UNIVERSITY OF SANTO TOMAS

VALUE ADDED TAX (VAT)

MULTIPLE CHOICE
EXERCISES
P2,600,000 while his wife has
gross sales of P2,200,000 derived
1. Statement 1: For a person to be from her trading business.
subjected to VAT, it is necessary Assuming they are not vat
that he is regularly engaged in registered, will they be subject to
the conduct or pursuit of an vat?
economic activity. Statement 2: A a. Yes, because their aggregate
non-resident foreign person gross receipts/sales exceeded
performing isolated service in the the vat threshold of
Philippines shall be liable to VAT. P3,000,000.
A. B. b. No, because for purposes of
D. vat threshold, husband and
Statement 1 True True wife shall be considered as
False False separate taxpayers.
c. Yes, because their gross
Statement 2 True False
receipts/sales are not
True False
specifically exempt from vat
as provided in the Tax Code.
2. Statement 1: Nonstock and d. None of the above
nonprofit private organizations
which sell exclusively to their 5. In 2018, the following gross
members in the regular conduct receipts/sales were recorded by
or pursuit of commercial or Apol B:
economic activity are exempt Gross receipts from practice of
from value-added tax. Statement P1,850,000 profession
2: Government entities engaged Gross receipts from transport
in commercial or economic of 1,450,000 goods and
activity are generally exempt cargoes
from value-added tax Gross sales from trading activities
a. Both statements are correct. 675,000
b. Both statements are
incorrect. Assuming Apol B is non-vat
c. Only the first statement is registered, will he be subject
correct. to vat?
d. Only the second state a. No, because his gross
statement is correct. receipts/sales in each
business do not exceed
3. Which is incorrect? the vat threshold of
a. A taxpayer whose annual P3,000,000.
gross receipts or sales exceed b. Yes, because if a
P3,000,000 shall pay VAT professional, aside from
even if not VAT registered. the practice of his
b. A taxpayer whose annual profession, also derives
receipts or sales do not revenue from other lines
exceed P3,000,000 but who is of business which are
VAT registered shall pay VAT. otherwise subject to VAT,
c. The A non-resident lessor or the same shall be
foreign licensor who is not combined for purposes of
VAT-registered is subject to determining whether the
vat. threshold has been
d. An individual taxpayer whose exceeded.
gross sales or receipts do not c. No, because he is not vat
exceed P100,000 is exempt registered
from VAT provided he pays d. None of the above
the 3% other percentage tax.
6. LBJ made the following sales
4. In 2018, Mr. Uro’s gross receipts during the 12-month period:
from his practice of profession is
Sales, VAT taxable transactions
P2,500,000 a. P90,000 c. P510,000
Sales, VAT zero-rated transactions b. P195,000 d. nil
400,000
Sales, VAT exempt transactions 10. Assuming the 3M threshold was
100,000 breached on the month of
Total P3,000,000 October, Pedro shall register
under the vat system not later
Which of the following statements than:
is correct? a. September 30, 2018
a. LBJ may not register under b. October 31, 2018
the VAT system because his c. November 30, 2018
sales from VAT taxable d. December 31, 2018
transactions did not exceed
P3,000,000. 11. An importer of flowers from
b. LBJ may not register under abroad:
the VAT system because his a. Is liable for VAT, if it registers
sales from VAT taxable and as a VAT person.
zero-rated transactions did b. Is exempt from VAT, because
not exceed P3,000,000. the goods are treated as
c. LBJ is required to register agricultural products.
because his total 12month c. Is exempt from VAT, provided
sales exceeded P3,000,000. that his total importation of
d. None of the foregoing. flowers does not exceed
P3,000,000.
7. Taxpayers who are qualified to d. Is liable for VAT, despite the
optionally register may apply for fact that it did not register as
vat registration not later than a VAT person and his total
how many days before the annual sales of flowers do not
beginning of the calendar exceed P3,000,000.
quarter?
a. 10 days c. 25 days 12. Which of the following shall be
b. 20 days d. 30 days exempt from vat?
a. Services of banks.
8. If a radio and/or television b. Services of money changers
broadcasting company who is not and pawnshops.
mandatorily required to register c. Services of credit
under the VAT system chose to cooperatives
be a VAT taxpayer. Its choice is: d. All of the above
a. Revocable after 2 years
b. Revocable after 3 years 13. Which of the following
c. Revocable after 5 years transactions is exempt from
d. Irrevocable value-added-tax?
a. Medical services such as
Use the following data for the next dental and veterinary services
two (2) questions: In 2018, Pedro rendered by professionals.
signified his intention to be taxed at b. Legal services.
8% income tax rate on gross sales in c. Services arising from
his 1st quarter income tax return. His employee-employer
total gross sales during the year relationship.
exceeded the vat threshold of P3M. d. Services rendered by
The following quarterly data were domestic air transport
provided by Pedro: companies.
Q1 Q2 Q3
Q4/Annual Sales P500,000 14. Which of the following sale or
P500,000 P2,000,000
importation of goods shall not be
P3,500,000 Cost of (300,000)
(300,000) (1,200,000) (1,200,000)
exempt from VAT? a. Fertilizers
sales b. Seeds, seedlings and
Gross 200,000 200,000 800,000 fingerlings
Income c. Fish, prawn, livestock and
Operating (120,000) (120,000) (480,000) poultry feeds, including
expenses
Net P80,000 P80,000 P320,000 P1,580,000
taxable
income
ingredients, whether locally
9. How much is Pedro’s total produced or imported, used in
business tax due for the year?

Page 1 of 8

Page 2 of 11
the manufacture of finished P15,000 while others are leased
feeds out for more than P15,000 per
d. Specialty feeds. unit, his tax liability will be:
a. The gross receipts from
15. Which of the following rentals not exceeding
transactions is exempt from value P15,000 per month per unit
added tax. shall be exempt from vat
a. Sale by an art gallery of regardless of the aggregate
literary works, musical annual gross receipts.
composition, work of art and b. The gross receipts from
similar creations, or devices rentals exceeding P15,000
performed for the production per month per unit shall be
of such works. subject to vat if the annual
b. Medical, dental hospital and gross receipts from said units
veterinary professional including the gross receipts
services. from units leased out for not
c. Sale of cotton and cotton more than P15,000 exceed
seeds in their original state. P3,000,000.
d. Sale of books and any c. Both statements are correct.
newspaper, magazine, review d. Both statements are incorrect
or bulletin, which appears at
regular intervals with, fixed 19. In 2018, a real estate dealer sold
prices for subscription and two (2) adjacent residential lots
sale which is not devoted in the city for a price of P800,000
principally to the publication each, or a total price of
of paid advertisements. P1,600,000, to a vendee who
intends to erect his residential
16. Statement 1: Sale by agricultural house thereon.
cooperatives to nonmembers can The sale
only be exempted from VAT if the shall be
producer of the agricultural classified as
products sold is the cooperative a: a. 12%
itself. If the cooperative is not the VAT
producer (e.g. trader), then only transactions
those sales to its members shall b. 0% VAT transactions
be exempted from VAT. c. VAT exempt transactions
Statement 2: Sale or importation d. None of the foregoing
of agricultural food products in
their original state is exempt from 20. A subdivision developer sold five
VAT irrespective of the seller and (5) residential house and lots,
buyer thereof. each to different vendees, for
a. true, true c. false, false P3,000,000 per lot, or a total
b. true, false d. false, true sales of P15,000,000 during 2019
taxable year. These sales shall
17. Determine the business taxes in be:
2018 of the following: a. Subject to 12% VAT
I.Lease of residential units with a transactions
monthly rental per unit not b. Classified as zero-rated
exceeding P15,000 transactions
(regardless aggregate annual c. Under VAT exempt
gross rentals). transactions
II.Lease of residential units with a d. None of the foregoing
monthly rental per unit
exceeding P15,000 but the 21. Camella realty corporation sold
aggregate of such rentals the following real properties
during the year do not exceed during the 2019 taxable year: 2
P3,000,000. units of residential house and lot
III.Lease of commercial units P6,000,000 at P3,000,000 each
regardless of monthly rental 4 residential lots at P2,000,000 each
per unit. 8,000,000
A B C 1 commercial lot at P3,000,000
3,000,000
I None None None
II Vat OPT OPT How much is the total amount of
III Vat OPT Vat transactions subject to VAT?
a. P6,000,000 c.
18. In cases where a lessor in 2018 P11,000,000
taxable year has several b. P8,000,000 d.
residential units for lease, some P17,000,000
are leased out for a monthly
rental per unit not exceeding

Page 3 of 11
22. Which of the following parcel of land held for sale to his
transactions of a VAT-registered son as gift on account of his
seller is not subject to VAT? graduation. For VAT purposes,
a. Remaining inventory upon the transfer is:
retirement from business a. Not subject to VAT because it
b. Sale of company’s used car to is a gift
its officers b. Subject to VAT because it is a
c. Sale of goods or services to deemed sale transaction
the national c. Not subject to VAT because it
government is subject to gift tax
d. Sale of residential lot d. Subject to VAT because it is
amounting to P1,000,000 considered an actual sale

28. One of the following is not a

23. The value added tax due on the transaction deemed sale:
sale of taxable goods, property a. Transfer, use or consumption
and services by any person not in the course of business
whether or not he has taken the of goods or properties
necessary steps to be registered. originally intended for sale or
a. input tax c. excise tax for use in the course of
b. output tax d. sales tax business.
b. Distribution or transfer to
24. Gross selling price includes all of shareholders or investors of
the following, except: goods or properties as share
a. Total amount which the in the profits of a VAT-
purchaser pays to the seller. registered person or creditors
b. Total amount which the in payment of debt.
purchaser is obligated to pay c. Retirement from or cessation
to the seller. from business with respect to
c. Excise tax. all goods on hand as of the
d. Value-added tax. date of such retirement or
cessation.
d. Consignment of goods if
25. Which of the following is not
actual sale is made within 60
deductible from Gross Selling
days following the date such
Price for vat purposes?
goods were consigned.
a. Discounts determined and
granted at the time of sale,
29. Genson Distribution Inc., a VAT
which are expressly indicated
taxpayer, had the following data
in the invoice, the amount
in a month:
thereof forming part of the
Cash sales P200,000
gross sales duly recorded in
Open account sales 500,000
the books of accounts.
Consignment:
b. Discount determined and
0 to 30 days old (on which there
granted after the agreed sales
were remittances from
quota is met by the buyer.
c. Sales discount indicated in consignees of P200,000) 600,000
the invoice at the time of 31 to 60 days old 700,000
sale, the grant of which is not 61 days old and above 900,000
dependent upon the
happening of a future event, How much is the output tax?
deductible within the same a. P348,000 c.
month or quarter given. P264,000
d. Sales returns and allowances b. P216,000 d.
for which a proper credit or P108,000
refund was made during the
month or quarter to the buyer 30. The following are the data of
for sales previously recorded Davao Appliances Marketing Co.
as taxable sales. for the last quarter of 2018:
Sales up to December 15, total
26. On January 5, 2018, Towell Co., invoice value
VAT-registered, sold on account P380,800
goods for P112,000, gross of Purchases up to December 15,
VAT. The term was: 2/10, n/30. net
Payment was made on January of input taxes
10, 2018. The total amount due 150,000
is:
a. P110,000 c. P112,000 Additional information:
b. P107,800 d. P109,760 On December 16, 2018, the
Company retired from its
27. Mr. Andres, VAT-registered real business and the inventory
estate dealer, transferred a valued at P190,000 remained

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unsold. There is a deferred input over to the succeeding
tax from the third quarter of month.
P3,500. b. The excess input taxes of a
taxable quarter arising from
How much is the total value- domestic sales may be carried
added taxes payable by Davao over to the succeeding
Appliances Marketing Co.? quarter.
a. P42,100 c. P22,800 c. The excess input taxes of a
b. P21,500 d. P19,300 taxable period arising from
domestic sales is refundable.
31. Evelyn, a trader of appliances, d. The excess input taxes of a
made the following sales of goods payable period arising
during the month of March 2018, from exports sales may be
exclusive of VAT: refunded.
Cash sales
Open account sales 36. Magnifeco Corp. is a VAT-
Installment sales registered dealer of appliances.
Note: Receipt from installment The following data are for the last
sales is P20,000 quarter of 2018:
Consignment made: (net of VAT) Sales, total invoice value
January 15, 2018 P6,920,000
February 15, 2018 Purchases, net of input taxes
March 15, 2018 5,500,000
Output tax is: Sales return, total invoice value
a. P60,000 c. P72,000 200,000
b. P40,800 d. P64,800 Purchase return, net of VAT
300,000
32. Construction by Mikee-Mega Deferred input taxes
Builders (MMB) of concrete (carried over from the
barrier for the Asian Development third quarter of 2018)
Bank (ADB) in Ortigas Center to 12,000
prevent car bombs from ramming
the ADB gates along ADB avenue The value added tax payable for
in the last quarter of 2018 by
Mandaluyong City is subject to Magnifeco Corp. is:
what business tax? a. P84,000 c. P108,000
a. 12% vat c. exempt b. P96,000 d. P130,500
from vat
b. 0%vat d. 3% OPT 37. CG Corporation is a vat registered
entity with the following data for
33. Any input tax attributable to a taxable month:
zero-rated sales by a VAT- Domestic sales
registered person may at his Transaction deemed sales 500,000
option be: a. Deducted from Export sales 500,000
output tax Sales to DEF, an export oriented 500,000
b. Refunded enterprises
c. Converted into tax credit (2/3 of DEF’s annual output is actually
certificate which may be used exported)
in payment of internal Purchases (invoice cost from vat 224,000
revenue taxes. registered entities)
d. All of the above Purchases (invoice cost from non-vat 100,000
registered entities)
34. Tax credit for input taxes shall be
allowed if: The vat payable of CG should be
a. Both the seller and the a. P180,000 c. P120,000
purchaser are VATregistered b. P156,000 d. P108,000
b. Either one of the seller or the
purchaser is VATregistered. 38. The vat on importation of goods
c. Neither one of the seller or which are subsequently used or
the purchaser is sold in the course of trade or
VATregistered as long as VAT business by a vat registered
invoice is issued. importer shall be treated as
d. The seller is VAT-registered I. Tax credit
regardless of whether the II. Inventoriable cost
purchaser is VAT-registered III. Expense
or not. a. I only c. III only
b. II only d. none of
35. Which statement is not correct? the above
a. The excess input taxes of a
taxable month arising from 39. Which of the following statements
domestic sales may be carried is incorrect?

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a. VAT on importation is paid to
the Bureau of Customs before
the imported goods are The Company spent P5,000 for
released from its custody. trucking from the customs
b. When a person who enjoys warehouse to its warehouse in
tax-exemption on his Quezon City. The carrier is not
importation subsequently subject to VAT.
sells in the Philippines such
imported articles to non- The VAT on importation is:
exempt persons, the a. P60,000 c.
purchaser-non-exempt P60,600
person shall pay the VAT on b. P42,000 d.
such importation. P80,000
c. Expenses incurred after the
goods are released from 43. Based on the preceding number,
Customs custody are if the imported article was sold
disregarded in computing VAT for P800,000, VAT exclusive, the
on importation. VAT payable is:
d. Imported goods which are a. P24,000 c.
subject to excise tax are no P36,000
longer subject to value-added b. P12,000 d.
tax. P11,040

40. Bryan, vat registered person,

imported machines from Australia 44. Sofia had the following data for
as follows: the month of June (all amounts
Machine Acquisition Cost are vat exclusive):
Purpose CASE 1 CASE 2
A P100,000 Sales P1,900,000 P1,800,000
Personal use Purchases of goods 1,260,000 1,600,000
B 200,000 for sale
Business use Purchases of 1,440,000 900,000
C 300,000 machines
For sale Machine life 6 years 3 years

The importations were The amounts of vat

subjected to 50% excise tax payable(excess tax) shall be:
based on purchase price. (a) (b) (c) (d)
Machine C was sold for CASE 1 P54,000
P1,000,000 exclusive of vat. P73,920 P73,920
How much is the vat paid to None
the BOC? CASE 2 (84,000) (84,000)
a. P108,000 c. 20,000 None
P54,000
b. P90,000 d. 45. Maymay, VAT-registered,
P36,000 made the following
41. Using the above data, the purchases during the month of
amount of vat to be remitted to January, 2018:
the BIR should be Goods for sale, inclusive of VAT P 246,400
a. P12,000 c. Supplies, exclusive of VAT 20, 000
P106,000 Packaging materials, total invoice
b. P30,000 d. amount 56, 000
P84,000 Home appliances for residence,
gross of VAT 17,920
42. World Power Corp. imported an Office machines (5 pcs.), 8 years 2,000,000
article from Japan. The invoice useful life, net of VAT
value of the imported articles was
$7,000 ($1- P50). The following Repair of store amounted to
were incurred in connection with P20,000, no supporting official
the importation: receipt. Creditable Input taxes
Insurance are:
P 15,000
Freight from Japan 10,000 a. P38,800 c. P37,440
Postage 5,000 b. P34,800 d. P35,520
Wharfage 7,000
Arrastre charges 46. All of the following are allowed
8,000
Brokerage fee presumptive input tax, except for
25,000
Facilitation fee one.
3,000
a. Processor of sardines,
The imported article was imposed mackerel and milk.
P50,000 customs duty and b. Manufacturer of refined sugar
P30,000 excise tax. and cooking oil.

Page 6 of 11
c. Producers/manufacturers of subsequently registered as
packed noodles. vat taxpayer.
d. Supplier of books and other
school supplies. 50. Which of the following shall be
included in the beginning
47. Mantika Corp., a VAT-registered inventory for purposes of
Corp., is a producer of cooking oil determining the transitional input
from coconut and corn. It had the vat?
following data for the month of a. Goods purchased for resale in
January 2018: the ordinary course of trade
or business.
Sales, gross of VAT P784,000 b. Materials purchased for
Corn & Coconut, 12-31-17 further processing which have
50,000 not yet undergone processing
Purchases of Corn & Coconut c. Goods which have been
330,000 manufactured by the
Corn & Coconut, 1-31-18 taxpayer
20,000 Purchases from VAT d. All of the above
suppliers, VAT included:
Packaging Materials 51. A taxpayer registered under the
56,000 VAT system on January 1, 2018.
Supplies 16,800 His records during the month
show:
The value-added tax payable for Value of inventory as of December
the month: 31,
a. P56,060 c. 2017 purchased from VAT-registered
P60,650 P112,000
b. P54,900 d. persons
P63,000
VAT paid on inventory as of December 31,
2017 12,000
48. Taxpayers who became VAT
registered persons upon Value of inventory as of December 31,
exceeding the minimum turn- 2017 purchased, from non-VAT persons 518,000
over of P3,000,000 in any 12- Sales, net of VAT 240,000
month period, or who voluntarily Sales, gross of VAT 45,920
register even if their turnover Purchases, net of VAT 70,000
does not exceed P3,000,000 shall Purchases of VAT exempt goods 50,000
be entitled to a transitional input
tax on the inventory on hand as VAT payable is:
of the effectivity of their vat a. P23,080 c. P12,720
registration on the following, b. P25,320 d. P12,320
except; 52. Dong Inc., a manufacturer, had
a. Supplies for use in the course the following data for the first
of taxpayer’s trade or month of 2018: (First year as a
business VAT Taxpayer) Sales:
b. Goods which have been Exports P2,000,000 Domestics
manufactured by the (Without VAT) 1,000,000
taxpayer Purchases, excluding VAT:
c. Goods in process for sale Raw Materials
d. Capital goods being used in 300,000
the operation of the Services
business 100,000
Machinery
49. Transitional input tax can be (estimated useful life 2 years)
claimed as deduction from output 400,000
tax. Which of the following
statements is correct? On January 1, 2018, the company
a. It can be claimed by a vat had inventories and taxes paid
registrable person. thereon as follows:
b. It can be claimed by a Cost
taxpayer who registered as VAT Paid Raw
vat taxpayer from the Materials P120,000
inception of business. P2,000
c. It can be claimed by a Supplies 40,000
taxpayer who is initially 4,000
subject to vat and
subsequently cancelled his During the month, raw materials
vat registration. were purchased from another
d. It can be claimed by a enterprise with a total invoice
taxpayer who is initially value of P61,600, not included
paying percentage tax and above.

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56. How much is the output tax?
The VAT payable by Dong Inc. is: a. P300,000 c.
a. P72,000 c. P11,000 P420,000
b. P57,000 d. P66,000 b. P120,000 d. nil

53. What institution is required to 57. How much is the standard input
deduct and withhold a final VAT tax?
of 5% on the purchase of goods a. P20,000 c.
or services subject to VAT? P50,000
a. National government or any b. P70,000 d. nil
political subdivision thereof
b. Government-owned or 58. How much is the creditable input
controlled corporations tax?
c. Both (a) and (b) a. P166,000 c.
d. Neither (a) nor (b) P70,000
b. P96,000 d.
54. The withholding agent of P180,000
creditable value added tax is
required to remit the amount of 59. How much is the input tax closed
value added tax withheld within to (expense) income?
a. 25 days following the end of a. P14,000 c.
month the withholding was (P14,000)
made b. P34,000 d.
b. 20 days following the end of (P34,000)
month the withholding was
made 60. How much is the VAT payable to
c. 15 days following the end of the BIR?
month the withholding was a. P404,000 c.
made P204,000
d. 10 days following the end of b. P390,000 d. nil
month the withholding
was made 61. A VAT-registered trader has the
following transactions for the
55. A VAT-registered supplier sold month of July 2019:
goods amounting to P500,000 to Sale of goods to private entities, P2,500,000
a government-controlled net of VAT
corporation during a particular Purchases of goods sold to 896,000
quarter. Which of the following private entities, gross of 12%
statements is incorrect in relation VAT
to the sale in relation to the sale Sales to a government owned 1,500,000
of goods? corporation (GOCC), net of VAT
a. The sale is subject to final Purchases of goods sold to GOCC, 700,000
withholding VAT. net of 12% VAT
b. The government-controlled Purchases of Machineries, gross of 11,200,000
corporation will withhold
VAT, useful life is 6 years
P25,000 withholding VAT.
c. The government-controlled
How much is the VAT payable to the
corporation shall remit the
BIR?
withholding of VAT to the BIR
a. P280,000 c. P191,500
within 10 days following the
b. P224,000 d. P300,000
end of the month the
withholding was made.
62. Based on the preceding number,
d. The VAT-registered supplier
how much is the input tax closed
may refuse the withholding of
to (expense) income?
VAT as long as it is willing to
a. (P13,500) c. P13,500
pay the full 12% VAT.
b. P21,000 d.
(P21,000)
Use the following data for the next
two questions:
63. PISC, a vat- registered
A VAT-registered trader has the
government owned or controlled
following transactions:
corporation (GOCC), sold goods
Sales of good to private entities,
to Alpha Corporation, a private
net of VAT
company. Selling price is
Purchases of goods sold to
P1,000,000 while the cost (all
private entities, gross of 12%
purchased from vatregistered
VAT
suppliers) is P800,000. How
Sales to a government owned
much is the VAT-payable by
corporation (GOCC), net of VAT PISC?
Purchases of goods sold to a. P120,000 c. P24,000
GOCC, net of 12% VAT b. P50,000 d. P0

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Use the following data for the next a. P576,000 c.
two questions: Alpha Corporation P746,888
(vat registered) has the following b. P697,888 d.
data for the month: P620,000
Sales – private entities
Sales – vat exempt goods 69. Data from the books of accounts
Sales – government of a VAT taxpayer for a month:
Domestic Exports
The following input taxes were Sales P2,000,000 8,000,000
passed-on by vat suppliers to Alpha Purchases:
Corporation during the month: From VAT Suppliers:
Input vat on taxable goods Goods for sale 600,000 2,400,000
Input vat on sale of exempt goods Supplies & services 90,000 360,000
Input vat on sale to the government From Suppliers
Input tax on depreciable capitalpaying percentage tax:
goods not directly attributable to any Goods for sale 100,000 1,500,000
specific activity (monthly amortization Supplies & services 20,000 80,000
for 60 months)
If the input taxes attributable to
64. The vat payable for the month is zero-rated sales are claimed as
a. P40,000 c. tax credit, the net value-added
P160,000 tax refundable is:
b. P80,000 d. nil a. P136,000 c.
65. The amount of input vat not P145,000
available for tax credit but may b. P203,924.70 d.
be recognized as cost or expense P174,000
is:
a. P60,000 c. 70. Rommel is an operator of taxi
P80,000 cabs. During a particular month,
b. P70,000 d. he purchased from Mahindra, a
P140,000 VAT-registered car dealer, 10
sedan type units for a total selling
66. Leomar, a VAT-registered person price of 5 million pesos. The
has the following data: estimated useful life of each
vehicle is four (4) years. How
Export sales, total invoice amount much will be the amount due
P3,000,000 from Rommel?
Domestic sales, total invoice a. P5,600,000 c.
amount 6,720,000 Purchases P5,000,000
used to manufacture Goods b. P5,150,000 d.
for export and domestic P4,480,000
sales:
Raw Materials, VAT inclusive 71. Based on the preceding number,
616,000 how much input tax can be
Supplies, VAT inclusive claimed by Rommel?
448,000 a. P600,000 c. P150,000
Equipment, VAT exclusive b. P12,500 d. P0
300,000
72. Kaktus Realty Inc. developed a
The amount of input tax which condominium in Manila. During
can be refunded or converted into the month of January 2013, it
tax credit certificates at the had the following data (VAT
option of Leomar is: included,if applicable):
a. P120,000 c.
P39,600
b. P118,800 d. Cash sale of a 3 bedroom unit
P50,000 P5,040,000 Sale of parking
lot 560,000
67. Based on the preceding number, Installment sale of 2 bedroom
if the refundable input taxes were unit (initial payments
not refunded but used as tax exceed
credit, the VAT due is: 25% of the selling price)
a. P576,000 c. 3,920,000
P666,888
b. P697,888 d. The 3 bedroom unit sold for cash
P570,000 had a zonal value of P5,000,000
and the 2 bedroom unit had a fair
68. But assuming further that the market value per Tax Declaration
taxpayer opted to claim them as of P3,000,000.
refund, the VAT due is:

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How much is the output tax for (amounts presented are gross of
the month? vat if applicable):
a. P920,000 c. Sales, vat business P896,000
P1,020,000 Sales, non-vat business 200,000
b. P900,000 d. Purchases of goods, vat business 224,000
P1,080,000 Purchases of goods, nonvat 33,600
business
73. Bahay Kubo Inc. is a real estate Purchase of depreciable asset, for 112,000
dealer. Details of its sales during use in vat and non vat business
the year showed the following: Purchases of supplies, for vat and 2,240
non vat business
Date of sale June 2, 2018 Rental of premises, for vat and non 22,400
Consideration in the deed of vat business, from non vat lessor
sale P5,000,000 Fair market
value in the assessment The value added tax payable
4,800,000 rolls is
Zonal Value 5,200,000 a. P59,808 c. P82,608
Schedule of payments: b. P62,208 d. P86,208
June 2, 2018 1,000,000
June 2, 2019 2,000,000 78. Tore Inc., a building contractor,
June 2, 2020 2,000,000 showed to you the following data
for the month of August 2015:
How much is the output tax to be Cash received, gross of VAT 2,240,000
recognized for the June 2, 2020 Receivables, net of VAT 3,000,000
payment? Advances on other contracts still 1,000,000
a. P0 c. P249,600 unearned (w/o VAT)
b. P24,000 d. P624,000
Unpaid Purchases:
74. Assuming that the scheduled For materials, VAT excluded 500,000
payment on June 2, 2018 is For supplies, VAT excluded 100,000
P2,000,000, how much is the
For services of sub-contractors 1,848,000
output tax to be recognized for
(VAT included)
the June 2, 2020 payment?
a. P0 c. P249,600
Payments for purchases made in
b. P24,000 d. P624,000
July:
Materials, gross of VAT 369,600
Use the following data for the next
Services of subcontractors, net of 495,000
two (2) questions:
VAT
JJ is a real estate dealer. During the
month of October 2018, he sold three
How much is the value added
(3) commercial lots under the
tax payable?
following terms:
a. P360,000 c. P330,000
Lot 1 Lot 2
b. P228,600 d. P90,000
Selling Price P250,000 P200,000
Cost 150,000 130,000 79. Cebu Airlines is a corporation
175,000 70,000
organized in the Philippines.
Gain/Loss 100,000
It has the following data for the
Terms:
taxable year 2018:
Down, Oct. 5 25,000 50,000
Due:
Passengers Fare (Net of VAT):
12/05/ 2016 25,000 20,000
Flights from Philippines to P8,000,000
Year 2017 200,000 130,000
Hongkong
Zonal Value 350,000 260,000
Flights from Hongkong to 8,000,000
Philippines
75. How much is the Output tax for
Domestic Flights (gross of 2% 3,000,000
the month of October?
withholding tax)
a. P26,500
c. P31,800
Fares from cargoes & mails (Net of
b. P34,800
VAT):
d. P40,200
Flights from Philippines to P1,000,000
Hongkong
76. The Output tax for December is
c. P5,400 Flights from Hongkong to 1,500,000
c. P6,600 Philippines
d. P4,500 Domestic Flights (gross of 2% 800,000
d. none withholding tax)
Other Income:
77. Data for a trader with one line of Interest income from bank 800,000
business subject to value added deposits
tax and another line of business Rent income 500,000
not subject to value added tax

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How much is the Output Tax? surgery on the legs of Loyd, a
a. P456,000 c. person with disability. The total
P420,000 cost of medical operation
b. P516,000 d. P0 inclusive of vat was P560,000 .
Being a disabled person, Loyd
80. If a dealer in securities sold received 20% discount from
shares in the local stock Gabriana. How much is the total
exchange, what business tax will amount to be paid by Loyd?
apply to such transaction? a. P400,000 c. P500,000
a. VAT based on Gross Selling b. P448,000 d. P560,000
Price
b. VAT based on gain Use the following data for the next
c. Capital Gains Tax two questions: Alpha Corporation
d. Stock Transaction Tax of 6/10 (vat registered) has the following
of 1% data for the month:
Sales – private entities and
81. The Commissioner or his P2,000,000
authorized representative is individuals (10% to senior
empowered to suspend the citizens)
business operations and Sales – vat exempt goods
temporarily close the business 1,000,000
establishment of any person for: Sales – government
a. Failure to issue receipts or
invoices of a VAT- The following input taxes were
registered entity. passed-on by vat suppliers to Alpha
b. Failure to file a VAT-return Corporation during the month: Input
for VAT-registered person vat on goods sold to private
as required by the tax P120,000 entities and individuals
code. Input vat on sale of exempt goods
c. Understatement of taxable 20,000
sales or receipts by thirty Input vat on sale to the government
percent (30%) or more of 100,000
his correct taxable sales or
receipts for the taxable 86. The vat payable for the month is
quarter a. P216,000 c. P96,000
d. All of the above b. P108,000 d. P36,000

82. Lola Lita, a senior citizen, bought 87. The amount of input vat not
a medicine with a selling price of available for tax credit but may
P9,520 inclusive of VAT. How be recognized as cost or expense
much is the net amount to be is:
paid by Lola? a. P20,000 c. P62,000
a. P8,500 c. P6,916 b. P50,000 d. nil
b. P7,616 d. P6,800

83. Lolo Sot, a senior citizen went to

Jollibee to treat his 4
grandchildren on account of his
retirement. They consumed food
and beverages with gross amount
of P1,120 inclusive of VAT. How
much is amount to be paid by lolo
Sot?
a. P896 c. P1,056
b. P920 d. P1,100

84. Lola Trining brought her

granddaughter to Jollibee for a
treat. Her granddaughter
requested that they both order
kiddie meals so that the latter will
have two (2) new toys since each
meal have a free one. The price
of each meal is P120, net of VAT.
How much is the amount due
from Lola Trining?
a. P268.8 c. P240
b. P230.4 d. P192

85. Gabriana Clinic, a VAT-registered

entity, performed a prosthetic

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