the document of sale
13.Input taxes on purchases for personal consumption are creditable against output VAT
False
14.Only input VAT for purchase of goods or services in the course of business is creditable
 True
15.Input VAT needs to be evidenced by a VAT invoice or official receipt to be creditable
True

TRUE OR FALSE 2
1. The transitional input VAT is 2% of the vatable beginning inventory
False (in complete 2% of vatable beginning inventory or actual VAT on beginning
inventory, whichever is higher )
2. The input VAT on importation is creditable upon release of the goods from the customs
custody
True

3. The input VAT on domestic purchase of goods is deductible upon payment

False ( input VAT on goods is creditable or deductible, as the case maybe, upon
purchase )
4. The input VAT on purchases of services is claimable in the month The services are
rendered not when paid
False ( input VAT on services is claimable as credit in the month of payment )
5. Persons transitioning to the VAT system shall submit an inventory of goods
True

6. The input VAT on the purchase of real properties may be paid in installment
True

7. The input VAT on depreciable capital goods or properties must be amortized over a
period of 60 months
False ( it depends upon the monthly aggregate acquisition cost )
8. The input VAT on depreciable capital goods or properties with aggregate acquisition
costs exceeding P1M must be Amortized over a period of 60 open your computer
months
False ( over a period of 60 months or actual useful life in months whichever is shorter )
9. The input VAT on non-depreciable vehicles is disallowed as tax credit
True
10.The presumptive input VAT is 4% of the agricultural and marine purchases
False ( purchases of primary agricultural inputs only, excluding marine inputs )
11.Traders of sardines, mackerel, milk , and cooking oil can claim presumptive input VAT
False ( only manufacturers or processors can claim presumptive input VAT )
12.The standard input VAT is 5% of sales to the government
 False ( 7 % of sales to the government or GOCC )
13.The standard input VAT is 7% of the purchases sold to the government
False
14.There is deductible expenses when the actual input VAT exceeds the standard input VAT
on government sales
True
15.There is a reduction in costs or expenses or an item of gross income when the standard
input VAT exceeds the actual input VAT on government sales
True
16.The excess of the input VAT over the output VAT is referred to as input VAT carry-over
True
17.Input VAT carry-over is included as part of the creditable input VAT of the following
month
True
18.The input VAT carry-over in quarter is deductible in the following quarter
True
19.The input VAT carry-over cannot be credited over a period of three years
False ( there is no such rule. This is not MCIT tax credit )
20.The input VAT carry-over in a prior quarter can be carried over as input VAT in the first
month of the following quarter
True
21.The input VAT carry-over in the second month of a quarter is creditable on the third
month of that quarter
False

MULTIPLE CHOICE- THEORY PART 1

1. Which is creditable?
A. input VAT incurred on personal purchases
B. input VAT evidenced by an ordinary receipt
C. input VAT on exempt sales
D. input VAT traceable to vatable sales
2. Which is likely source of creditable input VAT?
A. Purchases of goods from persons not engaged in business
B. purchases of goods from non VAT registered persons engaged in business
C. purchases of goods from aliens who are not engaged in business abroad
D. none of these
3. Partial credit for input VAT is allowed on
A. government sales
 B. regular sales
C. export sales
D. exempt sales
4. Full input VAT credit is allowed on
A. Regular sales
B. export sales
C. exempt sales
D. A and B
5. No input VAT credit is allowed on
A. export sales
B. government sales
C. exempt sales
D. all of these
6. Which of the following input VAT can be claimed as tax refund?
A. Input VAT traceable to exempt sales
B. input VAT traceable to regular sales
C. input VAT traceable to sales to the government
D. input VAT traceable to export sales
7. The input VAT on purchases of non-VAT-registered taxpayers shall be claimable as
A. Tax credit within two years
B. deduction against gross income for income tax purposes
C. deduction against output VAT
D. any of these at the option of the tax payer
8. Who can claim the VAT on importation as tax credit
A. an importer of goods for personal consumption
B. an importer of goods who is exempt from the VAT on importation
C. an importer of goods for business use
D. any of these
9. The transitional input VAT is whichever is the
A. Lower of 2% of beginning vatable inventory or the actual input VAT thereon
B. Higher of 2% of beginning vatable inventory or the actual input VAT thereon
C. lower of 2% of total beginning inventory or the actual input VAT thereon
D. higher 2% of total beginning inventory or the actual input VAT thereon
10.Which is included in the basis of the transitional input VAT
A. vatable goods and properties purchased from VAT suppliers
B. vatable goods and properties purchased from non-VAT suppliers
C. vatable goods only purchased from what VAT or non-VAT suppliers
D. A and B
11.Which is included in the VAT basis of the 2% transitional input VAT
 A. inventory of processed foods
B. inventory of fruit and vegetables
C. Inventory of non-foods goods
D. a and c
12.Which of the following properties may be included in the basis of 2% transitional input
VAT
A. Building subject to periodic provision for depreciation
B. land and other properties not subject to depreciation
C. land or building classified as inventory held for sale
D. land or building classified as property held for use
13.Which of the following input VAT may be amortized
A. input VAT on the sale of services
B. input VAT on the purchases of goods on instalment
C. input VAT on the purchase of non-depreciable property
D. input VAT on the purchase of depreciable property
14.The amortization of input VAT on certain properties is allowed when the aggregate
acquisition costs
A. Exceeds P1M
B. do not exceed P1M
C. exceeds P 1, 919,500
D. exceeds P10M
15.The input VAT on purchases of real properties may be claimed in instalment if
A. The VAT seller is subject to VAT on the instalment payments
B. the sale of the real property is qualified as a deferred payment sale
C. the seller is a Realty dealer
D. the seller is non Realty dealer
MULTIPLE CHOICE- THEORY PART 2
1. The amortization period for depreciable capital goods or properties shall be
A. whichever is longer between the actual useful life in months or 60 months
B. whichever is shorter between the actual useful life in months or 60 months
C. 60 months if the useful life of the capital goods or properties does not exceed five
years
D. 60 months, without regard to the actual useful life in months
2. Statement 1: the input VAT on non-depreciable vehicles shall be claimed in the month
purchase
Statement 2: The input VAT on construction in progress shall be cleaned in the month
billing is paid
 Which is correct?
A. Statement 1
B. statement 2
C. both statements
D. Neither statement
3. The withheld final VAT is
A. 7% of the sales made to government
B. 5% of the sales made to government
C. 7% of the input VAT traceable to the government
D. 5% of the purchases on sales made on the government
4. which of the following cannot claim presumptive input VAT
A. processor of sardines
B. manufacturer of grease oil
C. manufacturer of pack noodle based instant meals
D. processor of milk
5. the presumptive input VAT is
A. 2% of primary agricultural input
B. 2% of primary marine input
C. 4% of primary agricultural or marine input
D. 4% of primary agricultural input
6. the standard input VAT is equivalent to
A. 7% of the sales made to government
B. 5% of the sales made to government
C. 7% of the input VAT traceable to the government
D. by percent of the purchases on sales made to the government
7. the withheld final percentage tax is
A. 7% of the sales made to government
B. 3% of the sales made to government
C. 5% of the sales made to the government
D. 3% of the purchases on sales made to the government
8. if the standard input VAT exceeds the actual input VAT traceable to the government
sales, the excess is
A. an item of gross income subject to income tax
B. an item of deduction against gross income in income tax
C. claimable as a tax credit against other national taxes
D. ignored since it has no further use
9. Statement 1: VAT-registered persons do not pay VAT on zero-rated sales
Statement 2: VAT-registered persons always pay VAT on government sales
 Which statement is correct?
A. Statement 1
B. statement 2
C. both statements
D. neither statement
10. Statement 1: The excess of the output VAT over creditable input VAT is paid to the
government
Statement 2: the excess of creditable input VAT over output VAT is claimed as a tax credit
or tax refund

which is statement is incorrect?

A. Statement 1
B. statement 2
C. both statements
D. neither statement
11.the excess of creditable input VAT over output VAT is
A. VAT payable
B. VAT refundable
C. input VAT carry-over
D. standard input VAT
12.which of the following input VAT carry-over is creditable against output VAT of the
quarterly VAT return?
A. Those are rising from the first month of the quarter
B. those are rising from the second month of the quarter
C. those are rising from the prior quarter
D. all of these
13.which of the following is creditable against the input VAT of the quarterly VAT return?
A. Input VAT from the first month of the quarter
B. input VAT from the second month of the quarter
C. input VAT from the third month of the quarter
D. all of these
MULTIPLE CHOICE- PROBLEM PART 1
1. Andrew a VAT-taxpayer imported a Golden neck lace as a gift to his girlfriend. The
foreign seller billed a total price of P200,000. Andrew further paid P40,000 in other
landed cost excluding VAT. Andrew can claim an input VAT of
A. 0
B. 24,000
C. 25,714
 D. 28,800
(input VAT on purchases made not in the course of business is non creditable )

2. a VAT-taxpayer purchase services from a non-VAT registered person in which he paid

a total of P56,000 on the purchase. The claimable input VAT shall be
A. 0
B. 6000
C. 6720
D. 7200
Purchases from non VAT taxpayer has no claimable input VAT. The seller passes on a
percentage tax rather that an Output VAT
I.E input VAT
3. A VAT-taxpayer imported vatable goods from a non-resident persons who is not
engaged in trade or business. The goods which were intended to be resold in the
Philippines had a landed cost of 150,000 what is the claimable input VAT
A. 0
B. 16,071
C. 18,000
D. 19,758
As a rule, importation is subject to VAT. This applies without regard to whether or
not the foreign seller is engaged or not engaged in business. The VAT is 12% x
150,000 landed cost = 18,000
4. A non-VAT Registered person purchased goods invoice at P112,000 from a VAT
registered person. The claimable input VAT persons purchase shall be
A. 0
B. 12,000
C. 13,440
D. 15,000
Non VAT taxpayers cannot claim credit for input VAT
5. A VAT taxpayer incurred following during the month :
consultancy fees 700,000
salaries expense 400,000
supplies expense 300,000
purchases from vet suppliers were 250,000 supplies and 400,000 equipment . The
equipment is expected to last for 5 years
 What is the creditable input VAT during the month ?
A. 84,000
B. 114, 000
C. 114, 800
D. 162, 000
Consultancy Fees 700,000
Purchases of Supplies 250,000
Purchases of equipment 400,000
Total Vatable Purchases P1,350,000 x 12% (input on purchases )= 162,000
6. A VAT registered purchaser received a following billing from a VAT registered seller
Selling Price P 200,000
Output VAT 20,000
Invoice Price P 220,000
What is creditable input VAT?
A. P0
B. P20,000
C. P23,571
D. P24,000
Note that the VAT is incorrectly billed. Hence, in must be recompute as 220,000 x
12/ 112 = 23,571
7. A VAT taxpayer made the following purchases during the year :
Purchases of goods, exclusive of VAT P 50,000
Purchases of goods, inclusive of VAT 44,800
Purchases of Services, exempt from VAT 10,000
Purchases of Services, inclusive of VAT 23,520
Total P 128, 320

What is Input VAT?

A. P0
B. P12,677
C. P13,320
D. P14,198
Purchases of goods, exclusive of VAT ( 50,000x12%) = 6,000
Purchases of goods, inclusive of VAT (44,800x12/112) = 4,800
 Purchases of Services, inclusive of VAT (23,520x12/112)= 2,520
Total Input VAT 13,320
8. Mr. Alarcon is percentage taxpayer, He bought goods billed at an invoice price of
P20,160 from a VAT registered taxpayer. Mr. Alarcon sold the goods in the same
month at a price of P 42,000. How much input VAT is claimable by Mr. Alarcon ?
A. P0
B. 160
C. P2,160
D. P2,419
There is no indication in the problem that the taxpayer is also a VAT taxpayer. As a
rule, Percentage taxpayer are non VAT taxpayer. Hence, cannot claim input VAT.
9. A taxpayer who become subject to VAT on third quarter of 2020 had the following
input VAT:
August 2020 32,000
September 2020 40,000
October 2020 18,000

What is the claimable input VAT for the third quarter of 2020?
A. P32,000
B. P40,000
C. P72,000
D. P90,000
The taxable quarter of business taxpayer is aligned with his or it’s accounting
period. The calendar year is resumed in the absence of an indication that a fiscal
year is being used. The third calendar quarter ends September. Hence, the
claimable input VAT in the third quarter shall be 32,000+40,000= 72,000
10.Mr. Donetski, A VAT-taxpayer, purchased the following from VAT- taxpayer
Vat exempt goods P20,000
Vatable Goods 40,000
Total Invoice Price 60,000
Compute the input VAT allowable to Mr. Donetski.
A. P0
B. P2,143
C. P4,286
D. P4,800
40,000x12/112= 4,286
11.Ms. Kibungan, a VAT taxpayer, made the following purchases(net of VAT) of vatable
goods during the month:
Purchase from non-VAT taxpayers P50,000
Purchases from VAT taxpayers 250,000
Total P300,000

What is the input VAT ?

A. P0
B. P6,000
C. P30,000 250,000x12%
D. P36,000
12. A VAT taxpayer received and paid the following billings for Vatable goods purchased :
Purchase from non-VAT taxpayers P50,000
Purchase from VAT taxpayers 250,000
Total P 300,000
What is the claimable input VAT?
A. P0
B. P5,357
C. P26,786 250,000x12/112= 26,756
D. P32,143
13.A VAT taxpayer had the following transaction a first calendar quarter of 2020 :
A. Purchases of goods in January but were paid in February – P50,000
B. Purchase of Services rendered in January but was paid in February- P80,000
C. Importation of goods which arrived in the last week of February but was released
upon payment of VAT on March- P250,000
Assume all accounts are inclusive of VAT.
What is the creditable input VAT in the January 2020?
A. P0
B. P6,000 50,000x12%= 6,000
C. P9,600
D. P15,600
14.What is the creditable input VAT in February 2020
A. P9,600 80,000x12%= 9,600
B. P15,600
C. P39,600
D. P45,600
15.What is the creditable input VAT for the first quarter of 2020
 A. P6,000
B. P15,600
C. P39,600
D. P45,600
January Input VAT 6,000
February Input VAT 9,600
March Input VAT 30,000 ( 250,000x12%)
Total 1st Quarter Claimable input VAT 45,600
16. Mr and Mrs Sikorsky compiled the following input VAT during the month :
Mr Sikorsky Mrs Sikorsky
Input VAT on purchase of goods P10,000 P12,000
Input VAT on purchases of services 12,000 8,000
Mr. Sikorsky is a non VAT taxpayer while Mrs Sikorsky is a VAT taxpayer.
What is the respective creditable input VAT of Mr. and Mrs Sikorsky
A. P0 : P0
B. P22,00 : P0
C. P0 : P20,000
D. P22,000 : P20,000
17.A VAT taxpayer had the following input VAT during the year :
Input VAT on exempt sales P204,000
Input VAT on regular sales 174,000
Input VAT on export sales 150,000
Total Input VAT 528,000

What is the total creditable input VAT ?

A. P0
B. P324,000
C. P378,000
D. P528,000
Input VAT on regular sales 174,000
Input VAT on export sales 150,000
Total 324,000
Multiple Choice- Problems Part 2
1. Dino Rado, opted to be registered as a VAT taxpayer effective the third quarter of
2020. He had the following analysis of beginning inventory for the month of July
2020:
Purchases from non VAT suppliers P210,000
Purchases from VAT suppliers, inclusive of VAT 22,400
Total P232,400
What is the transitional input VAT ?
A. 2,400
B. 4,600
C. 4,648
D. 24,900
Purchases from non VAT suppliers 210,000
Purchases from VAT suppliers, inclusive of VAT( 22,400/112%) 20,000
Total vatable goods in Beginning Inventory 230,000
Multiply by: 2%
2% transitional input VAT 4,600

2. A taxpayer who is transitioning to the VAT system had the following inventories
upon exceeding the VAT threshold:
Inventory of Unprocessed agricultural food products P30,000
Inventory of processed goods 170,000
Inventory of non food goods 210,000
Total P410,000
The taxpayer acquired all the goods from non VAT suppliers.
What is the transitional input VAT?
A. 0
B. 3,400
C. 7,600
D. 8,200
Inventory of processed goods 170,000
Inventory of non food goods 210,000
Total Vatable goods in Beg. Inventory 380,000
Multiply by : 2%
Transitional Input VAT 7,600
3. Ms Beauty Fooled became subject to VAT effective the month of September. She
had the following beginning inventory in September :
Purchases from non VAT suppliers P30,000
Purchases from VAT Suppliers, exclusive of VAT 220,000
Total 250,000
What is the transitional input Vat ?
A. 0
B. 5,000
C. 26,400 (250,000x2%)= 5,000 (220,000x12%)= 26,400 transitional input VAT is
higher
D. 30,000
4. The vatable sales of an agricultural supplier exceeded the VAT threshold. Prior to
His VAT registration, an inventory of His goods was prepared below:
Fertilizers P400,000
Seeds 300,000
Farm Equipment 98,000
Pesticides 18,000
Total P816,000
Assuming all amounts are inclusive of VAT when applicable, What is the
transitional input VAT ?
A. 1,928.57
B. 12,429
C. 13,920
D. 16,320
2% transitional input VAT ( 18,000x2%) 360,000
Actual Input VAT ( 18,000 x 12 / 112 ) 1,928.57
Transitional Input VAT is higher between the 2
5. A realty development company is commencing business. Because of the large skill
of it’s projected operations, it decided to register as a VAT taxpayer. It had the
following inventories of properties before commencement of operations :
Raw land contributed by shareholders P11,200,000
corporate office building 20,000,000
various equipment 4,000,000

compute the transitional input VAT ?

 A. 0
B. 224,000
C. 624,000
D. 1,200,000
Raw Land contributed by shareholders 11,200,000
Multiply by : 2%
Transitional Input VAT 224,000
6. A VAT registered taxpayer purchased equipment which is expected to last 10 years
in January 2020. The purchase price was P1,000,000 , exclusive of P120,000 VAT
What Is the input VAT claimable respectively in January 2020 and February 2020 ?
A. 1,000 : 1,000
B. 2,000 : 2,000
C. 120,000 : 0
D. 0 : 120,000
7. In January 2020, a taxpayer made the following purchases:
Goods, exclusive of VAT P800,000
Capital goods, exclusive of VAT 700,000
Total P 1,500,000

The Capital goods pertain to several equipment with estimated useful life of three
years
What is the claimable input VAT?
A. 180,000
B. 160,714
C. 98,333
D. 97,400
1,500,000x12% = 180,000
8. Popogirin Corporation purchased a commercial lot with an old warehouse in April
2020. The lot and the building were separately priced by the seller as follows :
Lot P1,000,000
Building ( estimated useful life of 7 years ) 600,000
Total P1,600,000
What is the claimable input VAT in April 2020?
A. 192,000
B. 127,200
C. 120,000
 D. 7,200
9. Master Pogi, A VAT registered real property dealer, purchased a residential
property as His residence in February 2020.
The purchased price was to be paid in 36 monthly installments of 60,000 plus
7,200 VAT.
What is the creditable input VAT in the February VAT return and in the quarterly
VAT return of March 2020?
A. O : O
B. 7,200 : 7,200
C. 7,200 : 14,400
D. 259,200 : 259,200
10.A VAT registered individual purchased the following from various suppliers in
November 2020 :
Purchased from
VAT Suppliers Non VAT Suppliers

Machineries P800,000 P 300,000

Useful Life 6 years 3 years
What is the creditable input VAT in November ?
A. 0
B. 1,600
C. 2,200
D. 96,000
11.In the preceding problem, what is the creditable input VAT in the December
quarterly VAT return?
A. 96,000
B. 4,400
C. 3,200 1600 for November and 1600 for December
D. 1,600
12.A VAT registered Corporation reports on a fiscal year. It made the following
purchases of the depreciable capital goods in the quarter ending August 31, 2020
from VAT suppliers :

June 2020
Truck, estimated 10 years useful life P700,000
Office Equipment, estimated 4 years useful life 500,000

August 2020
Office Furniture, Estimated 5 years useful life P600,000
 Assume all amounts re inclusive of VAT.

What is the creditable input VAT in June 2020 ?

A. 1,950
B. 2,200
C. 2,650
D. 144,000
Input Vat on truck ( 700,000x12%/60 months ) 1400
Input Vat on Equipment ( 500,000 x 12% / 48 months ) 1250
Total Claimable Amortization of deferred input VAT 2,650
13.In the preceding problem, what is the creditable input VAT in July 2020?
A. 0
B. 1,950
C. 2,200
D. 2,650 same to 2,650
14.In the preceding problem, What is the creditable input VAT for the quarter ending
August 2020?
A. 79,950
B. 81,150
C. 145,200
D. 216,000
Claimable input VAT in June ( amortization of deferred VAT ) 2,650
Claimable input VAT on July ( amortization of deferred VAT ) 2,650
Claimable input VAT in August
amortization of deferred VAT from purchased in prior months 2,650
VAT on Purchased of Depreciable Goods 72,000
Total Claimable Input VAT for the fiscal quarter 79,950

15. A VAT registered individual purchased the following capital goods in the third
calendar quarter of 2020 from VAT suppliers :

July 2020
Machine, estimated 10 years useful life P1,680,000
 August 2020
Factory equipment, estimated 4 years useful life P 1,232,000

Assume all amounts are inclusive of VAT.

What is the creditable input VAT in July 2020 ?

A. 1,500
B. 3,000 1,680,000 x 12 /112 = 180,000/ 60 moths =3,000
C. 3,360
D. 180,000
16.In the preceding problem, What is the creditable input VAT in August 2020 ?
A. 2,750
B. 4,250
C. 5,750
D. 6,110
The claimable input VAT in August shall be :
Amortization of deferred VAT from July 3,000
Amortization of deferred VAT from August 2,750
Total Claimable Input VAT 5,750
17.Still on the same problem, What is the creditable input VAT for the quarter ending
September 2020 ?
A. 5,500
B. 9,000
C. 14,500
D. 15,220
Claimable Input VAT in July 3,000
Claimable input in August 5,750
Claimable Input VAT in September 5,750 ( from July to August )
Total Claimable Input VAT 14,500
18.A VAT taxpayer purchased a commercial lot payable in 10 monthly instalments of
224,000, inclusive of 24,000 VAT. The lot was acquired with an intention to hold it
available for sale.
 Compute the creditable input VAT in the February VAT return and in the March
quarterly VAT return.
A. 0 : 0
B. 24,000 : 24,000
C. 24,000 : 48, 000
D. 240,000 : 240, 000
19.Thor Corporation is reporting on a calendar year. Thor Corporation purchased the
following capital goods in the second quarter of 2020:
April May June
Equipment - 400,000 200,000
Machineries 1,200,000 600,000 -

Equipment is depreciated over a 4 years useful life while machineries are

depreciated over a 10 years useful life. All amounts are exclusive of VAT.

Compute the creditable input VAT in April 2020.

A. 144,000
B. 3,000
C. 2,400 1,200,000 x 12%/ 60 months = 2,400
D. 0
20.In the preceding problem, What is the creditable input VAT for May 2020?
A. 123,000
B. 122,400 400,000+600,000 x 12% plus 2,400= 122,400
C. 4,600
D. 5,300
21.In the preceding problem, What is the creditable input VAT for the quarter ended
June 30, 2020 ?
A. 151,200
B. 148,800
C. 24,000
D. 16,400
Claimable input VAT in April 2,400
Claimable input VAT in May 122,400
Claimable input VAT in June ( 2,400+ 200,000 x12%) 26,400
Total Claimable Input VAT for the quarter 151,200
22.Lupao Corporation purchased equipment at a cost of 2,000,000 in October of
2017 inclusive of 240,000 input VAT . Lupao Corporation sold the equipment in
May 2020. The equipment was depreciated over a period of 8 years . What is the
claimable input VAT in May 2020?
A. 120,000
B. 116,000 2400 x ( 60-31)/60 = 116,000
C. 112,000
D. 108,000
23.In the immediately preceding problem, What is the claimable input VAT in second
calendar quarter of 2020?
A. 120,000 4,000+ 116,000= 120,000
B. 116,000
C. 112,000
D. 108,000
24.VPI Corporation contracted GLI construction to build it’s building at a contract
price of 100,000,000 exclusive of VAT. The building is expected to have a useful life
of 50 years upon completion.
VPI received and paid the following monthly billings in the first quarter of 2020
which were inclusive of VAT:
A. January – P1,120,000
B. February – 952,000
C. March – 1, 344,000
What is the creditable input VAT respectively in January and February ?
A. 12,000,000 : 0
B. 200,000 : 200,000
C. 120,000 : 102,000
D. 200,000 : 120,000
1,120,000 x 12/112 = 120,000
952,000 x12 /112 = 102,000
25.In the immediately preceding problem, What is the creditable input VAT in the
first quarter in 2020 ?
A. 12,000,000
B. 600,000
C. 366,000
D. 222,000
Claimable input VAT for January 120,000
 Claimable input for February 102,000
Claimable input for March (1,344,000x12/112) 144,000
Total Claimable Input VAT for the quarter 366,000

MULTIPLE CHOICE- PROBLEM PART 3

1. Sardinia, A sardines cunning Company, had the following purchases as inputs for it’s
manufacturing operation during a month :
Tin Cans, exclusive of VAT P80,000
Tomatoes 150,000
Sardines 200,000
Labels, exclusive of VAT 20,000
Total 450,000

What is the presumptive input VAT allowable to Sardinia?

A. 0
B. 6,000
C. 14,000
D. 18,000
150,000 purchases of tomatoes x 4% = 6, 000
2. What is the total creditable input VAT of Sardinia for the month ?
A. 6,000
B. 14,000
C. 15,600
D. 18,000
Inpu VAT on tin cans ( 80,000 x12%) 9,600
Input VAT on wrapper ( 20,000x12%) 2,4000
Presumptive Input VAT on tomatoes 6,000
Total Creditable Input VAT 18,000
3. A wholesale trader of Canned Sardines purchased 504,000 worth of sardines
inclusive of VAT from a sardine canning Company.
What is the allowable presumptive input VAT ?
A. 0
B. 4,000
C. 18,000
D. 20,160
4. Sugar land Corporation is a processor of refined sugar. It purchased a total of
500,000 sugar cane for processing. It purchased other supplies at a cost of 80,000
exclusive of VAT.
What is the allowable presumptive input Vat ?
A. 0
B. 3,200
C. 20,000 (500,000x 4%)= 20,000
D. 23,200
5. A sugar refiner processes raw sugar of clients into refined sugar for a fee. During the
period it processed 10,200,000 worth of raw sugar into the refined sugar and charge
a processing fee of 1,000,000
What is the allowable presumptive input VAT for the Sugar Refiner ?
A. 0
B. 40,000
C. 408,000
D. 448,000
6. Mr. Mantica is a VAT registered manufacturer of cooking oil. During a month, it
made the following purchases :
Raw coconut ( to be processed into Copra ) P300,000
Copra from farmers 450,000
Other supplies in the manufacture of cooking oil 120,000
Total 870,000
What is the presumptive input VAT?
A. 0
B. 12,000
C. 30,000
D. 34,800
Raw coconut ( to be processed into Copra ) P300,000
Copra from farmers 450,000
Total Agriculture Inputs Purchased 750,000
Multiply by 4%
Presumptive Input VAT 30,000

7. Nizzin Manufactures packed noodles from wheat flour . it purchased the following
from VAT suppliers during a production month:
Wheat Flour P200,000
Egg 20,000
Coconut Oil 40,000
 Other seasonings 40,000

What is the presumptive input VAT?

A. 0
B. 800 20,000x4%=800
C. 8,800
D. 10,400
8. Assuming that Vatable purchases in the preceding problem were exclusive of VAT,
What is the total creditable input VAT?
A. 33,600
B. 34,000
C. 34,400
D. 34,800
Input VAT on Purchase of Flour ( 200,000x12%) 24,000
Coconut Oil (40,000x12%) 4,800
Other seasoning (40,000x12%) 4,800
Presumptive Input VAT on egg 800
Total Creditable Input VAT 34,400

Standard Input VAT

9. Misamis Company sold to the government goods it purchased for 400,000 for
550,000.
Compute the standard input VAT.
A. 38,500 (550,000x7%)= 38,500
B. 28,000
C. 27,500
D. 20,000
10. In the immediately preceding problem, What is to be included in the calculation of
the taxable income of Misamis Company?
A. 20,500 gain
B. 20,500 loss or expense
C. 9,500 gain
D. 9,500 loss or expense
Actual Input VAT = 12% x 400,000= 48,000
Standard Input VAT = 38,500= loss or an item of deduction of 9,500
 Analysis by Accounting Entries
Purchases 400,000
Actual Input VAT 48,000
Cash/ Accounts Payable 448,000

Cash / Receivable 588,500

Final Withheld VAT 27,500 (5% x 550,000)
Sales 550,000
Output VAT 66,000

Output VAT 66,000

Loss /Cost of sales / Expense 9,500
Final Withheld VAT 27,500
Actual Input VAT 48,000

11. Abenson builders won a government contract to build a bridge at a contract price of
80,000,000.
During a month, it had the following expenditures in connection with the contract:
Construction Supplies P2,500,000
Employee Salaries 500,000
Depreciation Expense 300,000
Abenson billed the government 4,000,000 for project completion which the
government settled in the same month.

What is the actual input VAT of Abenson for the month?

A. 300,000 ( 2,500,000x 12%) = 300,000
B. 336,000
C. 360,000
D. 396,000
12. In the immediate preceding problem, What is the final withholding VAT?
A. 125,000
B. 165,000
 C. 200,000 ( 4,000,000x5%)= 200,000
D. 4,000,000
13.Still on the same problem, What is the standard input VAT?
A. 175,000
B. 231,000
C. 280,000 (4,000,000 x7% ) 280,000
D. 5,600,000
14.Still on the same problem, What is the treatment of the difference between actual
input VAT and standard input VAT?
A. 50,000 expense
B. 50,000 gain
C. 20,000 expense
D. 20,000 gain
Output VAT ( 12% x 4,000,000 ) 480,000
Loss 20,000
Actual input VAT 300,000
Final Withheld VAT 200,000

Input VAT carry over

15. Mayon Corporation had the following summary of Output and Input VAT for the
first quarter and second quarter of 2020:
First Quarter April May
Output VAT 200,000 300,000 250,000
Input VAT 240,000 320,000 240,000

What is the creditable input VAT carry over to be credited in May?

A. 20,000
B. 40,000
C. 60,000 (40,000 carry over and 20,000 from APril
D. 70,000
16.What is the total creditable input VAT in April?
A. 360,000 (40,000 carryover plus 320,000 input VAT in April )
B. 340,000
C. 320,000
D. 300,000
17.What is the input VAT carry over to be credited in June?
A. 0
 B. 10,000
C. 40,000 ( June is the end of the quarter so that input VAT carry over must be
those from the first quarter 40,000 )
D. 70,000
18. A VAT taxpayer had the following data in a quarter.
Input VAT carry over, prior quarter P20,000
Output VAT 280,000
Input VAT during the quarter 310,000
VAT paid in during the quarter 10,000

What is the input VAT carry over at the end of the current quarter?
A. 0
B. 10,000
C. 40,000
D. 60,000
Output VAT 280,000
Less : Creditable input VAT
Input VAT carryover, prior quarter 20,000
Input VAT during the quarter 310,000 330,000
Vat Payable (50,000)
Less : VAT Paid in prior months of quarter (10,000)
Input VAT carry over (60,000)

19.Him Corporation had the following details of Output VAT and input VAT in a month :
Output VAT P340,000
Input VAT on regular sales 300,000
Input VAT on zero rated sales 120,000
Input VAT on exempt sales 60,000

Input VAT claimed as tax refund 50,000

What is the input VAT Carry over at the end of the month?
A. 30,000 ( 340,000 output VAT – (300,000+120,000-50,000)= 30,000
B. 40,000
C. 70,000
D. 90,000