Professional Documents
Culture Documents
Vat Review
Vat Review
Vat Review
c. Association dues, membership fees, and other assessments and charges ` collected by home owners
associations and condominium corporations.
a. Services of banks.
a. Sea carrier classified as Resident Foreign Corporation, annual gross receipts is P2,000,000
b. Air carrier classified as Resident Foreign Corporation, annual gross receipts is P3,000,000
c. Sea carrier classified as Domestic Corporation, voyage is from Philippines to Japan, annual gross
receipts is P5,000,000.
I. A business is pursued by an individual where the aggregate gross sales and or receipts do not
exceed P3,000,000 during any twelve-month period.
II. Sale of real properties for low cost housing
III. Sale of real properties for socialized housing
IV. Sale of residential lot at P1,500,000 per unit and below beginning January 1, 2018
V. Sale of house and lot and other residential dwellings valued at P2,500,000 and below beginning January
I, 2018
Il. Services rendered in the Philippines by nonresident foreign persons, even isolated, shall be
considered as being rendered in the course of trade or business.
a. I only
b. Il only
c. land Il
d. Sale of newspaper
Which of the following has an option to register under the VAT system in 2020?
I. Common carriers by air transporting passengers, the gross receipts of which do not exceed
P3,000,000.
II. Radio and/or television broadcasting companies whose annual gross receipts
of the preceding year exceeds P10,000,000.
III. Operator of cockpit, the receipts of which do not exceed P3,000,000 during the year.
IV. Seller of vat-subject services the gross receipts of which do not exceed P3,000,000.
The following data were provided by spouses' Pedro and Ana. In 2020, Pedro's gross receipts from his
practice of profession was P2,850,000 while her wife, Ana, has gross
sales of P2,200,OOO derived from her trading business. Assuming they are not vat registered, will they be
subject to vat?
a. Yes, because their aggregate gross receipts/sales exceeded the vat threshold of
b. No, because for purposes of vat threshold, husband and wife shall be considered as separate taxpayers.
c. Yes, because their gross receipts/sales are not specifically exempt from vat as provided in the Tax
Code.
Statement 1: Nonstock and nonprofit private organizations which sell exclusively to their
members in the regular conduct or pursuit of commercial or economic activity are exempt
from value-added tax.
Statement 2: Government entities engaged in commercial or economic activity are generally exempt from
value-added tax
The term "in the course of trade or business" does not include
c, Transactions by any person, regardless of whether or not the person engaged there in is a non-stock,
non-profit private organization (irrespective of the disposition of its net income and whether or not it sells
exclusively to members) or government entity.
TRUE / FALSE
Agricultural and marine food products are shall be considered in their original state even if they have
undergone the simple processes of preparation or preservation for the market, such as freezing, drying,
salting, broiling, roasting, smoking or stripping.
Sale of drugs and medicines of pharmacy run by the hospital to outpatients are subject to VAT.
The importation of the residents and non-resident citizen of their personal and household effects upon
returning from abroad and coming to resettle in the Philippines is subject to zero percent Vat
Lease of a residential unit with a monthly rental of 12,000 is exempt for VAT purposes.
Transport of passengers by international carriers is exempt to VAT.
Sale of palay by a farmer is exempt from value added tax.
Sale of canned sardines is subject to value added tax.
Sale of cooked fish in a restaurant is subject to value added tax.
Pawnshops are exempt from value added tax.
Life insurance is not subject to value added tax.
A value added tax exempt transaction has no output tax and cannot claim input tax credit.
Polished and/or husked rice, corn grits, raw cane sugar and molasses, ordinary salt, and copra shall
be considered in their original state, hence, subject to VAT.
Sale of flowers, in its original state is exempt from VAT.
Export sale is exempt to VAT if made by the VAT registered person.
A sale made by a zero rated of goods by a VAT registered person is a taxable transaction for VAT
purposes, but shall not result in any input tax.
Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed
70% of total annual production is not subject to VAT.
Importation of seedlings of a mahogany tree is exempt for VAT purposes.
Services rendered by regional or area operating headquarters established in the Philippines by
multinational corporations which act as supervisory, communications and coordinating centers for their
affiliates, subsidiaries or branches in the Asia-Pacific Region and earn or derive income from the
Philippines is exempt to VAT.
Sale of rice by a trader is subject to value added tax.
A value added tax zero-rated transaction has no output tax and cannot claim input tax credit.
Services rendered by a contractor for an exporter whose export sales are 60% of annual productions
are subject to value added tax.
Sale of raw materials to an exporter whose export sales are 75% of annual production is exempt from
value added tax.