Quiz 4 VAT
Quiz 4 VAT
Quiz 4 VAT
COLLEGE OF BUSINESS
Angeles City
BUSINESS AND TRANSFER TAXATION
Quiz on Value-Added Tax
2. First Statement: If the tax is billed separately in the inventory, the VAT shall be determined by
multiplying the gross selling price including the amount intended to cover the tax by the factor
12/112
Second Statement: If the tax is billed erroneously, the VAT shall be determined by multiplying
the gross selling price including the tax billed erroneously by the factor 12/112
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second state statement is correct.
3. First statement: Unused input tax of persons whose registration had been cancelled may be
converted into tax credit certificate which may be used in payment of other NIRC taxes.
Second statement: refund or tax credit certificate shall be granted within 25 days from the date of
submission of compete documents.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
4. First statement: VAT taxpayers including corporations use calendar quarters for VAT purposes
Second statement: withholding of VAT is done only when the buyer is the government or any of
its political subdivisions.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
5. First statement: a taxpayer whose gross sales or receipts exceeded the amount of P 1.5M shall pay
VAT even if he is non VAT-registered.
Second statement: importers of goods for personal use is not subject to value-added tax if he is
not VAT-registered.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
6. One of the following statements is incorrect.
a. Imported goods which are subject to excise tax are no longer subject to value-added tax.
b. VAT on importation is paid to the Bureau of Customs before the imported goods are released
from its custody.
c. Expenses incurred after the goods are released from Customs custody are disregarded in
computing VAT on importation.
d. When a person who enjoys tax-exemption on his importation subsequently sells in the
Philippines such imported articles to non-exempts person, the purchaser-non-exempt person
shall pay the VAT on such importation.
7. Gross selling price includes all of the following except one. Which one?
a. Total amount which the purchaser pays to the seller.
b. Total amount which the purchaser is obligated to pay to the seller.
c. Excise tax.
d. Value-added tax.
11. All of the following are allowed presumptive input tax, except for one.
a. processor of sardines, mackerel and milk
b. manufacturer of refined sugar and cooking oil
c. producers/manufacturers of packed noodles
d. suppliers of books and other school supplies
12. 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 capital goods.
b. input tax on importation of supplies
c. input tax on zero-rated sales of goods or services
d. input tax on purchase of real properties
14. Joanne Corp. a VAT manufacture submitted the following data for the last month of 2009: (All
figures are at total invoice value)
Material purchases 295,568
Purchase returns 19,600
Sales, local 362,880
Sales returns, local 30,240
Foreign currency denominated sales 170,000
Purchase from BOI registered enterprises 33,264
The value added tax payable for the last quarter of 2009 by Violet Corp. is: 84,000
17. Tarantula Realty Corp. sells real property in the course of its business. During the month of April
2017, it had sold a lot under the following terms (including VAT):
Total contract price 1,120,000
Downpayment, 4-10-2017 112,000
First installment, 4-30-2017 112,000
18. A VAT- registered person is engaged in the sale of VAT taxable goods and at the same time is
also engaged in non-VAT business, in the same business establishment. During the quarter it
made P300,000 sale plus value-added tax of P36,000. The sales of the non-VAT business
amounted to P200,000 with a separate percentage tax of P6,000 for a total of P206,000. During
the same quarter, repairs on the building amounted to P50,000 plus value tax of P6,000. Supplies
purchased for common use amounted to P10,000 value-added tax of P1,200. The creditable input
tax is: 4,320
19. Using the data above, the VAT payable is: 31,680
20. On January 5, 200A, Laylu Co., VAT-registered, sold on account goods for P112,000 to Vinmar
Corp. The term was: 2/10, n/30. Payment was made on January 10, 200A. The total amount due
is: 110,000
Prepared by: