TRUE OR FALSE

TRUE OR FALSE

Facts: Reyes Corp.’s capital upon registration is only Php 1

Million. It has no expectation that its sales will exceed the
VAT threshold. Regardless, it still registered in 2019 as VAT.

Statement: If during the year, Reyes Corp. does not exceed

the VAT threshold, it may update its registration to non-VAT
in the succeeding year.

Answer: FALSE
 TRUE OR FALSE

Facts: Reyes Corp.’s capital upon registration is only Php 5

Million. It is expected that its sales will exceed the VAT
threshold hence it registered in 2020 as VAT.

Statement: Whether or not Reyes Corp.’s gross sales will

exceed the VAT threshold during the year, it may update its
registration to non-VAT in the succeeding year provided that
its gross sales will not exceed the VAT threshold.

Answer: TRUE
 TRUE OR FALSE

Facts: Reyes Corp.’s capital upon registration is only Php 1

Million. It has no expectation that its sales will exceed the
VAT threshold but still it registered in 2019 as VAT. In 2019,
its sales is below the threshold. In 2020, the gross sales
reached Php 5 Million.
Statement: In 2021, Reyes Corp. may update its registration
to non-VAT if it will appear that its gross sales will not exceed
the VAT threshold.

Answer: FALSE
 TRUE OR FALSE

Facts: Reyes Corp.’s capital upon registration is only Php 1

Million. It has no expectation that its sales will exceed the
VAT threshold hence it registered in 2019 as Non-VAT. In
2020, the gross sales reached Php 5 Million thus, it updated
its registration to VAT.

Statement: In 2021, Reyes Corp. may update its

registration to non-VAT if it will not appear that its gross
sales will exceed the VAT threshold.

Answer: TRUE
 TRUE OR FALSE

Facts: ABC Corp. is required to register as VAT as it

exceeded the VAT threshold. However, the Company failed to
do so.

Statement: ABC Corp. shall be liable to output tax even its

registration is Non-VAT and it cannot credit any input tax
paid against the output tax.

Answer: TRUE
 TRUE OR FALSE

Facts : ZAB Network Corp., a non-VAT registered taxpayer,

has been granted a legislative franchise to operate and
broadcast thru radio or television its activities in 2020. On its
first year of operations, its gross receipts amounted to Php 5
Million. In 2021, it decided to register as VAT. However, its
gross receipts for the year amounted to Php 8 Million.
Statement: ZAB Network can change its registration to
Non-VAT in 2022

Answer: FALSE
 TRUE OR FALSE

Facts : ZAB Network Corp., a non-VAT registered taxpayer, has been granted a
legislative franchise to operate and broadcast thru radio or television its activities
in 2020. In 2021, it registered as VAT. The following are its results of operations
from the time of its VAT registration:

YEAR GROSS RECEIPTS

2021 PHP 6,000,000
2022 7,000,000
2023 8,000,000
2024 9,000,000

Statement: ZAB Network can change its registration to Non-VAT in 2025.

Answer: FALSE