MULTIPLE CHOICE PROBLEM PART 1

1. Free company, a resident business renders services to Mr. Erlwin, a

resident person who is not engaged in business.
Which of the following is subject to consumption tax?
a. Free company
b. Mr. Erlwin
c. Both A and B
d. Neither A nor B

2. Baliwag Company , a non resident business, purchased P200,000

from Cauayan company, a resident business. Which will pay the
consumption tax on this transaction?
a. Cauayan Company
b. Baliwag company
c. Both A and B
d. Neither A nor B

3. Heidenberg corporation , a resident business , purchased P 100,000

goods from Kiwi Company , a non resident business. Which will pay
consumption tax on this transaction?
a. Heidenberg company
b. Kiwi Corporation
c. Both A and B
d. Neither A nor B

4. Mr. Cedric, an employee sold his residential lot to Mrs. Corneto a real
property dealer . Which is subject to consumption tax with respect to
this transaction?
a. Mr. Cedric
b. Mrs. Corneto
c. A and B
d. Neither A nor B

5. Mr. Bangus made a casual sale involving a car to Mrs. Tulya, a

resident buyer. Mr. Bangus is not a car dealer . Which is subject to
consumption tax?
a. Mr Bangus
b. Mrs. Tulya
c. Both Mr Bangus and Mrs Tulya.
d. Neither Mr. Bangus nor Mrs.Tulya

6. Mr. Cavite produces an excisable article for the sale in the Philippine
market. Which is incorrect with respect to Mr. Cavite’s business
taxation?
a. Mr. Cavite subject to either VAT or percentage tax
b. Mr . Cavite pays excise tax in addition to VAT or percentage tax
c. Mr. Cavite pays excise tax in addition to VAT and percentage tax.
d. Mr. Cavite will pay excise tax without regard to whether he is a VAT
or non VAT taxpayer.

7. A person engaged in business is subject to 3% business tax. He has

inventories of goods in his possession which cost 77,600 which he
intends to sell to earn mark up of 25% of cost net of the 3% business
tax?
a.P100,000
b.P103,000
c.P 97,000
d. P 110, 000

8. A business wants to make P10,000 profit from the sale of an

inventory costing P 30,000 . The business is subject to 3% percentage
tax.
At what amount shall the business invoice the sale?
a. P 41,237
b. P 41,200
c. P 40,000
d.P 38,800

9. A person who imports goods or properties will more likely to pay

a. a 3% percentage tax on the importation
b. a 12% VAT on the importation
c. either 3% or 12% tax on the importation
d. no consumption tax

10. A person who is not regularly engaged trade or business sells made
a casual sale of property for P 100,000. What will be invoice price of
the sale?
a.100,000
b.103,000
c. 112,000
d. Either B or C

11. Alison is regularly engaged in the sales of goods. He will pay

a. P 0
b. P 3,000
c. P 6,180
d P 12,000

12. Mr. Ventura is subject to 3% percentage tax. He made total

collection of P206,000 during a month and paid P103,000 in purchases.
Compute his percentage tax.
a. P 0
b. P 3,000
c. P 6,180
d. P 12,000

13. A business taxpayer purchased P120,000 from non residents and

sold goods worth P140 000 for 180,000
What is the concept of “value added “ for VAT purposes?
a. 200,000
b. 140,000
c. 80 000
d. 60 000

14. In the immediately preceding problem, what is the basis of

percentage tax?
a. 200 000
b. 140 000
c. 120 000
d. 180 000

15. Assuming the same data in the above problem , what is the basis of
the VAT om importation?
a. 200 000
b. 140 000
c. 120 000
d. 80 000
16. Mr. Coroneti imported P 300 000 equipment for business use and a
P 1 200 000 car for personal use. What is the amount subject to the
VAT on importation?
a .0
b .300 000
c .1 200 000
d. 1 500 000

MULTIPLE CHOICE PART 2

BASIC CASE 1
1. A business taxpayer had the following purchase and receipts:
Import of goods or services P 190 000
Domestic purchase of goods or services P 100 000
Domestic sales of goods and services P150 000
Export Sales of goods or services P 50 000

Determine the total amout of which will be subject to consumption tax

to the business tax payer.
a. 500 000
b. 400 000
c. 350 000
d. 340 000
2. In the immediately preceding problem , determine the amount
subject to consumption tax if the tax payer is not engaged in business/
a. 490 000
b. 390 000
c. 200 000
d. 190 000

Basic Case 2

3. A VAT – registered taxpayer recorded the following sales and

purchases during the month
Sales P 300 000
Purchases P 200 000
All amounts above are exclusive of any VAT.
What would be the Output VAT?
a. 48 000
b. 36 000
c. 24 000
d. 12 000

4. What is the Input VAT ?

a. 48 000
b. 36 000
c. 24 000
d. 12 000

5. What is the VAT payable ?

a. 48 000
b. 36 000
c. 24 000
d. 12 000
6. Assuming the taxpayer is a non vat taxpayer paying 3% percentage
tax, the percentage tax shall be
a. 12 000
b. 9 000
c. 6,000
d. 3,000

Basic Case 3
A business taxpayer recorded the following transactions during the
month:
Philippines Abroad Total
Sales 350 000 200 000 550 000
Purchases 150 000 100 000 250 000
TOTAL 500 000 300 000 800 000
Assuming that taxpayer is a Vat registered taxpayer
7. Compute the Output VAT.
a. 0
b. 24 000
c. 36 000
d. 42 000

8. Compute the VAT on importation .

a. 0
b. 12 000
c. 18 000
d. 32 000
Assuming the taxpayer is a non VAT taxpayer
9. Compute the percentage tax.
a. 0
b. 6000
c. 9000
d. 10 500

10. Compute the VAT on importation.

a. 0
b. 3000
c. 12 000
d. 18 000

BASIC CASE 4
Sandigan Company a VAT registered taxpayer , purchased 400 000
worth of goods and sold at the same for P 800 000
11. Assuming that the business operation of Sandigan company is
limited to Philippine residents , what is the total business tax it will
report on its sales?
a. 96 000
b. 48 000
c. 24 000
d. 0
12. Assuming that the purchases were import and the sales were
exports compute the business tax and total consumption tax
respectively.
a P 96 000 : P 144 000
b. P 24 000 : P 144 000
c. P 24 000 : P 72 000
d. P 0 : 48 000