TAX 302 – BUSINESS AND TRANSFER TAXES

Quiz on VAT Score:

Name: ______________________________________ Section: __________________

STRICTLY NO ERASURES!

1 11 21

2 12 22

3 13 23

4 14 24

5 15 25

6 16 26

7 17 27

8 18 28

9 19 29

10 20 30

BULAGA!
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 TAX 302 – BUSINESS AND TRANSFER TAXES
Quiz on VAT

1. Who is statutorily liable for the payment of VAT?

a. Seller
b. Buyer
c. Seller or buyer, at the option of the government
d. Seller and buyer

2. In order to be subject to the requirement of VAT registration, a business must have:

a. Gross sales or receipts exceeding P3,000,000
b. Gross sales or receipts at least P3,000,000
c. Gross sales or receipts, other than those that are exempt under Section 109, exceeding P3,000,000
d. Gross sales or receipts, other than those that are exempt under Section 109, at least P3,000,000

3. The VAT on importation is paid:

a. The non-resident seller monthly
b. The resident buyer monthly
c. The non-resident seller before release of goods from customs custody
d. The resident buyer before release of goods from customs custody

4. Gross selling price is the appropriate VAT base for:

a. Sale of goods or properties
b. Sale of services
c. Importation
d. Lease of properties

5. Gross receipts is the appropriate VAT base for all of the following, except:
a. Sale of services
b. Lease of properties
c. Sale of securities
d. Importation

6. Maria and Clara entered into a contract of sale of car. Negotiations were made on March 1, 2023. They were able to agree on
the price via text message on April 1, 2023. They signed the contract on May 1, 2023, and constructive delivery of the car was
made a week after on May 8, 2023. When shall VAT be recognized from the transaction?
a. March 1, 2023
b. April 1, 2023
c. May 1, 2023
d. May 8, 2023

7. 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

8. 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

9. 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 consecutive years from the time of registration by a person who voluntarily registered
c. Merger of corporations
d. Consolidation of corporations

10. 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
11. Sale of which of the following products is not exempt from VAT?
a. Shrimp
b. Cactus
c. Raisins
d. Bananas

12. Which of the following products is VAT exempt?

a. Rabbits
b. Dogs
c. Anacondas
d. Fighting cocks

13. 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

14. 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

15. Which of the following is not a characteristic of value added tax?

a. It is a tax on consumption.
b. It is a national tax.
c. It is a proportional tax.
d. It is a direct tax.

16. Which of the following lease of residential unit shall be subject to VAT?
a. Lease with monthly rental exceeding P15,000 but the annual aggregate of rentals does not exceed P3,000,000
b. Lease with monthly rental not exceeding P15,000 but the annual aggregate of rentals exceeds P3,000,000
c. Lease with monthly rental exceeding P15,000 and the annual aggregate of rentals exceeds P3,000,000
d. Lease with monthly rental not exceeding P15,000 and the annual aggregate of rentals does not exceed P3,000,000

17. 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

18. A senior citizen bought the following items:

I. A 60” flat screen UHD television
II. An iPhone 15 Pro Max 256Gb Natural Titanium
In which of the following items is he entitled to VAT exemption?
a. I only
b. II only
c. Both I and II
d. Neither I nor II

19. The discounts granted to senior citizens and persons with disabilities may be claimed by establishments as:
a. Deductions from gross income
b. Income tax credit
c. Deductions from gross income or income tax credit, at the option of the taxpayer
d. Deductions from gross income and income tax credit, simultaneously

20. All of the following are included in the VATable base of imported articles, except:
a. Excise taxes
b. Commissions
c. Freight charges
d. Facilitation expense

21. Lakas Tama Company is a domestic corporation engaged in the generation and distribution of electricity from various sources.
The following are the sales of Lakas Tama of electricity with source indicated:
 Source Amount
Coal 7,440,000
Fossil Fuel 4,860,000
Hydroelectric 5,960,000
Wind 6,330,000
TOTAL 24,590,000

How much is Lakas Tama's zero-rated sales? 12,290,000

22. How much are the VAT-exempt sales? 29,100,000

Live chicken 8,510,000.00

Fresh chicken meat 210,000.00
Cut chicken meat 7,700,000.00
Boiled chicken meat 2,220,000.00
Roasted chicken meat 510,000.00
Smoked chicken meat 5,310,000.00
Salted chicken meat 4,640,000.00
TOTAL VAT-exempt 29,100,000.00

23. An importer wishes to withdraw its importation from Bureau of Customs. The imported goods were subject to 10% customs
duty in the amount of P12,500 and to other charges in the amount of P9,500. The VAT due is ________________
Price of imported goods (12500/10%) 125,000.00
Customs Duty 12,500.00
Other charges 9,500.00
147,000.00
Multiply by 12%
VAT due on importation 17,640.00

24. An owner of warehouse, which used to be VAT-exempt, because its annual receipts never exceeded P3M, decided to register
under the VAT System on January 2, 2023. The following data were from the 1st quarter ending March 31, 2023:
Rental from warehousing services, net of VAT 336,000
Purchases of supplies in February, gross of VAT 112,000
Inventory of supplies, January 1, 2023 100,000
VAT on inventory of supplies, January 1, 2023 10,000

How much is the VAT payable for quarter ending March 31, 2023?
Rental from warehousing services 336,000.00
Multiply by 12%
Output VAT 40,320.00

Less: Input VAT

Purchases of supplies in February (112000x3/28) 12,000.00
Transitional Input VAT* 10,000.00
Input VAT 22,000.00

VAT Payable 18,320.00

*Computation of Transitional Input VAT

Actual VAT 10,000.00
versus
2% of Inventory of Supplies January 1, 2020 2,000.00

to be used as Transitional input VAT 10,000.00

For questions 25 and 26

Juan dela Cruz, non-VAT registered lessor of residential and commercial units, had the following date for the 1st and 2nd
quarters of 2023.
Gross Receipts
Lease of Residential Units 1st Quarter 2nd Quarter
Monthly rental of P13,000/unit 2,500,000 2,300,000
Monthly rental of P18,000/unit 1,000,000 1,200,000
Lease of commercial units 2,300,000 2,400,000
Input VAT from suppliers 150,000 120,000

25. How much is the business tax due for the 1st quarter, assuming he is registered as a VAT taxpayer at the start of 1st quarter
2023?

26. How much is the business tax due for the 2nd quarter, assuming he is registered as a VAT taxpayer at the start of 2nd quarter
2023?
Output VAT 396,000.00 432,000.00
Less: Input VAT from suppliers (150,000.00) (120,000.00)
VAT Payable (Question 4 and 3) 246,000.00 312,000.00

27. Dakasi Corporation had the following transactions that affected inventory as of April 30, 2023:
Used to pay a consultant 150,000
Donated to a charitable institution 32,000
Goods delivered for consignment on January 22, 2023 80,000
Goods delivered for consignment on February 22, 2023 100,000
Distributed as property dividends 225,000
Given as gifts to employees 28,000
Normal gross margin based on sales 20%
How much is output VAT liability from transactions deemed sale?

For questions 28 to 30
Farm Solutions Inc., sold the following items to farmers for the taxable quarter ending June 30, 2023:
Fertilizers 3,040,000
Pesticides 2,260,000
Seeds 3,200,000
Seedlings 6,050,000
Farm equipment 18,730,000
TOTAL 33,280,000

28. How much is Farm Solutions, Inc’s output VAT?

29. When should Farm Solutions file its VAT return for the taxable quarter ending June 30, 2023? July 25, 2023

30. Assuming Farm Solutions is an agricultural cooperative, and the farmers are its members, how much is Farm Solutions’
output VAT? Zero