BT - Sq1 Vat

BT - SQ1 VAT
1. One of the following is not an activity subject to VAT *

A. Sale in retail of goods by a dealer
B. Sale of bamboo poles by a dealer
C. Sublease of real property in the course of business
D. Importation of ordinary feeds for poultry chicken
2. S1: in the books of accounts of a VAT-registered taxpayer, sales are recorded net
of output taxes. S2: in the books of accounts of a VAT-registered taxpayer,
purchases are recorded net of input taxes. *
A. Both statements are correct
B. Both statements are wrong
C. The first statement is correct but the second statement is wrong
D. The first statement is wrong but the second statement is correct
3. Taxpayer operates a Grocery Store and is not VAT registered. His annual gross
sales amounted to P2,700,000 for the year although his operations resulted to a
net loss for the year 2020. He is subject to *
A. 3% OPT
B. VAT
C. MCIT - 2%
D. None, because operation resulted in a loss.
4. One of the following is not a major business internal revenue tax in the Tax Code *
A. VAT
B. Excise Tax
C. Income Tax
D. Percentage Tax
5. Juswa is a practicing certified public accountant. He is also a full time professor of

accounting in Western Mindanao State University. In the preceding year, his gross
receipts from the practice of public accounting was P2,800,000 while his total
compensation income as a college professor was P250,000. *
A. He is subject to value added tax effective January 1 of the current year.
B. He may be subject to VAT if he voluntarily registers under the VAT system.
C. He is not required to pay either VAT or any business tax.
D. He is required to pay Professional Tax but not business tax.
6. During the month of May, WMSU company had domestic sales amounting to
P1,680,000 and export sales amounting to P1,500,000. During the same month,
XYZ's total purchases directly attributable to domestic sales amounted to P1,120,000
and total purchases directly attributable to export sales P1,008,000. For the month of
May, WMSU Company's VAT payable: *
A. (48,000)
B. 54,000
C. 60,000
D. 62,000
7. K imported a car from USA for her personal use. Total landed cost is P250,000,
including customs duties of P50,000, VAT on importation is *
A. P0
B. P20,000
C. P36,000
D. P30,000
8. One of the following is not a transaction deemed sale *

A. Transfer, use or consumption not in the ordinary 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 to creditors in payment of debt
C. Retirement from or cessation of business, with respect to inventories of taxable
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
9. In value-added taxation, this is not a requirement for taxability of service *

A. In the course of business
B. Performed within or outside the Philippines
C. Consideration received actually or constructively
D. Supply of service is not exempt from VAT.
10. Which of the following is subject to VAT? *

A. Sale of smoked fish
B. Sale of lechon
C. Sale of shells and coral products by a dealer
D. Sale of newspapers
11. Three of the following are exempt from VAT. Which is the exception? *
A. Sales of medicines to in-patients of a hospital.
B. Services rendered by persons subject to percentage tax.
C. Receipts from leasing of real properties.
D. Export sales by persons who are not value added tax registered.
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 *
A. Input tax on purchase of raw materials
B. Importation of supplies
C. Input tax on zero-rated sales of goods or services
D. Input tax on purchase of services
13. Value added tax is an example of *

A. Graduated tax
B. Progressive tax
C. Proportional tax
D. Regressive tax
14. In 2008, Pocholo paid the VAT on the importation of his merchandise inventory. In
2008, Pocholo was able to sell all the imported merchandise and he correspondingly
paid the appropriate VAT on the sale deducting the import VAT as his input tax. Which
of the ff statements is applicable to the above facts? *
a. the tax benefit rules applies.
b. in the determination of taxable income Pocholo may deduct the import VAT he
paid.
c. the import VAT may be claimed as a tax credit on his income tax payable
d. the import VAT may not be deducted from Pocholo’s gross income.
15. Which of the following transactions is exempt from VAT? *

A. Medical services such as dental and veterinary services rendered by
professionals.
B. Legal services.
C. Services arising from employee-employer relationship.
D. Services rendered by domestic air transport companies.
16. The A Bakers sells calces and pastry to well known hotels in Metro Manila area.
The hotels are allowed credit based on the track record of the hotels. The sale by the
store in April 2011 was P224,000 including the VAT. 75% of the sales are normally on
account. How much is the output tax for the month of April 2011? *
A. P22,000
B. P20,000
C. P16,500
D. P24,000
17. A merchant of stock or securities, whether an individual, partnership or
corporation, with an established place of business, regularly engaged in the purchase
of securities and resells them to customers; and who, as a merchant, buys securities
and resells them to customers with a view to the gains and profits that may be derived
therefrom. *
A. Dealer in securities
B. Stock brokers
C. Underwriters
D. Stock merchants
18. A VAT-registered supplier sold goods amounting to P 500 000 gross selling price
to a government-controlled corporation during a particular quarter. Which of the
following statements is incorrect in relation to the sale of goods? *
A. The sale is subject to withholding of final VAT.
B. The government-controlled corporation will withhold P 25 000 final VAT.
C. The government-controlled corporation shall remit withholding VAT to the BIR
within 10 days following the end of the month the withholding was made.
D. The VAT-registered supplier may refuse the withholding of VAT as long as it is
willing to pay the full 12% VAT.
19. 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.
20. One of the following statements is incorrect? *

A. Imported goods which are subject to excise tax are no longer subject to VAT
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 the VAT on importation
D. When a person who enjoys a tax-exemption on his importation subsequently sells
in the Philippines such imported articles tc a non-exempt person, the purchaser-non-
exempt person shall pay the VAT on such importation

BT - Sq1 Vat

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BT - SQ1 VAT

1. One of the following is not an activity subject to VAT *

5. Juswa is a practicing certified public accountant. He is also a full time professor of

8. One of the following is not a transaction deemed sale *

9. In value-added taxation, this is not a requirement for taxability of service *

10. Which of the following is subject to VAT? *

13. Value added tax is an example of *

15. Which of the following transactions is exempt from VAT? *

20. One of the following statements is incorrect? *

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