6.

Examples of transport vehicles: bus, cars, vessels, aircraft: which is not exempt from VAT when
imported?
- Bus and Cars
7. Which importer is exempt from VAT on importation of fuel, goods and supplies?
- EITHER international carriers, domestic carriers on their international operations
8. Which of the following items is subject to VAT on importation to an individual who is intending to sttle
in the Phil?
- Vehicles
9. The importation of fuel, goods and supplies is not exempt from VAT when used in
- Domestic operation
10. Which is VAtable?
- None of these
11. The importation of vessel or aircraft for domestic operations is
- VAT exempt if the importer complies with maximum service life set by law
12.The importation of fuels, goods for domestic shipping or air transport operations is:
- VATABLE

6. Danes AgriCorp imported the following:

Landed Cost
Seeds 400,000
Fetilizers 750,000
Farming Equipment 450,000
Herbicides and pesticides 250,000
Total 1,850,000
Compute the VAT on importation.
a.0 c. 72,000
b. 42,000 d. 84,000
7. Home Appliance Compay imported the followin for personal use:
Furniture 600,000
Rattan 250,000
Lumber 450,000
Compte the VAT on importation.
a. 30,000 c. 156,000
b. 72,000 d. 204,000

8. Mr. Huligan imported rice from Vietnam. Details of his importation show the following:
Corn grits 1,000,000
Freight and insurance in transit 50,000
BOC and other charges 20,000
Compute the VAT on importation;
a. 0 c. 126,000
b. 120,000 d. 128,400
6. IN QUESTION NO. 4 ABOVE, ASSUMING THAT CANTORIA IS NOT
SUBJECT TO VAT. IN THE SALE OF THE GOODS BY BELTRAN TO
CANTORIA
A) BELTRAN SHOULD RECORD DEBIT CASH OF P125,840
B) BELTRAN SHOULD RECORD DEBIT CASH OF P143,000 IN HIS BOOKS
C) CANTORIA SHOULD DEBIT PURCHASES OF P125,840 AND A DEBIT
INPUT TAX OF P17,160
D) CANTORIA SHOULD DEBIT PURCHASES OF P143,000
7. 1ST STATEMENT: IN CASE TAX EXEMPT PRODUCTS ARE SOLD
DOMESTICALLY TO A VAT REGISTERED PERSON, THE VAT
OTHERWISE DUE ON SUCH PRODUCT SHALL BE CONSIDERED AS
INPUT TAX CREDITABLE AGAINST HIS OUTPUT TAX PAYABLE
2ND STATEMENT: EXPORT SALES BY A VAT-REGISTERED PERSON ARE
SUBJECT TO ZERO-RATING AND SO HE CAN CLAIM AND ENJOY A CREDIT
FOR THE TAX INVOICED TO HIM ON HIS PURCHASES. IF HE IS NOT
VATREGISTERED,
HIS EXPORT SALES ARE EXEMPT, BUT HE IS NOT ENTITLED
TO TAX CREDIT FOR INPUTS
A) TRUE, TRUE
B) FALSE, TRUE
C) FALSE, FALSE
D) TRUE, FALSE
NUMBER 8 THROUGH 10 ARE BASED ON THE FOLLOWING
INFORMATION:
TRANSACTION 1-AN AGRICULTURAL FOOD PRODUCER SELLS HIS
PRODUCTS IN THEIR ORIGINAL STATE TO A FOOD PROCESSOR WHO ALSO
BUYS PACKAGING MATERIALS AND CONTAINERS FROM A
MANUFACTURER/SUPPLIER
TRANSACTION 2-THE FOOD PROCESSOR TRANSFORMS THE FOOD
PRODUCTS INTO PROCESSED FOODS AND SELLS TO A
WHOLESALER/EXPORTER
TRANSACTION 3- THE EXPORTER SELLS THE GOODS TO FOREIGN BUYERS
TRANSACTION 4- THE WHOLESALER DELKIVERS THE MERCHANDISE TO
RETAILERS
TRANSACTION 5- THE RETIALERS SELL THE GOODS TO HOUSEHOLDS OR
ULTIMATE CONSUMERS
8. WHICH OF THE ABOVE TRANSACTIONS IS VAT-EXEMPT?
A) #1
B) #2
C) #3
D) #4

9. WHICH IS ZERO-RATED?
A) #1
B) #2
C) #3
D) #4
10. BASED ON NO.9 ABOVE, THE VAT ARE ABSORBED BY
A) FOOD PROCESSOR
B) WHOLESALER/EXPORTER
C) RETAILER
D) HOUSEHOLDS/ULTIMATE CONSUMER