Name: Date:

I. Write True if statement is correct or False if incorrect.

1. A single income activity rendered by a resident person such as selling his family home is a business.
2. A non-stock and non-profit educational institution is engaged into business.
3. A sale of company cars to its employee officers is considered a business transaction.
4. A Filipino citizen who rendered regular services for a profit to an employer is considered business.
5. Casual sales are not subject to business tax but subject to income tax.
6. Only VAT-registered business is subject to VAT.
7. Only one TIN is to be assigned for every business by a sole proprietor taxpayer.
8. A business should register before the start of its operation.
9. A business should renew its registration annually before the end of the year.
10. A non-VAT person collecting VAT from customers is liable to pay percentage tax plus the VAT he collected with surcharge of
25%.
11. A taxpayer shall apply for the authority to print with the BIR before the printing of his business invoice and receipts.
12. In case of VAT invoice, the amount of tax shall be shown as separate time in the invoice or receipt.
13. A business implies regularity of transaction; hence, a non-resident alien that has a single business transaction in the
Philippines is considered not engaged in business.
14. In accordance with TRAIN, the registration threshold for VAT business is P2,999,999 of its sales or receipts per year.
15. All taxpayers should have their own TIN.
16. Cooperatives are business tax exempt , but subject to registration fee.
17. In general, the sales invoice of a VAT-registered business shall include the amount of VAT.
18. A non VAT person can only shift to VAT after 3 years upon registration as non VAT.
19. Excise tax regulates the excessive consumption of sin products.
20. The taxpayer is required to pay annual registration fee of P500 for each distinct and separate business.

II. PROBLEM-SOLVING. Show your solution in the separate sheet of paper.

1. The VAT registered business reported a VAT purchase invoice amounting to P84,000. The same goods were sold at 120% of
cost. How much would be the total VAT sales invoice amount?
2. A trading business with annual sales of P400,000 is registered as VAT. For its sale of P50,000, how much should be the total
amount indicated in its invoice?
3. A multi purpose cooperative is registered with the SEC and the CDA. It has a main office, a sales office and a warehouse. For
the year, it has P5,000,000 total collection from its members. The annual registration fee of the cooperative would be.
4. Dok Ling, a sole proprietor, opted to register as VAT. His transactions during the first quarter show the following:
Sales P300,000
Cost of Sales 200,000
Ending Inventory 100,000
If all of the purchases of merchandise were purchase from a VAT-registered business, how much is the VAT payable of Dok
Ling?
5. A is a non-VAT business with a total sales of P1,919,500 of which 70% has been collected. Its total purchases inclusive of
VAT is P1,120,000. How much is the business tax of A?
6. Iyona Trading, a non-VAT business, sold the P200,000 products to AKina Enterprises. If Iyona’s purchase during the taxable
period amounts to P224,000, inclusive of VAT, and the cost of sales is P89,600, how much is the amount of business tax
payable?
7. A VAT registered business reported total sales of P300,000 for the year. How much would be its net business tax payable if its
VAT purchase invoices’ aggregate amount is P268,800?
8. Lito, a VAT registered person, shows the following sales and purchases during the year:
Sales P2,500,000
Purchases from:
VAT supplier inclusive of VAT 1,120,000
Non VAT supplier inclusive of VAT 560,000
Non-VAT supplier 200,000
Cost of sales 1,400,000
The net VAT payable of Lito would be?
9. Sung, Filipino-Chinese, is a VAT registered person. The records of his business transactions during the year were as follows:

Purchases from VAT registered supplier P 800,000

Purchases from non VAT registered supplier 200,000
Sales 1,000,000
Cost of Sales 600,000
Ending Inventory 400,000
How much is the net VAT payable?

10. Camella realty corporation sold the following real properties during the taxable year:
2 units of residential house and lot at 3M each P6,000,000
4 residential lots at 2M each 8,000,000
1 commercial lot at 3M 3,000,000
How much is the total transactions subject to VAT?