1.

Which is incorrect with respect to business taxes?

a.
VAT is a top-up tax on sales
b. Percentage tax is an expensed tax
c.
VAT is due quarterly but is paid monthly
d. Percentage tax is an explicit consumption tax*

2.

Which of the following transactions has no consumption tax?

a.
Importation
b. Domestic consumption from VAT suppliers
c.
Domestic consumption from non-VAT suppliers
d. Exportation*

3.

Which of these importations is subject to VAT?

a.
Lumber*
b. Flour
c.
Canned tuna*
d. Wine*

4.

The sale of which of the following is exempt from business tax?

a.
Urea fertilizer*
b. Hybrid corn seeds
c.
Herbicides
d. Chicken dung

5.

Which of the following ingredients is exempt from the VAT on importation?

a.
Ingredients in the manufacture of Improvised Explosive Devices
b. Ingredient used in the manufacture of human foods
c.
Ingredients used in the manufacture of pet feeds
d. Ingredients used in the manufacture of poultry or livestock feeds*

6.

Which of the following agricultural products is not exempt from business tax on sales?
a.
Ginseng
b. Coffee beans
c.
Tobacco leaf*
d. Tea leaf

7.

Mabiga Cooperative is an agricultural cooperative which processes the coffee production of its members for sale to NesFe Corporation, a coffee processing
company selling bottled instant cofee. Mabiga imported a coffee drier from Colombia Coffee Machineries Corporation. After 3 years of active use, Mabiga
disposed the drier to Pedro Mabanag, a member.
Which of the following is subject to VAT?
a.
Importation of coffee drier from Colombia
b. Sale of coffee drier to Mr. Mabanag*
c.
Sale of coffee to NesFe Corporation
d. Sale of coffee by members to Mabiga Cooperative

8.

Ammacian Corporation imported goods from abroad for domestic sale. The details of the importation is given below:
Peso value of suppliers invoice
Other cost incurred to bring the goods to Philippine port
Other inland costs prior to release of goods from Customs
Customs duties
Freight cost to bring merchandise to Ammacians warehouse
Compute the Customs duties on the dutiable value.
a.
P 207,000*
c. P 215,500
b. P 200,000
d. P 208,500

9.

Compute the VAT on importation on the landed cost.

a.
P 258,600
c. P 282,600
b. P 283,440*
d. P 284,460

10.

Which is subject to business tax?

a.
Business for subsistence
b. Privilege stores
c.
Non-resident sellers*
d. All of these

11.

Which is considered pure consumption tax?

a.
VAT on importation*
b. Percentage tax
c.
Value Added Tax on sales
d. Excise tax

12.

Who is statutory liable to pay the VAT on importation?

a.
The non-resident seller
b. The resident buyer*

P 2,000,000
70,000
85,000
10%

c.
d.
13.

Both seller and buyer

The Bureau of Customs

A business taxpayer had the following summarized transactions during the quarter:
Cash sales
Sales on credit (account sales)
Installment sales (P30,000 collected)
Sales returns and allowances
Quota discounts
Advances for goods not yet delivered
Purchase of goods, including of P72,000 VAT
passed on by sellers

672,000

Compute the gross selling price.

a.
P1,100,000
b. P1,080,000*
14.

400,000
600,000
100,000
20,000
10,000
20,000

c. P1,030,000
d. P1,010,000

A lending investor had the following data during a month:

Cash collection for loan principal
Cash collection for interest
Cash collection for penalties
Uncollected loan principal
Billed but uncollected interest
Billed but uncollected penalties

What is the gross receipt?

a.
P 456,000*
b. P 450,000

400,000
50,000
6,000
300,000
2,000
1,000

c. P 59,000
d. P 56,000

15.

Geneva Corporation, a VAT lessor which leases commercial spaces to various businesses, received P1,284,000 rentals from various clients, net of 5% withholding
tax. What is the gross receipt?
a.
P 1,200,000
c. P 1,284,000
b. P 1,351,579*
d. P

16.

A VAT registered seller made the following sales of goods during a month:
To customer A
To customer B
To customer C
Total sales
Compute the output VAT.
a.
P 60,000*
b. P 54,240

17.

Fair value
180,000
190,000
150,000

c. P 62,400
d. P 63,600

A VAT-registered seller made the following sales to the following entities:

City of San Fernando
ABC Trading Company
What is the output VAT?
a.
P 34,080*
b. P 28,080

18.

Selling price
P150,000
200,000
102,000
P452,000

Selling price
P134,000
100,500

Fair value
P200,000
150,000

c. P 42,000
d. P 40,500

The following pertain to a VAT-registered taxpayer in July 2016:

Fees from senior citizens, before 20% discount
Fees from PWD, before 20% discount
Fees received from regular customers
Total fees

P
P

225,000
75,000
340,000
640,000

Compute the output VAT assuming the given figures are exclusive of VAT.
a.
P 48,000
c. P
b. P 40,800*
d. P 69,312
According to updated tax rule, both PWD and Senior citizens are exempt from VAT. Banggawans 2016 edition book is not yet updated.

19.

DEF Realty Corporation, a VAT-registered realty dealer, sold the following residential properties during the month:

Residential lot
Residential dwelling

Compute the output VAT.

a.
P0
b. P 580,000
20.

Zonal
Value
1,500,000
3,500,000

A VAT-registered taxpayer has its own sales operations but also sells goods through consignees. It also sells goods on consignment for a commission. The
following were the results of operations for the month ended April 30, 2016:

Compute the output VAT.

a.
P 96,000
b. P 92,400

500,000
150,000
100,000
20,000
30,000

c. P 80,400*
d. P 62,400

Mr. Misamis, a VAT-registered taxpayer, ceases business operation in May 2015. His business properties upon termination of business operation include the
following:
Cash
Accounts receivables
Investments
Inventories
Property, plant and equipment
Total assets
Compute the Output VAT on deemed sales.
a.
P 162,000
b. P 120,000*

22.

Selling
Price
1,700,000
3,200,000

c. P 624,000
d. P 420,000*

Sales of own inventories

Sales made through consignees
Sales made for consignors
Commission income from consignors
Commissions paid to consignees

21.

Assessed
Value
1,200,000
1,500,000

50,000
120,000
180,000
200,000
800,000
1,350,000

c. P 24,000
d. P 0

Mr. Digong sold a commercial land with a selling price of P2,100,000 but with a zonal value of P2,240,000 and assessed value of P 1,500,000.
What is the output VAT?
a.
P 268,800*
b. P 252,000

c. P 240,000
d. P 225,000

23.

Assuming the same data in the previous problem except that the commercial land was sold for P2,464,000, what would be the output VAT.
a.
P 295,680
c. P 264,000*
b. P 268,800
d. P 240,000
If FV is used, it is presumed to be exclusive of VAT and if SP is used, presumed to be inclusive of VAT.

24.

Guimaras Company made the following export and domestic sales during the month:
Export destination
Export for Hong Kong
Export for Thailand
Export to Japan
Domestic sales
Sales to an PEZA
Sales to a non-VAT customer
Sales to a VAT customer

Terms
FOB destination
FOB destination
FOB shipping point
FOB destination

The exchange rates were as follows: $1 = P45; 1 = P0.50.

Compute the output VAT for the month.
a.
P 474,000
c. P 180,000*
b. P 420,000
d. P 120,000
25.

Which is not a deemed sale transaction?

a.
Exchange of inventory for stocks
b. Exchange of property, plants and equipment for stocks
c.
Exchange of inventory for property
d. Exchange of stocks for property*

Payment
$ 100,000
P 450,000
800,000
P2,000,000
500,000
1,000,000

26.

A VAT taxpayer had the following data regarding its sales and input VAT during a particular quarter:
Sales
Regular sales
Export sales
Sales to government
Exempt sales
Total

Amount
P 800,000
400,000
200,000
100,000
P 1,500,000

Traceable input VAT

P 40,000
18,000
15,000
8,000
P 81,000

Non-traceable input VAT totaled P 24,000. Input VAT applied for tax refund totaled P 6,000.
Compute the total Output VAT.
a.
P 180,000
c. P 120,000*
b. P 168,000
d. P 96,000
27.

The sale of a VAT registered taxpayer for the last 12 months failed to exceed the VAT threshold. It made the following sales during the month:
Sales of rice
Sale of flour
Sale of fertilizers and seeds
Total
Compute the output VAT.
a.
P 0*
b. P 2,400*

28.

P
P

80,000
20,000
40,000
140,000

c. P 7,200
d. P 16,800

A non-VAT professional service provider which exceeded the VAT threshold had the following revenue and collections during the quarter:
Total collections, inclusive of P13,440 advances
Total revenue
Compute the total output VAT.
a.
P0
b. P 27,360

29.

268,800
392,000

c. P 28,800*
d. P 42,000

An international carrier generated the following receipts:

Passengers
Cargoes, mails; excess baggage

Incoming
P 1,000,000
500,000

Outgoing
P 2,000,000
400,000

Compute the percentage tax.

a.
P 72,000
c. P 12,000*
b. P 60,000
d. P 0
30.

Which of the following is subject to value added tax?

a.
Importation of grapes and apples
b. Sale of seaweeds
c.
Sale of fire wood and charcoal*
d. Sale of husked rice, corn grits and molasses

31.

All of the following entities are VAT-exempt, except?

a.
Notre Dame, a proprietary hospital
b. Philippine Airlines, a domestic air carrier
c.
Bank of the Philippine Islands, a commercial bank
d. Tagbilaran University, a proprietary educational institution

32.

Which is subject to VAT?

a.
Life insurance companies
b. Operators of hotels, motels and inns*
c.
International air or sea carrier
d. Agricultural, credit or multi-purpose cooperative

33.

Which is not subject to output VAT?

a.
Sale of residential lot for P1,500,000*
b. Direct export sales of goods
c.
Cessation of status as VAT taxpayer with respect to all goods or properties on hand
d. Sale of residential dwelling for P2,800,000*

34.

Which is not a zero-rated sale of goods or service?

a.
Transmission of messages message originating from the Philippines to abroad other than news services, embassies and diplomatic calls.*
b. Sale of gold to the Bangko Sentral ng Pilipinas
c.
Sale of electricity from hydropower and solar power plants
d. Transport of passengers by air or sea from Philippines to abroad

35.

Which is correct statement?

a.
If the monthly aggregate acquisition cost of capital goods exceeds P1,000,000, the input VAT shall be allocated over a period of 60 months starting from the
month of purchase.
b. The export sales of non-VAT taxpayers are exempt from VAT.*
c.
The excess of input VAT over standard input VAT on government sales is a taxable gain subject to income tax.
d. Monthly VAT is due 25 days from the end of each month with the quarterly VAT payable 20 days from the end of each quarter.

36.

Phil Co. raised its total outstanding shares by 40% to 70,000,000. This was made by conducting an initial public offering through the Philippine Stock Exchange.
The IPO shares were offered and sold for P20 per share. The stock transaction tax is
a.
P16,000,000
c. P7,000,000
b. P8,000,000*
d. P4,000,000

37.

Which is a correct statement?

a.
Distraint and levy should not be implemented simultaneously so as not to violate the proprietary interest of the taxpayer.
b. Assessment must be made by the BIR within 5 years from the date the return is filed. Collection shall be enforced within 3 years from the date of such
assessment.
c.
VAT taxpayers shall issue receipts regardless of the amount of the sale.*
d. Distrait and levy can be effected even in the absence of a prior assessment.

38.

A dealer in securities has the following data for the quarter:

Sales, shares held as inventory
Sales, shares held as investment
Cost, shares held as inventory
Cost, shares held as investment
Supplies expense, net of VAT
Rent expense, net of VAT
How much is the VAT payable?
A. 470,000
B. 324,000

39.

5,000,000
1,500,000
2,000,000
500,000
100,000
200,000

C. 270,000
D. Not subject to VAT

Beneco is a holder of franchise to distribute and sell electricity. In a particular quarter, its gross receipts amounted to P2,000,000 from distribution and sale of
electricity. It has also receipts from the lease of its auditorium amounting to P600,000.
The value-added tax or percentage tax due for the quarter is:
a.
P40,000 percentage tax
c.
P52,000 percentage tax
b. P72,000 value-added tax
d.
P312,000 value-added tax

40.

Chavit, a Filipino citizen, promoted a Philippine boxing championship in Manila featuring Mark, the champion and Zeus, his challenger. Gate receipts amounted
to P3,000,000 and additional receipts from television coverage was P2,000,000. The amusement tax due is:
A. Exempt*
C. P300,000
B. P500,000
D. P600,000

41.

Gloria, a security dealer, purchased P500,000 shares of Tabako Corp. The corporations shares are listed and are traded in the local stock exchange. Gloria sold the
shares for P350,000 through the local stock exchange. The percentage tax on the sale is:
A. P 0
C. P1,750*
B. P3,500
D. P2,500

42.

Victory Bus Lines had the following receipts during the quarter:
Gross receipts, without tax:
Transport of passengers
Transport of goods
Transport of cargoes

P 1,000,000
1,500,000
500,000

The output VAT and OPT due for the quarter are:
Output VAT
A. P240,000
B. 360,000
43.

OPT due
P30,000*
0

OutputVAT
C. P 0
D. 360,000

OPT due
P 90,000
30,000

A VAT-registered customer ordered the following from a non-VAT-registered supplier:

Eggs
Dried fish
Marinated fish
Under current revenue regulations, what is the output VAT?
A. P 0*
C. P24,000
B. P12,000
D. P36,000

100,000
150,000
200,000