1. Which is not not subject to output VAT? VAT? a. Direct export sales of goods b. Cessation of status as VAT taxpayer with respect to all goods or properties on hand c. Sale of residential lot for P1,500,0 P1,500,000 00 d. Sale of residential dwelling for P2,800,000 P2,800,000 2. Which of the the following following is subject subject to value added tax? a. Importation of grapes and apples c. Sale of seaweeds b. Sale of husked rice, corn grits and molasses d. Sale of fire wood and charcoal 3. All of the following entities entities are VAT-exempt, VAT-exempt, except? except? a. Tagbilaran University, a proprietary educational institution b. Notre Dame, a proprietary hospital c. Philippine Airlines, a domestic air carrier d. Bank of the Philippine Islands, a commercial bank 4. Which is subject subject to VAT? VAT? a. Life insurance companies b. Operators of hotels, motels and inns c. International air or sea carrier d. Agricultural, credit or multi-purpose cooperative 5. Which is not not a transaction deemed sales? a. Withdrawal of goods by the proprietor for personal use b. Corporate merger or consolidatio consolidation n c. Retirement from or cessation of business d. Declaring business properties as property dividends 6. Which is not not a zero-rated sale sale of goods goods or service? a. Transmission of messages message originating from the Philippines to abroad other than news services, embassies and diplomatic calls. b. Sale of gold to the Bangko Sentral ng Pilipinas c. Sale of electricity from hydropower and solar power plants d. Transport of passengers by air or sea from Philippines to abroad 7. Which is correct correct statement? a. If the monthly aggregate acquisition cost of capital goods exceeds P1,000,000, P1,000,000, the input VAT shall be allocated over a period of 60 months starting from the month of purchase. b. The export sales of non-VAT taxpayers are exempt from VAT. c. The excess of input VAT over standard input VAT on government sales is a taxable gain subject to income tax. d. Monthly VAT is due 25 days from the end of each month with the quarterly VAT payable 20 days from the end of each quarter. 8. Wendy shows the following following input VAT VAT during a quarter: Deferred input VAT P 150,000 Allocation of current input input VAT: P 200,000 - Regular sales 300,000 - Zero-rated sales 100,000 - Sales to the government 50,000 - Exempt sales Compute the creditable input VAT. a. P800,000 c. P650,000 b. P700,000 d. P350,000 9. Traders of which which of the followi following ng is allowed allowed presumptive presumptive input VAT? VAT? 1. Milk 3. Mackerel 2. Packed noodles 4. Raw sugar a. b.
All, except 4 All, except 2
c. All of these d. None of these
10. A dealer in securities securities has the the following following data for the year 2009: 2009: Sales, shares held as inventory Sales, shares held as investme investment nt Cost, shares held as inventory Cost, shares held as investment Supplies expense, net of VAT Rent expense, net of VAT How much is the VAT payable? A. 470,000 B. 324,000
5,000,000 5,000,000 1,500,0000 1,500,00 2,000,0000 2,000,00 500,000 100,000 200,000
C. 270,000 D. Not subject to VAT
A. B. C. D.
11. Mr. Juan Cruz, VAT-exempt, issued VAT invoice to Mr. S. Santos, VAT-registered trader. An a consequence, Mr. Juan Cruz would: be liable to VAT without the benefit of input tax credit not be liable to VAT because he is VAT-exempt be liable to percentage tax, VAT, and a surcharge of 50% not be liable to any business tax but may be liable to income tax
12. Tarlac Company voluntarily registered to VAT. It has the following inventory at the start of the year: Processed foods from VAT sellers P 11,200 Processed foods from non-VAT sellers 90,000 Agricultural food products 200,000 Compute the transitional input VAT. A. P0 C. P2,000 B. P1,200 D. P6,000 13. Moses, Inc., a VAT registered trader, compiled the following payments on purchases during the year: Payments for merchandise from VAT suppliers P 134,400 Payments merchandise from non-VAT suppliers 82,400 Landed cost of merchandise withdrawn from the BOC 224,000 What is the creditable input VAT? A. P0 C. P45,760 B. P38,400 D. P50,108 14. A customer ordered the following from a VAT-registered seller: Eggs P 100,000 Dried fish 150,000 Marinated fish 200,000 Under current revenue regulations, what is the output VAT? A. P0 C. P24,000 B. P12,000 D. P36,000 15. A trader of cooking oil which newly registered as VAT taxpayers shall not be allowed which of the following? a. Transitional input VAT| c. Regular input VAT b. Presumptive input VAT d. None of these 16. The withheld final value added tax is a. 7% of the sales made to government. b. 3% of the sales made to government. c. 5% of the sales made to the government. d. 3% of the purchases on sales made to the government. 17. Which is included in the VAT basis of the 2% transitional input VAT? a. inventory of processed foods b. inventory of fruits and vegetables c. inventory of non-food goods d. A and C For items 18-20
A VAT-registered corporation reports on a fiscal year. It made the following purchases of depreciable capital goods in the quarter ending August 31, 2015 from VAT suppliers: June 2015
Truck, estimated 10-year useful life Office equipment, estimated 4-year useful life
P
700,000 500,000
August 2015
Office furniture, estimated 5-year useful life
600,000
Assume all amounts are exclusive of VAT. 18. What is the creditable input VAT in June 2015? a. P 1,950 c. P2,650 b. P 2,200 d. P144,000 19. What is the creditable input VAT in July 2015? a. P0 c. P2,200 b. P1,950 d. P2,650 20. What is the creditable input VAT for the quarter ending August 2015? a. P79,950 c. P145,200 b. P74,650 d. P216,000 21. A VAT-registered taxpayer made the following
Sales destination China Malaysia Hong Kong Philippines
Terms FOB destination FOB destination FOB shipping point FOB shipping point
Payment $ 10,000 P 450,000 ¥ 800,000 P 300,000
The applicable exchange rate to the Peso was $1:P42 and ¥1:P0.50. Compute the total zero-rated sales. a. P 420,000 c. P 1,270,000 b. P 820,000 d. P 1,570,000 22. Compute the output VAT. a. P0 b. P 36,000
c. P 54,000 d. P 90,000
23. Mr. Dilloro imported various merchandise from abroad. The importation was invoiced at $ 5,000. Mr. Dilloro also incurred the following costs of importation: Insurance P 4,000 Freight 15,000 Wharfage fee 4,000 Arrastre charge 7,000 Brokerage fee 8,000 Facilitation fee 5,000 Mr. Dilloro was also assessed P 24,000 and P 18,000 customs duties and excise tax, respectively. The applicable exchange rate was P42.50:$1. What is the VAT on importation? a. P 25,500 b. P 30,540
c. P 35,100 d. P 35,700
24. An agricultural supply dealer imported the following: Corn grits P 200,000 Hog feeds 350,000 Specialty feeds 300,000 Compute the VAT on importation. a. P 0 b. P 36,000
c. P42,000 d. P 102,000
25. Dan Agribusiness imported the following: Seeds Fertilizers Farming equipment Herbicides and pesticides Total
Landed cost P 400,000 850,000 350,000 250,000 P 1,850,000
Compute the Output VAT. a. P 0 b. P 42,000
c. P 72,000 d. P 120,000
26. The NMRS Services, VAT-registered taxpyer, has the following data for the last quarter of 2008: Cash sales, net of input tax P3,000,000 Installment sales, net of input tax (collections) P1,200,000 Deferred input tax, third quarter 2008 P 22,000 Purchases, total invoice value P3,920,000 Monthly VAT payments (October and November 2008) P 20,000 The tax payable on or before January 25, 2009 is: a. P13,000 c. P42,000 b. P28,000 d. Not given 27. Which of the following taxes has been replaced by VAT? a. b. c. d.
Common carrier’s tax on land transport of passengers
Franchise tax on water and gas Gross receipts tax on banks and non-bank financial intermediaries Caterer’s tax on operators of eating places
28. Mr. Patrick Baluyan, VAT-registered real estate dealer, sold a real estate for P2,000,000 on November 29, 2008. The cost of property was P1,500,000. The terms of the sale were as follows: Down payment, Nov. 29, 2008, P400,000, balance payable in monthly installments of P100,000 beginning on December 29, 2008 until fully paid, P1,600,000. How much was the income to be reported in 2008?
a. a. b. c. d.
P500,000
b.
P200,000
c.
P125,000
d.
P100,000
29. Using the same data in the preceding number, how much was the output VAT in November 29, 2008? P60,000 P50,000 P48,000 P15,000
30. Which of the following is not exempt from VAT? A. Sale of books B. Sale of agricultural product in its original state C. Sale of electricity generated through renewable sources D. Sale of shares of stock listed and traded through the local stock exchange 31. For value-added tax, which is not a requisite for the taxability of the sale of goods or property? a. The sale must be an actual sale of goods of properties for a valuable consideration. b. The transaction is undertaken in the course of trade or business. c. The goods are for use or consumption in the Philippines. d. The transaction must not be exempt under the Tax Code, special law or international agreement. 32. Dreamboat Corporation registered under the VAT system on January 15, 2009. When would the last day to manually file its first monthly VAT declaration? a. February 20, 2009 c. April 25, 2009 b. March 20, 2009 d. None of the choices 33. A VAT subject real estate dealer sold a residential lot on January 15, 2007. The following information was made available on the terms of the sale: Gross selling price P 3,000,000 Initial payments on January 15, 2007 750,000 Balance to be paid in equal installment, installments starting February 15, 2007 2,250,000 The zonal value of the residual lot was P3,500,000. How much was the output tax on January 15, 2007 using 12% VAT rate? a. P 420,000 c. P 105,000 b. P 360,000 d. None of the choices 34. One of the following is not a major business internal revenue tax in the Tax Code. a. Value-added tax c. Income tax b. Excise taxes on certain goods d. Other Percentage tax 35. Gross selling price includes all of the following except one. Which one? a. Total amount which the purchase pays to the seller. b. Total amount which the purchase is obligated to pay to the seller. c. Excise tax. d. Value-added tax. a. b. c. d.
36. Tax credit for input taxes shall be allowed if: Both the seller and the purchaser are VAT-registered. Either one of the seller or the purchaser is VAT-registered. Neither one of the seller or the purchaser is VAT-registered as long as VAT invoice is issued. The seller is VAT-registered regardless of whether the purchaser is VAT-registered or not.
37. Withholding of VAT is not applicable when payment is: a. P1,000 and above. c. P8,000 and above. b. P1,000 and below. d. P15,000 and above. 38. J. Cruz, a trader, made the following sales of goods during the month of July 2007, exclusive of VAT: Cash sales P 200,000 Open account sales 100,000 Installment sales 100,000 Note: Receipt from installment sales is P 40,000 Consignment sales Apr. 15, 2007 100,000 Feb. 15, 2007 100,000 Output tax is: a. P48,000 b. P55,200 c. P72,000 d. P60,000 39. J. Santos, VAT-registered, made the following purchases during the month of January, 2007: Goods for sale, inclusive of VAT P 246,400 Supplies, exclusive of VAT 20,000 Office airconditioners, total invoice amount 56,000 Home appliances for residence, gross of VAT 17,920 Repair of store, contractor not VAT-registered, total invoice amount 33,600
Repainting of store, total invoice amount evidenced by ordinary receipt of contractor
4,480
Mr. Santos intends to refund the VAT on office airconditioners. Creditable input taxes are: a. P34,800 b. P28,800 c. P35,280 d. P34,670 40. The following are the data of City Appliances Marketing Co. for the last quarter of 2007: Sales up to December 15, total invoice value P 319,200 Purchases up to December 15, net of input taxes 215,000 Additional information: On December 16, 2007, the City Appliances Marketing Co. retired from its business and the inventory valued at P190,000 was taken and transferred to New City Appliances Co. There is a deferred input tax from the third quarter of P3,500. How much is the total value-added taxes due and payable by City Appliances Marketing Co. in its operations in the last quarter and its retirement from business? a. P27,700 b. P4,900 c. P31,200 d. P8,400 41. Continuing no. 40, assuming that the New City Appliances Co. has the following data for the first quarter of 2008. Sales, total invoice value P 336,000 Purchases, total invoice value 22,400 How much is the VAT payable of the New City Appliances Co. for the first quarter of 2008? a. P33,600 b. P10,800 c. P13,200 d. P36,000 42. Sweetie Pie Refining Company manufactures refined sugar. It had the following data during the first quarter of 2007: Sale of refined sugar, net of VAT P 2,000,000 Purchase of sugar cane from farmers used in the manufacture of refined sugar 500,000 Purchase of packaging materials, gross of VAT 784,000 Purchase of labels, gross of VAT 112,000 The VAT payable is 124,000 43. On January 5, 2007, Laylu Co., VAT-registered, sold on account goods for P112,000 to Vinmar Corp. The term was: 2/10, n/30. Payment made on January 10, 2007. The total amount due is: 109,760 44. First statement: A taxpayer whose gross sales or receipts exceeded the threshold amount of P1,500,000 shall pay VAT even if he is not VAT-registered. He is entitled to input taxes. Second statement: Importers of goods for personal use is subject to value-added tax even if he is not VAT-registered. a. Both statements are correct. c. Only the first statement is correct. b. Both statements are incorrect. d. Only the second statement is correct 45. The tax base value added tax on the installment sale of real property is: a. The higher between the selling price stated in the sales document or zonal value or market value. b. Selling price stated in the sales document. c. Installment received plus interest and other charges. d. Gross receipts. 46. The following are zero-rated if paid for in acceptable foreign currency or its equivalent and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas except one. a. Sale and actual shipment of goods from the Philippines to a foreign country. b. Sale of raw materials or packaging materials to a nonresident buyer for delivery to a resident local export-oriented enterprise. c. Sale to a non resident of goods assembled or manufactured in the Philippines for delivery to a resident in the Philippines. d. Sale of real property to a nonresident person for delivery to a resident in the Philippines. 47. One of the following is not an export sale. a. Sale to bonded manufacturing warehouses of export-oriented manufacturers and to export processing zones. b. Sale to foreign military bases, diplomatic missions or agencies and/or instrumentalities granted tax immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not. c. Sale of gold to Bangko Sentral ng Pilipinas. d. Exportations of goods on consignment. 48. One of the following is not a transaction deemed sale:
a. Transfer, use or consumption not in the 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 creditors in payment of debt. c. Retirement from or cessation from business, with respect to all 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. 49. The allowable transitional input tax is: a. The lower between 2% of the value of beginning inventory or actual VAT paid on such inventory. b. The higher between 2% of the value of beginning inventory or actual VAT paid on such inventory. c. The actual VAT paid on the beginning inventory. d. 2% of the value of beginning inventory. 50. 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. 51. A. B. C. D.
Quarterly VAT return shall be filed on or before the 10th day from the end of each quarter 20th day from the end of each quarter 15th day from the end of each quarter 25th day from the end of each quarter
52. Value Added Tax is a / an A. Indirect tax B. Direct tax
C. Local tax D. Personal tax
53. Also known as the “Consolidated VAT Regulation” a. RR 16-2003 b. RR 16-2005
c. RR 18-2009 d. RR 18- 2013
54. Commissioner of Internal Revenue as of today is: a. Caesar Dulay b. Kim Henares
c. Joel Tan Torres d. Kenneth Cruz
55. Senate Bill Version of the Tax Reform for Acceleration and Inclusion a. S.B 1592 b. S.B 1521 c. S.B 1234
d. S.B 3658
56. Which of the following importation is subject to VAT? A. Importation of frozen meat. B. Importation of bamboo poles. C. Importation of apples from personal consumption. D. Importation of grapes for sale. 57. An importer wishes to withdraw its importation from the Bureau of Customs. The imported goods were subjected to 10% customs duty in the amount of P12,500 and other charges in the amount of P9,500. The VAT due is A. P12,500 C. P13,364 B. P17,640 D. P14,700 58. Beginning next year, if the TRAIN has to implemented the VAT threshold will be from P1,919,500 to ______________ a. P2,500,000 c. P3,500,000 b. P3,000,000 d. P4,000,000 59. A, a VAT taxpayer billed his customer: Selling Price Value Added Tax Total The output tax is A. P70,000 B. P60,000
P500,000 70,000 P570,000
60. Is compensation VATable??? True or False
C. P61,071 D. P68,400