Magbanua Corporation is a parent corporation with two subsidiaries with the

following sales in the past 12 months:

Magbanua Corporation P4,000,000
Subsidiary A sales 1,200,000
Subsidiary B sales 1,000,000
Which is not correct?
a. Subsidiary A and Subsidiary B shall pay percentage taxes.
b. All companies in the group shall pay VAT. CORRECT
c. Magbanua Corporation shall pay VAT.
d. Magbanua Corporation shall pay VAT while Subsidiary A and Subsidiary B shall pay
percentage taxes.

Which of these is vatable?

a. Sea vessels CORRECT
b. City taxis
c. City buses
d. Provincial buses

Which sale of this agricultural or marine product is exempt from business tax?
a. Silk
b. Pearl
c. Mackerel CORRECT
d. Leather

A VAT-registered real property dealer sold the following during a quarter:

House and lot � 2BA, P2 million
House and lot � 2BD, P3 million
House and lot � 2CE, P4 million
Residential lot � 1A, P1 million
Residential lot � 2B, P2 million
What is the total output VAT?
a. P720,000
b. P1,320,000
c. P1,080,000 CORRECT
d. P0

A VAT-taxpayer made the following sales during the month:

Domestic sales, P2,100,000
Export sales, P1,000,000
What is the amount subject to business tax?
a. P0
b. P2,100,000
c. P3,100,000 CORRECT
d. P1,000,000

A VAT-registered taxpayer made the following sales:

Sales destination
Terms
Payment
China
FOB destination
$10,000
Malaysia
FOB destination
P450,000
Hongkong
FOB shipping point
HKD800,000 Philippines
FOB shipping point P300,000
The applicable exchange rate to the Peso was $1:P42 and HKD1:P0.50.
What is the total zero-rated sales?
a. P820,000 CORRECT
b. P1,570,000
c. P1,270,000
d. P420,000
China, P420,000 + Hongkong P400,00 = P820,000 total zero-rated sales.
As a rule, export sales must be a foreign consumption (sales to non-resident) and
is paid for in acceptable foreign currency to be considered for zero-rating.

No input VAT is allowed on

I. Export sales
II. Government sales
III. Exempt sales
a. III only CORRECT
b. I, II and III
c. II only
d. I only

When domestic products that are removed from their place of production without
payment of the excise tax, the tax shall be paid by the
a. last seller.
b. producer of the goods.
c. owner having possession thereof. CORRECT
d. buyer and seller equally.

Which is not a VAT-exempt poultry?

a. Ducks
b. Geese
c. Turkeys
d. Game fowl roosters CORRECT

A VAT-registered television company with annual receipts of P8 million, reported a

P1 million revenue for the month of June 2020. It collected P1.2 million from
various clients including advances and paid P800,000 of expenses, P560,000 of which
was paid to VAT suppliers.
The collections and payments are inclusive of VAT.
What is the VAT Payable?
a. P76,800
b. P0
c. P52,800
d. P68,571 CORRECT