PDF Chapter 2 DD

CHAPTER 2- VALUE ADDED TAX ON IMPORTATION
Multiple Choice: Theory- Agricultural or marine food products: Part 1
1. Which agricultural product is VAT exempt on importation?
a. Charcoal
b. Wood
c. Lumber
d. Corn
2. Which importation is subject to VAT?
a. Importation from abroad.
b. Purchase of goods from economic zones in the Philippines
c. Both A and B
d. Neither A nor B
3. Which is not subject to VAT on importation?
a. Importation of goods for personal use.
b. Importation of goods fro business use.
c. Purchase of goods from Ecozone entities.
d. Purchase of goods from other domestic sellers.
4. Which of the following is subject to VAT on importation when imported?
a. Books
This website stores data such as
b. Table
cookies to enable essential site
sugar
functionality, as well as marketing,
Mushroom
personalization, andc.analytics. You
may change your settings at any time
Ordinary salt
or accept the defaultd.settings.
5. Which is non-food agricultural product is exempt from VAT on importation?

Privacy Policy
a. Chicken manure
Marketing
b. Eggs
Personalization
Analytics
c. Live hogs
Save Accept All

d. Cattle
6. Which of the following is not exempt from VAT?
a. Grapes
b. Orange
c. Orchids
d. Kiwi fruit
7. Which seeding is vatable?
a. Grafted mango seedlings
b. Pomelo seedlings
c. Narra seedlings
d. Guava seedlings
8. Which agricultural produce is exempt from VAT?
a. Rubber hem
b. Abaca hem
c. Copra
d. Firewood
9. Which is vatable?
a. Bamboo shoots
b. Banana hearts

c. Banana
cookies to enable essential site fruits
Bamboo
personalization, andd.analytics. You
poles
or accept the
10.default
Whichsettings.
is VAT exempt?
a. Cotton soft wood

Privacy Policy
b. Cotton seeds
Marketing
c. Cotton wool
Personalization
Analytics
d. None of these
Save Accept All

11. Which is taxable to value added tax?
a. Sheep
b. Sheep wool
c. Cut sheep meat
d. All of these
12. Which is VAT exempt?
a. Coconut lumber
b. Coconut broom sticks
c. Coconut shells
d. Coconut meat
13. Which is subject to VAT on importation?
a. Wheat
b. Coffee bean
c. Barley
d. Cocoa
14. Which agricultural product is subject to VAT?
a. Honey
b. Rattan cane
c. Sugar cane

d. Sugar
beets
personalization, and analytics.
15. Which is subjectYou
to VAT on importation?
Cocoon silk
or accept the defaulta.settings.
b. Pineapple silk

Privacy Policy
c. Furniture
Marketing
d. All of these
Personalization
Analytics
16. Seedlings of this tree are exempt form VAT on importation?
Save Accept All

a. Rubber tree
b. Paper tree
c. Palm oil tree
d. Mahogany tree
17. The importation of which of the following is subject to VAT?
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
19. Which of the seeds is non-VAT exempt?
a. Corn seeds
b. Mustard seeds
c. Flower seeds
d. Cabbage seeds

cookies to enable essential
20. Which of thesite
following feeds is subject to VAT on importation?
Formulated
personalization, anda.analytics. You horse feeds
or accept the default Corn grits
b.settings.
c. Swine feeds

Privacy Policy
d. Broiler feeds
Marketing
Personalization
Analytics
Save Accept All

Multiple Choice: Theory- Agricultural or marine food products: Part 2
1. Which is VAT exempt?
a. Peacock feathers
b. Eggs
c. Hamster
d. Leather
2. Which is vatable on importation?
a. Tea leaves
b. Tobacco leaves
c. Cayenne pepper
d. Chinese cabbage
3. Which of these is VAT exempt on importation?
a. Almonds
b. Blueberries
c. Ginseng roots
d. All of these
4. Which is not exempt from VAT?
a. Sunflower seeds
b. Bees wax

c. Peanut site
personalization, andd.analytics.
None ofYou
these
or accept the default is
5. Which settings.
not generally considered as pet under the regulation?
a. Rabbit
Privacy Policy
b. Zoo animals
Marketing
c. Race horse
Personalization
Analytics
d. Fighting cocks
Save Accept All

6. Which of these is non-vatable?
a. Love birds
b. Parrots
c. Goldfish
d. Milkfish
7. Which is not a VAT-exempt poultry?
a. Ducks
b. Geese
c. Turkeys
d. Gamefoul roosters
8. Which of theses animals

a nimals is vatable when imported?
a. Cow
b. Rabbit
c. Goat
d. Race horse
9. Which is a vatable agricultural input?
a. Fertilizer
b. Pesticides
c. Seeds
such as
This website stores data
d. Seedlings
personalization, andfollowing
10. The analytics.are
Yougenerally considered as pets hence vatable when imported except for
or accept the defaulta.settings.
Janitor fish
b. Goldfish
Privacy Policy
c. Catfish
Marketing
d. Koi fish
Personalization
Analytics
11. Which of these is taxable with VAT on importation?
Save Accept All

a. Yellowfin tuna
b. Pink salmon
c. Blue marlin
d. Butterfly fish
12. Which of the following seafood is considered as vegetable; hence, VAT-exempt?
a. Kelp
b. Sea lettuce
c. Sea grapes
d. All of these
13. Which of these is vatable?
a. Sea shells
b. Octopus
c. Squid
d. Shrimps
14. Examples of mollusk and shellfish:
A. Crabs B. Oysters C. Lobsters D. Clams
Which of these is subject to VAT

V AT on importation?
a. A and D
b. B and C
such as
c. All ofsitethese
personalization, andd.analytics.
None ofYou these
or accept the
15.default
Whichsettings.
of these agricultural
a gricultural products is not considered as in its original state?
a. Kopra
Privacy Policy
b. Muscovado sugar
Marketing
c. Refined sugar
Personalization
Analytics
d. Ordinary salt
Save Accept All

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
17. Which product is non-taxable with VAT on importation?
a. Fresh cow milk
b. Olive oil
c. Butter
d. Parmesan cheese
18. Which of the items below is taxable with VAT?
a. Shrink-wrapped meat
b. Vacuum-packed vegetables
c. Tetra-packed fresh fruit juice
d. Canned fruits
19. Which is not considered as simple processing?
a. Freezing
b. Stripping
c. Broiling
such as
d. Marinating
personalization, andfollowing
20. The analytics.advanced
You 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?
or accept the default settings.
a. Canning
Privacy Policy
b. Vacuum-packing
Marketing
c. Plastic shrink wrapping
Personalization
d. Tetra-packing
Analytics
e xempt importation
Multiple Choice: Theory- Other exempt
Save Accept All

1. Which is not exempt from VAT on importation?
a. Importation of books
b. Importation of school supplies
c. Importation of magazines
d. All of these
2. Which importation
importation is not VAT-exempt?
VAT-exempt?
a. Importation of personal and household effects of residents coming to resettle

r esettle in the
Philippines
b. Importation of personal and household effects of foreigners coming to settle

permanently in the Philippines
Philippines
c. Importation of personal

personal and household effects which are subject to custom
custom duties
d. All of these
3. The importation of professional instruments and implements may be subject to VAT when the
a. Volume is not in commercial quantity.
b. Goods accompany the person or arrive within 30 days before and after his arrival.
c. Importation involves vehicles and machineries.
d. All of these
4. Which importation
importation is exempt from VAT?
a. Importation of books by a school
This website stores data such b. asImportation of books by a student

c. Importation of books by a bookstore
personalization, and analytics. You
may change your settings atd.any All of these
time
5. The importation of which

Privacy Policy which transport medium is exempt
exempt from VAT?
Marketing a. Sea

Personalization b. Air
Analytics
c. Land
Save Accept All

d. A and B
6. Examples of
of Transport vehicles:
a. Bus
b. Cars
c. Vessels
d. Aircraft
Which of these is not exempt from VAT when imported?
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

goods and supplies is not exempt
exempt from VAT when used in
Privacy Policy
a. Domestic operation
Marketing
b. International shipping operations
Personalization
Analytics c. Household effects
d. Personal effects

Save Accept All

10. Which is vatable?
a. Importation of life saving equipment
b. Importation of safety or rescue

rescue equipment
equipment
c. International transport operations
d. Any of these
11. The importation of vessel or aircraft for domestic operations is
a. Vatable.
b. Always VAT exempt.
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.
b. Always VAT exempt.
c. Vatable if the importer is a domestic carrier.
d. Exempt if the importer is a domestic carrier.
13. The importation of farm machineries and equipment is exempt when imported by
a. A member of the cooperative

b. A trader engaged in business.
c. An agricultural cooperative
cooperative..
d. A or C
14. Who has the burden of proving exemption from VAT on importation?
Privacy Policy
Marketing a. The government
Personalization b. The importer-buyer

Analytics
c. The seller
Save Accept All

d. Both A and C
15. Which is a qualified exempt importation?
a. Importation of a cooperative of farm

far m equipment
b. Importation by a cooperative of rice
c. Importation of books
d. Importation of
of marine food products
16. Which is not a qualified exempt importation?
a. Importation of fuels or supplies by a person engaged in domestic transport operations
b. Importation of fuels or supplies by an international carrier
c. Importation of cargo vessels and aircraft by those engaged in international transport
operations
17. Which of these is non-vatable?

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
c. Purchase of goods from economic zone enterprises
d. None of these
18. Who shall pay the VAT on importation when a VAT on importation
importation when a VAT-exempt entity
subsequently sells an imported article or goods to a non-exempt entity?
a. The exempt buyer
This website stores data such b. asThe non-exempt buyer

c. Both A and C
may change your settings atd.any Neither
time A nor C
19. Importation is not subject to VAT when
Privacy Policy a. Made by a VAT-registered business
Marketing b. Made by a non-VAT-registered business

Personalization
c. It involves exempt goods
Analytics
d. Coursed through an exempt importer
Save Accept All

20. Which is not included in landed cost?
a. Dutiable value
b. Custom's duty
c. Excise tax
d. VAT
21. Which is not included in the landed cost?
a. Purchase price
b. All incident cost of bringing the goods to the customs warehouse
c. Taxes other than VAT paid prior to the withdrawal of the goods
d. Cost of transporting the goods from customs warehouse the importer's warehouse or
residence
Multiple Choice- Problem 1
1. Oceanizers, Inc. Purchased the following from abroad:
Sea shells and coral decors P320,000
Tuna and salmon P120,000
Total P440,000
cookies to enable essential What
site is amount of taxable importation?
P0analytics. You
personalization,a.and
b. P120,000
c. P200,000
Privacy Policy
d. P320,000
Marketing
2. Mr.A imported various personal and household
household effects with
with a value aggregating
aggregating P400,000.
P400,000. P320,000
Personalization
of these was subjected to a 8% customs duty by the BOC. What is the VAT on importation?
Analytics
a. P0
Save Accept All

b. P41,472
c. P42,240
d. P48,000
3. A bookstore company imported the following items:
Landed Cost
Books P 350,000
Professional instruments 200,000
School Supplies 350,000
Total P 900,000
What is the total VAT on importation?
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 followin

following
g from China:
Landed Cost
Fruits P 250,000
Vegetables 180,000
This websiteFrozen
storesmeat
data such as 50,000
Marinated
functionality, as well asmilkfish
marketing, 100,000
Total
580,000
Compute the VAT on importation.
Privacy Policy a. P 0
Marketing b. P 12,000
Personalization
c. P 51,600
Analytics
d. P 69,600
Save Accept All

5. Alexis furnitures, a percentage

perce ntage taxpayer, imported the following household equipment:
Landed costs
Machineries, for business use P 1,150,000
Heating system, for home use 250,000
Total 1,400,000
a. P 0
b. P 27,000
c. P 150,000
d. P 168,000
6. Danes AgriCorp imported the following:
Landed Costs
Seeds P 400,000
Fertilizers 750,000
Farming equipment 450,000
Herbicides and Pesticides 250,000
Total P1,850,000
This website stores a. Psuch

data 0 as
functionality, as well P
b.as 42,000
marketing,
c. P 72,000
d. P 84,000
7. Home Appliance Company imported the following for personal use:

Privacy Policy
Furniture
Marketing P 600,000
Personalization
Rattan 250,000
Analytics
Lumber 450,000
Save Accept All

a. P 30,000
b. P 72,000
c. P 156,000
d. P 204,000
8. Mr. Huligan imported rice from Viertnam. Details of his importation show the following:
Total invoice value P 1,000,000
Freight and insurance in transit P 350,000
BOC and other charges P 300,000
a. P 0
b. P 120,000
c. P 126,000
d. 128,400
9. An agricultural supply dealer imported the following:
Corn grits P 200,000
Hog feeds P 350,000
Specialty feeds P 300,000
This websiteCompute the VAT

stores data on importation
such as
P
functionality, as wella.as 0
marketing,
b. P 36,000
c. P 42,000
Privacy Policy d. P 102,000
Marketing
10. The following data relates to the importation of cigarettes by Mr. Shinto:
Personalization
Total invoice value P 1,000,000
Analytics
BOC charges P 300,000
Save Accept All

Customs duties P200,000
Excise taxes P300,000
a. P 120,000
b. P 156,000
c. P 180,000
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
The importation is subject
subject to 10% Customs duties.
duties. What is the VAT on
importation?
a. P 158,400
b. P 145,200
c. P 129,600
d. P 0
2. In the immediately preceding problem, assuming that the importation is made by an agricultural
This websitecooperative,
stores dataWhat
such isasthe VAT on importation?
a. P 158,400
personalization, and b.analytics.
P 144,000You
or accept the defaultc.settings.
P 129,600
d. P 0
Privacy Policy
3. Mr. Smile, a professional practitioner, imported the following:
Marketing
Personalization
Calculators and computers for his firm P 900,000
Analytics
Books P 600,000
SaveTotal Accept All P 1,500,000

How much is subject to VAT on importation?
a. P 0
b. P 900,000
c. P 1,200,000
d. P 1,500,000
4. Mr. Juan Manuel Marquez arrives in the Philippines with an immigration visa. He had with him the
following:
Clothing, shoes and apparels P 100,000
Professional instruments and implements P150,000
Personal car P300,000
Total costs of personal belonging P550,000
Compute the total amount subject to the VAT on importation?

a. P 0
b. P 200,000
c. P 300,000
d. P 550,000
5. Mr. Xhi, a non-VAT taxpayer, made the following domestic purchases of goods:
Purchase of scrap metals from a PEZA- locator P200,000
Purchase of machine from a VAT supplier P800,000

cookies to enable
What isessential site VAT on importation?
the imposable
P0
personalization, anda.analytics. You
or accept the default P 24,000
b.settings.
c. P 96,000
Privacy Policy
d. P 120,000
Marketing
6. Atlantis Shipping Company imported P 3,000,000 worth of vessel fuels and supplies for domestic use.
Personalization
The company earmarked 60% of this for domestic use while 40% is reserved for its international
Analytics
operations.
SaveWhat is the Accept
VAT onAll
importation?

a. P 0
b. P 144,000
c. P 216,000
d. P 360,000
7. Mr. Beer, a VAT-

V AT- registered trader, imported an equipment with a dutiable valu
valuee 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
b. P 227,040
c. P 232,400
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
b. P 18,960
c. P 35,280
d. P 38,160
9. Shanum Company had the following data regarding its importation:
This websiteInvoice
storesprice in USas
data such dollar $ 12,000
Other costs site goods to the Philippines
to bring P 145,000
BOC charges P 100,000
Customs duties is 10% of dutiable value
Peso-Dollar Exchange rate P 42.80:$1

Privacy Policy
Marketing
a. P 0
Personalization
Analytics

b. P 81,643.20
Save c. Accept All
P 91,032.00

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
Wharfage fee P 4,000
Arrastre charge P7,000
Brokerage fee P8,000
Facilitation fee P5,000
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
What is the VAT on importation?
a. P 25,500
b. P 30,540
c. P 35,100
d. P 35,700

Privacy Policy
Marketing
Personalization
Analytics
Save Accept All

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CHAPTER 2- VALUE ADDED TAX ON IMPORTATION

Multiple Choice: Theory- Agricultural or marine food products: Part 1

1. Which agricultural product is VAT exempt on importation?

2. Which importation is subject to VAT?

a. Importation from abroad.

b. Purchase of goods from economic zones in the Philippines

c. Both A and B

d. Neither A nor B

3. Which is not subject to VAT on importation?

a. Importation of goods for personal use.

b. Importation of goods fro business use.

c. Purchase of goods from Ecozone entities.

d. Purchase of goods from other domestic sellers.

4. Which of the following is subject to VAT on importation when imported?

5. Which is non-food agricultural product is exempt from VAT on importation?

Save Accept All

6. Which of the following is not exempt from VAT?

d. Kiwi fruit

7. Which seeding is vatable?

a. Grafted mango seedlings

b. Pomelo seedlings

c. Narra seedlings

d. Guava seedlings

8. Which agricultural produce is exempt from VAT?

a. Rubber hem

b. Abaca hem

a. Bamboo shoots

b. Banana hearts

a. Cotton soft wood

Save Accept All

11. Which is taxable to value added tax?

b. Sheep wool

c. Cut sheep meat

d. All of these

12. Which is VAT exempt?

a. Coconut lumber

b. Coconut broom sticks

c. Coconut shells

d. Coconut meat

13. Which is subject to VAT on importation?

b. Coffee bean

14. Which agricultural product is subject to VAT?

b. Rattan cane

c. Sugar cane

b. Pineapple silk

a. Rubber tree

b. Paper tree

c. Palm oil tree

d. Mahogany tree

17. The importation of which of the following is subject to VAT?

a. Zoo animals

b. Aquarium fish

d. Fighting cocks

19. Which of the seeds is non-VAT exempt?

a. Corn seeds

b. Mustard seeds

c. Flower seeds

d. Cabbage seeds

c. Swine feeds

Save Accept All

Multiple Choice: Theory- Agricultural or marine food products: Part 2

1. Which is VAT exempt?