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    Vat Tax

    Uploaded by

    Chelsea Sabado
    The document contains 5 problems related to calculating VAT payable for different business transactions. Each problem provides inputs such as sales, purchases, and other transaction amounts. The solutions calculate output VAT, input VAT, revenue, and VAT payable by applying the appropriate VAT rates to the transactions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Vat Tax

    Uploaded by

    Chelsea Sabado
    3K views10 pages
    The document contains 5 problems related to calculating VAT payable for different business transactions. Each problem provides inputs such as sales, purchases, and other transaction amounts. The solutions calculate output VAT, input VAT, revenue, and VAT payable by applying the appropriate VAT rates to the transactions.

    Original Title

    VAT TAX

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    © © All Rights Reserved

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    XLSX, PDF, TXT or read online from Scribd

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    The document contains 5 problems related to calculating VAT payable for different business transactions. Each problem provides inputs such as sales, purchases, and other transaction amounts. The solutions calculate output VAT, input VAT, revenue, and VAT payable by applying the appropriate VAT rates to the transactions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    3K views10 pages

    Vat Tax

    Uploaded by

    Chelsea Sabado
    The document contains 5 problems related to calculating VAT payable for different business transactions. Each problem provides inputs such as sales, purchases, and other transaction amounts. The solutions calculate output VAT, input VAT, revenue, and VAT payable by applying the appropriate VAT rates to the transactions.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    PROBLEM 1 Canor is a VAT registered taxpayer.

    It had the following data fort he month of January (VAT inclusive):


    Cash sales, invoice amount
    Sales on account
    Purchases
    Consignment:
         Less than 60 days
          More than 60 days
    Goods paid to creditors (dacion en pago)
    Goods given as Christmas gift to employees
    Property dividend to stockholders
    determine vat payable for the month

    SOLUTION:

    OUTPUT
    Cash sales, invoice amount
    Sales on account
    Consignment: less than 60 days
    Goods paid to creditors (dacion en pago)
    Goods given as Christmas gift to employees
    Property dividend to stockholders
    Total Amount
    Less: VAT (Total Amount*3/28)
    Amount Net of VAT

    INPUT
    Purchases
    Consignment More than 60 days
    Total Amount
    Less: VAT (Total Amount *3/28)
    Amount Net of VAT

    Revenue (Output - Input)


    VAT Payable (12%)

    PROBLEM 2: David Bookstore, VAT registered, is engaged in the business of selling books, school supplies and gift items.
    The following were provided to you during the month of October (inclusive of VAT, if applicable)
    Sales of school supplies
    Sale of books
    Sale of gift items
    Purchase of school supplies and gift items for sale
    Purchase of books
    Purchase of computers used in Vatable and non-Vatable transactions
    Purchase of office supplies used in Vatable and non-Vatable transactions from   non-vat registered supplies
    REQUIRED: Determine that VAT payable for the month of October
    SOLUTION:

    OUTPUT
    Sales of school supplies
    Sale of books
    Sale of gift items
    Total Amount
    Less: VAT
    Amount Net of VAT

    INPUT
    Purchase of school supplies and gift items for sale
    Purchase of books
    Purchase of computers used in Vatable and non-Vatable transactions
    Purchase of office supplies used in Vatable and non-Vatable transactions from   non-vat registered supplies (exempt)
    Total Amount
    Less: VAT
    Amount Net of VAT

    Revenue
    VAT Payable

    PROBLEM 3: Omega Corporation is engaged in a business subject to value added tax and another business which is not subjec
    Omega's business data for the current year were provided as follows:
    Sales, VAT business, invoice amount
    Sales, non-VAT business
    Purchases of goods, VAT business, invoice amount
    Purchases of goods for non-VAT business, inclusive of input tax
    Purchase of depreciable asset for common use, VAT included
    Purchase of supplies for common use, VAT included
    Rental of premises for both types of business.  The lessor is non-VAT registered
    REQUIRED: Determine the VAT payable for the year

    SOLUTION:

    OUTPUT
    Sales, VAT business, invoice amount
    Sales, non-VAT business (exempt)
    Total Amount
    Less: VAT
    Amount Net of VAT

    INPUT
    Purchases of goods, VAT business, invoice amount
    Purchases of goods for non-VAT business, inclusive of input tax
    Purchase of depreciable asset for common use, VAT included
    Purchase of supplies for common use, VAT included
    Rental of premises for both types of business.  The lessor is non-VAT registered (exempt)
    Total Amount
    Less: VAT
    Amount Net of VAT

    Revenue
    VAT Payable

    PROBLEM 4: The following data during the month relates to William Corporation, VAT registered person (amounts are VAT inc
    Domestic sales
    Domestic sales to export traders
    Export sales
    Purchases of goods for domestic sales
    Purchases of supplies on domestic sales
    Purchase of service
    Purchase of goods for export
    REQUIRED:
    a). Determine the total input tax
    b). Determine the VAT payable if excess input taxes on exports are claimed as tax credit

    SOLUTION

    OUTPUT
    Domestic sales
    Domestic sales to export traders
    Export sales (exempt/zero rated)
    Total Amount
    Less: VAT
    Amount Net of VAT

    INPUT
    Purchases of goods for domestic sales
    Purchases of supplies on domestic sales
    Purchase of service
    Purchase of goods for export
    Total Amount
    Total Input Tax
    Amount Net of VAT

    Revenue
    Gross VAT Payable
    Less: Purchase of goods for export
    VAT Payable

    PROBLEM 5: Corona imported merchandise for resale.  Using the following information, determine the VAT
    on the importation before the same can be release from customs custody.
    CIF (cost, insurance, freight) value
    Charges/expenses incurred in claiming the goods:
        Wharfage
         Arrastre
         Customs duty
         Brokerage fee and documentary stamps
         Facilitation expense
         Marine cargo insurance
         Other charges:
              Freight from customs to warehouse (VAT exclusive)
    REQUIRED: Determine the following:
    a) VAT on importation
    b). The VAT  payable assuming the goods were subsequently sold for P350,000

    SOLUTION:

    APPLICABLE EXCISE TAX


    CIF (cost, insurance, freight) value
    Customs duty
    Add:
        Wharfage
         Arrastre
         Brokerage fee and documentary stamps
         Facilitation expense
         Marine cargo insurance
    Total Cost Before Excise Tax
    Excise Tax Rate (20%)
    Excise Tax

    VAT ON IMPORTATION
    Total Cost Before Excise Tax
    Add: Excise Tax
    Total Landed Cost
    Multiply by VAT Rate
    VAT on Importation

    TOTAL CREDITABLE INPUT VAT


    VAT on Importation
    VAT on Transfer Cost (Freight from customs to warehouse (5000x12%))
    Creditable Input VAT
    VAT PAYABLE
    Output VAT (350000*12%)
    Less:
    Creditable Input VAT
    VAT Payable
    660,800
    246,400
    291,200

    38,500
    22,400
    16,800
    19,040
    8,960

    660,800
    246,400
    38,500
    16,800
    19,040
    8,960
    990,500
    106125
    884,375

    291,200
    22,400
    313,600
    33,600
    280,000

    604,375
    72525

    1,680,000
    1,200,000
    1,008,000
    1,344,000
    600,000
    448,000
    200,000
    1,680,000
    1,200,000
    1,008,000
    3,888,000
    416571.43
    3,471,428.57

    1,344,000
    600,000
    448,000
    200,000 0
    2,592,000
    256285.71
    2,335,714.29

    1,135,714.29
    136285.71

    896,000
    200,000
    224,000
    33,600
    112,000
    2,240
    22,400

    896,000
    200,000 0
    1,096,000
    96000
    1,000,000

    224,000
    33,600
    112,000
    2,240
    22,400 0
    394,240
    39840
    354,400

    645,600
    77472

    330,000
    274,996
    200,000
    374,000
    69,848
    154,000
    55,000

    330,000
    274,996
    200,000 0
    804,996
    64821
    740,175

    374,000
    69,848
    154,000
    55,000
    652,848
    69948
    582,900

    157,275
    18873
    55000
    -36127

    229,195

    1,540
    2,295
    4,090
    330
    3,000
    2,550

    5,000

    229,195
    4,090

    1,540
    2,295
    330
    3,000
    2,550
    243,000
    20%
    48600

    243,000
    48600
    291,600
    12%
    34992

    34992
    600
    35592
    42000

    35592
    6408

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