1.

) A business taxpayer recorded the following transactions during the month:

Philippines Abroad Total
Sales P 350,000 P 200,000 P 550,000
Purchases 150,000 100,000 250,000
Total P500,000 P 300,000 P 800,000

The taxpayer is a VAT-registered taxpayer.

Compute the VAT on importation

 P32,000
 P18,000
 P12,000
 P0

2.) Which is subject to the VAT on importation?

 Foreign consumption from resident sellers

 Domestic consumption from resident sellers
 Foreign consumption from foreign sellers
 Domestic consumption from foreign sellers

3.) Which is not true about presumptive input tax?

 Persons or firms engaged in the processing of sardines, mackerel and milk, and in
manufacturing packed noodle-based instant meal, refined sugar and cooking oil, shall be
allowed a presumptive input tax.
 Presumptive input tax is creditable against the input tax.
 Presumptive input tax is equivalent to four percent (4%) of the gross value in money of
purchases of primary agricultural products which are used as inputs to production.
 For purposes of presumptive input tax, processing shall mean pasteurization, canning
and activities which alter the substance of a product to prepare it for special use.

4.) The following are exempt from vat, except

  Services subject to percentage tax
 Lease of residential units with a monthly rental not exceeding P15,000
 Export sales
 Gross sales during the year do not exceed P3M.

5. Which is not included in the landed cost?

 Dutiable value
 Custom’s duty
 Excise tax
 VAT

6. Government units making payment to VAT registered business is required to withhold the
estimated tax corresponding to its payment. The VAT withholding tax on payment to VAT
registered suppliers is

 3% of gross payment
 5% of gross payment
 8.5% of gross payment
 10% of gross payment
7. A VAT-registered taxpayer imported goods as follows:
Cost price of imported goods P900,000
Insurance premiums 125,000
Freight charges 135,000
Customs duties 600,000
Wharfage fee 20,000
Arrastre fees 30,000
Internal processing fee 40,000
Customs brokerage fee 80,000
Documentary stamp tax 60,000
Interest and other bank charges 90,000
Warehouse and storage fees 100,000
Excise tax 120,000
Facilitation fees 50,000

The landed cost is:

 P1,760,000
 P1,880,000
 P2,300,000
 P2,350,000

8. Ava, is a producer of cooking oil from coconut and corn. Previously exempt from value-added
tax, she became subject to value added tax on January 1, 2020. For January 2020 sales, vat not
included, amounted to P700,000. Ava had the following other data, inclusive of vat, if
applicable, for the month of January:
Inventory, January 1, 2020: Cost
Packaging materials purchased from vat suppliers P 22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
Purchases from coconut and corn farmers 330,000
Purchases during the month from vat suppliers;
Packaging materials 56,000
Supplies 16,800

The value added tax payable for the month should be

 P62,328
 P58,920
 P59,400
 P62,328

9. A business taxpayer recorded the following transactions during the month:

Philippines Abroad Total
Sales P 350,000 P 200,000 P 550,000
 Purchases 150,000 100,000 250,000
Total P500,000 P 300,000 P 800,000

The taxpayer is a non-vat registered taxpayer.

Compute the VAT on importation

 P3,000
 P18,000
 P12,000
 P0

10. Which is not included in the landed cost?

 Purchase price
 All incidental cost of bringing the goods to the Customs warehouse
 Cost of transporting the goods from Customs warehouse to the importer’s warehouse
or residence
 Taxes other than VAT paid prior to the withdrawal of the goods

11. A business taxpayer recorded the following transactions during the month:
Philippines Abroad Total
Sales P 350,000 P 200,000 P 550,000
Purchases 150,000 100,000 250,000
Total P500,000 P 300,000 P 800,000

The taxpayer is a VAT-registered taxpayer.

Compute the VAT on importation

 P32,000
 P18,000
 P12,000
  P0

12. Mr. Torres, VAT-registered real estate dealer, transferred a parcel of land held for sale to his
son as gift on account of marriage. For Vat purposes, the transfer is:

 Not subject to VAT because it is a gift

 Subject to VAT because it is a deemed sale transaction
 Not subject to VAT because it is subject to gift tax
 Subject to VAT because it is considered an actual sale

13. Ava, is a producer of cooking oil from coconut and corn. Previously exempt from value-
added tax, she became subject to value added tax on January 1, 2020. For January 2020 sales,
vat not included, amounted to P700,000. Ava had the following other data, inclusive of vat, if
applicable, for the month of January:
Inventory, January 1, 2020: Cost
Packaging materials purchased from vat suppliers P 22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
Purchases from coconut and corn farmers 330,000
Purchases during the month from vat suppliers;
Packaging materials 56,000
Supplies 16,800

The total amount of creditable input taxes should be

P21,762
P24,600
P25,080
P21,672

14. Which of the following statements is incorrect?

  VAT on importation is paid to the Bureau of Customs before the imported goods are
released from its custody
 When a person who enjoys tax-exemption on his importation subsequently sells in the
Philippines such imported articles to non-exempt person, the purchaser-non-exempt
person shall pay the VAT on such importation
 Expenses incurred after the goods are released from Customs custody are disregarded in
computing VAT on importation
 Imported goods which are subject to excise tax are no longer subject to value-added tax

15. The input tax for July is

 P4,275
 P5,500
 P63,000
 P240,000

16. A VAT-registered taxpayer recorded the following sales and purchases during the month:
Sales P 300,000
Purchases 200,000

All amounts above are exclusive of any VAT.

What is the Input VAT?

 P48,000
 P36,000
 P24,000
  P12,000

17. A person subject to VAT for the first time can have an input tax out of the inventory of
goods, material and supplies on hand at the time he become liable. This is called:

 Value added tax deemed paid

 Transitional input tax
 Presumptive input tax
 None of the above

18. Lucky Me is a VAT-registered manufacturer of packed instant-meal noodles. In a given

quarter, its gross sales amounted to P840,000 while its purchases of primary agricultural
products used as inputs to production amounted to P1,000,000. Actual value-added tax paid on
raw materials purchased amounted to P50,000. The value-added tax payable for the quarter is

 None
 P10,800
 P40,000
 P50,800

19. Government units making payment to VAT registered business is required to withhold the
estimated tax corresponding to its payment. The VAT withholding tax on payment to VAT
registered suppliers is

 3% of gross payment
 5% of gross payment
 8.5% of gross payment
 10% of gross payment

20. Which is subject to the VAT on importation?

 Foreign consumption from resident sellers

 Domestic consumption from resident sellers
 Foreign consumption from foreign sellers
 Domestic consumption from foreign sellers

21. A VAT-registered taxpayer recorded the following sales and purchases during the month:
 Sales P 300,000
Purchases 200,000

All amounts above are exclusive of any VAT.

What would be the Output VAT?

 P48,000
 P36,000
 P24,000
 P12,000

22. A VAT-registered person reported the following during the year:

Domestic sales P500,000
Export sales 900,000
Importation of goods 100,000

Its VAT taxable transaction is:

 P1,000,000
 P1,500,000
 P600,000
 P500,000

Ava, is a producer of cooking oil from coconut and corn. Previously exempt from value-added
tax, she became subject to value added tax on January 1, 2020. For January 2020 sales, vat not
included, amounted to P700,000. Ava had the following other data, inclusive of vat, if
applicable, for the month of January:
Inventory, January 1, 2020: Cost
Packaging materials purchased from vat suppliers P 22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
 Purchases from coconut and corn farmers 330,000
Purchases during the month from vat suppliers;
Packaging materials 56,000
Supplies 16,800

The presumptive input tax should be

P13,200
P33,000
P6,600
P39,600

24. A VAT-registered taxpayer recorded the following sales and purchases during the month:
Sales P 300,000
Purchases 200,000

All amounts above are exclusive of any VAT.

What is the VAT payable?

 P0
 P36,000
 P24,000
 P12,000

25. Which is not true about presumptive input tax?

 Persons or firms engaged in the processing of sardines, mackerel and milk, and in
manufacturing packed noodle-based instant meal, refined sugar and cooking oil, shall be
allowed a presumptive input tax.
 Presumptive input tax is creditable against the input tax.
 Presumptive input tax is equivalent to four percent (4%) of the gross value in money of
purchases of primary agricultural products which are used as inputs to production.
  For purposes of presumptive input tax, processing shall mean pasteurization, canning
and activities which alter the substance of a product to prepare it for special use.

26. Which is imposed with a zero percent?

 All export sales

 Import sales of VAT-registered taxpayers
 Export sales of VAT-registered taxpayers
 Export sales of non-VAT registered taxpayers only

27. A business taxpayer recorded the following transactions during the month:
Philippines Abroad Total
Sales P 350,000 P 200,000 P 550,000
Purchases 150,000 100,000 250,000
Total P500,000 P 300,000 P 800,000

The taxpayer is a VAT-registered taxpayer.

Compute the Output VAT

 P0
 P24,000
 P36,000
 P42,000

28. Any input tax attributable to zero-rated sales by a vat-registered person may at his option
be

 Deducted from output tax

 Refunded
 Applied for a tax credit certificate (TCC) which may be used in payment of internal
revenue taxes
 All of the above
29. Villar, imported brand new Jaguar, 2020 model from USA for personal use. Total landed
costs is P15M exclusive of customs duties of P3M, excise tax of P2M, and facilitation cost of
P1M. VAT payable is

 P240,000
 P360,000
 P1,800,000
 P2,400,000

30. Ava, is a producer of cooking oil from coconut and corn. Previously exempt exempt from
value-added tax, she became subject to value added tax on January 1, 2020. For January 2020
sales, vat not included, amounted to P700,000. Ava had the following other data, inclusive of
vat, if applicable, for the month of January:
Inventory, January 1, 2020: Cost
Packaging materials purchased from vat suppliers P 22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
Purchases from coconut and corn farmers 330,000
Purchases during the month from vat suppliers;
Packaging materials 56,000
Supplies 16,800

The correct amount of transitional input tax should be:

 P672
 P762
 P3,600
 P4,080