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Taxation 02 Value Added Tax – Exercises 1. M is a VAT-registered business with a total sales of P2, 240, 000 inclusive of VAT. How much is the direct tax to be paid by M to the BIR in relation to VAT? a. P240, 000 b. P120, 000 c. P40, 000 d. P-02. Sarao Corporation, a VAT registered business, is engaged in the Jeepney repair services within and outside the Philippines. Data regarding its operations during the year are as follows: Within Outside Service Revenue Billings P833, 333 P800, 000 Cost of Service 600, 000 400, 000 Input VAT paid to service cost 40, 000 30, 000 Supplies inclusive of VAT 22, 400 27, 500 If Sarao collected 80% of its service revenue billings, how much is Sarao’s net VAT payable in the Philippines? a. P57, 600 b. P40, 000 c. P37, 600 d. P17, 600 3. During the quarter, a VAT registered business reported the following: Gross Sales: Cash Sales P500, 000 Credit Sales 800, 000 Sales Returns 100, 000 Sales Discounts 50, 000 Consigned goods (unsold for 90 days) 100, 000 How much is the Output VAT for the quarter? a. P96, 000 b. P138, 000 c. P144, 000 d. P150, 000 4. A VAT registered business provided the following information during the quarter: Sales P500, 000 Less: Sales Commissions P50, 000 Trade discounts per invoice 100, 000 150, 000 Net Sales 350, 000 Multiplied by VAT rate 12% Output VAT P42, 000
a. b. c. d.
The input VAT per record is P32, 000. If the business paid P10, 000 VAT, how much is the remaining unpaid VAT for the quarter? P -0P 6, 000 P42, 000 P48, 000
5. Mr. Garci sold his family home for P2, 000, 000. The BIR zonal value is P2, 500, 000. How much is the VAT payable? a. None
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b. P240, 000 c. P300, 000 d. P540, 000 6. N is a VAT-registered business with a net taxable income of P450, 000 which is 10% of sales. Total purchases during the quarter is P5, 062, 400 inclusive of VAT. If the cost of sale is 70% of sales, how much is the net VAT payable for the quarter? a. P542, 400 b. P540, 000 c. P162, 000 d. (P2, 400) 7. Y is a VAT-registered business that purchases merchandise for sale from Z, a non-VAT business. During the quarter, Z included and collected 12% VAT on the total purchase VAT invoice of Y amounting to P448, 000. If the total sales of Y is P435, 600 including VAT, how much is its input VAT carry-over? a. P2, 400 b. P12, 000 c. P13, 680 d. P16, 080 8. C, VAT-registered person, imported machines to be used in the Philippines as follows: Machines Purchase Price Purposes 1 P100, 000 Personal Use 2 200, 000 Business Use 3 300, 000 For Sale The importations were subjected to 50% excise tax based on the purchase price. Machine 3 was sold for P1, 000, 000 a. How much is the VAT paid for importation? a.P108, 000 b. 72, 000 c. 60, 000 d.36, 000 b. How much is the VAT payable? a. P120, 000 b. P84, 000 c. P66, 000 d. 30, 000 9. X, a VAT registered corporation, acquired the following machines from a VAT-registered dealer during the month of January: Machine 1-as inventory goods for sale P1, 680, 000 Machine 2 – used as capital goods 560, 000 Total invoice amount P2, 240, 000
a. b. c. d.
If the amount given includes VAT, How much is the creditable input VAT for the first quarter P240, 000 P189, 000 P69, 000 P60, 000
10. Gaby, a Japanese residing in the Philippines, bought garments from ABC Corp., a domestic corporation, and exported the same to Japan. Total value of exports is P100, 000. The VAT (output tax) due on the transaction is: a. P10, 000 b. P5, 000
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c. None because 0% applies d. None because the sale is exempt from VAT. 11. All amounts given are VAT not included: A, Non-VAT taxpayer sells to B, VAT taxpayer B, VAT taxpayer, sells to C, VAT taxpayer C, VAT tax payer, sells to D, VAT taxpayer, an exporter D, VAT taxpayer, exports The value added tax of B: a. Payable P10, 000 b. Payable P9, 200 c. Payable P10, 800 d. Payable P7, 200
P60, 000 90, 000 150, 000 300, 000
12. Sarap Products is a processor of refined sugar. It purchases sugarcane from farmers for processing into intermediate stages until it becomes refined sugar. In a month it had the following sales and purchases, no tax included: Sales P880, 000 Purchases of sugarcane 220, 000 Purchases of containers and paper labels 100, 000
a. b. c. d.
The value-added tax payable is P66, 000 P88, 000 P74, 700 P84, 800ig ***Nothing Follow***
