BM2215

ACTIVITY
TRUE OR FALSE
Read and analyze each item. Write T if the statement is TRUE or F if FALSE. (15 items x 2 points)

1. The VAT applies to receipts or sales other than those exempted and subjected explicitly to
percentage tax.
2. A registrable person is exempt from VAT.
3. A VAT-registered person is exempt from VAT on VAT-exempt sales.
4. A non-VAT taxpayer shall not bill VAT on his sale.
5. A VAT-registered person is liable to VAT on exempt sales and services expressly subject to
percentage tax.
6. Exempt sales shall not be billed with an output VAT.
7. A sale to the government shall not be billed with output VAT since it is exempt from VAT.
8. Export sales shall be billed with output VAT.
9. The export sale of a VAT taxpayer is an exempt sale.
10. Exempt sales billed as regular sales shall be considered regular VATable sales.
11. No input VAT traceable to exempt sales can be claimed as a tax credit.
12. No input VAT traceable to government sales can be claimed as a tax credit.
13. The claimable input VAT on government sales is 7% of the sales.
14. The VAT payable on zero-rated sales is always zero.
15. The 7% standard input VAT on government sales still exists in the VAT computation.

10 Activity 2 *Property of STI

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