Ho 08 Vat
Ho 08 Vat
Larry’s sales didn’t exceed P3,000,000 ever since they’ve started their Restobar business way back 2018
nor VAT registrable during the taxable year 2020.
1. How much is the percentage tax due for the quarter ended March 2020?
2. If the quarter has ended September 2020 rather than March 2020, how much would be the
percentage tax due?
Problem 2
Jun, Jan, Mar, May and April together with a senior citizen, Lola Mela, dine at Casa Ibarra Co. a famous
VAT registered fast food in Quezon City. Their total order was P3,000.
3. The total output tax of Casa Ibarra Co. is?
4. How much is the total discount availed by their Lola Mela?
5. How much is the total amount due from Jun, Jan, May, Mar and April?
#3
Output Tax
Sales 2500
VAT 0.107142857 12/112
267.86 0.107142857
Sales, ex 2,232.14
#4
Order 500
VAT 53.57142857
VAT Exclusive 446.4285714
Discount 20%
89.28571429
Total Sales
#5 2232.142857
Order 3000 446.4285714
VAT ex of SC -53.57142857 2678.571429
Discount -89.28571429
2857.142857
Problem 3
Albert Trading imported goods from abroad for domestic sale and provided the following information:
Supplier’s invoice $5,000
Freight 500
Insurance 200
Custom’s duty 10%
Brokerage fee P50,000
Arrastre charge 20,000
Wharfage due 22,000
Postage 5,000
Other charges before withdrawal of goods,
including P10,000 facilitation fee paid to fixer 17,000
The prevailing exchange rate is 1$ = P55, the imported article is also subject to a P25,000 excise tax
Albert also spent P3,600 (exclusive of vat) for trucking from the customs warehouse to its warehouse in
Leyte.
6. The total landed cost is?
7. How much is the VAT on importation?
8. How much is the VAT payable if the imported goods were sold for P625,000 VAT exclusive?
Problem 4
Jennah has provided you the following information regarding her grocery store:
Gross sales 250,000
Receivable from clients due 30 days 400,000
Trade discounts availed by customers 65,000
Sales returns and allowances 25,000
10. How much is the percentage tax due assuming the quarter ended on June 30, 2020 and Jennah
is not VAT registered nor VAT registrable?
11. How much is the percentage tax due assuming the quarter ended on September 30, 2020 and
Jennah is not VAT registered nor VAT registrable?
Problem 5
Mark trader of rare NBA Cards merchandise had the following sales for the month September 30, 2022
(VAT exclusive): Cash sales P 800,000, sales on account P620,000, installment sales 1,000,000, receipt of
1st installment 250,000. Mark also made the following consignment on the following months (VAT
exclusive):
September 15 50,000
August 19 70,000
July 80,000
12. How much is the total output tax?
Cash sales 800000
Sales on
account 620000
Installment
sales 1000000
July
Consignment 80000
2500000
Vat rate 12%
300000
Problem 6
Having gross sales of P3,500,000 for the taxable year ended 2017, Allan exceeded the VAT threshold and
registered under the VAT system on January 1, 2018. His records during the month show:
Value of inventory as of Dec. 31, 2017 purchased from VAT registered persons P 100,000
VAT paid on inventory as of Dec. 31, 2017 12,000
Value of inventory as of Dec. 31, 2017, VAT exempt goods 120,000
Sales, net of VAT 280,000
Sales, gross of VAT 90,000
Purchases, net of VAT 140,000
13. The transitional input tax is?
14. The total input tax credit is?
15. The VAT payable is?
#14
Transitional input tax 12000
Purchases 16800 =140,000 x 12%
28800
#15
Vat on Sales, net 33600 280,000 x 12%
Vat on Sales, gross 9643 90,000 x 12/112
Output Vat 43,243
Input vat -28,800
14,443
Problem 7
For the taxable year 2022, San Pedro reported gross receipts from his bus operations of P22,000,000.
With routes Pampanga to Subic, San Pedro is an operator of twelve (12) buses and is likewise a
transportation contractor with five (5) freight trucks. His gross receipts, however, from his freight of
goods and cargoes amounted only to P750,000 for the year.
Common Carrier's
Transport of Passengers 22000000
3%
#16 CCT 660000
#17
Land Freight 750000
OPT 1%
7500
Problem 8
777 Right time, Right place Sardines processes sardines both original and spicy flavor. During the month
777, purchased the following ingredients for the processing of its famous sardines:
777 Right time, Right place Sardines also had a gross sales of P 1,200,000 net of VAT.
18. The total presumptive input tax is?
19. The total input tax credit is?
20. How much is the VAT payable?
#19
Presumptive input tax 10000
Soy sauce 100000 12% 12000
Tin cans 45000 12% 5400
Sticker labels 30000 12% 3600
Refined sugar 15000 12% 1800
32800
#20
Output Vat 144,000 1,200,000*.12
Total Input Vat -32,800
111,200
Problem 9.
OKBet Inc. also known as “Sportsmaster Corporation” operates a coliseum which caters various athletic
and artistic event and reported the following receipts for the taxable year 2022: Gate receipts amounted
to P5,000,000 and additional receipts from television coverage was P3,000,000 for promoting a world
boxing championship in Manila featuring The Flush, a Filipino champion. OKBet also reported receipts
from Professional basketball games of P500,000, from Amateur basketball games of P200,000, from
concert of various musical artists P100,000, and from golf and bowling alleys and P300,000.
Professional Boxing
Professional Basketball 500,000 X 15% = 75000
Exempt
Gate receipts 3000000
TV 5000000
8000000
116
Amateur 200000
Musical 100000
Bowling 300000
600000
0.01
6,000
Problem 10
Rex publishing house, a domestic corporation, sells printed books used by college students. Due to the
pandemic, their sales drop by more than 70%. In relation to that, the company decided to sell the books
in electronic or digital copy. In 2021, the following relates to the financial information of Rex
corporation. (net of VAT)
Problem 11
Lina corporation, a domestic corporation engaged in transport business, had the following:
Philippines Abroad
Transport of passengers 4,500,000.00 2,200,000.00
Transport of Cargoes 2,800,000.00 1,300,000.00
OPT CCT
1,300,000.00 3% 39000
2,200,000.00 exempt
Problem 12
Zanjoe, a VATY-registered individual taxpayer, engaged in sale of medicines had the following for year
2021 (VAT exclusive):
2021
Sales: Amount Rate VAT
Mental illness 600,000.00 Ex
Cough 1,850,000.00 0.12 222,000.00
Diarrhea 760,500.00 0.12 91,260.00
Diabetes 964,000.00 Ex
Kidney
disease 1,350,000.00 Ex
allergy 384,000.00 0.12 46,080.00
TOTAL 5,908,500.00
Output VAT 359,340.00
Purchases 3,000,600.00 2,994,500.00 1,520,740.75
5,908,500.00
Rate 0.12
Input VAt 182,488.89
VAT Payable 176,851.11
31. If the taxable year is 2020, how much is the VAT payable?
Problem 13
Elmo, a VATY taxpayer, had the following for the month of July 2021:
Sale of goods, net of vat :n
To regular customers 4,500,000
To Senior Citizens 2,400,000
To PWD 1,680,000
Problem 14
Cheezy Furniture, a vat taxpayer, sold the following to various customers in June 2021 (sales, net of VAT)
Sale to local customers P 6,500,000
Export Sales to foreign clients $ 75,000
Sale to export –oriented enterprise (55% export last year) P 2,640,500
Purchases, invoice price P 8,557,360
Dollar-Peso Exchange Rate $1: P55
VAT Payable
Input Vat
Purchases, invoice 8557360 X 12/112 = 916,860
Portion of Vatable
Problem 15
Mr. Agullan wins a quinella bet with a pay-out prize of P80,000. The cost of the ticket is P500.
38. How much will Mr. Agullana receive from his winnings?
Receipt
Winnings 80000
500
Tax Base 79500
Tax rate 4%
Tax 3180
Net amount 76820
Problem 16
Prime Corporation, a telecommunication company, had the following for year 2021: