Seatwork in Tax 2

Solve and show your solutions in good form. No solution, No credit

Answer the questions. For Nos. 1-5 (3 pts each); No. 6- (5 pts)

1. Mr. Ralph Co, a VAT registered person, exported all his manufactured products to Japan
amounting to P 6,000,000. Input taxes on his goods exported amounted to P 90,000.
Compute: Output tax, Input Tax and VAT payable
3 pts

Output Vat (0%) none

Less: Input Vat 90,000

Vat payable ₱90,000

2. Lou Geh, owner of Success Company has an annual gross receipt of sales amounting
to P 1,792,000 for 2019. Purchases amounted to P 784,000 for 2019. All receipts
inclusive of VAT.
Compute VAT payable for 2019. 3 pts

Output Vat (1,792,000 x 12%) 192,000

Less: Input Vat (784,000 x 12%) 84,000

Vat payable ₱108,000

3. Mr. S became subject to the value added tax on January 1, 2019. On that sale, he had
an inventory of merchandise with a value in the balance sheet of P 100,000, on which,
value added tax paid on purchases from VAT registered persons amounted to P 7,000.
How much is the input tax?
3 pts

Gross sales 100,000

Transitional input tax 2% 2,000

Actual Input Vat (whichever is higher ₱7,000

4. The taxpayer purchases sardines and mackerel from fishermen, freezes them, and sells
them to vendors in public markets. In a month, he had the following data:

Total sales P 600,000

Total purchases from fishermen 200,000

Compute.: Output tax, Input tax and VAT payable

3 pts
Output Vat (vat exempt) none

Less: Input Vat (vat exempt) none

Vat payable ₱0

5. A taxpayer is a VAT registered having the following data for the month of May (VAT not
included):

Sales P 880,000
Purchases from VAT registered persons 110,000
Purchases from non-VAT registered persons 20,000

Compute: Output tax, Input tax and VAT payable

2 pts 600 is not included

Output Vat (880,000 x 12%) 105,600

Less: Input Vat

Vat Registered (110,000 x 12% 13,200
Non-Vat Registered (20,000 x 3%) 600

Vat payable ₱91,800

6. Taxpayer is a VAT taxpayer and the following are the transactions for table year 2019:

Sales, VAT not included P 800,000

Purchases of goods sold from:

VAT taxpayer – vat included 224,000
Non-taxpayers 20,000
Purchases of services from VAT taxpayers
Vat included 56,000

Payments from utilities (electricity and water

Non-VAT) 19,000

Salaries from employees 80,000

Operating expenses (no VAT component) 100,000

Compute: output vat, input vat, vat payable and net income

Output Tax (800,000 x 12%) 96,000

Less: Input tax

From goods sold (224,000 x 12/112%) 24,000

Services (56,000 x 12/112%) 6,000

Vat Payable ₱66,000

All correct 5 pts

Gross sales 880,000

Less: Cost of goods sold

From goods sold [ (224,000 x 12/112%) + 20,000 ] 220,000

From Services (56,000 x /112%) 50,000 270,000

Total 530,000

Less: Utilities expense 19,000

Salaries expense 80,000

Operating expense 100,000 190,000

Total: Net income ₱331,000