Professional Documents
Culture Documents
Tax Chapter 2
Tax Chapter 2
a. Charcoal
b. Wood
c. Lumber
d. Corn
c. Both A and B
d. Neither A nor B
a. Books
b. Table sugar
c. Mushroom
d. Ordinary salt
a. Chicken manure
b. Eggs
c. Live hogs
d. Cattle
a. Grapes
b. Orange
c. Orchids
d. Kiwi fruit
b. Pomelo seedlings
c. Narra seedlings
d. Guava seedlings
a. Rubber hem
b. Abaca hem
c. Copra
d. Firewood
9. Which is vatable?
a. Bamboo shoots
b. Banana hearts
c. Banana fruits
d. Bamboo poles
b. Cotton seeds
c. Cotton wool
d. None of these
a. Sheep
b. Sheep wool
d. All of these
a. Coconut lumber
c. Coconut shells
d. Coconut meat
a. Wheat
b. Coffee bean
c. Barley
d. Cocoa
a. Honey
b. Rattan cane
c. Sugar cane
d. Sugar beets
15. Which is subject to VAT on importation?
a. Cocoon silk
b. Pineapple silk
c. Furniture
d. All of these
a. Rubber tree
b. Paper tree
d. Mahogany tree
a. Rubber
b. Corn
c. Cacao
d. Peanut
18. Feeds of the following animals are considered as specialty feeds, except for
a. Zoo animals
b. Aquarium fish
c. Livestock
d. Fighting cocks
a. Corn seeds
b. Mustard seeds
c. Flower seeds
d. Cabbage seeds
b. Corn grits
c. Swine feeds
d. Broiler feeds
Multiple Choice: Theory- Agricultural or marine food products: Part 2
a. Peacock feathers
b. Eggs
c. Hamster
d. Leather
a. Tea leaves
b. Tobacco leaves
c. Cayenne pepper
d. Chinese cabbage
a. Almonds
b. Blueberries
c. Ginseng roots
d. All of these
a. Sunflower seeds
b. Bees wax
c. Peanut
d. None of these
a. Rabbit
b. Zoo animals
c. Race horse
d. Fighting cocks
a. Love birds
b. Parrots
c. Goldfish
d. Milkfish
a. Ducks
b. Geese
c. Turkeys
a. Cow
b. Rabbit
c. Goat
d. Race horse
a. Fertilizer
b. Pesticides
c. Seeds
d. Seedlings
10. The following are generally considered as pets hence vatable when imported except for
a. Janitor fish
b. Goldfish
c. Catfish
d. Koi fish
a. Yellowfin tuna
b. Pink salmon
c. Blue marlin
d. Butterfly fish
a. Kelp
b. Sea lettuce
c. Sea grapes
d. All of these
a. Sea shells
b. Octopus
c. Squid
d. Shrimps
a. A and D
b. B and C
c. All of these
d. None of these
15. Which of these agricultural products is not considered as in its original state?
a. Kopra
b. Muscovado sugar
c. Refined sugar
d. Ordinary salt
16. By revenue regulation, which of the items below is not considered original state?
a. Marinated fish
b. Dried fish
c. Frozen meat
d. Smoked fish
b. Olive oil
c. Butter
d. Parmesan cheese
a. Shrink-wrapped meat
b. Vacuum-packed vegetables
d. Canned fruits
a. Freezing
b. Stripping
c. Broiling
d. Marinating
20. The following advanced technological means of packaging is deemed not to alter the nature of an
agricultural marine food products being in original state. Which is the exception?
a. Canning
b. Vacuum-packing
d. Tetra-packing
a. Importation of books
c. Importation of magazines
d. All of these
c. Importation of personal and household effects which are subject to custom duties
d. All of these
3. The importation of professional instruments and implements may be subject to VAT when the
b. Goods accompany the person or arrive within 30 days before and after his arrival.
d. All of these
d. All of these
a. Sea
b. Air
c. Land
d. A and B
a. Bus
b. Cars
c. Vessels
d. Aircraft
a. C and D
b. A and B
c. All of these
d. None of these
7. Which importer is exempt from VAT in importation of fuel, goods and supplies?
a. Domestic carriers
b. International carriers
c. Domestic carriers on their international operations
d. Either B and C
8. Which of the following items is subject to VAT on importation to an individual who is intending to settle
in the Philippines?
a. Vehicles
b. Professional instruments
c. Household effects
d. Personal effects
9. The importation of fuel, goods and supplies is not exempt from VAT when used in
a. Domestic operation
c. Household effects
d. Personal effects
d. Any of these
a. Vatable.
c. VAT exempt if the importer complies with maximum service life set by law.
d. Vatable if the importer complies with maximum sevice life set by law.
12. The importation of fuels, goods and supplies for domestic shipping or air transport operation is
a. Vatable.
13. The importation of farm machineries and equipment is exempt when imported by
c. An agricultural cooperative.
d. A or C
14. Who has the burden of proving exemption from VAT on importation?
a. The government
b. The importer-buyer
c. The seller
d. Both A and C
c. Importation of books
a. Purchase of services from a foreign service provider who is not engaged in business
b. Purchase of goods from a foreign service provider who is engaged in business abroad
d. None of these
18. Who shall pay the VAT on importation when a VAT on importation when a VAT-exempt entity
subsequently sells an imported article or goods to a non-exempt entity?
c. Both A and C
d. Neither A nor C
a. Dutiable value
b. Custom's duty
c. Excise tax
d. VAT
a. Purchase price
d. Cost of transporting the goods from customs warehouse the importer's warehouse or
residence
Multiple Choice- Problem 1
Total P440,000
a. P0
b. P120,000
c. P200,000
d. P320,000
2. Mr. A imported various personal and household effects with a value aggregating P400,000. P320,000 of
these was subjected to an 8% customs duty by the BOC. What is the VAT on importation?
a. P0
b. P41,472
c. P42,240
d. P48,000
Landed Cost
Books P 350,000
Total P 900,000
a. P 0
b. P 66,000
c. P 72,000
d. P 108,000
4. Mr. C, a VAT- registered food retailer, imported the following from China:
Landed Cost
Fruits P 250,000
Vegetables 180,000
Total 580,000
a. P 0 c. P 51,600
b. P 12,000 d. P 69,600
5. Alexis furnitures, a percentage taxpayer, imported the following household equipment:
Landed costs
Total 1,400,000
a. P 0
b. P 27,000
c. P 150,000
d. P 168,000
Landed Costs
Seeds P 400,000
Fertilizers 750,000
Total P1,850,000
a. P 0
b. P 42,000
c. P 72,000
d. P 84,000
Furniture P 600,000
Rattan 250,000
Lumber 450,000
a. P 30,000 c. P 156,000
b. P 72,000 d. P 204,000
8. Mr. Huligan imported rice from Vietnam. Details of his importation show the following:
a. P 0 c. P 126,000
b. P 120,000 d. P 128,400
9. An agricultural supply dealer imported the following:
a. P 0 c. P 42,000
b. P 36,000 d. P 102,000
10. The following data relates to the importation of cigarettes by Mr. Shinto:
a. P 120,000 c. P 180,000
b. P 156,000 d. P 216,000
Multiple Choice: Problems 2
1. Don Pepito imported a harvester from the United States with a total cost of P 1,100,000 before
Customs duties. The importation is subject to 10% Customs duties. What is the VAT on importation?
a. P 158,400 c. P 129,600
b. P 145,200 d. P0
2. In the immediately preceding problem, assuming that the importation is made by an agricultural
cooperative. What is the VAT on importation?
a. P 158,400 c. P 129,600
b. P 144,000 d. P 0
Books P 600,000
Total P 1,500,000
a. P 0 c. P 1,200,000
b. P 900,000 d. P 1,500,000
4. Mr. Juan Manuel Marquez arrives in the Philippines with an immigration visa. He had with him the
following:
a. P 0 c. P 300,000
b. P 200,000 d. P 550,000
5. Mr. Xhi, a non-VAT taxpayer, made the following domestic purchases of goods:
a. P 0 c. P 96,000
b. P 24,000 d. P 120,000
6. Atlantis Shipping Company imported P 3,000,000 worth of vessel fuels and supplies for domestic use.
The company earmarked 60% of this for domestic use while 40% is reserved for its international
operations.
a. P 0 c. P 216,000
b. P 144,000 d. P 360,000
7. Mr. Beer, a VAT- registered trader, imported an equipment with a dutiable value of $40,000 from
abroad. The importation is subject to P 100,000 BOC charges before 10% customs duties on dutiable value.
The exchange rate to the peso was P 43.00:$1.
a. P 218,400 c. P 232,400
b. P 227,040 d. P 239,040
8. If an importer paid 15% customs duties in the amount of P 24,000 plus P 134,000 charges in the Bureau
of Customs, what is the VAT on importation?
a. P 0 c. P 35,280
b. P 18,960 d. P 38,160
a. P 0 c. P 91,032.00
b. P 81,643.20 d. P 98,935.20
10. Mr. Dolinger imported various merchandise from abroad. The importation was invoiced at $ 5,000. Mr.
Dolinger also incurred the following costs of importation:
Insurance P 4,000
Freight P 15,000
Mr. Dolinger was also assessed P 24,000 and P 18,000 customs duties and excise tax, respectively. The
applicable exchange rate was P 42.50:$1
a. P 25,500
b. P 30,540
c. P 35,100
d. P 35,700