1.

An individual who is not an employee nor a license professional, deriving gross sales or
receipts not exceeding P100,000 from activities principally for subsistence or livelihood 

 Minimum Wage Earner

 Marginal Income Earner
 Ambulant Vendor
 A privilege Store

2.
Sam Dela Cruz, non-VAT registered lessor of residential and commercial units, had the
following data for the 1st and 2nd quarters of 2020:
Gross Receipts
1st quarter 2nd quarter
Lease of Residential Units
- Monthly rental of P13,000/unit P2,500,000 P2,300,000
- Monthly rental of P18,000/unit 1,000,000 1,200,000
lease of commercial units 2,300,000 2,400,000
Input vat from vat suppliers 150,000 120,000

How much is the business tax due for the 1st quarter 2020 of Mr. Dela Cruz?

 P99,000
 P396,000
 P246,000
 P174,000

3. Which of the following is not subject to business tax?

 Sale of goods, services and lease of property in the ordinary course of trade or business
 Importation of goods into the Philippines, whether for personal or business use
 Gratuitous transfer
 All of the above

4. The following are exempt from vat, except

  Sale of 1 sack rice
 Sale of newspaper
 Sale of textbooks
 Sale of pet foods

5. Who is statutorily liable for the payment of VAT?

 consumer
 buyer
 seller
 none of the above

6. To be subject to vat, the lease of commercial units shall have

I. Monthly rental per unit exceeding P15,000.
II. Gross annual rental exceeding P3,000,000

 Both I and II are necessary

 Both I and II are not necessary
 Only I is necessary
 Only II is necessary

7. Creddie is an accountant. She worked in a firm which is engage in Business Process

Outsourcing, handling accounting work for US entities. She was paid for her services. How
should Creddie treat such payment for business tax purposes?

 Subject to 12% VAT

 Subject to Percentage Tax
 Exempt from VAT and Percentage Tax
 It is a zero-rated transaction

8. 1st: Lease of a parking lot attached to a residential unit at P8,000 per month is exempt from
vat.
2nd: Lease of eight (8) residential units at P18,500 per month is subject to vat.

 True, true
 True, false
  False, true
 False, false

9. 1st: Sale of drugs and medicines of pharmacy run by the hospital to outpatients are
subject to VAT.
2nd: Pharmacy items used in the performance of medical procedures in hospital units such
as in the operating and delivery rooms and by other departments are considered part of
medical services rendered by the hospital, hence, not subject to vat. 

 True, true
 True, false
 False, true
 False, false

10. Camella Real Corporation sold the following real properties during 2021 the taxable year:
2 units residential house and lot at P3,200,000 each P6,400,000
4 residential lots at P2,500,000 each 10,000,000
1 commercial lot at P3,000,000 3,000,000

How much is the total transactions subject to VAT?

 P6,400,000
 P10,000,000
 P13,000,000
 P19,400,000

11. Where even if no business, vat is imposable on:

I. Importation of goods for personal use
II. Services rendered in the Philippines by non-resident aliens, even isolated, shall be considered
as being rendered in the course of trade or business.

 I only
 II only
 I and II
 None of the above
12. Value added tax

 is a form of sales tax

 is likewise imposed on barters or exchanges
 it is collected through the tax credit method or invoice method
 All of the above

13. Which of the following taxes describes the value added tax?

 income tax
 sales tax
 indirect tax
 personal tax

14. Determine the business taxes of the following for 2021 taxable year:
I. Lease of residential units with a monthly rental per unit not exceeding P15,000 (regardless of
the amount of aggregate annual gross rentals).
II. Lease of residential units with a monthly rental per unit exceeding P15,000 but the aggregate
of such rentals during the year do not exceed P3,000,000.
III. Lease of commercial units regardless of monthly rental per unit

 I - None, II - OPT, III - VAT

 I - None, II - OPT, III - OPT
 I - None, II - OPT, III - VAT
 I - VAT, II - VAT, III – VAT

15. The following data were provided by spouses Juan and Juana. In 2021, Juan's gross receipts
from his practice of profession was P2,850,000 while his wife, Juana, has gross sales of
P2,200,000 derived from her trading business. Assuming they are not vat registered, will they
be subject to vat?

 Yes, because their aggregate gross receipts/sales exceeded the vat threshold of
P3,000,000
 No, because for purposes of vat threshold, husband and wife shall be considered as
separate taxpayers
  Yes, because their gross receipts/sales are not specifically exempt from vat as provided
in the Tax Code
 None of the above

16. Sam Dela Cruz, non-VAT registered lessor of residential and commercial units, had the
following data for the 1st and 2nd quarters of 2020:
Gross Receipts
1st quarter 2nd quarter
Lease of Residential Units
- Monthly rental of P13,000/unit P2,500,000 P2,300,000
- Monthly rental of P18,000/unit 1,000,000 1,200,000
lease of commercial units 2,300,000 2,400,000
Input vat from vat suppliers 150,000 120,000

How much is the business tax due for the 2nd quarter 2020 of Mr. Dela Cruz?

 P108,000
 P708,000
 P312,000
 P432,000

17. Sam Dela Cruz, non-VAT registered lessor of residential and commercial units, had the
following data for the 1st and 2nd quarters of 2020:
                                                                                    Gross Receipts
                                                                           1st quarter         2nd quarter
Lease of Residential Units
- Monthly rental of P13,000/unit                       P2,500,000          P2,300,000
- Monthly rental of P18,000/unit                         1,000,000            1,200,000
lease of commercial units                                    2,300,000            2,400,000
Input vat from vat suppliers                                   150,000               120,000

How much is the business tax due for the 2nd quarter 2020 of Mr. Dela Cruz, assuming he
registered as a VAT taxpayer at the start of the 2nd quarter 2018?
  P432,000
 P312,000
 P708,000
 P108,000

18. Which of the following taxes describes the value added tax?

 Income tax
 Sales tax
 Indirect tax
 Personal tax

19. Determine the correct statement from the following:

In cases where a lessor has several residential units for lease, some are leased out for a monthly
rental per unit of not exceeding P15,000 while others are leased out for more than P15,000 per
unit, his tax liability will be:

 The gross receipts from rentals not exceeding P15,000 per month per unit shall be
exempt from vat regardless of the aggregate annual gross receipts.
 B. The gross receipts from rentals exceeding P15,000 per month per unit shall be subject
to vat if the annual gross receipts from said units including the gross receipts from units
leased out for not more than P15,000 exceed P3,000,000.
 C. Both A and B are correct
 D. Both A and B are incorrect

20. To be subject to vat, the lease of residential units shall have 

1. Monthly rental per unit exceeding P15,000.
II. Gross annual rental exceeding P3,000,000.

 Both I and II are necessary

 Both I and II are unnecessary
 Only I is necessary
 Only II is necessary

21. Which statement is wrong? Transactions considered "in the course of trade or business",
and therefore subject to the business taxes include
  Regular conduct or pursuit of a commercial or an economic activity by a stock private
organization
 Regular conduct or pursuit of a commercial or an economic activity by a non-stock, non-
profit private organization
 Isolated services in the Philippines by a non-resident foreign persons
 Isolated sale of goods or services

22. 1st: For a person to be subjected to any business tax, it is necessary that he is regularly
engaged in the conduct or pursuit of an economic activity.
2nd: A non-resident foreign person performing isolated transaction in the Philippines shall be
liable to VAT.

 True, true
 True, false
 False, true
 False, false

23. One of the following is not an activity subject to VAT

 Sale in retail of goods by a dealer

 Sale of bamboo poles by a dealer
 Sublease of real property in the course of business
 Importation of ordinary feeds for poultry chicken

24. Mr. Morales produces an excisable article for sale in the Philippine market. Which is
incorrect with respect to Mr. Morales’ business taxation?

 Mr. Morales is subject to either VAT or percentage tax

 Mr. Morales pays excise tax in addition to VAT or percentage tax
 Mr. Morales pays excise tax in addition to VAT and percentage tax
 Mr. Morales will pay excise tax without regard to whether he is a VAT or non-VAT
taxpayer

25. Sale of the following real properties are subject to vat, except

 Residential lot, held for sale in the ordinary course of business, sold for P3,100,000
 Residential house and lot, held for sale in the ordinary course of trade, sold for
P3,700,000
 Sale of real property used in the ordinary course of business
  Sale of real property not primarily held for sale in the ordinary course of business.

26. Which of the following is incorrect?

 An article exempt from vat may also be exempt from percentage tax
 An article subjected to excise tax may be subjected to vat
 A taxpayer may be subjected both to vat and percentage tax
 None of the above

27. Jennifer Reyes is engaged in the business of leasing several residential apartment units she
owns. The monthly rental for each unit ranges from P12,800 to P15,000. Her gross rental
income for calendar year 2018 is P3,199,200. She consults you on whether it is necessary for
her to register as a VAT taxpayer. What will be your legal advice to her, and why?

 She has to register as VAT taxpayer because her annual gross receipts from rental
exceeded the threshold of P3,000,000.
 She need not register as VAT taxpayer as her transactions of leasing residential units for
an amount not exceeding P15,000 per unit per month is exempt from VAT.
 She is not required to register as VAT taxpayer in as much as her gross rental income for
one year did not exceed P3,199,200.
 She is required to register as VAT taxpayer because her transactions of renting out
residential units exceeded the threshold of P10,000 per unit per month.

28. Which of the following is not a business tax?

 Excise tax
 Value-added tax
 Income tax
 Other percentage tax

29. Sam Dela Cruz, a VAT registered lessor of residential and commercial units, had the
following data for the 1st and 2nd quarters of 2020:

Gross Receipts
1st quarter 2nd quarter
Lease of Residential Units
- Monthly rental of P13,000/unit P2,500,000 P2,300,000
- Monthly rental of P18,000/unit 1,000,000 1,200,000
lease of commercial units 2,300,000 2,400,000
Input vat from vat suppliers 150,000 120,000

How much is the business tax due for the 1st quarter 2020 of Mr. Dela Cruz?

 P246,000
 P546,000
 P696,000
 P396,000

30. In 2020, Bryan, purchase a condominium unit from his friend, Arvin (condo unit owner), for
P3,000,000 and a parking lot from the subdivision developer for P800,000. The correct amount
of vat is

 P456,000
 P360,000
 P96,000
 P0