No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

Value-added tax Tax 04-12

1. The following are business taxes under the National Internal Revenue Code,
except:
a. Value-added tax
b. Other Percentage tax
c. Excise tax on manufacturing and importation
d. Documentary stamp tax

2. The following are subject to the excise tax, as business tax:

a. Manufacturing and importation of cigar, cigarette, tobacco products;
b. Manufacturing and importation of wine, whisky and fermented spirit
c. Manufacturing and importation of automobile
d. Non-invasive cosmetic surgery

3. The following are the characteristics of the value-added tax, except:

a. Excise
b. Indirect
c. Progressive
d. Proportionate
e. National
f. General
g. Ad valorem

4. First Statement – Any person engaging in trade or business is liable to business

tax.
Second Statement – the value-added (VAT) tax may be due provided the
transaction is one of those subject to the VAT under the Tax Code, regardless of
whether or not the person engaged therein is a non-stock, non-profit private
organization (irrespective of the disposition of its net income and whether or not it
sells exclusively to members or their guests), or government entity.
a. True, True
b. True, False
c. False, False
d. False, True

5. Statement 1 – All sales of goods and services, in the course of trade or business,
is subject to the VAT.
Statement 2 - Importation, whether for business or personal use, except those
which are exempt from the VAT by the Tax Code and other special laws, is subject
to the VAT.
a. True, True
b. True, False
c. False, False
d. False, True

6. Statement 1 – Generally, a taxpayer whose gross sales or receipts, in a taxable

year, exceeded Php3,000,000 is subject to the VAT, even if he is not VAT
registered.
Statement 2 – Service rendered in the Philippines by a non-resident alien,
including a non-resident foreign corporation (importation of service) is subject to
the final withholding VAT.
a. True, True
b. True, False
c. False, False

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

d. False, True

7. Statement 1 – Sale of goods or services subject to the zero percent (0%) vat is
also considered a VAT exempt transaction.
Statement 2 – A non-vat registered person who issues a vat receipt on a given
transaction is subject to the VAT on the said transaction.
a. True, True
b. True, False
c. False, False
d. False, True

8. The following are the mandated information in a VAT invoice or VAT official
receipt, except:
a. TIN of the seller and a statement he is VAT registered
b. Total amount that the purchaser pays or is obligated to pay with the indication
that such amount includes the VAT
c. The amount of VAT is shown as a separate item in the invoice or receipt
d. If the same is VAT exempt of VAT Zero-rated, it shall be printed or written
prominently in the invoice or receipt
e. In case of mixed sale in the same invoice or receipt, it shall indicate the
breakdown, which is vatable, zero-rated and/or exempt. Seller should not
issue separate invoices for aforementioned components of the sale.

9. The following are the consequences of issuing a VAT invoice/receipt by a non-

VAT registered person, except:
a. Shall be liable to the percentage tax thereon, if any
b. Shall be liable to the 12% VAT
c. Shall not be allowed to claim input VAT thereon
d. Shall be liable to 25% surcharge
e. The purchaser in whose favor the VAT invoice/receipt was issued, shall be
allowed to claim input VAT thereon.

10. Persons who are exempt from the VAT may voluntarily register under the VAT
system. Among the consequences of optional registration are as follows, except
a. Shall be allowed to claim transitional input VAT during the first year of VAT
registration
b. Shall be allowed to claim input VAT on all purchases of goods and services
c. Shall be required to submit a monthly VAT declaration and quarterly VAT
return
d. Optional VAT registration shall be irrevocable for three years from the quarter
the election was made ( forever for radio and television networks)

11. Which among the following is subject to the VAT

a. Sale of rice
b. Sale of polished or husked rice
c. Sale of roasted chicken for take-out
d. Feed for race horse

12. The following importation are exempt from the VAT, except:
a. Importation personal or household effects of belonging to residents of the
Philippines, provided said importation is also exempt under the Tariff and
Customs Code of the Philippines
b. Importation of fertilizers
c. Importation of newspaper
d. Importation of a motorcycle, intended for personal use of the importer
13. Which of the following transactions is exempt from value added tax.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

a. Sale by an art gallery of literary works, musical composition, work of art and
similar creations, or devices performed for the production of such works.
b. Medical, dental hospital and veterinary services rendered by a professional.
c. transportation of cargoes
d. Sale of books and any newspaper, magazine, review or bulletin, which
appears at regular intervals with, fixed prices for subscription and sale which is
not devoted principally to the publication of paid advertisements.

14. Statement 1: Sale by agricultural cooperatives to non-members can only be

exempted from VAT if the producer of the agricultural products sold is the
cooperative itself. If the cooperative is not the producer (e.g. trader), then only
those sales to its members shall be exempted from VAT.
Statement 2: Sale or importation of agricultural food products in their original state
is exempt from VAT irrespective of the seller and buyer thereof.
a. True, True
b. True, False
c. False, False
d. False, True

15. Statement 1 – Sale of real property held as capital asset is exempt from the VAT
but subject to the 3% other percentage tax.
Statement 2 – Sale of real property held as ordinary asset is subject to the VAT
a. True, True
b. True, False
c. False, False
d. False, True

16. The following sale of real property is exempt from the VAT, except:
a. Residential lot with gross selling price not exceeding Php1, 500,000
b. Residential house and lot and other residential dwellings valued at
P2,500,000 and below
c. Real property utilized for low-cost and socialized housing as defined by the
RA 7279 a.k.a Urban Development and Housing Act of 1992
d. Beginning January 1, 2021 sale of residential dwelling valued at an amount
exceeding P2,000,0001

17. Statement 1- Sale by a real estate dealer of adjacent residential condominium

units, valued at P2,000,000 each, to the same buyer and within a 12 month
period is exempt from the VAT.
Statement 2 – Sale of a parking lot in a condominium project valued at P1,000,000
is exempt from the VAT.
a. True, True
b. True, False
c. False, False
d. False, True

18. Which among the following lease of residential units is subject to the VAT
No of Residential Monthly Rent
Units per unit
a. 50 P10,000
b. 40 P15,000
c. 10 P17,000
d. 17 P15,500

1
As per RR 8-2021 should be Php3,199,200

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

19. The Villa Real Estate Corporation is a VAT registered real estate dealer. It was
able to sell a unit with the following details:
Selling Price – exclusive of the VAT Php8,000,000
Zonal Value 10,000,000
Assessed Value 9,000,000

The following are the payments made:

August 2020 Php1,000,000
October 2020 Php1,000,000
June 2021 Php3,000,000
December 2021 Php3,000,000

How much is the output VAT to be recognized on the August 2020 collection:
a. P1,200,000
b. P150,000
c. P857,143
d. P107,142
How much is the output VAT to be recognized in the December 2021 payment
a. P450,000
b. P1,200,000
c. P960,000
d. P857,143

20. Statement 1 – the VAT on sale of goods shall be determined based on gross
selling price. As such, output on sale of goods is substantiated by the VAT
invoice
Statement 2 – discounts determined and granted at the time of sale, which are
expressly indicated in the invoice, the amount thereof forming part of the gross
sales duly recorded in the books of account, and sales returns and allowances,
are allowable deductions from the gross selling price
a. True, True
b. True, False
c. False, False
d. False, True
21. On January 5, 2017, Acme Co., VAT-registered, sold on account goods for
P112,000. The term was: 2/10, n/30. Payment was made on January 10, 2017.
The total amount due is:
a. P110,000
c. P112,000
b. P107,800
d. P109,760

22. During the year 2020, Mr. Cole Bee, a Certified Public Accountant is engaged in
the practice of his profession. He is not VAT registered. He had the following gross
receipts during 2020 (Net of any business tax)
1st quarter Php750,000
2nd quarter Php500,000
rd
3 Quarter Php1,800,000
4th Quarter Php1,000,000
th
Purchases from VAT Supplier during the 4 quarter Php 75,000

VAT payable is:

a. Php486,000
b. Php477,000
c. Php111,000
d. Php120,000

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

23. Ang Sarap Ah Restaurant (ASAR) reported the following sales during the quarter
(exclusive of the VAT)
Regular Sales Php500,000
Sale to Senior Citizen 80,000
Sale to Persons with disability 100,000

The output VAT of ASAR during the quarter is:

a. P60,000
b. P81,600
c. P69,600
d. P72,000

24. A non-stock and non-profit organization operates a variety store. The profit of the
said NSNP does not redound to the benefit of any person rather it is rolled-over
to the capital of the NSNP to fund its charitable purposes. The annual gross
receipts of the NSNP ranges between P2 million to P2.8 million in the past 3
years. It will be liable to the following tax/es:
a. 3% OPT
b. 0%-35% income tax
c. 8% optional income tax
d. 30% regular corporate income tax

25. One of the following is not a transaction deemed sale

a. Transfer use or consumption not in the ordinary course of business , of goods
or properties originally intended for sale or for use in the course of business
b. Distribution or transfer to shareholders or investors of goods or properties as
share in the profits of a VAT-registered person or to creditors in payment of
debt
c. Retirement from or cessation of business, with respect to inventories of
taxable goods on hand as of the date of such retirement or cessation
d. Consignment of goods if actual sale is made within 60 days following the date
such goods were consigned

26. Mxd Bznz Inc is a VAT registered taxpayer who deals with both Vatable and
exempt transactions. You are presented with the following transactions during
the quarter ended December 31, 2020 (amount given are exclusive of the VAT):
Sale during the quarter
VAT business P4,000,000
VAT exempt business 6,000,000

Purchases from VAT supplier

Used in VAT business 2,000,000
Used in VAT exempt-biz 3,000,000
Both VAT and Exempt biz 20,000
Operating Expenses 1,800,000
Determine the VAT Payable
a. P1,200,000
b. P600,000
c. P240,000
d. P239,040

27. The taxable income ( net income ) is:

a. P3,180,400
b. P2,750,000
c. P2,850,000
d. P2,818,560

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

28. Boom E Benta Merchandising is engaged in selling goods. It had the following
result of operation for the quarter ended October 30, 2021 :
Cash Sale P300,000
Sale on account 100,000
Sale on installment (downpayment is 40%) 100,000
Consignment made on June 30, 2021 100,000

The output VAT is:

a. P72,000
b. P60,000
c. 12,000
d. 36,000

29. The following are the data of Fiery Electronic Appliances Retailer (FEAR) for the
last quarter of 2021:
Sales up to December 15, inclusive of the VAT P380,800
Purchases up to December 15, net of input taxes 150,000

Additional information:
On December 16, 2021, the Company retired from its business and the inventory
valued at P190,000 remained unsold. There is a deferred input tax from the third
quarter of P3,500.
How much is the total value-added taxes payable by FEAR.
a. P42,100
b. P22,800
c. P21,500
d. P19,300

Numbers 30 and 31 are based on the following

30. Joker Gaming Technologies Inc is a software developer. One of its client is a company engaged in
casino operation. During the quarter ended June 30, 2021 it reported the following (amount given are
exclusive of the VAT):

Concluded Contract of service (casino OS Maintenance) with PAGCOR Php10,000,000

Acceptance fee of the PAGCOR casino OS maintenance – paid in June 5, 2021 2,500,000
Cash received – Service contract for maintenance of CAS of Dodong Corp (Dom. Corp) 8,500,000
Purchases from VAT supplier
On PAGCOR contract 700,000
On Dodong Corp 1,000,000
General and Administrative supplies 2,000,000

How much is the VAT payable of Joker Gaming Technologies, Inc for the quarter ended June 30, 2021

a. Php576,000
b. Php138,545.45
c, Php876,000
d. Php0

31. What is the amount of input VAT that Joker Gaming Tech can claim for refund or convert
to tax credit certificate

a. Php576,000
b. Php138,545.45
c, Php876,000
d. Php0

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

32. Vava Corp. imported an article from Japan. The invoice value of the imported
articles was $ 7,000 ($1- P50). The following are incurred in connection with the
importation:
Insurance P 15,000
Freight 10,000
Postage 5,000
Wharfage 7,000
Arrastre charges 8,000
Brokerage fee 25,000
Facilitation fee 50,000

The imported article was subject to P50,000 customs duty and P30,000 excise tax.
Vava Corp. spent P5,000, exclusive of the VAT, for trucking from the customs
warehouse on its way to its warehouse in Quezon City.

The VAT on importation is;

a. P 50,000 b. P 35,000 c. P50,500 d. P60,000

Assuming that the imported article was sold for P600,000, VAT exclusive, the VAT
payable is:
a. P 60,000 b. P12,000 c. P11,400 d.P72,000

33. Transitional input VAT shall be:

a. The higher between 2% of the value of the beginning inventory, excluding
purchases of VAT exempt goods, or the actual VAT paid on the beginning
inventory
b. The lower between 2% of the value of the beginning inventory, excluding
purchases of VAT exempt goods, or the actual VAT paid on the beginning
inventory
c. The actual VAT paid on the beginning inventory
d. 2% of the value of the beginning inventory excluding purchases of VAT
exempt goods.
34. All of the following except one are allowed presumptive input tax. Which one is it.
a. Processor of sardines, mackerel and milk.
b. Manufacturer of refined sugar and cooking oil.
c. Public works contractor with respect to government contracts only.
d. manufacturer of noodle based instant meal.

35. Which of the following input taxes can be refunded, converted into tax credit
certificates or carried over to the next quarter at the option of the VAT-registered
taxpayer?
a. Input tax on purchase of raw materials.
b. Input tax on importation of supplies
c. Input tax on zero-rated sales of goods or services.
d. Input tax on purchase of services.

36. First statement: Unused input tax of persons whose registration has been
cancelled may be converted into tax credit certificate which may be used in
payment of other NIRC taxes.
Second statement – Claim for refund or conversion to tax credit certificate of input
arising from zero-rated transactions should be filed within 2 years from the close
of the quarter

a. True, True
b. True, False
c. False, False
d. False, True

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

37. Olmos Merc, VAT-registered, made the following purchases during the month of
January, 2021:
Merchandise intended for sale, inclusive of VAT P 224,000
Office Supplies, exclusive of VAT 20,000
Office Computers, total invoice amount 56,000
Home appliances for use at residence, gross of VAT 17,600
Repair of store, total invoice amount evidenced by
Non-VAT receipt 4,400

Creditable input taxes amounts to:

a. P 26,400 b. P 29,400 c. P 24,000 d. P 32,400

38. A taxpayer registered under the VAT system on January 1, 2020. His records
during the month are as follows:

Value of inventory as of December 31, 2019

purchased from VAT-registered persons P 50,000
VAT paid on inventory as of December 31, 2019 6,000
Value of inventory as of December 31, 2019
Vat exempt goods 60,000
Sales, net of VAT 140,000
Sales, gross of VAT 45,000
Purchases, net of VAT 70,000

VAT payable is:

a. P 11,100 b. P 7,221 c. P 3,100 d. P 18,100 33.

39. A VAT registered person engages in both VAT and VAT exempt business. During
the year total sales amounted to P500,000, exclusive of the VAT. Sale of the VAT
exempt business amounts to P200,000. During the quarter, the business incurred
the following: Input VAT arising from repairs amounting P6,000. On the other hand,
input on supplies, for common use amounted P1,200

The creditable input tax is:

a. P 6,000 b. P 7,200 c. P 1,000 d. P 4,320

40. Using the data in no. 39 the VAT payable is:

a. P 24,000 b. P 25,000 c. P 31,680 d. P 26,400

41. Azucarera De Papa manufactures refined sugar. It had the following data during the
first quarter of 2021:
Sale of refined sugar, net of VAT P 2,000,000
Purchases of sugar cane from farmers used
In the manufacture of refined sugar 500,000
Purchase of packaging materials, inclusive of VAT 784,000
Purchase of labels, inclusive of VAT 112,000

The VAT payable is:

a. P 124,000 b. P 112,500 c. P 70,000 d. P 62,000
42. Daimos a VAT-registered person has the following data:

Export sales, total invoice amount P3,000,000

Domestic sales, exclusive of the 6,000,000
VAT
Purchases used to manufacture
Goods for export and domestic
sales:
Raw Materials, VAT exclusive 550,000

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

Supplies, VAT exclusive 400,000

Equipment, useful life of 3 years, 500,000
VAT exclusive

The amount of input tax which can be refunded or converted into tax credit certificates
at the option of Daimos is:
a. P174,000 c. P60,000
b. P116,000 d. P58,000

43. Based on the preceding number, if the refundable input taxes were not refunded but
used as tax credit, the VAT due is:
a. P500,000 c. P604,000
b. P650,000 d. P546,000

44. But assuming further that the taxpayer opted to claim them as refund, the VAT due
is:
a. P500,000 c. P604,000
b. P650,000 d. P546,000

Numbers 45 to 48 are based on the following

45. A VAT registered taxpayer purchased the following capitalizable assets during the
quarter ending September 2021

Date of Purchase Useful Life Cost

July 1 4 years 800,000
July 17 5 years 1,000,000
August 15 3 years 700,000
August 27 2 years 300,000
September 2 3 years 600,000
September 27 6 years 1,200,000

Input tax to be recognized in July 2021

a. P216,0000
b. P4,000
c. 136,400
d. P122,000

46. Input VAT to be recognized in the Month of August, 2021

a.P124,000
b. P120,000
c.P136,400
d P4,000

47. The input tax for the quarter ended September 2021 is
a. P8,400
b. P8,000
c. P248,400
d. P136,400
48. Assuming on January 5, 2022, the VAT Taxpayer acquired a delivery truck for a
purchase price of Php2,000,000 (exclusive of the VAT). The said delivery truck is
capitalized with a useful life of 5 years. The creditable input VAT for the month
ending January 2022 is.
a. P8,400
b. P8,000

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

c. P248,400
d. P136,400

49. Magnitude Construction, Inc., a building contractor, showed to you the following data
for the month of July 2021:
Cash received, inclusive of the VAT 2,240,000
Receivables, with VAT 3,360,000
Downpayment of client for project to be commenced (w/VAT) 1,120,000

Unpaid Purchases:
For materials, VAT excluded 500,000
For supplies, VAT excluded 100,000
For services of sub-contractors (VAT included) 1,848,000

How much is the value added tax payable?

a. P360,000
b. P330,000
c. P228,600
d. P90,000

50. Lolo Totoy had dinner with 4 of his grandchildren at Shookey’s Pizza Salon. When
he asked for the bill, his total bill amounts to Ph1,120 inclusive of the value-added
tax. Lolo Totoy informed the service crew that he is a senior citizen and presented
his senior citizen card. He returned the invoice to adjust their bill accordingly.
How much would be the adjusted bill
a. P1,000
b. P1,096
c. P1,032
d. P1,056

That in all things God will be glorified

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