VALUE-ADDED TAX

PROBLEM #1 – Transitional Input Tax

ABC Company decided to register under the vat system starting January 1, 2024. The following data were taken
from records of the company for the first quarter of 2024.

Sales 5,000,000.00
Purchases – first quarter 2,000,000.00
Inventory, January 1, 2024
From vat suppliers 500,000.00
From nonvat suppliers 3,000,000.00
Requirement: Compute for the vat payable of the company for the first quarter.

PROBLEM #2 – Transitional Input Tax

Hermoso, a nonvat taxpayer, decided to register under the vat system starting January 1, 2024. The following data
were taken from records of the company for the first quarter of 2024.

Sales 10,000,000.00
Purchases – first quarter 5,000,000.00
Inventory, January 1, 2024
From vat suppliers 1,000,000.00
From nonvat suppliers 3,500,000.00
Requirement: Compute for the vat payable of Hermoso for the first quarter.

PROBLEM #3 – Installment Payment Basis

Sarah Geronimo, a vat registered real estate dealer sold a residential lot in October 2023. The following was
made available on the terms of sale.

Gross selling price 8,000,000.00

Downpayment on October 2023 2,000,000.00
Balance payable in 3 monthly installment starting January 2024 6,000,000.00
Zonal valuation determined by the BIR 4,000,000.00
Fair market value determined by the local assessor 9,000,000.00
1. Compute for the output vat for 2023?
2. Compute for the output vat for January 2024

PROBLEM #4 – Deferred Sale

Sarah Lahbati, a vat registered real estate dealer sold a residential lot in July 2023. The following was made
available on the terms of sale.

Gross selling price 7,000,000.00

Downpayment on July 2023 4,000,000.00
Balance payable in 6 monthly installment starting October 2023 6,000,000.00
Zonal valuation determined by the BIR 4,000,000.00
Fair market value determined by the local assessor 9,000,000.00
1. Compute for the output vat for July 2023?
2. Compute for the output vat for October 2023?

PROBLEM #5 – Discount on Senior Citizens/PWDs/National Athletes

Rowena Makiling, 65 year old citizen, went to Jollibee, a vat registered taxpayer, for her breakfast after her 5 mile
run. Total amount of her order is P672.00. Compute how much Rowena will pay.

PROBLEM #6 – Discount on Senior Citizens/PWDs/National Athletes

Hidilyn Diaz, the 2023 Olympc Weightlifting gold medalist, bought sports equipment to Pacquiao Sports Center, a
nonvat registered taxpayer. The total amount of the items she bought was P20,160.00. Compute how much Hidilyn
will pay.