ASIA PACIFIC COLLEGE

TAXATION: VAT NO. 5

PROF. R.E. HERMOSILLA

Instructions: Select the best answer from choices A, B, C and D by encircling the letter of your choice
corresponding to your answer.
1.
On January 5, 2007, Smarty Co., VAT-registered, sold on account goods for P112,000 to Global Corp.
The term was 2/10, n/30. Payment was made on January 10, 2007. The total amount due is:
a. P112,000
b. P98,000
c. P109,760
d. P100,000
2.
Goldis sells cakes and pastry items to well-known hotels and restaurants in Metro Manila. The hotels
and restaurants are allowed credit based on their track record. The total amounts received or receivable
from sales by Goldis in January of 2007 were P224,000, including the value-added tax. 75% of the sales are
normally on account. How much is the value-added tax on the sales amount for the month of January
2007?
a. P22,400
b. P26,880
c. P20,000
d. P24,000
3.
Wonder Corp. is a value-added tax registered dealer of appliances. The following data are for its
calendar month ended January 31, 2007:
Sales, total invoice value
P6,720,000
Purchases, net of input taxes
5,500,000
Sales return
201,600
Purchases return
300,000
Deferred input taxes (carried over from the third quarter)
9,500
The value-added tax payable for Wonder Corp.s calendar month ended January 31, 2007 is:
a. P50,500
b. P60,000
c. P64,900
d. P74,400
4. Orofar, a trader, made the following sales of goods during the month of January 2008, exclusive of VAT:
Cash sales
P200,000
Open account sales
100,000
Installment sales
100,000
Note: Receipt from installment sale is P40,000.
Consignment made (net of VAT):
December 15, 2007
100,000
October
15, 2007
100,000
September 15, 2007
100,000
Output tax is:
a. P84,000
b. P72,000
c. P60,000
d. P48,000
5. Winery is a manufacturer of wine. During a particular calendar quarter, it had the following transactions
(net of VAT):
Jan. 4, 2007 : Consigned wine to a retailer in Makati City amounting to P200,000.
Feb. 14, 2007 : Exported P1,000,000 worth of wine to Spain.
Feb. 27, 2007 : President of Winery celebrated his birthday, consuming P50,000 worth of wine given to
him by the company as a birthday gift.
Mar. 20, 2007 : Declared property dividend of one case of wine for every 10 shares, amounting to
P150,000.
The output tax for the calendar quarter ended March 31, 2007 is:
a. P48,000
b. P168,000
c. P140,000
d. P40,000
6.
The following are data of Samson Appliances for the month ended January 31, 2007:
Sales up to January 15, total invoice value
P319,200
Purchases up to January 15, net of input taxes
215,000
Additional information:
On January 16, 2007, Samson Appliances retired from its business and the inventory valued at P190,000
net of input taxes was taken and transferred to Allied Appliances. There is a deferred input taxes from the
last quarter of P3,500. How much is the total value-added tax due and payable by Samson Appliances in its
operations for the month ended January 31, 2007 and its retirement from business?
a. P10,260
b. P27,700
c. P31,200
d. P31,804
Items 7 and 8 are based on the following information:
Lovely had the following data on its operations for a month as a VAT-registered taxpayer:
Sales, total invoice price
P592,480
Purchases of goods, VAT not included:
From VAT-registered persons
100,000
From non-VAT registered persons
80,000
Purchases of services, VAT not included:
From VAT-registered persons
20,000
From non-VAT registered persons
8,000
From persons subject to percentage taxes
10,000
Salaries of employees
60,000
Other operating expenses
12,000
This is the first month of being liable to the value-added tax. Data on inventories at the beginning of the
period bought from VAT registered persons follow:
Inventory, at cost
P44,800
at net realizable value
49,000
Value-added tax paid on beginning inventory
4,800

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7.

Input taxes are:

a. P24,800
b. P20,400
c. P19,200
d. P19,650
8.
The value-added tax payable is:
a. P43,830
b. P44,280
c. P46,680
d. P59,248
Items 9 through 12 are based on the following data:
Virgin is a producer of cooking oil from coconut and corn. Previously exempt from the value-added tax, he
became subject to the value-added tax on January 1, 2008. For January 2008, with sales, value-added tax
not included, of P700,000, he had the following other data for the month:
Inventory, January 1, 2008:
NRV
Cost
Corn and coconut purchased from farmers
P120,000
P100,000
Packaging materials purchased from VAT suppliers
24,640
22,400
Supplies purchased from VAT suppliers
11,200
13,440
Purchases during the month of coconut and corn from farmers
330,000
Purchases during the month from VAT suppliers:
Packaging materials
56,000
Supplies
16,800
9.
The transitional input tax is:
a. P672
b. P762
c. P3,600
d. P4,080
10.
The presumptive input tax is:
a. P13,200
b. P33,000
c. P6,600
d. P39,600
11.
The creditable input taxes are:
a. P21,762
b. P24,600
c. P25,080
d. P21,672
12.
The value-added tax payable for the month is:
a. P62,328
b. P58,920
c. P59,400
d. P62,238
13.
Data for a trader with one line of business subject to the value-added tax and another line of business
not subject to the value-added tax:
Sales, VAT business, VAT included
P896,000
Sales, non-VAT business
200,000
Purchases of goods, VAT business, VAT included
224,000
Purchases of goods, non-VAT business, VAT included
33,600
Purchase of depreciable asset, for use in VAT and non-VAT business, VAT included
112,000
Purchases of supplies, for VAT and non-VAT business, VAT included
2,240
Rental of premises, for VAT and non-VAT business, from non-VAT registered person
22,400
The value-added tax payable is:
a. P59,808
b. P62,208
c. P82,608
d. P86,208
Items 14 through 16 are based on the following information:
All amounts given are total invoice costs/prices:
A, non-VAT taxpayer, sells to B, VAT taxpayer
P 67,200
B, VAT taxpayer, sells to C, VAT taxpayer
100,800
C, VAT taxpayer, sells to D, VAT taxpayer, an exporter
168,000
D, VAT taxpayer, exports
300,000
14.
The value-added tax of B:
a. Payable of P3,600
b. Payable of P10,080
c. Payable of P10,800
d. Payable of P12,096
15.
The value-added tax of C:
a. Payable of P7,200
b. Payable of P8,064
c. Payable of P6,720
d. Refundable of P10,900
16.
The value-added tax of D:
a. Payable of P18,000
b. Payable of P36,000
c. Refundable of P18,000 d. Refundable of P36,000
17. In a month, total invoice prices/costs:
Domestic sales
P 672,000
Export sales
1,500,000
Purchases from VAT-registered persons of:
Goods exported
560,000
Goods sold in the Philippines
224,000
Operating expenses
112,000
The input taxes attributable to export sales which may be refunded or credited against other internal
revenue taxes, including any value-added tax on domestic sales, is:
a. P60,000
b. P24,000
c. P84,000
d. P96,000
Items 18 through 21 are based on the following data:

Data from the books of accounts of a VAT taxpayer for January 2008:
Sales

Domestic
P2,000,00
0

Exports
P8,000,000

Purchases:
From VAT taxpayers of:
Goods for sale
600,000
2,400,000
Supplies and services
90,000
360,000
From non-VAT taxpayers of:
Goods for sale
100,000
1,500,000
Supplies and services
20,000
80,000
There was no inventory at the beginning or end of the taxable period.
18. The value-added tax payable on the domestic sales is:

Total
P10,000,00
0
3,000,000
450,000
1,600,000
100,000

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a. P119,000
b. P131,000
c. P157,200
d. P142,800
19. The input taxes attributable to zero-rated sales is:
a. P276,000
b. P331,200
c. P340,800
d. P330,240
20. If the input taxes attributable to zero-rated sales are claimed as tax credit, the net input value-added tax
refundable is:
a. P157,000
b. P200,200
c. P187,440
d. P174,000
21. The gross profit from sales for the period is:
a. P4,850,000
b. P6,550,000
c. P5,400,000
d. P4,950,000
Items 22 and 23 are based on the following data:
Analysis of the balances in selected accounts of a taxpayer, with VAT and non-VAT business, showed:
Purchases, all from VAT-suppliers, VAT not included
P1,600,00
0
Sales, any tax not included:
Exports, VAT business
2,000,000
Exports, non-VAT business
1,000,000
Domestic sales, VAT business
600,000
Domestic sales, non-VAT business
400,000
There were no inventories at the beginning and end of the taxable period.
22. The value-added tax payable on domestic sales is:
a. P36,000
b. P43,200
c. P52,800
d. P96,000
23. The net value-added tax refundable for the month is:
a. P52,800
b. P44,000
c. P43,200
d. P36,000
24. A VAT-registered person has the following data:
Export sales, total invoice amount
P3,000,00
0
Domestic sales, total invoice amount
6,720,000
Purchase of raw materials, used to manufacture goods
for export and domestic sales, VAT inclusive
560,000
Supplies used for both export and domestic sales,
VAT inclusive
448,000
Purchase of equipment used in the manufacture of
goods
for export and domestic sales, VAT exclusive
300,000
The amount of input tax which can be refunded or converted into tax credit certificates at the option of the
VAT-registered person is:
a. P40,000
b. P60,000
c. P48,000
d. P36,000
25. Weirdo is a VAT-registered manufacturer. For January 2008, VAT not included:
Sales Returns
Sales
Cash sales, of which 60% is exports
P1,200,000
Open account sales
P10,000
800,000
Consignment shipments (at selling prices):
Not over one month
200,000
Not over two months
13,000
300,000
Not over three months
15,000
400,000
On consignment sales of not over one month, there
was a cash remittance received of P40,000, net of a
20% commission, VAT not included.
Discounts and rebates, VAT not included:
Discounts, per terms of invoice of 2/10, n/30
12,000
Rebates
17,000
Freight and insurance on domestic sales
50,000
Selected data on purchases and costs during the month, total invoice price of the VAT-registered suppliers,
on the taxable domestic sales:
Raw materials
439,236
Supplies
48,804
The ratio of raw materials and supplies cost, VAT not included, to the taxable gross selling price of
domestic sales is the same as that in exports.The net value-added tax payable for the month is:
a. P138,870
b. P135,270
c. P112,725
d. P109,125
26. A VAT-registered manufacturer, had:
Sales, VAT business, VAT not included:
Exports P500,000; Domestic P400,000
P900,000
Sales, non-VAT business
100,000
Purchases from VAT suppliers, total invoice costs:
Attributable to VAT business goods exported
112,000
Attributable to non-VAT business domestic sales
89,600
Attributable to VAT business (domestic sales) and non-VAT business
44,800
Ending inventories (book balances) for goods to be exported:
Raw materials
8,000
Work in process
15,000
Finished goods
20,000

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Supplies
5,000
If input taxes attributable to goods exported are taken as tax credit, the value-added tax payable is:
a. P32,160
b. P37,920
c. P36,240
d. P44,160
27. Villar sells real property in the course of its business. During the last quarter of 2007, it had sold a lot under
the following terms (including VAT):
Total contract price
P1,120,000
Downpayment, 10/10/2007
112,000
First installment, 12/30/2007
112,000
Second installment, 1/31/2008
56,000
The output VAT in the last quarter of 2007 is:
a. P12,000
b. P24,000
c. P26,000
d. None
28. Ayalas in the course of trade sells real property. During the month of January 2008, it had the following
data per sales document (VAT included):
Cash sales
P560,000
Sale on deferred payment basis (initial payments
exceed 25% of the selling price)
336,000
The real property sold for cash had a zonal value of P600,000 (excluding VAT) and the property sold under
deferred payment basis had a fair market value of P200,000 (excluding VAT).
How much is the output on the sale of real property?
a. P84,000
b. P96,000
c. P108,000
d. P112,320
Items 29 through 32 are based on the following data:

Sosyal is a VAT-registered taxpayer. The following data from the books of accounts were transactions for each
of the months of October, November and December (last quarter) of 2007:
Credits to sales account
Debits to purchase account on
local purchases of goods from:
VAT-registered persons

October
P440,000

November
P550,000

December
P770,000

110,000

660,000

330,000

Non-VAT registered persons

20,000
30,000
15,000
Importation of goods, landed cost
50,000
29. The value-added tax payable at the end of October is:
a. P33,000
b. P39,600
c. P30,000
d. P52,800
30. The value-added tax payable (refundable) at the end of November is:
a. (P19,200)
b. P19,800
c. Due of P0
d. P66,000
31. The output taxes on the return for the period ending December is:
a. P160,000
b. P176,000
c. P211,200
d. P92,400
32. The value-added tax payable at the end of December 2007 is:
a. P13,800
b. P33,600
c. P13,200
d. P39,600
33. The following last quarter data pertain to a value-added taxpayer whose purchases were all from valueadded taxpayers:
Output taxes, October
P 132,000
Input taxes, October
240,000
Output taxes, November
348,000
Input taxes, November
144,000
Sales, total invoice price, December
3,360,000
Purchases, total invoice cost, December
1,456,000
The value-added tax payable for December is:
a. P190,400
b. P192,000
c. P204,000
d. P260,400
Items 34 and 35 are based on the following data:
After recognizing the value-added tax payable for the month of December 2007, the books of accounts of Colors, a
merchandising company, showed a debit balance in the input taxes account of P12,000. Sales and purchases at total
invoice prices/costs for January 2008 were:
Sales
P896,000
Sales returns and allowances
56,000
Sales discount
22,400
Purchases of:
Goods for sale, from VAT-registered persons
224,000
Goods for sale, from non-VAT registered persons
56,000
Services, from VAT-registered persons
21,280
Equipment (life of 10 years) from VAT-registered person
112,000
Importation of goods for sale:
Invoice cost, country of origin
20,000
Freight
500
Insurance
200
Customs duty
600
Excise tax
100
Other expenses prior to removal from customs custody
300
Other expenses after removal from customs custody
250
Operating expenses
30,000
34. The value-added tax on the importation is:
a. P2,170
b. P2,604
c. P2,634
d. P6,234
35. The value-added tax payable for January 2008 is:
a. P34,716
b. P41,150
c. P40,716
d. P46,716

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