Name: - : of Agricultural Food Product in Its Original State From A
Name: - : of Agricultural Food Product in Its Original State From A
Name: - : of Agricultural Food Product in Its Original State From A
10. How much is the input VAT? 21. Mr. San Diego approached you and asked for your professional
a. P 10,200 c. P 8,400 help with regard to a sale of his ancestral house and lot in the
b. P 10,800 d. None amount of P 5,000,000. Your advise would be: Such transaction
will be subject to
11. The following events happen in a VAT enterprise: a. 12% VAT
June perfomance of services b. Zero-rated VAT
July received an invoice amount of P 112,000 c. Exempt from VAT
August paid the services. d. 3% other percentage tax
When and how much input VAT will be claimed?
a. July, P12,000 c. August, P12,000 (subject to 6% CGT, exempt VAT)
b. July, P13,440 d. August, P13,440
22. Which of the following is exempt from VAT?
12. A VAT enterprise had a VAT exempt transaction, however, it a. Export sale by non-VAT individuals.
only has a VAT invoice. As the accountant of the enterprise what b. Foreign currency denominated transactions
will you advise? c. Sale of services to entities duly registered with PEZA
a. Stamp “VAT EXEMPT” on the duplicate VAT invoice. d. Sale to Ramon Magsaysay Awards Foundation
b. Charge and collect output VAT from client
c. Charge output and refund to client (b,c,d subject to 0% VAT)
d. Error in transaction does not pay output
23. Construction by XYZ Construction Corp. of concrete barrier for
13. When to file VAT return? the Asian Development Bank in Ortigas Center to prevent car
a. Monthly c. Yearly bombs ramming the ADB gates along ADB Avenue in
b. Quarterly d. Weekly Mandaluyong City is subject to what business tax?
a. 12% VAT
14. When will you submit the required sales summary list to the b. 0% VAT
BIR? c. Exempt from VAT
a. Attached with the monthly VAT return d. None of the above
b. Attached with the quarterly VAT return
c. Submit only if sales exceeds P 2,500,000 24. Call Center operated by a domestic enterprises in Makati that
d. Submit even if sales do not exceed P 2,500,000 exclusively the reservations of a hotel chain which are all located
in North America. The services are paid for in US $ and duly
15. Who are allowed to withhold VAT from its VAT suppliers? accounted for with the rulings of Bangko Sentral ng Pilipinas. Is
a. Entities, organization, business or corporation duly subject to:
registered with Philippine Economic Zone Authority. a. 12% VAT
b. Non-resident individuals and corporation. b. 0% VAT
c. Exempt from VAT
Name: ______________________________
d. None of the above a. Should be paid by the tax-exempt importer, if he
subsequently sells the goods to a non-tax-exempt
25. Sale of orchids by a flower shop which raises its flower in purchaser.
Tagaytay is subject to: b. Should be paid by the non-tax-exempt purchaser to whom
a. 12% VAT the tax-exempt importer sells it.
b. 0% VAT c. Is a liability either of the tax-exempt importer or the non-
c. Exempt from VAT
tax-exempt purchaser.
d. None of the above
d. Shall not pay the value-added tax because the transaction
was exempt at the point of importation.
26. Which statement is considered correct?
a. An excise tax which imposes a tax based on weight or
34. Three of the following are exempt from the value-added tax.
volume capacity or any other physical unit of measurement
Which is the exception?
is called graduated tax.
a. Importation of books and any newspapers, magazines,
b. An excise tax which imposes a tax based on selling price
review or bulletin.
or other specified value of the article is called ad valorem
b. Importation of agricultural and marine food products in
tax.
their original state.
c. A percentage tax which is imposed whether the transaction
c. Importation of petroleum products and their raw materials.
resulted in a gain or loss is called indirect tax.
d. Importation or sale of fish, prawn, livestock and poultry
d. All of the above.
feeds.
27. Alamid exported cigarettes to Taiwan for sale. He is subject to 35. Which statement is not correct? Transactions considered “in the
the value-added tax. He is also subject to the business tax of: course of trade or business” and, therefore, subject to the
a. Excise tax c. Percentage tax business taxes include:
b. Income tax d. None of these a. Regular conduct or pursuit of a commercial or an
economic activity by a stock private organization.
b. Regular conduct or pursuit of a commercial or an
28. Burgos is manufacturer of fermented liquors. In making sales, all economic activity by a non-stock, non-profit private
taxes on the products and transactions are passed on to the organization.
buyers. For purposes of the value-added tax, which of the three c. Isolated services in the Philippines by non-resident foreign
taxes listed below that he pays forms part of the gross selling persons.
price? d. Isolated sale of goods or services for a gross selling price
a. Excise tax c. Percentage tax or receipts of P 500,000.
b. Value-added tax d. None of these
36. Statement 1: Non-stock and non-profit private organizations
29. Cantor is a VAT-registered manufacturer of liquors. On his sales which sell exclusively to their members in the regular conduct or
in the Philippines, his tax is: pursuit of commercial or economic activity are not exempt from
a. Excise tax c. Percentage tax value-added tax.
b. Value-added tax d. A and B Statement 2: Government entities engaged in commercial or
economic activity are generally exempt from value-added tax.
30. Statement 1: A person subject to excise tax is also subject to a. Both statements are correct.
value-added tax. b. Both statements are incorrect.
Statement 2: A person subject to percentage tax is also subject c. Only the first statement is correct.
to value-added tax. d. Only the second statement is correct.
a. Both statements are correct
b. Both statements are wrong 37. Statement 1: Any person who is VAT-registered but enters into
c. Statement 1 is correct while Statement 2 is wrong transactions which are exempt from VAT (mixed transactions)
d. Statement 1 is wrong while Statement 2 is correct may opt that the VAT apply to his transactions which would have
been exempt under Sec. 109 (1) of the Tax Code as amended.
31. Which statement is wrong? Value-added tax on importation of Statement 2: A seller or lessor of VAT-subject goods, properties
goods: or services whose actual or expected gross sales and/or receipt
a. Is imposed on an importation for sale or for use in do not exceed P1,919,500 for any 12-month period who
registers under the VAT system shall be subject to zero rate on
business.
his exports.
b. Is imposed on an importation for personal use.
a. Both I and II are true
c. Should be paid prior to removal from customs custody.
b. Both I and II are false
d. Is not available as input tax even if related to business.
c. Only I is true
d. Only II is true
(input tax on importation is availbale only for business
related importation)
38. Which of the following statements is incorrect?
a. A taxpayer whose annual gross receipts/sales exceed P
32. One of the following statements is incorrect.
1,919,500 shall pay VAT even if he is not VAT registered.
a. Imported goods which are subject to excise tax are no
b. A taxpayer whose annual gross receipts/sales do not
longer subject to value-added tax.
exceed P 1,919,500 but who is VAT-registered shall pay
b. VAT on the importation is paid to the Bureau of Customs
VAT.
before the imported goods are released from its custody.
c. Percentage tax maybe imposed together with VAT.
c. Expenses incurred after the goods are released from
d. Percentage tax maybe imposed together with excise tax.
customs custody are disregarded in computing VAT on
importation.
39. One of the following statements is incorrect, which is it?
d. When a person who enjoys tax-exemption on his
a. Imported goods which are subject to excise tax are no
importation subsequently sells in the Philippines such
longer subject to VAT.
imported articles to non-exempt person, the purchaser-
b. VAT on importation is paid to the Bureau of Customs
non-exempt person shall pay the VAT on such importation.
before the imported good are released from its custody.
c. Expenses incurred after the goods are released from
33. Which statement is correct? The value-added tax on an
Customs custody are disregarded in computing the VAT
importation:
on importation
Name: ______________________________
d. When a person who enjoys a tax-exemption on his
treated as gross
importation subsequently sells in the Philippines such
income under Sec.
imported articles to a non-exempt person, the purchaser- 32 of the Code
non-exempt person shall pay the VAT on such importation.
Finance Companies On interest, 5%
40. Which of the following importation is subject to VAT? discounts and other
a. Importation of frozen meat items of gross
b. Importation of apples for personal consumption income paid to
c. Importation of bamboo poles finance companies
d. Importation of grapes for sales and other financial
intermediaries not
performing quasi
banking functions
Interest,
commissions and
discounts paid from
Tax Rates their loan
transactions from
finance companies
Coverage Basis Tax as well as income
Rate from financial
Persons exempt from VAT Gross Sales or 3% leasing shall be
under Sec. 116 Receipts taxed based on the
remaining
Domestic carriers and Gross Receipts 3% maturities of
keepers of garages instruments:
International • Short term 5%
Carriers: maturity (not over 2
years)
International air/shipping Gross Receipts 3% • Medium term 3%
carriers doing business in (over 2 years but
the Philippines not over 4 years)
Franchise Grantees: • Long Term
Maturity
Electric , gas and water Gross Receipts 2%
utilities ο Over 4 years but 1%
not over 7 years
Radio and television Gross Receipts 3%
broadcasting companies ο Over 7 years 0%
whose annual gross
receipts of the preceding Life Insurance Companies Total premiums 5%
year do not exceed P (except purely cooperative collected
10,000,000 and did not opt companies or
to register asVAT taxpayer associations)
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