Exercise 5 VAT

Exercise 5
1. For each of the following items, indicate the following:

Exempt - for entity exempt from business tax
% tax - for those specifically subject to percentage tax
Vatable - for those subject to either VAT or general percentage tax
1. Seller of agricultural food products

2. Furniture shop
3. Vegetable trader
4. A private high college
5. A private hospital
6. A dentist
7. Hospital drugstore
8. A non-profit elementary school
9. A government college
10. Restaurant
11. Bus operator
12. Hotel
13. Operator of domestic sea vessel
14. Life insurance company
15. Mall
16. Domestic airliner
17. Lessor vessels or aircraft
18. Banks
19. Operator of taxi
20. International carriers
21. Keepers of garage
22. Book publishers
23. Quasi-banks
24. Dealer of household appliances
25. Dealer of commercial lot
26. Insurance agent
27. Employee
28. Contractor
29. Processor of sardines
30. Auto parts dealer
31. Manufacturer of hog feeds
32. Seller of fertilizer and seeds
33. Fisherman
34. Fish vendor
35. Textile manufacturer
2. A VAT Taxpayer has the following sales and purchases during the month:
Sales, excluding VAT P 300,000
Purchases, inclusive of P14,000 VAT 280,000
Compute the gross income under each of the following independent cases:
a. The sale is VAT-exempt ______________________
b. The sale is made to the government ______________________
c. The sale is made to regular customers ______________________
d. The sale is made by a registrable person ______________________
3. A VAT taxpayer complied the following for the purpose of filing his BIR Form 2550M:
Sales to VAT taxpayers P 200,000
Sales to non-VAT taxpayers 150,000
Total P 350,000
What is the output VAT? ___________________

4. A VAT registered building contractor who reports under the calendar year basis had the following
billings and collections (inclusive of VAT) regarding its construction contracts:
Bill Collection
June P 448,000 P 403,200
July 504,000 453,600
August 336,000 302,400
a. What is the output VAT in June? _____________________

b. What is the output VAT in July? _____________________
c. What is the output VAT in August? _____________________
5. A VAT registered seller had the following summary of sales and consignments in April:
Cash sales P 200,000
Credit sales 150,000
Sales reported by consignees 250,000
Unsold January consignment 50,000
Unsold February consignment 30,000
Unsold Match consignment 40,000
Unsold April consignment 65,000
Assuming that the rules on deemed sale, was properly applied in prior months, what is the output
VAT for April? ____________________
6. Phil-Air is a domestic carrier with both domestic and international operations. During a month, it
had the following gross receipts:
Domestic operations
Transport of passengers P 40,000,000
Transport of cargoes 12,000,000
International operations
Transport of passengers P 30,000,000
Transport of cargoes 8,000,000
What is the output VAT? __________________
7. An insurance company had the following gross receipts during a month:

Cash collections from life premiums P 1,800,000
Notes receivable for life premiums 200,000
Cash collections from non-life premiums 1,100,000
Notes receivable for non-life premiums 300,000
What is the output VAT? __________________
8. A business payer reported the following sale during a period:

Domestic sales P 200,000
Deemed sales 100,000
Export sales 300,000
Total P 600,000
a. Compute the zero-rated sales assuming the seller is a VAT taxpayer?

__________________
b. Compute the zero-rated sales assuming the seller is a non-VAT taxpayer?
__________________
9. A VAT registered taxpayer made the following sales:
Sales destination Terms Payment

China FOB destination $ 10,000
Malaysia FOB destination P 450,000
Hong Kong FOB shipping point ¥ 800,000
Philippines FOB shipping point P 300,000
The applicable exchange rate to the peso was $1: P42 and ¥1: P0.50.
a. Compute the total zero-rated sales. ____________________
b. Compute the output VAT. _____________________
10. DreamPhil Enterprises, a VAT taxpayer, sold the following to various exporters in July 2020:
Sale to BOI-registered entity with domestic sales P 2,000,000
Sale to BOI-registered entity with no domestic sales 2,500,000
Sale to export-oriented enterprise (with 60% export las year) 1,000,000
Sale to export-oriented enterprise (with 90% export las year) 1,500,000
Total P 7,000,000
Assuming that the BIR and DOF has not fully implemented the new VAT refund system, compute
the zero-rated sales. ___________________

Exercise 5 VAT

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Exercise 5

1. For each of the following items, indicate the following:

1. Seller of agricultural food products

What is the output VAT? ___________________

a. What is the output VAT in June? _____________________

What is the output VAT? __________________

7. An insurance company had the following gross receipts during a month:

What is the output VAT? __________________

8. A business payer reported the following sale during a period:

a. Compute the zero-rated sales assuming the seller is a VAT taxpayer?

Sales destination Terms Payment

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