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    Value Added Tax

    Uploaded by

    Allen Kate
    This document contains a series of multiple choice questions regarding Value Added Tax (VAT) in the Philippines. Some key points covered include: - VAT is an indirect tax paid on importation of goods and sales of taxable goods, properties, and services. - Certain items can be exempted from VAT like basic necessities, sale of real properties not held for business, and sales to senior citizens and persons with disabilities. - Taxpayers are required to remit output VAT collected from customers and can claim input VAT paid on business purchases and imports to arrive at the net VAT payable. - There are also rules around VAT registration, allowed deductions and credits, and deadlines for remit

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

    Value Added Tax

    Uploaded by

    Allen Kate
    224 views4 pages
    This document contains a series of multiple choice questions regarding Value Added Tax (VAT) in the Philippines. Some key points covered include: - VAT is an indirect tax paid on importation of goods and sales of taxable goods, properties, and services. - Certain items can be exempted from VAT like basic necessities, sale of real properties not held for business, and sales to senior citizens and persons with disabilities. - Taxpayers are required to remit output VAT collected from customers and can claim input VAT paid on business purchases and imports to arrive at the net VAT payable. - There are also rules around VAT registration, allowed deductions and credits, and deadlines for remit

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    VALUE ADDED TAX

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    This document contains a series of multiple choice questions regarding Value Added Tax (VAT) in the Philippines. Some key points covered include: - VAT is an indirect tax paid on importation of goods and sales of taxable goods, properties, and services. - Certain items can be exempted from VAT like basic necessities, sale of real properties not held for business, and sales to senior citizens and persons with disabilities. - Taxpayers are required to remit output VAT collected from customers and can claim input VAT paid on business purchases and imports to arrive at the net VAT payable. - There are also rules around VAT registration, allowed deductions and credits, and deadlines for remit

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    224 views4 pages

    Value Added Tax

    Uploaded by

    Allen Kate
    This document contains a series of multiple choice questions regarding Value Added Tax (VAT) in the Philippines. Some key points covered include: - VAT is an indirect tax paid on importation of goods and sales of taxable goods, properties, and services. - Certain items can be exempted from VAT like basic necessities, sale of real properties not held for business, and sales to senior citizens and persons with disabilities. - Taxpayers are required to remit output VAT collected from customers and can claim input VAT paid on business purchases and imports to arrive at the net VAT payable. - There are also rules around VAT registration, allowed deductions and credits, and deadlines for remit

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    VALUE ADDED TAX  

    1. 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 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 to a non-exempt person, the purchaser-non-exempt
    person shall pay the VAT on such importation.

    2. 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 raw materials
    b. Input tax on importation of supplies
    c. Input tax attributed to zero-rated sales of goods and services
    d. Input tax on purchase of services

    3. Value Added Tax is a/an


    a. Indirect tax
    b. Direct tax
    c. Local tax
    d. Personal tax

    4. Statement 1- A taxpayer whose gross sales or receipts exceeded the amount of


    P3,000,000 shall pay VAT even if he is not VAT registered; consequently, he is also
    entitled to input taxes.
    Statement 2- Importer of goods for personal use is not subject to VAT if he is not-VAT
    registered.
    a. Both statements are true
    b. Both statements are false
    c. Only statement 1 is true
    d. Only statement 2 is true

    5. Which statement is correct?


    a. Zero rated sales are exempt from the VAT.
    b. A person whose sales or receipts do not exceed P250,000 is exempt from VAT and OPT.
    c. A person who issues a VAT invoice on a VAT exempt transaction is nevertheless subject
    to VAT on the said transaction.
    d. Entities which are exempt from income tax are also exempt from VAT.
    6. Which of the following importation is subject to VAT?
    a. Importation of frozen meat
    b. Importation of bamboo poles
    c. Importation of apples for personal consumption
    d. Importation of grapes for sale

    7. 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 newspaper

    8. 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

    The allowable transitional input tax is


    a. The lower between 2% of the value of beginning inventory or actual VAT paid on such
    inventory
    b. The higher between 2% of the value of beginning inventory or actual VAT paid on such
    inventory
    c. The actual VAT paid on the beginning inventory
    d. 2% of the value of beginning inventory

    10. The VAT due on the sale of taxable goods, property and services by any person whether
    or not he has taken the necessary steps to be registered
    a. Input tax
    b. Output tax
    c. Excise tax
    d. Sales tax

    11. 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
    12. 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

    13. Which of the following is not correct?


    I. Any person who is not subject to mandatory registration because his actual or expected
    gross sales/receipts from non-exempt businesses for the past 12 months do not exceed
    ₱3,000,000, may opt to register under the VAT system, but shall not be allowed to cancel
    his VAT registration for the next three years.
    II. Any person who is VAT-registered but enters into transactions which are exempt from
    VAT may opt that the VAT apply  to his transactions which would have been exempt but
    shall not be allowed to cancel his VAT registration for the next three years.
    III. Franchise grantees of radio and/or television broadcasting whose annual gross receipts of
    the preceding year do not exceed P10M may opt for VAT registration, but shall not be
    allowed to cancel his VAT registration for the next three years.
    a. III only
    b. II only 
    c. I only
    d. I, II and III

    14. (a) Before January 1, 2021, which of the following sales of real properties held primarily
    for sale to customers shall NOT be subject to VAT?  
    a. Sale of parking lot where the selling price is P1,800,000
    b. Sale of 2 adjacent residential lots in favor of one buyer from the same seller at P725,000
    per lot.
    c. Sale of condominium unit at a price of ₱2,600,000.
    d. None of the above

    14. (b) Beginning January 1, 2021, which of the following sales of real properties held primarily for
    sale to customers shall NOT be subject to VAT?  
    a. Sale of parking lot where the selling price is P1,800,000
    b. Sale of 2 adjacent residential lots in favor of one buyer from the same seller at P725,000
    per lot.
    c. Sale of condominium unit at a price of ₱2,600,000.
    d. None of the above.

    15. ABC Restaurant recorded the following sales during the month (based on menu prices):
    To regular customers P 560,000
    To senior citizen   224,000
    To person with disability    112,000
    The output VAT is
    a. P 60,000
    b. P 72,000
    c. P 69,600
    d. P 79,200

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