Vat Exercises 1. A tax tax on on busi busine ness ss is is a. Dir Direct ect tax tax c. Proper perty tax tax b. In Indi dirrec ectt tax tax d. None None of the the abo above ve 2. One of the folloin! folloin! is not not a "a#or business business internal internal revenue revenue taxes in the tax code a. Value alue adde added d tax tax c. Inco"e ta tax b. Exci Excis se ta tax d. Perce ercent nta! a!e e tax tax $. Value alue added added tax is is a %an& %an& a. In Indi dirrec ectt ta tax x c. Pro! Pro!rressi essive ve tax tax b. Dir Direct ect ta tax d. 'e!r e!ressi essive ve tax tax (. In value added added taxation) taxation) this is not a re*uire"ent re*uire"ent for taxability taxability of service+ service+ a. In the the cour course se of of busi busines ness s b. Per Perfor for"ed "ed ithin ithin or outsi outside de the Philipp Philippines ines c. ,onsider ,onsideration ation receiv received ed actuall actually y or construc constructively tively d. -upply -upply of service service is not not exe"pt exe"pt fro" fro" VA VA /. ,harlene is an operator of par0in! lots. lots. hat business business tax is due on on his inco"e inco"e tax fro" the business+ a. ro0 ro0er er3s 3s tax tax c. ,o"" ,o""on on car carri rier er3s 3s tax tax b. ,ate ,aterrer3s er3s tax tax d. Val alue ue ad adde ded d tax tax 4. 5r. 5r. 6 is a lessor of real real property property and personal personal property property %cars&. %cars&. he tax tax that he pays pays is a. Exci Excis se tax tax c. Perce ercent nta! a!e e tax tax b. Val alue ue ad adde ded d tax tax d. None None of the the abo above ve 7. 5r. 5r. - 5a!ler i"ported i"ported ci!arettes ci!arettes fro" the the 8nited -tates for for sale in the the Philippines. Philippines. hat business taxes in the Philippines are due+ a. VA) excise excise tax) tax) other perc percenta enta!e !e tax b. VA and and exc excise ise tax c. Other percenta percenta!e !e tax tax and and excis excise e tax tax d. VA VA and percenta!e percenta!e taxhich of the folloin! folloin! is not exe"pt exe"pt fro" VA VA a. I"portation in their ori!inal state of a!ricultural a!ricultural and "arine food food products products b. I"portation of passen!er or car!o car!o vessel "ore "ore than /)999 tons to be used used by the i"porter hi"self as operator thereof: c. I"portation of personal and and household household e;ect belon!in! to residents residents of the Philippines Philippines returnin! fro" abroad: d. I"portation of non. su0uba ,o"pany) ,o"pany) a VA VA re!istered re!istered business) had the folloin! data data durin! the *uarter: Export sales 1)=1/)9 99 Do"estic sales %tax included& 1)2$2)9 99 Purchases of !oods for export 472)99 9 Purchases of !oods for do"estic sales $2$)12 9 Purchases of supplies on do"estic sales) 12()=/ exclusive of tax 9 Assu"in! that the input taxes paid on purchases of !oods for export are clai"ed as tax credit) the VA payable by su0uba ,o"pany is a. 12)=>/ c. 177)=>/ b. 19)$>= d. =()=>/ 19.In *uestion no. 1() assu"in! that the input taxes attributable to export sales are bein! clai"ed as refund) the a"ount refundable is a. 72)999 c. =()=>/ b. 12)=>/ d. ?ero 11.@oey) a non VA taxpayer) purchased "erchandise orth 11)299) VA inclusive) fro" illie) a VA re!istered seller. he passed on VA of 1)299 on the purchase is a. An expens pense e c. A tax tax credit edit b. Part of of the cos costt of purc purchas hase e d. I!nored
12.Altura sold !oods at an invoice value of 12$)299 to eltran on account. eltran sold the sa"e !oods to ,antoria for 1($)999 %exclusive of tax& cash. All of the" are VA re!istered taxpayers. he accountin! entry to record the sales in the boo0s of eltran is a. ,ash 149)149 -ales 1($)999 Output ax %1($)999 x 12& 17)149 b. ,ash 1($)999 -ales 1($)999 c. ,ash 149)149 -ales 149)149 d. ,ash 1($)999 -ales 12/)=(9 Output ax 17)149 1$.he #ournal entry in the purchase boo0s of eltran in No. 17 is a. Purchases 119)999 Input ax %12$)299 x $B2=& 1$)299 Accounts Payable 12$)299 b. Purchases >4)=99 Accounts Payable >4)=99 c. Purchases =$)499 Input tax 1$)299 Accounts Payable >4)=99 d. Purchases 119)999 Accounts Payable 119)999 1(.In *uestion no. 17) assu"in! that ,antoria is not sub#ect to VA. In the sale of the !oods by eltran to ,antoria< a. eltran should record debit ,ash 12/)=(9 b. eltran should record debit ,ash of 1($)999 in his boo0s. c. ,antoria should debit purchases of 12/)=(9 and a debit Input tax of 17)149 d. ,antoria should debit Purchases of 1($)999 1/.-tate"ent 1C in case tax exe"pt products are sold do"estically to a VA re!istered person) the VA otherise due on such product shall be considered as Input ax creditable a!ainst his output tax payable -tate"ent 2C export sales by a VA re!istered person are sub#ect to ero.uboy a !overn"ent e"ployee) ate in one fast food chain in Dipolo! ,ity. e as issued the folloin! receipt: Freenich& 'ial Ave. ,or Gacaya -t.) Dipolo! ,ity IN H 999<$$$<1($<=7> VA
PO-O1 -NC (//4=4 I' Per"it NoC 1774<=>7<47/($<(// -ervin! H 91 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 19B27B2997 14C2$ APP O' H /4(/47=7= <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 1 -OGO -PE 5G =$.99 1 ,ANFE JG'F ,K 12.99 I ite" %s& VAable VA
>$.99 =$.9( 9.99 >.94
,A- ,ANFE D8E his serves as your O66I,IAG 'E,EIP.
93.00
/99.99 407.00
ased on the receipt issued above a. he a"ount of =$.9( represents the input tax of the fastfood chain b. he input tax deductible fro" the output tax of uboy is >.>4 c. he total invoice price of >$ is inclusive of the 12 VA d. uboy has been sub#ected to VA tice: Lrst on th >$ and second) on the >.>4 Nu"ber 2/<24 are based on the ;. info: 29.he pastry shop sells ca0es and pastry ite"s to ell<0non hotels around the 5etro 5anila area. he hotels are alloed credit based on the trac0 record of the hotels. he total a"ounts received or receivable fro" sales by the Pastry shop in the 2 nd *uarter of 299= ere 22()999) includin! the value added tax. -eventy Lve percent of the sales are nor"ally on account. o "uch is the value added tax on the sales for the 2 nd *uarter of 299=+ a. 29)999 c. 24)==9 b. 2()999 d. 1/)999 21.he account title to best reMect the value added tax in the precedin! nu"ber is a. -ales tax payable c. Input tax b. Value added tax payable d. Output tax 22.,ru) a trader) "ade the folloin! transactions of !oods) exclusive of VA) durin! the second *uarterC ,ash -ales 299)9 99 Open account sales 199)9 99 ,onsi!ned !oods April 199)9 deliveredC 1/ 99 5ay 199)9 1/ 99 @une 199)9 1/ 99 he output tax for the second *uarter is< a. (9)999 b. (=)999
c. 49)999 d. $4)999
2=<$9 5on!olia ,o"pany) a VA re!istered business has the folloin! data in its boo0s on @uly) 299=C Do"estic 79>)/9 -ales 9 -ales returns 24)(99 Foods shipped on consi!n"ent %net of tax&C 8nits 8nit Price @uly / 2/ 22)999
@une / 5ay /
29 12
22)999 22)999
Foods ithdran for use by the co"pany Foods ta0en as pay"ent to creditor 6rei!ht and Insurance of !oods PurchasesC 'a 5aterials -upplies ,apital !oods -alaries of e"ployees
$=)/9 9 24)>/ 9 ()47/ (=()9 99 41)49 9 49)/9 9 2$/)9 99
Durin! the "onth) one consi!nee re"itted cash net of 29 co""ission representin! the pay"ent for Lve units delivered on @une /. Another consi!nee re"itted cash of 229)999) !ross of 29 co""ission) representin! pay"ent for 19 units sold in @uly. Other than the co""ission) 5on!olia ,o"pany !ave / discountBrebate to the consi!nee for sellin! ten units in a one "onth period. 2$.he output tax in @uly is a. 12()(/9 b. 121)9/9 2(.he input tax is a. 41)97= b. 7$)2>$ 2/.he a"ount of VA payable is a. =7)=1$ b. 4>)$/9
c. 141)194 d. 1$()2// c. 4/)((9 d. none of the above c. 44)/2/ d. 7=)(9(.(4
24.A creditable input tax alloed on one ho beco"es sub#ect to VA for the Lrst ti"e a. Presu"ptive input tax c. excess input tax b. transactional input tax d. total input tax 27.Isaac ,o"pany) a nely VA re!istered business) has the folloin! data in @anuary %all a"ounts are inclusive of tax&. 5erchandise inventory
29()9 99 Actual VA paid on the 14)99 inventory 9 -ales) total invoice (4>)9 a"ount 99 Purchases /7)(9 9 6ifty percent %/9& of the "erchandise inventory on @nauary 1 ere purchased fro" non< VA re!istered sellers. he VA payable by Isaac ,o"pany is a. $9)199 c. $)>49 b. 2=)199 d. ()>/9 2=.An oner of heavy e*uip"ent is en!a!ed in e*uip"ent rental. It used to be VA exe"pt because its annual receipts never exceeded 1)/99)999. On @anuary 2) 299= it decided to re!ister under the VA syste". he folloin! data ere fro" the Lrst *uarter endin! 5arch $1) 299=. 'ental fro" heavy e*uip"ent of 12 VA Purchases of supplies %6ebruary& !ross of VA Inventory of suppliesC
$$4)9 99 112)9 99
-ub#ect to VA @an 1) 299= Not sub#ect to VA VA paid on the inventory of supplies) @an 1) 299=
/9)(9 9 49)99 9 /)(99
he VA payable for the *uarter endin! 5arch 299= is< a. 12)171 c. 1=)499 b. $$)7>2 d. 22)>>2 2>.-tate"ent 1C ransport of passen!ers and car!o by do"estic air or sea vessels fro" the Philippines to a forei!n country is sub#ect to VA at a rate of 9 . -tate"ent 2C transport of passen!ers and car!o by do"estic air or sea vessels fro" 5indanao to Guon and Visayas) vice versa) is sub#ect to VA at a rate of 12. a. true) false c. false) false b. false) true d. true) true $9.eth had the folloin! receipts durin! the "onth %exclusive of tax&C passen ,ar!o !er @eepney 1 29)999 @eepney 2 $9)999 us 1/)999 =)/99 -ea vessel 1)/99)9 =99)9 99 99 ,essna plane for =99)99 /49)9 hire 9 99 he output tax durin! the period is a. 14()229 c. 2=$)=99 b. ((1)999 d. ((9)229 $1.Inside @ob -ecurity A!ency is en!a!ed in the sellin! of security services to various clients. Durin! the "onth of Dece"ber) it billed on of its clients of the folloin! 5onthly salary 4)99 9 1$ th "onth 4)99 pay 9 A!ency fee at 1)=9 1/ 9 ---BPhilhealth $99 Geave ith pay (/9 o t a l 1()/ /9 ased on the folloin! data) ho "uch is the Output VA payable of Inside @ob -ecurity A!ency a. 1)7(4.99 c. 1)((9.99 b. 1)//=.>$ d. 1)(7=./7 $2.onnevie is a real estate dealer. Durin! the "onth of Nove"ber 299=) he sold three %$& lots under the folloin! ter"sC Got 1 Got 2 Got $ -ellin! price 2/9)9 299)9 $99)9 99 99 99 ,ost 1/9)9 1$9)9 17/)9 99 99 99 FainBloss 199)9 79)99 12/)9 99 9 99 er"sC Donpay"ent) 2/)99 /9)99 (9)99 Nov / 9 9 9 Due< Dec / 2/)99 29)99 29)99 9 9 9 @an to Dec 299> 299)9 1$9)9 2(9)9 99 99 99 All a"ounts indicated above do not include the tax.
he VA in Nove"ber is a. 24)/99 c. $()=99 b. $1)=99 d. >9)999 $$.ased on the infor"ation !iven in no. $7) the VA for the "onth of Dece"ber is a. /)(99 c. 19)999 b. ()/99 d. None $(.Di"a!iba ,onstruction ,o"pany entered into a contract ith the !overn"ent to construct an ediLce for a total contract price of 2/)999)999. Durin! the "onth) the !overn"ent paid 19)999)999 of hich it ithheld / Lnal ithholdin! tax. o "uch is the VA payable by the co"pany on the !overn"ent contract+ a. 1/9)999 c. 9 b. =/9)999 d. 1)999)999 $/.hich of the folloin! state"ents is not correct+ a. transitional input tax is 2 of the value of the inventory or the actual VA paid) hichever is hi!her b. a"ounts received fro" services perfor"ed by an individual pursuant to an e"ployee< e"ployer relationship are exe"pt fro" VA c. export sales by VA re!istered persons are not sub#ect to VA d. Export sales by persons ho are not VA re!istered are VA exe"pt $4.ransaction by a VA re!istered taxpayer hich is not sub#ect to VAC a. 6orei!n currency deno"inated sale b. export sale c. transaction dee"ed sale d. sale of service rendered in forei!n countries . $7.-tate"ent 1C here is a VA in an i"portation by an i"porter<"erchant even if he does not intend to sell the i"ported article. -tate"ent 2C a person ho is exe"pt fro" VA "ay re!ister under the VA syste" a. false) false b. false) true c. true) false d. true) true $=.<< VA is i"posed on !oods brou!ht into the Philippines) hether for use in business or not << In the case of !oods i"ported into the Philippines by a VA exe"pt person hich are subse*uently sold to taxable persons) the latter shall be considered the i"porter thereof and shall be liable for VA due on such i"portation a. true) true b. false) false c. false) true d. true)false $>.,elebrado) VA re!istered taxpayer) has the folloin! data on i"portation in 299=C 6or On sale use Invoice cost %Exchan!e rate 1CPhp (4& =/9 /)4/9 ,usto" duties 12 19 6rei!ht 29)99 ()999 9 Insurance 2=)99 ()2/9 9 Other char!es before release fro" custo" 7)999 2)/99 house 6acilitation fee 19)99 /)999 9 6rei!ht fro" custo" house to arehouse 12)99 1)299 %net of VA& 9 Assu"in! the custo" duties are deter"ined on the basis of the *uantity of volu"e of the !oods) the VA on the i"portation is a. $1)249 c. (7)>=1.74 b. $7)2=/ d. (()7(2 (9.In no. (() ho "uch is the VA payable if the i"ported !oods for sale ere sold for 44/)999 %inclusive of tax& 19 days after its delivery to the arehouse< a. 2=)27>.(( c. 17)/(9 b. $2)2>= d. 2/)94=
(1.'obin a. 2/)999 P.) i"ported a car fro" the 8-A for his personal d.use. none) otal because landed i"portation cost is Phpis for 2/9)999 b. $9)999%about /)999& includin! custo" duties of Php personal /9)999. use. VA payable is c. 19)999 (2.Gavadena ,onstruction ,orporation) is a VA re!istered !eneral construction co"pany. Its data for the *uarter are revealed beloC ,ontract 'esidential house 1< ,ontract Price 1)299)999 Php ,ollection durin! the 414)999 "onth Php ,ontract arehouse 2< ,ontract Price 1)999)999 Php Percenta!e of 79 co"pletion ,ollection durin! the 229)9=9 "onth I"portation of construction e*uip"ents fro" @apanC Invoice cost) @apan %1C 7)/99 Php ((& Value per ureau of Php custo"s $(9)999 ,usto"s duties $/)999 6rei!ht and insurance 17)999 Purchases of "aterialsC 6ro" VA re!istered persons 6ro" non
224)2 (9 124)/ 99
'evenue fro" rent of e*uip"ent to another contractorC 17)>29. Assu"in! the custo" duties ere based on the *uantity of the !oods i"ported) the VA due on the i"portation is< a. (4)=49 b. /2)249 c. (/)=(9 d. (4)9/9 ($.he VA payable by Gavadena ,o"pany durin! the *uarter is a. 21)(29 b. 1>)299 c. 4)(/9 d. 29)(99 ((.ata) a VA re!istered person had the folloin! dataC Price actually paid for the period Price actually paid for the !oods bou!ht fro" @apan
'elated insurance pre"iu"s and frei!ht fro" @apan ,usto" duties a"ount to (9 of dutiable a"ount Other i"port char!es and expenses a"ount to 129 of custo" duties he VA on i"portation is a. =2)/49 b. 1(/)>29 c. 1$/)$49
P 499)99 9 199)99 9
d. 1/7)>29 (/.Pato!ro0 ,o"pany contracted ith -apotie ,onstruction ,orporation to ,onstruct the for"er3s buildin! here only the labor ill be supplied by the latter. he data on the construction %inclusive of tax& durin! the "onth are as follosC Pro!ress billin!s by -apotie ,o"pany Pay"ent to -apotie ,o"pany Purchase of "aterials by Pato!ro0 ,o.
P499)999 /9()999 ((2)(99
hich of he folloin! is false+ a. construction in pro!ress is not depreciated until the asset is placed in service. b. for purposes of clai"in! input tax) as a purchase of service) the value of hich shall be deter"ined based on the pro!ress billin!s. c. the input tax credit on the labor contracted shall be reco!nied on the "onth the pay"ent as "ade based on the pro!ress billin!s d. once the input tax has already been clai"ed hile the construction is still in pro!ress) no additional input tax can be clai"ed upon co"pletion of the asset hen it has been reclassiLed as a depreciable capital asset and depreciated. (4.Aileen) a @apanese residin! in the Philippines bou!ht !ar"ents fro" ,ua ,orporation) a do"estic corporation) and exported the sa"e to @apan. otal value of export is 199)999. VA %output tax& due on the transaction is a. 19)999 b. /)999 c. none) because 9 applies d. none) because the sale is exe"pt fro" VA (7.O;sprin! ,orporation is a VA re!istered dealer of appliances. he folloin! data are for the "onth of OctoberC -ales) total invoice value Purchases) net of input taxes -ales return Purchases return) net of input tax Deferred input taxes %carried over fro" third *uarter
P/)=99)9 99 2)=29)99 9 299)999 $99)999 >)/99
he VA payable for the "onth of Oct by co"pany is a. $29)999 c. =9)999 b. 2=/)/99 d. 2==)199 (=.he folloin! are the data of ,ity Appliances 5ar0etin! ,o"pany for October) 299=C -ales upto Oct 1/) total invoice value Purchases upto Oct 1/) net of input taxes
P244)9 99 21/)99 9
Additional infoC On October 14) 299=) ,ity Appliances co"pany retired fro" its business and the inventory valued at 1>9)999) net of input taxes) as ta0en and transferred to Ne ,ity Appliances ,o"pany. here is deferred input taxes fro" the third *uarter of P$)/99. o "uch is the total value added taxes due and payable by ,ity Appliances 5ar0etin! ,o"pany in its operations in October and its retire"ent fro" business+ a. 22)/99 b. 22)999
c. 4)$/9 d. 2/)$/9
/(
6ro" Auto repair 6ro" ashin! and !reasin! 'ei"burse"ent by custo"er on pay"ents "ade to VA "achine shops Pay"ents received for lubricants) oils and Muid provided by the shop to cars under!oin! repair Disburse"entsC Electric bill
=/)4 29 (/)( 2/ ()$/ 9 /)7= 9
$)// 9 2)$= 9 1/)9 99 ()$/ 9 $)99 9 2()9 99
ater bill -alaries of e"ployees Pay"ents "ade to "achine shops) non VA Purchase of lubricants) oils and Muids Purchase of capital !oods %life<19 years&
(>.he output tax a"ount to< a. 14)(1> b. 14)>(1
c. 1()449 d. 1/)124
/9.he VA payable is a. >)(9( b. 12)7/$
c. >)(/> d. 4)>7>
/1.axpayers ho beca"e VA re!istered persons upon exceedin! the "ini"u" turn
>2()9 99 $=)/9 9 27)94 9 $/9)9 99 12)99 9 1/9)9 99 17)=7 / 1()=/ 9 ()7/9
/2.he presu"ptive input tax is< a. $/)999 c. 1$)=49 b. /)2/9 d. 1()999 /$.he transitional input tax is a. $)/94.2/ c. 4/(./9 b. 2)>7/ d. 2)>>=.99 /(.he total creditable input taxes is a. 2()/$9./( c. >2)>$/.99 b. 1$)=2=.99 d. 22)>$/.99 //.he VA payable is a. 41)94/.99 c. 7()(4>.(4 b. 79)172.99 d. 4>)=1/.99 /4.An i"porter ishes to ithdra its i"portation fro" the ureau of ,usto"s. he i"ported !oods ere sub#ected to a 19 custo"s duty in the a"ount of 12)/99 and to other char!es in the a"ount of >)/99. he value added tax due is a. 12)/99 c. 1$)$4( b. 17)4(9 d. 1()799 /7.Ka0a is a contractor. -he entered into a contract o 5arch 1) 299= hich as co"pleted on 5arch $1) 299=. -he received the total value of the contract a"ountin! to //9)999 on 5arch $1) 2997. Ka0a spent for the "aterials used in the contract hich she ac*uired fro" the VA re!istered suppliers costin! 1/9)999. All a"ounts are exclusive of VA. he VA payable by KAKA for the "onth of 5arch is a. 1/)999 c. (=)999 b. (9)999 d. />)/99 /=.Archie) a nely VA re!istered taxpayer is a lessor of poles to telephone and cable co"panies. Durin! the "onth of @anuary 299=) Archie had the folloin! receipts fro" custo"ersC -ecurity deposit fro" custo"er , 'et inco"e in @anuary fro" various custo"ers Prepaid rentals received fro" custo"er , %feb to @une& Goan to Archie fro" custo"er
119)9 99 ==)99 9 1$2)9 99 =2)/9 9
Durin! the "onth) a portion of the security deposit for the faithful co"pliance by custo"er , of its obli!ations to the lessor as applied to rental for @anuary in the a"ount of 11)999. At the be!innin! of the year) Archie had 2/2)999 orth of inventory of supplies and "aterials for use in the business. VA paid on the be!innin! inventory is $)/99. he output tax of Archie in @anuary is a. 2()7/9 b. 21)999 />.In no. 4$) the input tax on Archie is a. /)9(9 b. None c. 21)999 d. ()149
c. 2=)/99 d. $>)/99
49.5arinda is a VA re!istered !rocery oner and su!ar dealer. -he sub"itted lists of inventory as of Dece"ber $1) 2997 to the 'evenue District Ocer as follosC Frocery ite"s) total value 'a cane su!ar) total value
$2/)999 2//)999
In @anuary 299=) she had the folloin! sales and purchases -ales Frocery %total invoice value&
1)9(2)/ 2/
Purchas es 4/9)199
-u!ar %excludin! VA&
(=9)99 9
(29)999
he VA due for @anuary) 299= is a. $/)47/.99 b. (2)9(/./( c. (1)47/.$1 d. 4)47/.24 47<4= Foodboo0s Educational supply) VA re!istered) is en!a!ed in the business of sellin! boo0s) school supplies and !ift ite"s. he folloin! are the record of its purchases and sales durin! the "onth of October %inclusive of tax&C -ale of school supplies -ale of boo0s -ale of !ift ite"s Purchases of school supplies and !ift ite"s Purchases of boo0s Purchase of co"puter used in taxable and exe"pt transactions
/49)9 99 299)9 99 $$4)9 99 (94)9 99 174)9 99 21)11 2
41.he creditable input tax on the purchase of co"puter is a. 2)(99.29 c. 24)(99.4/ b. 1)>29./9 d. 1)=9>.49 42.he VA payable is a. /9)4>9.(9 c. $4)/99.99 b. $()199./9 d. ($)2=9.2/ st 4$.ala co"pany had the folloin! data for the 1 *uarter of 299= %VA exclusive& axable sales Exe"pted sales ?ero rated sales Input tax hich cannot be directly attributed to any of the above sales
499)9 99 $99)9 99 199)9 99 /9)99 9
he VA payable for the *uarter is a. (2)999 c. $2)999 b. $7)999 d. 22)999 4(.,o"bined ,o"pany operates a VA business and a non VA business durin! the "onth) its boo0s revealed the folloin! record of sales and purchases -ales %VA business& -ales %non
499)9 99 299)9 99 (91)/ 99 =9)99 9 4()99 9
c. 1$)/99 d. 1=)949
4/.Excel co"pany operates to lines of business. usiness A is sub#ect to VA) hile usiness is not. Data for the "onth are as follosC -ales< VA business) VA included Non)9$/ b. 29)7$$
/49)9 99 199)9 99 1/()9 99 47)19 9 $()77 4 27)/9 9 /4)99 9 1()/4 9 4)299 2)/74 1)42(
c. 2$)247 d. 1=)=7/ c. 29)2/$ d. $2)21>
7$<7/ 5ildred enterprises) a VA re!istered trader had the folloin! data durin! the last *uarter of the yearC
October Nove"b er Dece"b er
Purchas es 427)29 9 />>)29 9 >/>)41 4
-ales $>2)9 99 =42)( 99 7=>)4 99
All of the a"ounts indicated above are VA inclusive. 47.he a"ount of VA payable by 5ildred for the "onth of October is a. 2/)299 c. 2)999 b. 14)/99 d. None 4=.he VA payable for the "onth of Nove"ber is a. 29$)/99 b. 2=)299
c. $)999 d. None
4>.he VA payableB%excess& tax for the last *uarter is a. %1=)214& c. 49)>99 b. 1=)214 d. none 74<7=
he boo0s of accounts of 6ran0lin ,orporation) VA re!istered ) revealed the folloin! data in 2997C Deferred input taxes) @une 2997 -alesC @uly Au!ust -epte"ber PurchasesC @uly
4)299
429)9 99 ($9)9 99 /(9)9 99 /9=)9 99 ($2)9 99 $1()/ 99
Au!ust -epte"ber
79.VA payable for @uly is a. 1$)((9 b. 7)2(9
c. 11)299 d. /)999
71.he VA payable for Au!ust is a. %4)((9& b. %2(9&
c. None d. 7)999
72.he VA payable for -epte"ber is a. 24)/=9 b. 27)949
c. 29)=49 d. $()9>9
7$.6elicisi"a had the folloin! dataC ,ase 1 1)>99)9 99 1)249)9 99 1)((9)9 99 4 years
-ales) net of VA Purchases of !oods for sale) exclusive of VA Purchases of "achines %VA not included& 5achine life
,ase 2 1)=99)9 99 1)499)9 99 >99)99 9 $ years
he a"ounts of VA payableBexcess tax are as follosC
,ase 1 ,ase 2
%a& /()99 9 %=()99 9&
%b& 7$)>2 9 %=()99 9&
%c& 7$)> 29 29)9 99
%d& Non e non e
7(.Gavinia had the folloin! data in @ulyC -ales of !oods %excludin! VA& Purchases of !oods %net of VA& Purchases of capital !oods %invoice a"ount& 5achine 1 %useful life of 4 years& 5achine 2 %useful life of $ years& he VA payable in @uly is a. 129)=49 b. 1>)299
2)/(9)9 99 1)(/9)9 99
>7()(9 9 47)299 c. $$)499 d. %(9)=99&
=1 to =2 he folloin! data %net of tax& of ,hristine co"pany are as follosC 1st *uarter -ales Purchases Purchase of "achinery %6eb& 8nutilied input tax as of end of 1st *uarter 2nd *uarter -ales purchases
799)99 9 /99)99 9 1)/99)9 99 (9)999
1)/99)9 99 299)99 9
7/.6or the Lrst *uarter) An!el ,o"pany ill result to aBan< a. VA payable of 72)999 c. Excess tax of 1>4)999 b. Excess tax of 22)999 d. VA payabe of 22)999 74.he VA payable for the 2 nd *uarter is< a. 1/4)999 b. 1$()999
c. 12/)999 d. None
77.he data durin! the second *uarterC Output ax $/)9 99 Input ax 1>)9 99 VA paidC April $)99 9 5ay ()/9 9 st Excess input tax) 1 2)(9 *uarter 9 he VA payable %or excess tax to be carried over& is a. 4)199 c. =)/99 b. 14)999 d. None 7=.A ne business"an consulted you relative to the Llin! of tax return and pay"ent of his business tax. he business is VA re!istered althou!h he is expectin! to earn an annual !ross receipts ran!in! fro" >99)999 to 1)299)999 only. hese are his *uestionsC 1. hat business tax should be paid by hi"+ 2. hen is the deadline for Llin! the tax return for the "onth of 5ay+ $. hen is the deadline for the pay"ent of the business tax for the "onth of @une %or second *uarter&+ hich of the folloin! choices ould be the correct advice+
a . b . c . d .
1 VA VA Non VA Non VA
Questions 2 @une 29 @une 2/ @une 29 @une 29
$ @uly 2/ @uly 2/ @uly 2/ @uly 29
=/<=4 he ,ity Fovern"ent of In!a has the folloin! purchases for the "onth of Au!ust 299> fro" VA suppliers of !oods andBor servicesC Purchase of !oods fro" -ina store an "erchandise %inclusive of VA& Purchase of services fro" Da"an -ervices) Inc
11)299 /4)999
7>.he a"ount payable to -ina after ithholdin! taxes of VA and inco"e tax is a. 11)299 c. >)(99 b. 19)499 d. 19)/99 =9.he a"ount payable to Da"an -ervices Inc. after ithholdin! taxes of VA and inco"e tax is a. /4)999 c. /2)/99 b. /9)999 d. /$)/99
VA Exercises rue or false 1. A VA re!istered person ho issues a VA invoice for a VA exe"pt sale but fails to display on the invoice the ter" VA Exe"pt shall be sub#ect to VA on that sale. 2. he input tax of a VA purchaser is the output tax of the VA seller $. -ervices rendered to persons en!a!ed in International shippin! or air transport operations are sub#ect to 12 VA. (. he excess of output VA over the input VA is a current asset of the taxpayer /. he input VA on purchase of capital !oods valued at 2)999)999 shall be spread over 49 "onths )or the life of the asset) hichever is shorter) sub#ect to 79 cap. 4. Persons en!a!ed in sale of services "ay also be alloed to clai" tax credit on presu"ptive input tax. 7. Fross receipts on services rendered by all franchise !rantees are sub#ect to franchise tax. =. . >. . 19.A physician is not sub#ect to VA because in exercisin! his professional services he is not en!a!in! hi"self in business. 11.here is no creditable input tax on sales to !overn"ent or any of its political subdivisions) instru"entalities or a!encies) includin! !overn"ent. Gease of copyri!ht on taxation boo0s are sub#ect to VA. 29.Input tax) bein! a tax) is an expense on the part of purchaser and is deductible fro" !ross inco"e for purposes of co"putin! the net inco"e. 21.VA is a re!ressive tax. 22.-yste" loss on electricity that are bein! char!ed by electric cooperatives to consu"ers are sub#ect to 12 VA. 2$.Printin! of invoices and receipts %includin! delivery receipts& re*uires the approval of I' 2(.Purchases and sales are recorded in the boo0s of non
1. true 2. true $.f (.f /.f 4.f 7.f =. >. 19.f 11. true 12. true 1$. true 1(. true 1/.f 14. true 17. true 1=.f 1>. true 29.f 21.f 22. true 2$. true 2(.f 2/. true
