AMV COLLEGE OF ACCOUNTANCY

VALUE ADDED TAX AND OTHER PERCENTAGE TAXES

Problem 1
The following are the results of the Restobar of Larry, a filipino for the quarter ended March 2020:
Gross sales P300,000
Supplies 50,000
Input VAT from VAT suppliers 100,000

Larry’s sales didn’t exceed P3,000,000 ever since they’ve started their Restobar business way back 2018
nor VAT registrable during the taxable year 2020.

1. How much is the percentage tax due for the quarter ended March 2020?
2. If the quarter has ended September 2020 rather than March 2020, how much would be the
percentage tax due?

OPT March 2020 Sept 2020

Gross sales 300,000 300,000
Rate 3% 1%
OPT 9000 3000

Problem 2
Jun, Jan, Mar, May and April together with a senior citizen, Lola Mela, dine at Casa Ibarra Co. a famous
VAT registered fast food in Quezon City. Their total order was P3,000.
3. The total output tax of Casa Ibarra Co. is?
4. How much is the total discount availed by their Lola Mela?
5. How much is the total amount due from Jun, Jan, May, Mar and April?

#3
Output Tax
Sales 2500
VAT 0.107142857 12/112
267.86 0.107142857
Sales, ex 2,232.14
#4
Order 500
VAT 53.57142857
VAT Exclusive 446.4285714
Discount 20%
89.28571429
Total Sales
#5 2232.142857
Order 3000 446.4285714
VAT ex of SC -53.57142857 2678.571429
Discount -89.28571429
2857.142857

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Problem 3
Albert Trading imported goods from abroad for domestic sale and provided the following information:
Supplier’s invoice $5,000
Freight 500
Insurance 200
Custom’s duty 10%
Brokerage fee P50,000
Arrastre charge 20,000
Wharfage due 22,000
Postage 5,000
Other charges before withdrawal of goods,
including P10,000 facilitation fee paid to fixer 17,000

The prevailing exchange rate is 1$ = P55, the imported article is also subject to a P25,000 excise tax
Albert also spent P3,600 (exclusive of vat) for trucking from the customs warehouse to its warehouse in
Leyte.
6. The total landed cost is?
7. How much is the VAT on importation?
8. How much is the VAT payable if the imported goods were sold for P625,000 VAT exclusive?

Supplier's invoice $5000

Freight 500
Insurance 200 DUTIABLE VALUE
Dutiable value (PESO) 313500 $5,700 x P55
Custom's duty 31350
Brokerage fee 50000
Arrastre charge 20000 unloading charge
Wharfage due 22000 wharf dock
Postage 5000
Other legal charges 7000
Excise tax 25000
Landed cost 473,850 *customs is the one who computes VAT on importation
12%
VAT on importation 56,862 Personal - expense
Business exempt expense/cost
vatable creditable
Output tax 75000 625,000 x 12%
Input tax -56862 473,850 x 12%
-432 3,600*12%
VAT Payable 17,706

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Problem 4
Jennah has provided you the following information regarding her grocery store:
Gross sales 250,000
Receivable from clients due 30 days 400,000
Trade discounts availed by customers 65,000
Sales returns and allowances 25,000

9. How much is the total vatable sales?

#9
Gross sales 250000
Receivables 400000 --> sales on account
--> volume
Trade Discounts 0 discount LIST PRICE - TD = SALES
Sales ret and allowances -25000
VATable sales 625000

10. How much is the percentage tax due assuming the quarter ended on June 30, 2020 and Jennah
is not VAT registered nor VAT registrable?
11. How much is the percentage tax due assuming the quarter ended on September 30, 2020 and
Jennah is not VAT registered nor VAT registrable?

#10 and 11 625,000 625,000

June 30 3% Sept 30 1%
18750 6250

Problem 5
Mark trader of rare NBA Cards merchandise had the following sales for the month September 30, 2022
(VAT exclusive): Cash sales P 800,000, sales on account P620,000, installment sales 1,000,000, receipt of
1st installment 250,000. Mark also made the following consignment on the following months (VAT
exclusive):
September 15 50,000
August 19 70,000
July 80,000
12. How much is the total output tax?
Cash sales 800000
Sales on
account 620000
Installment
sales 1000000
July
Consignment 80000
2500000
Vat rate 12%
300000

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Problem 6
Having gross sales of P3,500,000 for the taxable year ended 2017, Allan exceeded the VAT threshold and
registered under the VAT system on January 1, 2018. His records during the month show:

Value of inventory as of Dec. 31, 2017 purchased from VAT registered persons P 100,000
VAT paid on inventory as of Dec. 31, 2017 12,000
Value of inventory as of Dec. 31, 2017, VAT exempt goods 120,000
Sales, net of VAT 280,000
Sales, gross of VAT 90,000
Purchases, net of VAT 140,000
13. The transitional input tax is?
14. The total input tax credit is?
15. The VAT payable is?

Beginning inventory 100000

Beg exempt inv 0
100000
TIT rate 2%
Transitional Input Vat 2000
vs
Actual VAT 12000 w/c HIGHER

#14
Transitional input tax 12000
Purchases 16800 =140,000 x 12%
28800

#15
Vat on Sales, net 33600 280,000 x 12%
Vat on Sales, gross 9643 90,000 x 12/112
Output Vat 43,243
Input vat -28,800
14,443

Problem 7
For the taxable year 2022, San Pedro reported gross receipts from his bus operations of P22,000,000.
With routes Pampanga to Subic, San Pedro is an operator of twelve (12) buses and is likewise a
transportation contractor with five (5) freight trucks. His gross receipts, however, from his freight of
goods and cargoes amounted only to P750,000 for the year.

16. How much is the common carrier’s tax due if any?

17. How much is the percentage tax due under sec 116 of the tax code?

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Common Carrier's
Transport of Passengers 22000000
3%
#16 CCT 660000

#17
Land Freight 750000
OPT 1%
7500

Problem 8
777 Right time, Right place Sardines processes sardines both original and spicy flavor. During the month
777, purchased the following ingredients for the processing of its famous sardines:

Fresh caught sardines P550,000

Soy sauce, net of VAT 100,000
Fresh olives 50,000
Black beans 50,000
Tomatoes 100,000
Red chillis 32,000
Ordinary salt 18,000
Tin cans, net of VAT 45,000
Sticker labels, net of VAT 30,000
Refined sugar, net of VAT 15,000

777 Right time, Right place Sardines also had a gross sales of P 1,200,000 net of VAT.
18. The total presumptive input tax is?
19. The total input tax credit is?
20. How much is the VAT payable?

Fresh olives 50000

Black beans 50000
Tomatoes 100000
Ordinary salt 18000
Red chilis 32000
Primary Agricultural
Products 250000
Presumptive 4%
#18 10000

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

#19
Presumptive input tax 10000
Soy sauce 100000 12% 12000
Tin cans 45000 12% 5400
Sticker labels 30000 12% 3600
Refined sugar 15000 12% 1800
32800
#20
Output Vat 144,000 1,200,000*.12
Total Input Vat -32,800
111,200

Problem 9.
OKBet Inc. also known as “Sportsmaster Corporation” operates a coliseum which caters various athletic
and artistic event and reported the following receipts for the taxable year 2022: Gate receipts amounted
to P5,000,000 and additional receipts from television coverage was P3,000,000 for promoting a world
boxing championship in Manila featuring The Flush, a Filipino champion. OKBet also reported receipts
from Professional basketball games of P500,000, from Amateur basketball games of P200,000, from
concert of various musical artists P100,000, and from golf and bowling alleys and P300,000.

21. How much is the total amusement tax due?

22. How much is the total exempt receipts if any?
23. How much is the percentage tax due under sec 116 of tax code?

Professional Boxing
Professional Basketball 500,000 X 15% = 75000

Exempt
Gate receipts 3000000
TV 5000000
8000000

116
Amateur 200000
Musical 100000
Bowling 300000
600000
0.01
6,000

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Problem 10
Rex publishing house, a domestic corporation, sells printed books used by college students. Due to the
pandemic, their sales drop by more than 70%. In relation to that, the company decided to sell the books
in electronic or digital copy. In 2021, the following relates to the financial information of Rex
corporation. (net of VAT)

Sale of printed professional books 3,500,000

Sale of digital professional books 2,400,200
Sale of magazines used for advertising variety of products -printed copy 1,800,000
Sale of magazines used for advertising variety of products -digital copy 1,600,000
Purchases 5,750,600

24. Determine the amount of output VAT

25. How much is the VAT payable?

Printed Prof Books 3500000 ex

digital Prof Books 2400200 ex
Magazine printed 1800000 12% 216000
Magazine Digital 1600000 12% 192000
Output Vat 9300200 408,000

Input Vat 5750600

Vatable Portion 0.365583536
2,102,324.681 12% 252,279
Vat Payable 155,721

Problem 11
Lina corporation, a domestic corporation engaged in transport business, had the following:
Philippines Abroad
Transport of passengers 4,500,000.00 2,200,000.00
Transport of Cargoes 2,800,000.00 1,300,000.00

26. How much is the amount subject to VAT?

27. How much is the value added tax due?
28. How much is the percentage tax due assuming that Lina Corporation is an international carrier?

Passengers - PH 4,500,000.00 12% 540000

Cargoes - PH 2,800,000.00 12% 336000
Passengers - OUT 2,200,000.00 0% 0
Cargoes - OUT 1,300,000.00 0% 0
10,800,000.00 876000

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

OPT CCT
1,300,000.00 3% 39000
2,200,000.00 exempt

Domestic Corporation: BY LAND

Philippines Abroad
Passenger – 3% CCTx N/A
Cargo – 12% VAT or 3% N/A

Domestic Corporation: By Sea/Air

Philippines Abroad
Passenger –Vatable 12%/3% Vat- 0% or Exempt
Cargo – Vatable 12%/ 3% Vat- 0% or Exempt

RFC BY Sea or Air

Philippines Abroad
Passenger. – N/A Exempt
Cargo - N/A 3%

Problem 12
Zanjoe, a VATY-registered individual taxpayer, engaged in sale of medicines had the following for year
2021 (VAT exclusive):

Sale of medicine for mental illness 600,000

Sale of medicine for cough 1,850,000
Sale of medicine for diarrhea 760,500
Sale of medicine for diabetes 964,000
Sale of medicine for kidney disease 1,350,000
Sale of medicine for allergy 384,000
Purchases-medicines 3,000,600

29. Determine the output VAT32fde

30. Determine the amount of VAT payable

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

2021
Sales: Amount Rate VAT
Mental illness 600,000.00 Ex
Cough 1,850,000.00 0.12 222,000.00
Diarrhea 760,500.00 0.12 91,260.00
Diabetes 964,000.00 Ex
Kidney
disease 1,350,000.00 Ex
allergy 384,000.00 0.12 46,080.00
TOTAL 5,908,500.00
Output VAT 359,340.00
Purchases 3,000,600.00 2,994,500.00 1,520,740.75
5,908,500.00
Rate 0.12
Input VAt 182,488.89
VAT Payable 176,851.11

31. If the taxable year is 2020, how much is the VAT payable?

Sales: Amount Rate VAT

Mental illness 600,000.00 0.12 72,000.00
Cough 1,850,000.00 0.12 222,000.00
Diarrhea 760,500.00 0.12 91,260.00
Diabetes 964,000.00 Ex
Kidney
disease 1,350,000.00 0.12 162,000.00
allergy 384,000.00 0.12 46,080.00
TOTAL 5,908,500.00
Output VAT 593,340.00

Purchases 3,000,600.00 4,944,500.00 2,511,037.78

5,908,500.00
Rate 0.12
Input VAt 301,324.53

VAT Payable 292,015.47

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Problem 13
Elmo, a VATY taxpayer, had the following for the month of July 2021:
Sale of goods, net of vat :n
To regular customers 4,500,000
To Senior Citizens 2,400,000
To PWD 1,680,000

Sale of fruits 680,000

Purchases:
From VAT business, invoice price 3,315,368
From non-vat business 1,364,950

32. How much is the creditable input VAT?

33. How much is the output VAT?
34. How much is the VAT payable?
Sales Amount Rate VAT
Regular
Customer 4,500,000.00 12% 540,000.00
SC 2,400,000.00 Ex
PWD 1,680,000.00 Ex
Fruits 680,000.00 Ex
9,260,000.00 540,000.00
Purchases
Input VAT 3,315,368.00 12/112 355,218.00
Non-VAT 1,364,950.00 12% 0

Creditable VAT 4,500,000.00 172,622.14

9,260,000.00
367,377.86

Problem 14
Cheezy Furniture, a vat taxpayer, sold the following to various customers in June 2021 (sales, net of VAT)
Sale to local customers P 6,500,000
Export Sales to foreign clients $ 75,000
Sale to export –oriented enterprise (55% export last year) P 2,640,500
Purchases, invoice price P 8,557,360
Dollar-Peso Exchange Rate $1: P55

35. How much is the output VAT?

36. Determine the amount of zero-rated sales, if any?
37. How much is the VAT payable?

A#y. Ivan Yannick S. Bagayao, CPA, MBA

 AMV COLLEGE OF ACCOUNTANCY

Sales Amount Rate VAT

Local 6500000 12% 780000
Export to foreign 4125000 0% 0
EO Enterprise 2640500 12% 316860
Output VAT 13265500 1,096,860

Zero-rated sales 4125000

VAT Payable
Input Vat
Purchases, invoice 8557360 X 12/112 = 916,860
Portion of Vatable

VAT Payable 180,000

Problem 15
Mr. Agullan wins a quinella bet with a pay-out prize of P80,000. The cost of the ticket is P500.

38. How much will Mr. Agullana receive from his winnings?
Receipt
Winnings 80000
500
Tax Base 79500
Tax rate 4%
Tax 3180
Net amount 76820

Problem 16
Prime Corporation, a telecommunication company, had the following for year 2021:

Call origin Call destination Amount collected

Philippines Philippines 11,000,000.00
Abroad Philippines 4,500,000.00
Philippines Abroad 6,590,000.00

39. Determine the overseas communication tax

PH to PH 11000000 VAT 12% 1320000
Abroad to PH 4500000 Zero rate 0%
PH to Abroad 6590000 OCT 10% 659000

A#y. Ivan Yannick S. Bagayao, CPA, MBA