1.

The following are persons liable to VAT, except:

ANSWER: LESSEE
2. The general rule under the Tax Code, as amended, the person statutorily
liable to pay the VAT is the:
ANSWER: SELLER

3. 1st statement – The gross selling price excludes the VAT.

2nd statement – The excise tax, if any is part of the gross selling price.

ANSWER: BOTH ARE TRUE

4. Consigned goods are VATable if remained unsold and not returned within:
ANSWER: 60 DAYS

5. Which is not subject to 0-rate?

ANSWER: SALE OF GOLD TO BSP --- choices

6. St, Nichols Academy in Macabebe, Pampanga is a private education

institution. To be exempt from VAT, SNA must obtain accreditation from the
following, except:

DEPED
BIR
CHED
NONE OF THE ABOVE
TESDA

ANSWER: BIR

7. The deadline of the filing of the quarterly VAT tax return for ABC Corp. is for
the 2nd quarter of 2021 is:

Note: Look at your calendar.

JULY 20 2021

JULY 25 2021

JUNE 25 2021

JULY 26 2021

ANSWER: JULY 25, 2021

8. Export-oriented enterprise are subject to zero-rated sale based on 70% of

_______________
 Gross sales
Export sales
Annual production
Amount exported

ANSWER: EXPORT SALES

9. Self-employed individuals and professionals availing of the 8% tax on gross

sales and/or receipts and other non-operating income, under Sections
24(A)(2)(b) and 24(A)(2)(c)(2)(a) of this Code are:

Subject to 12% vat

Exempt from the payment of twelve (12%) VAT
Subject to 3% percentage tax
Subject to 0-rate

ANSWER: Exempt from the payment of twelve (12%) VAT

10. Under the TRAIN law, if monthly rental does not exceed Php 15,000.00 and
the total gross receipts exceeds Php 3 Million, the taxpayer is:

Exempt from VAT only

Exempt from VAT and Percentage Tax
Exempt from Percentage Tax
Subject to 12% VAT

ANSWER: Exempt from VAT and Percentage Tax

11. Under the TRAIN law, if monthly rental does not exceed Php 15,000.00 and
the total gross receipts does not exceed Php 3 Million, the taxpayer is:

Exempt from VAT only

Exempt from VAT and Percentage Tax
Exempt from Percentage Tax
Subject to 12% VAT

ANSWER: Exempt from VAT and Percentage Tax

12. Under the TRAIN law, if monthly rental exceeds Php 15,000.00 and the total
gross receipts exceeds Php 3 Million, the taxpayer is:

Subject to VAT and PT

VATable if the taxpayer is VAT-registered
Subject to 3% Percentage Tax only
 subject to 12% VAT only

ANSWER:subject to 12% VAT only

13. Under the TRAIN law, if monthly rental exceeds Php 15,000.00 and the
total gross receipts does not exceed Php 3 Million, the taxpayer is:
VAT exempt
subject to 12% VAT only
Subject to 0% rate
Subject to 3% percentage tax only
ANSWER:
14. Assuming all taxpayers are VAT-registered, which of the following is
most likely subject to VAT?
Tax free exchanges
Association dues
Sale of goods to persons with disability
Sale of goods by senior citizens

15. Sale of gold is

Group of answer choices

VAT exempt
subject to 0-rate
subject to 3% tax
subject to 12% VAT

16. Nicanor is riding the China Airlines going to Beijing, China. His ticket is:
12% VAT
VAT exempt
0-rate
subject to 3%
 17. Nicanor owns a real property. He was given an equivalent ownership in
ABC Corporation in exchange for the property. The tax-free exchange is:
Group of answer choices

it depends on classification of the asset

It depends on the classification of taxpayer
VAT exempt
12% VAT

18. Nicanor is a senior citizen. He bought a Kiddie meal at Jollibee. The sale
is:
subject to 12% VAT
subject to 3% percentage tax
VAT exempt
subject to 0-rate
19. Zac is a Person with Disability (Pwd). He bought a condominium unit
worth Php 3 Million. The sale is:
VAT exempt
Subject to 3%
Subject to 0%
Subject to 12%

20. If a taxpayer, not required to register as VAT, opted to become a

VAT-registered taxpayer, such option when taken is:
Irrevocable for 3 years
Revocable if the taxpayer’s actual gross receipts or gross sales did not
exceed the VAT threshold
Forever irrevocable
Revocable anytime

21. Which is FALSE? Under the TRAIN law, amortization of input tax on
depreciable goods is:
Allowed even after December 31, 2021 but up to full utilization only
No answer text provided.
Allowed until December 31, 2021
No longer allowed
22. In 2021, the 5% VAT withholding on government sale is:
Either
Creditable
No answer text provided.
Final

23. Foreign currency denominated sale is:

Group of answer choices

VAT exempt
subject to 0-rate
subject to 3%
subject to 12% VAT

24. Application for tax refunds from zero-rated sales should be made:

Group of answer choices

Within two (2) years from year of sale

Within two (2) years from the purchase of goods and payment of
corresponding input tax
Within two (2) years after the close of the taxable quarter when such
sales were made
Within two (2) years from the date of filing of VAT returns

25. A taxpayer whose VAT registration was cancelled due to retirement may
apply for a tax refund if he has no other tax liability:

Group of answer choices

Within two (2) years from the date of filing of VAT returns
Within two (2) years after the close of the taxable quarter when such
sales were made
Within two (2) years from the date of closure
Within (two) years from the date of cancellation of registration
 26. Which is TRUE as regards the treatment of input tax from mixed
transactions of a VAT-registered taxpayer?
Only the proportionate input tax from zero-rate sale are subject to tax refund
Excess input tax can be used as tax credit only
Any source of input taxes may be applied for tax refund
Input tax from exempt sale may be applied against the output tax

27. Under the TRAIN law, the date of cancellation of VAT registration is
reckoned from:
Group of answer choices

The filing of closure with the BIR and the stamping of BIR Form 1905
The date of issuance of tax clearance by the BIR
The date of payment of tax liabilities and issuance of a memo report of
the Revenue Officer
The date of actual closure of the business
28. Claims for input tax refund of direct exporters shall be exclusively filed
with:
Group of answer choices

Revenue District Office

Any of the offices mentioned
VAT Credit Audit Division (VCAD)
Large Taxpayer Service
29. Applications for refunds of creditable input tax must be processed
within:
60 days
2 years
90 days
120 days
180 days

30. In case there is full or partial denial of the claim for tax refund, the
taxpayer has thirty (30) days from the receipt of the decision denying the
claim to:
Group of answer choices
 Appeal the decision with the Court of Appeals
Appeal the decision with the Commissioner of Internal Revenue by filing
a request for reconsideration
Appeal the decision with the Supreme Court by Quo Warranto
Proceedings
Appeal the decision with the Court of Tax Appeals
31. Under the TRAIN law, a failure on the part of any official, agent, or
employee of the BIR to act on the application for refund within the
prescribed period shall be:
Group of answer choices

Punishable under the provisions of the Tax Code, as amended

Demoted to next rank
Criminally charged
Promoted to next rank
32. ABC Corporation has the following sales during the 1st quarter of 2021:

Sale to private entities subject to 12% Php 1,000,000

Sale to private entities subject to 0% 1,000,000

Sale exempt from VAT 1,000,000

Sale to government 1,000,000

Total output tax due for the quarter is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

240000

Solution

Sale to private entities subject to 12% 1,000,000

Sale to government 1,000,000

Total 2,000,000

X Tax Rate 12%

Output Tax 240,000

33. ABC Corporation has the following sales during the 1st quarter of 2021:

Sale to private entities subject to 12%

Php 1,000,000

Sale to private entities subject to 0%

1,000,000

Sale exempt from VAT

1,000,000

Sale to government
1,000,000

The following input taxes were passed on by ABC Corp.'s VAT

suppliers:

Input tax on taxable goods

50,000

Input tax on zero-rated sale

30,000

Input tax on sale of exempt goods

20,000

Input tax on sale to government

40,000

Input tax on depreciable capital goods not attributable to any specific

activity 40,000

Total available input tax due for the quarter is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

180000

Solution:

Input tax on Taxable Goods 50,000

Input tax on zero-rated sale 30,000

Input tax on sale of exempt goods 20,000

Input tax on sale to government 40,000

Input tax on depreciable capital 40,000

 Total 180,000

34. ABC Corporation has the following sales during the 1st quarter of 2021:

Sale to private entities subject to 12%

Php 1,000,000

Sale to private entities subject to 0%

1,000,000

Sale exempt from VAT

1,000,000

Sale to government
1,000,000

The following input taxes were passed on by ABC Corp.'s VAT

suppliers:

Input tax on taxable goods

50,000

Input tax on zero-rated sale

30,000

Input tax on sale of exempt goods

20,000

Input tax on sale to government

40,000

Input tax on depreciable capital goods not attributable to any specific

activity 40,000

Total input tax which can be refunded is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

60000 or 45000 computed

30,000

35. ABC Corporation has the following sales during the 1st quarter of 2019:

Sale to private entities subject to 12%

Php 1,000,000
 Sale to private entities subject to 0%
1,000,000

Sale exempt from VAT

1,000,000

Sale to government
1,000,000

The following input taxes were passed on by ABC Corp.'s VAT

suppliers:

Input tax on taxable goods

50,000

Input tax on zero-rated sale

30,000

Input tax on sale of exempt goods

20,000

Input tax on sale to government

40,000

Input tax on depreciable capital goods not attributable to any specific

activity 40,000

What is the total input tax attributable to VAt-exempt sales?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

45000 or 65000 computed

30,000 Sol. 1M/4M X 40,000 + 20,000

36. Which one of the following statements is incorrect about transactions

considered as “in the course of trade or business” and, therefore,
subject to the business taxes include:
Group of answer choices

Regular conduct or pursuit of a commercial or an economic activity by

SMB Corp, a private corporation
Regular conduct or pursuit of a commercial or an economic activity by
Amin, a non-stock, non-profit private organization
Isolated sale of goods by Aling Pasita for a gross selling price or
receipts of P 500 000
 One day concert in the Philippines by Justin Bieber
37. Nicanor, a non-VAT taxpayer sold to Kyle, a VAT taxpayer, his goods for
P 50,000. The next day, Kyle sells the same goods to Bimbie, a VAT
taxpayer for P 89,600. Bimbie on the same day, sold the same goods to
PCSI Co., Inc, a VAT taxpayer, and an accredited exporter in the
Philippines for P 123,200. The next day, PCSI Co., exports the same
goods for $ 7000 to USA ($1 = Php 45).

All amounts given are total invoice prices.

Question: The Value-added tax payable of Kyle is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

9600 or 3600 computed

NOTE (Wala sa Quiz): Purchases not qualified for input tax or purchases made
from Non-VAT taxpayers are accounted in the VAT return even if no input tax
has been paid.

Gross Selling Price = EXCLUSIVE of VAT, WALANG VAT

Invoice Price = INCLUSIVE of VAT, MERONG VAT

38. Nicanor, a non-VAT taxpayer sold to Kyle, a VAT taxpayer, his goods for
P 50,000. The next day, Kyle sells the same goods to Bimbie, a VAT
taxpayer for P 89,600. Bimbie on the same day, sold the same goods to
PCSI Co., Inc, a VAT taxpayer, and an accredited exporter in the
Philippines for P 123,200. The next day, PCSI Co., exports the same
goods for $ 7000 to USA ($1 = Php 45).

All amounts given are total invoice prices.

Question: The Value-added tax payable of Bimbie is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.

3600, computed

39. Nicanor, a non-VAT taxpayer sold to Kyle, a VAT taxpayer, his goods for
P 50,000. The next day, Kyle sells the same goods to Bimbie, a VAT
taxpayer for P 89,600. Bimbie on the same day, sold the same goods to
PCSI Co., Inc, a VAT taxpayer, and an accredited exporter in the
Philippines for P 123,200. The next day, PCSI Co., exports the same
goods for $ 7000 to USA ($1 = Php 45).
 All amounts given are total invoice prices.

Question: The Overpayment of PCSI is:

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

40. ABC Corp., a VAT-registered taxpayer, disclosed the following

information for the year 2019:

Quarte Period Capital Input Tax

r Goods

January Php 2,000,000 Php

1st 240,000

Februar Php 1,000,000 Php

y 120,000

March Php 1,000,000 Php

120,000

Total Php 4,000,000 Php

480,000

April Php 2,000,000 Php

2nd 240,000

May Php 2,000,000 Php

240,000

June Php 2,000,000 Php

240,000

Total Php 6,000,000 Php

720,000

The capital goods (depreciable assets’ useful life is 10 years).

 Question: How much is the total creditable input tax for 1st Quarter?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

252000

41. ABC Corp., a VAT-registered taxpayer, disclosed the following

information for the year 2019:

Quarte Period Capital Input Tax

r Goods

January Php 2,000,000 Php

1st 240,000

Februar Php 1,000,000 Php

y 120,000

March Php 1,000,000 Php

120,000

Total Php 4,000,000 Php

480,000

April Php 2,000,000 Php

2nd 240,000
 May Php 2,000,000 Php
240,000

June Php 2,000,000 Php

240,000

Total Php 6,000,000 Php

720,000

The capital goods (depreciable assets’ useful life is 10 years).

Question: How much is the total creditable input tax for 2nd Quarter?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

36000, computed

42. ABC Corp., a VAT-registered subdivision developer, disclosed the

following sales information for the year 2018:

Client 1 Client 2 Client 3

Type of purchase House and lot House and lot Lots 1 and 2
Total contract Php 5 Million Php 5 Million Php 1.5 Million
price

Terms of contract:

20%
downpayment Php Php Php 300,000.00
1,000,000.00 1,000,000.00

Quarterly
payments:

1st quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

2nd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

3rd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

4th quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

Question: How much is the VAT imposable for Client 1?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

600000 computed

43. ABC Corp., a VAT-registered subdivision developer, disclosed the

following sales information for the year 2018:

Client 1 Client 2 Client 3

Type of purchase House and lot House and lot Lots 1 and 2

Total contract Php 5 Million Php 5 Million Php 1.5 Million

price
Terms of contract:

20%
downpayment Php Php Php 300,000.00
1,000,000.00 1,000,000.00

Quarterly
payments:

1st quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

2nd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

3rd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

4th quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

Question: How much is the total VAT imposable for Client 2 for the
year?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

144000, computed

44. ABC Corp., a VAT-registered subdivision developer, disclosed the

following sales information for the year 2018:

Client 1 Client 2 Client 3

Type of purchase House and lot House and lot Lots 1 and 2

Total contract Php 5 Million Php 5 Million Php 1.5 Million

price

Terms of contract:
20% Php Php Php 300,000.00
downpayment 1,000,000.00 1,000,000.00

Quarterly
payments:

1st quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

2nd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

3rd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

4th quarter Php 250,000.00 Php 50,000.00 Php 300,000.00

Question: How much is the VAT imposable for Client 3?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE
ANY NEGATIVE SIGN.

180000

45. Nicanor is a VAT registered processor of fruits. The following data were
provided for purposes of determining the taxpayer’s VAT payable:

Sales from processed fruits (invoice amount) P 672,000

Purchases and Payments:

Purchased of fruits from farmers - 200,000

Purchased of raw sugar from millers - 60,000

Purchased of bottles (invoice amount) - 22,400

Purchased of can containers (VAT exc) - 50,000

Payments of paper containers (VAT exc) - 5,600

Purchased of cardboard for boxes (invoice amount) -3,360

Payments of for hauling services from VAT registered - 60,000

Question: Based on the foregoing facts, how much is the presumptive

input VAT?

Note: Write only the amount without comma, no peso sign and round off
to the nearest peso (e.g. write 100000 only if the answer is One Hundred
Thousand Pesos). If your answer is Zero, write 0 only.
 10,400

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