Use the following data for the next (2) two questions:

Problem 1 (31-32)
Arianne is a bus and truck operator with routes from Manila to Subic and vice versa. For the
taxable year 2024, she reported gross receipts from her bus operations P36,000,000. On the
other hand, her gross receipts from her freight of goods or cargoes amounted only to P800,000
only.

1. Assuming Arianne is non-vat registered , how much is her total business tax due?
a. P1,088,000
b. P1,104,000
c. P1,176,000
d. P4,416,000

2. Assuming Arianne is vat registered, how much is her total business tax due?
a. P1,088,000
b. P1,104,000
c. P1,176,000
d. P4,416,000

Problem 2 61
Smart-Globe Telecommunications has the following data for a particular month:
Gross receipts, domestic call P5,000,000
Gross Receipts, overseas calls (originating in the Philippines) 3,000,000
Purchase of supplies used in connection with domestic 300,000
calls net of VAT
Purchase of equipment used in connection with both domestic 800,000
calls and overseas calls, net of VAT
1,000,000
Business Expense
1. How much is the overseas communication tax collected from persons who used the
communications facilities?
a. P300,000
b. P500,000
c. P800,000
d. nil
2. Using the same data in the preceding number, how much is the vat payable?
a. P420,000
b. P470,000
c. P504,000
d. Nil

Problem 3: 72
Piggy Bank has the following data for the month of January 2023
Interest income, the remaining maturity of the instruments is 5 years P100,000
Rentals (gross of 5% expanded withholding tax) 50,000
Net trading loss (10,000)
How much is the gross receipts tax on the collections of Piggy for January 2023?
a. P5,000
b. P3,500
c. P7,800
 d. P8,500
Problem 4:73
In addition to the information in the preceding number, Piggy Bank has the following
information for the month of February 2023:
Interest income, the remaining maturity of the instruments is 6 years P100,000
Rentals (gross of 5% expanded withholding tax) 50,000
Net trading gain 20,000
How much is the gross receipts tax in the collections of Piggy for February 2023?
a. P5,200
b. P5,900
c. P9,200
d. P9,900

Problem 5 74
Pedro executed on January 1, 2019, a long-term loan from Pilipinas Bank in the amount of
P6,000,000 payable within ten (10) years, with an annual interest of 2%. However, on January
31, 2023, the loan was pre-terminated. Assuming the Pilipinas Banks declared correctly the
interest from 2019 to 2022 and the applicable gross receipts taxes were paid, how much gross
receipts tax should be paid for the year 2023?
a. P100
b. P24,500
c. P19,700
d. P500
Problem 6 81
A domestic insurance company gave the following information for the month:
Gross receipts from its insurance policies
Premium on life insurance P2,100,000
Premium on non-life insurance 1,500,000
Gross receipts as agent of a non-resident foreign insurance co.
Premium on life insurance P4,000,000
Premium on non-life insurance 1,000,000
The percentage tax due for the month is:
a. P355,000
b. P430,000
c. P242,000
d. P605,000

Problem 7 84
Mabuhay Insurance Corporation furnished us its data shown below:
 Insurance Premiums collectible is P3,750,000
 The breakdown of the above premiums is as follows:
Life insurance Premiums 75%
Non-Life Insurance Premiums 25%
 During the month, 70% of collectible life insurance premiums and 50% of collectible
non-life insurance premiums were collected.
The Premiums Tax payable is:
a. P39,375
b. P78,750
c. P94,437.50
d. P196,875
Problem 8 100-102
Casa Palawan, vat registered, offers different services to its guests. The following data taken
from the books of the taxpayer are for the first quarter of 2023:
Revenues Collections Input vat
Hotel rooms P2,000,000 P1,500,000
Dining Hall:
Sale of food and refreshments P1,000,000 850,000
Sale of wine, beer and liquor 700,000 650,000
Disco:
Sale of food and refreshments 600,000 550,000
Sale of wine, beer and liquor 500,000 450,000

How much is the amusement tax for the quarter?

a. 180,00
b. 360,000
c. 540,000
d. 438,000
How much is output vat for the quarter?
a. 180,00
b. 360,000
c. 540,000
d. 438,000
How much is the total business taxes for the quarter?
a. 180,00
b. 360,000
c. 540,000
d. 400,000

Problem 9 103-104
Philippine Basketball Association (PBA), a professional basketball league in the Philippines,
opened its own coliseum during April of 2023 and held all its games for the month in the newly
built, state of the art facility in Bulacan. PBA provided the following data during the month:
Receipts from Entrance Fee P9,800,000
Gross Receipts from Restaurant operations:
Sale of food and beverages P2,200,000
Sale of wine & liquor 750,000
Expenses 3,800,000
1. How much is the amusement tax for the month?
a. P1,210,000
b. P1,320,000
c. P1,762,000
d. P1,912,500

2. Based on the preceding number but suppose the restaurant is owned and operated by
Bryan, a vat-registered person, the amusement taxes of Bryan and the PBA is
Bryan PBA
a. P354,000 P1,320,000
b. P1,320,000 P354,000
c. P354,000 P354,000
d. P0 P1,470,000
Problem 9 106-107
Premier Entertainment is the operator of Tanghalan Coliseum. During the month it had the
following gross receipts from various activities:
Concerts P2,500,000
Professional Basketball Game 1,240,000
Boxing Exhibition P1,780,000

The boxing exhibition is a world championship fight between G.I. Joe and Lucas Matthysse, both
foreign nationals and the bout was promoted by a domestic corporation.
1. How much is the amusement tax payable of Premier?
a. P178,000
b. P186,000
c. P364,000
d. P664,000
2. How much is total business taxes of Premier?
a. P178,000
b. P186,000
c. P364,000
d. P664,000
Problem 10 125
A racetrack bettor won the following bets:
 On double, a bet of P200 and dividend of P200 per p20 ticket.
 On winner take all, a bet of P500 and a dividend of P1,000 per P50 ticket.
 On forecast, a bet of P1,000 and dividend of P100 per P20 ticket
The total percentage tax due from the winnings should be:
a. P682
b. P1,182
c. P1,280
d. P1,530

Problem 11 122
Pedro, a horse bettor, had the following records of his horse races for the month of May of
2023:

Horse Type of Winnings Gross Winnings Cost of winning tickets

Ana Khan Trifecta 100,000 40,000
Lor Naden Ordinary 250,000 50,000
Fe Lecidad Double 325,000 75,000
How much is the business tax on winnings?
a. P32,400
b. P35,750
c. P49,000
d. P68,000

Problem 12 87-88
Pedro, vat registered, made the following purchases during the month of January:
Goods for sale, inclusive of VAT P246,400
Supplies, exclusive of VAT 20,000
Packaging materials, total invoice amount 56,000
Home appliances for residence, gross of VAT 17,920
2,000,000
 Office machines (5pcs.), 4 years useful life, net of VAT
1. Assuming the purchases were made during 2021 taxable year, the creditable input tax
for the month of January should be:
a. P38,800
b. P39,800
c. P37,440
d. P274,800
2. Assuming the purchases were made during 2022 taxable year, the creditable input tax
for the month of January should be:
a. P38,800
b. P39,800
c. P37,440
d. P274,800

Problem 13 83-84
Use the following data for the next two (2) questions:
Taxpayer is a VAT registered person. Importation were for: (amounts are vat exclusive)
For Sale For Own Use
Invoice cost (exchange rate is 1$ : P45) $100,000 $5,000
Expenses based on cost:
Freight and insurance 6% 6%
Other expenses up to the point of 4% 4%
removal from customs house
Transfer expense from customers house 2% 2%
to warehouse in Makati, net of VAT
Selling price of goods imported for sale was P8,000,000
1. The value added tax payable on importation is:
a. P492,800
b. P491,300
c. P623,700
d. P620,928
2. The value added tax payable on sale is
a. P355,200
b. P128,640
c. P366,000
d. P720,000
Problem 14 81-82
Use the following data for the next two (2) questions:
Delta Corporation imported an article from the USA. The invoice value of the imported article
was $8,000 ($1- P52). The following additional costs were incurred in connection with the
importation:
Insurance P15,000
Freight 10,000
Postage 5,000
Wharfage 7,000
Arrastre charges 8,000
Facilitation fee 3,000
The imported article was imposed P50,000 for customs duty and P30,000 excise tax based on
the quantity and measurement of the imported article.
The company likewise spent P50,000 for trucking fee from the customs warehouse to its
warehouse in Quezon City. The carrier is a vat-registered entity.
1. The vat due on the importation is:
a. 64,920
b. 42,000
c. 60,600
d. 80,000
2. Based on the preceding number, if the imported article was sold for P800,000 vat
exclusive, the VAT Payable is:
a. 24,000
b. 12,000
c. 36,000
d. 25,080
Problem 15 63
The following are the data of Davao International for the last quarter of 2023:
Sales up to Dec. 15 (gross of vat P380,800
Purchases up to Dec. 15 (net of vat ) 150,000

Additional Information:
On December 16, 2023, the Company retired from its business and the inventory valued at
P190,000 remained unsold. There is a deferred input tax from the third quarter of P3,500. How
much is the total value-added taxes payable of Davao International?
a. 42,100
b. 21,500
c. 22,800
d. 19,300
Problem 16 64
Genson Distribution Inc., a vat taxpayer, had the following data in a month:
Cash Sales P220,000
Open Account Sales 500,000
Consignment:
0 to 30 days old (on which there were remittances from 600,000
Consignee of P200,000
31 to 60 days old 700,000
61 days olds and above 900,000
How much is the output tax?
a. 348,000
b. 216,000
c. 264,000
d. 108,000
Problem 17 62
ABC Corporation (vat registered) has the following data for the month of March:
Gross Sales (vat exclusive) P8,000,000
Sales Returns 400,000

Goods shipped on consignment (net)

Units Unit Price
March 25 40 P10,000
February 14 30 10,000
January 8 20 10,000

Goods withdrawn for use by the company P50,000

Goods taken as payment to creditor 30,000
Purchases for the month of (net of vat)
Goods P600,000
Supplies 75,000
Capital Goods (Life:4yrs.) 1,100,000
Freight and Insurance 8,500
Salaries of employees 385,000

Additional Information:
 Received cash representing payment for ten (10) units delivered on February 14. The
amount received was net of ten percent (10%) commission.
 A consignee reported and remitted P200,000 (gross of 10% commission) representing 20
units sold from goods consigned in March.
The vat payable for the month of March shall be:
a. 60,000
b. 84,830
c. 896,830
d. 981,600

Problem 18 146
Lola Lita, a senior citizen, bought a medicine with a selling price of P9,520 inclusive of vat. How
much is the net amount to be paid by Lola?
a. 8,500
b. 7,616
c. 6,916
d. 6,800

Problem 19 147
Lolo Sot, a senior citizen went to Jollibee to treat his 4 grandchildren on account of his
retirement. They consumed foods and beverages with gross amount od P1,120 inclusive of Vat.
How much is amount to be paid by Lolo Sot?
a. 896
b. 920
c. 1,056
d. 1,100
Problem 20 148
Gabriana Clinic, a VAT-registered entity, performed a prosthetic surgery on the legs of Loyd, a
person with disability. The total cost of medical operation was P500,000. Being a disabled
person, Loyd received 20% discount from Gabrianna. How much is the total amount to be paid
by Loyd?
a. 400,000
b. 448,000
c. 500,000
d. 560,000

Problem 21 145
A dealer in securities has the following for the year 2023:
Sales, shares held as inventory P5,000,000
Sales, shares held as investment 1,500,000
Cos of shares, held as inventory 2,000,000
Cos of shares, held as investment 500,000
Supplies expense, net of vat 100,000
Rent expense, net of vat 200,000
30,000
How much is the vat payable?
a. 470,000
b. 324,000
c. 270,000
d. Vat exempt

Problem 22 143
Maharlika Residences Inc. is a domestic corporation engaged in real estate business. It has the
following data for the last quarter of 2023:
Installment Sale of a Townhouse:
Realized gross profit (GPR is 30%) P 300,000
Gross selling price 4,000,000
Zonal value 5,000,000
Deferred Sale of a Parking Lot
Gross selling price 1,000,000
Fair market value 1,500,000
Rental Income 800,000
Rent receivable, beginning 300,000
Rent receivable, end 100,000
Importation of materials used in the construction 2,625,000
How much is the VAT due or payable?
a. 285,000
b. 261,000
c. 135,000
d. 1,111,000
Problem 23 139-140
JJ is a real estate dealer. During the month of October 2023, he sold three (3) commercial lots
under the following terms:
Lot 1 Lot 2 Lot 3
Selling Price 250,000 200,000 300,000
Cost 150,000 130,000 175,000
Gain/Loss 100,000 70,000 125000
Terms:
Down, Oct. 5, 2023 25,000 50,000 40,000
Due:
Dec. 5, 2023 25,000 20,000 20,000
Year 2023 200,000 130,000 240,000
Zonal Value 2023 350,000 260,000 250,000

1. How much is the output tax for October 2023?

a. 26,500
b. 34,800
c. 31,800
d. 40,200
2. How much is the output tax for December 2023?
a. 5,400
b. 4,500
c. 6,600
d. None

Problem 24 128-130
Use the following data for the next three (3) questions:
Casa Palawan, vat registered, offers different services to its guests. The following data taken
from the books of the taxpayer are for the first quarter of 2023:
Revenues Collections Input vat
Hotel rooms P2,000,00 P1,500,000
0
Dining Hall:
Sale of food and refreshments P1,000,00 850,000
0
Sale of wine, beer and liquor 700,000 650,000
Disco:
Sale of food and refreshments 600,000 550,000
Sale of wine, beer and liquor 500,000 450,000

Input vat on purchases directly attributable P125,000

to vatable transactions

Input vat on purchase directly attributable 70,000

to non-vatable transactions

Input vat on purchases not directly 200,000

attributable to any business activities
How much is the applicable output vat for the quarter?
a. 240,000
b. 360,000
 c. 432,000
d. 438,000
Problem 25 120-124
A VAT-registered trader has the following transactions during 2022:
Sale of goods to private entities, net of VAT P2,500,000
Purchases of goods sold to private entities, gross of 12% VAT 896,000
Sale to a government owned corporation (GOCC), net of VAT 1,000,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000

How much is the output tax?

a. 300,000
b. 120,000
c. 420,000
d. Nil
How much is the standard input tax?
a. 20,000
b. 70,000
c. 50,000
d. Nil
How much is the creditable input vat (CIV)?
a. 166,000
b. 96,000
c. 70,000
d. 180,000
How much is the input tax closed to income or (expense)?
a. Nil
b. P34,000
c. (14,000)
d. (34,000)
How much is the Vat payable to the BIR?
a. 190,000
b. 390,000
c. 204,000
d. Nil

Problem 26 108-111
Olive is a producer of cooking oil from coconut and corn. Previously exempt from value added
tax, he became subject to value added tax on January 1, 2022/ For January 2022, sales exclusive
of vat amounted to P700,000. Olive had the following other data, inclusive of vat if applicable,
for January 2022:
Inventory, January 1, 2022 Cost
Packaging materials purchased from vat suppliers 22,400
Supplies purchased from vat suppliers 11,200
Purchased during the month:
Purchases during the month from coconut and corn farmers 330,000
Purchases during the month from vat suppliers
Packaging materials 56,000
Supplies 16,800
The correct amount of transitional input tax should be:
a. 672 b. 762
 c. 3600 d. 4,080

The amount of presumptive input taxes should be:

a. 13,200
b. 33,000
c. 6,600
d. 39,600
The total amount of creditable input taxes should be:
a. 21,762
b. 24,600
c. 25,080
d. 21,672
The value added tax payable for the month should be:
a. 62,328
b. 58,920
c. 59,400
d. 62,328

Problem 27 106
A taxpayer registered under the VAT system on January 1, 2021. His records during the month
show:
Value of inventory as of December 31, 2020 purchased from
VAT registered persons P112,000
VAT paid on inventory as of December 31, 2020 12,000
Value of inventory as of December 31, 2020 purchased, from 518,000
non-VAT persons
Sales, net of VAT 281,000
Purchases during the month, Net of VAT 70,000
Purchases during the month of vat exempt goods 50,000

The VAT payable should be:

a. 23,080
b. 25,320
c. 12,720
d. 12,320

Problem 28 99
Mantika Corp., a VAT- registered Corp., is a producer of cooking oil from coconut and corn. It
had the following data for the month of January 2023:
Sales, gross of VAT P784,000
Corn and Coconut, Dec. 31, 2022 50,000

Purchases of Corn and Coconut on January 2023 330,000

Corn and Coconut, Jan. 31, 2023 20,000

Purchases from VAT suppliers, vat inclusive

Packaging materials 56,000
Suppliers 16,800

The value-added tax payable for January 2023:

 a. 56,060 c. 60,650
b. 54,900 d. 63,000
Problem 98
ABC corporation made the following purchases of capital goods:
 October 1, 2021: Various Equipment for P2,160,000 with useful life of 3 years
 March 30, 2022: Delivery equipment for P3,500,000 with useful life of 10 years

How much is the creditable input vat for the first quarter of 2022?
a. 21,000
b. 21,600
c. 420,000
d. 441,600