1.

 Which is not
not subject to output VAT?
VAT?
a. Direct export sales of goods
b. Cessation of status as VAT taxpayer with respect to all goods or properties on hand
c. Sale of residential lot for P1,500,0
P1,500,000
00
d. Sale of residential dwelling for P2,800,000
P2,800,000
2.  Which of the
the following
following is subject
subject to value added tax?
a. Importation of grapes and apples c. Sale of seaweeds
b. Sale of husked rice, corn grits and molasses d. Sale of fire wood and charcoal
3.  All of the following entities
entities are VAT-exempt,
VAT-exempt, except?
except?
a. Tagbilaran University, a proprietary educational institution
b. Notre Dame, a proprietary hospital
c. Philippine Airlines, a domestic air carrier
d. Bank of the Philippine Islands, a commercial bank
4.  Which is subject
subject to VAT?
VAT?
a. Life insurance companies
b. Operators of hotels, motels and inns
c. International air or sea carrier
d. Agricultural, credit or multi-purpose cooperative
5.  Which is not
not a transaction deemed sales?
a. Withdrawal of goods by the proprietor for personal use
b. Corporate merger or consolidatio
consolidationn
c. Retirement from or cessation of business
d. Declaring business properties as property dividends
6.  Which is notnot a zero-rated sale
sale of goods
goods or service?
a. Transmission of messages message originating from the Philippines to abroad other than news services,
embassies and diplomatic calls.
b. Sale of gold to the Bangko Sentral ng Pilipinas
c. Sale of electricity from hydropower and solar power plants
d. Transport of passengers by air or sea from Philippines to abroad
7.  Which is correct
correct statement?
a. If the monthly aggregate acquisition cost of capital goods exceeds P1,000,000,
P1,000,000, the input VAT shall be
allocated over a period of 60 months starting from the month of purchase.
b. The export sales of non-VAT taxpayers are exempt from VAT.
c. The excess of input VAT over standard input VAT on government sales is a taxable gain subject to income
tax.
d. Monthly VAT is due 25 days from the end of each month with the quarterly VAT payable 20 days from
the end of each quarter.
8.  Wendy shows the following
following input VAT
VAT during a quarter:
Deferred input VAT P 150,000
 Allocation of current input
input VAT:
- Regular sales P 200,000
- Zero-rated sales 300,000
- Sales to the government 100,000
- Exempt sales 50,000
Compute the creditable input VAT.
a. P800,000 c. P650,000
b. P700,000 d. P350,000

9.  Traders of which
which of the followi
following
ng is allowed
allowed presumptive
presumptive input VAT?
VAT?
1. Milk 3. Mackerel
2. Packed noodles 4. Raw sugar
a. All, except 4 c. All of these
b. All, except 2 d. None of these
 11. Mr. Juan Cruz, VAT-exempt, issued VAT invoice to Mr. S. Santos, VAT-registered trader. An a
consequence, Mr. Juan Cruz would:
 A. be liable to VAT without the benefit of input tax credit
B. not be liable to VAT because he is VAT-exempt
C. be liable to percentage tax, VAT, and a surcharge of 50%
D. not be liable to any business tax but may be liable to income tax

12.  Tarlac Company voluntarily registered to VAT. It has the following inventory at the start of the year:
Processed foods from VAT sellers P 11,200
Processed foods from non-VAT sellers 90,000
 Agricultural food products 200,000
Compute the transitional input VAT.
 A. P0 C. P2,000
B. P1,200 D. P6,000

13. Moses, Inc., a VAT registered trader, compiled the following payments on purchases during the year:
Payments for merchandise from VAT suppliers P 134,400
Payments merchandise from non-VAT suppliers 82,400
Landed cost of merchandise withdrawn from the BOC 224,000
 What is the creditable input VAT?
 A. P0 C. P45,760
B. P38,400 D. P50,108
14.  A customer ordered the following from a VAT-registered seller:
Eggs P 100,000
Dried fish 150,000
Marinated fish 200,000
Under current revenue regulations, what is the output VAT?
 A. P0 C. P24,000
B. P12,000 D. P36,000
15.  A trader of cooking oil which newly registered as VAT taxpayers shall not be allowed which of the
following?
a.  Transitional input VAT| c. Regular input VAT
b. Presumptive input VAT d. None of these

16.  The withheld final value added tax is

a. 7% of the sales made to government.
b. 3% of the sales made to government.
c. 5% of the sales made to the government.
d. 3% of the purchases on sales made to the government.

17.  Which is included in the VAT basis of the 2% transitional input VAT?
a. inventory of processed foods
b. inventory of fruits and vegetables
c. inventory of non-food goods
d. A and C

For items 18-20

 A VAT-registered corporation reports on a fiscal year. It made the following purchases of depreciable capital
goods in the quarter ending August 31, 2015 from VAT suppliers:
 June 2015
 Truck, estimated 10-year useful life P 700,000
Office equipment, estimated 4-year useful life 500,000
 August 2015
Office furniture, estimated 5-year useful life 600,000
 Assume all amounts are exclusive of VAT.
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.
Compute the total zero-rated sales.
a. P 420,000 c. P 1,270,000
b. P 820,000 d. P 1,570,000
22. Compute the output VAT.
a. P0 c. P 54,000
b. P 36,000 d. P 90,000

23. Mr. Dilloro imported various merchandise from abroad. The importation was invoiced at $ 5,000. Mr.
Dilloro also incurred the following costs of importation:
Insurance P 4,000
Freight 15,000
 Wharfage fee 4,000
 Arrastre charge 7,000
Brokerage fee 8,000
Facilitation fee 5,000
Mr. Dilloro was also assessed P 24,000 and P 18,000 customs duties and excise tax, respectively. The
applicable exchange rate was P42.50:$1.
 What is the VAT on importation?
a. P 25,500 c. P 35,100
b. P 30,540 d. P 35,700
24.  An agricultural supply dealer imported the following:
Corn grits P 200,000
Hog feeds 350,000
Specialty feeds 300,000
Compute the VAT on importation.
a. P 0 c. P42,000
b. P 36,000 d. P 102,000

25. Dan Agribusiness imported the following:

Landed cost
Seeds P 400,000
Fertilizers 850,000
Farming equipment 350,000
Herbicides and pesticides 250,000
 Total P 1,850,000
Compute the Output VAT.
a. P 0 c. P 72,000
b. P 42,000 d. P 120,000

26.  The NMRS Services, VAT-registered taxpyer, has the following data for the last quarter of 2008:
Cash sales, net of input tax P3,000,000
Installment sales, net of input tax (collections) P1,200,000
Deferred input tax, third quarter 2008 P 22,000
Purchases, total invoice value P3,920,000
Monthly VAT payments (October and November 2008) P 20,000
 The tax payable on or before January 25, 2009 is:
a. P13,000 c. P42,000
a. Transfer, use or consumption not in the 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 creditors in payment of debt.
c. Retirement from or cessation from business, with respect to all 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.
49.  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.
50.  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 purchase of raw materials.
b. Input tax on importation of supplies.
c. Input tax on zero-rated sales of goods or services.
d. Input tax on purchase of services.
51. Quarterly VAT return shall be filed on or before the
 A. 10th day from the end of each quarter
B. 20th day from the end of each quarter
C. 15th day from the end of each quarter
D. 25th day from the end of each quarter
52.  Value Added Tax is a / an
 A. Indirect tax C. Local tax
B. Direct tax D. Personal tax

53.  Also known as the “Consolidated VAT Regulation”

a. RR 16-2003 c. RR 18-2009
b. RR 16-2005 d. RR 18- 2013

54. Commissioner of Internal Revenue as of today is:

a. Caesar Dulay c.  Joel Tan Torres
b. Kim Henares d. Kenneth Cruz

55. Senate Bill Version of the Tax Reform for Acceleration and Inclusion
a. S.B 1592 b. S.B 1521 c. S.B 1234 d. S.B 3658
56.  Which of the following importation is subject to VAT?
 A. Importation of frozen meat.
B. Importation of bamboo poles.
C. Importation of apples from personal consumption.
D. Importation of grapes for sale.

57.  An importer wishes to withdraw its importation from the Bureau of Customs. The
imported goods were subjected to 10% customs duty in the amount of P12,500 and other
charges in the amount of P9,500. The VAT due is
 A. P12,500 C. P13,364
B. P17,640 D. P14,700

58. Beginning next year, if the TRAIN has to implemented the VAT threshold will be from P1,919,500
to ______________
a. P2,500,000 c. P3,500,000
b. P3,000,000 d. P4,000,000