Professional Documents
Culture Documents
3. Coro Realty business sold a commercial lot amounting to P1, 900, 000.
This transaction is
a. VAT-exempt
b. Zero-rated
c. Subject to VAT
d. Subject to OPT
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d) Importation of personal; and household effects belonging to
balikbayans
11. Which of the following transaction are not allowed to deduct input VAT?
a) Importation
b) Zero-rated VAT
c) Sales to the government
d) Sale to a VAT registered person
12. Any person, in the course of business, who sells, barters, exchanges,
lease goods or properties, renders services and imports goods shall be
subject to VAT, except
a) Non-stock and nonprofit private organization
b) Government owned and controlled corporations
c) Farmers selling their farm food products in their original
state
d) Medical services rendered by professionals
13. What is the business tax rate imposed on sales of services to BOI-
registered export enterprise with 100% export sales and PEZA-
registered enterprise?
a) 12%
b) 10%
c) 5%
d) 0%
14. Statement 1: Gross receipts of more than P 1,500,000 per year from
transport of passengers by land are VAT taxable transactions.
Statement 2: Gross receipts of less than P 1,500,000 per year received
by VAT person from transport of cargo by land are VAT taxable
transactions.
a) Only statement 1 is correct
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b) Only statement 2 is correct
c) Both statements are correct
d) Both statements are incorrect
19. In sales to the government, if the actual input VAT is greater than the
standard input VAT, the excess amount shall be
a) Deducted from the output VAT
b) Deducted from the cost of sale or expenses
c) Added as part of cost of sale or expenses
d) Treated as other income
20. The amount of sales to a VAT registered person which requires that the
sales invoice should contain the customers name, address and TIN.
a) P5,000 or more
b) P3,000 or more
c) P2,000 or more
d) P1,000 or more
21. VAT is imposed only in the country where the goods or services are
consumed. This principle would refer to
a) Destination principle
b) Jurisdiction principle
c) Business tax principle
d) Consumer principle
22. This kind of tax imposed due to opportunity given to engage on sale,
exchange, or barter of goods and services.
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a) Ad-valorem tax
b) Privilege tax
c) Consumption tax
d) Indirect tax
23. Statement 1: the taxable base of 12% for the sales of goods is the
gross selling price.
Statement 2: Gross selling price includes excise tax, if any.
a) Only statement 1 is correct.
b) Only statement 2 is correct.
c) Both statements are correct.
d) Both statements are not correct.
25. Which of the following VAT rates can be used as rate for output and
input VAT?
a) 12%
b) 7%
c) 5%
d) 2%
28. Statement 1: If the VAT invoice amount does not indicate separately
the VAT, the sale is not covered by VAT.
Statement 2: The amount of VAT is determined by dividing the VAT sales
invoice by9.333.
a) Only statement 1 is correct.
b) Only statement 2 is correct.
c) Both statements are correct.
d) Both statements are incorrect.
29. Statement 1: The creditable input VAT can only be sourced from
purchases of goods and services from VAT-registered supplier.
Statement 2: Sales discounts due to prompt payments deductible from
gross sales to determine VAT taxable base.
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a) Only statement 1 is correct.
b) Only statement 2 is correct.
c) Both statements are correct.
d) Both statements are incorrect.
33. The following item is not part of the taxable base for VAT purposes,
except:
a) Discounts that are expressly indicated in the invoice.
b) Sales return with proper credit or refund was made during the
month.
c) Sales allowance with proper credit or refund was made during the
month.
d) Cost of sales of the taxable goods sold.
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d) Zonal value or market value is higher than the total
collection.
37. Which of the following is not a requisite for the VAT taxability of a
service transaction in the Philippines?
a) Services are performed in any part of the world as long as
the business is registered in the Philippines.
b) Services are performed in the Philippines only.
c) Services are not VAT-exempt under the Law, or international
agreement.
d) Services are rendered for valuable consideration actually or
constructively received.
39. Which of the following item is not included as part of the taxable base
of imported goods?
a) Value used by the Bureau of Customers (BOC) in determining tariff
and custom duties.
b) Custom duties and community tax of the importer.
c) Custom duties and excise taxes.
d) Tax to be paid by the importer prior to the release of the goods from
the BOC.
Items 41 - 45
One cold rainy evening, Lady Osang saw a handsome man, chilling in a
corner of a street, bathe in the rain. Seeing an opportunity that very
moment, Lady Osang rushed to offer her last remaining piece of rain
coat to the young man, Mr. Moan Moan, for a big sum worth 1,000
pesos.
41. Suppose Mr. Moan got the big money inside his very wet jeans, how
much VAT will result in the sale transaction?
a) 120 Php
b) 107 Php
c) 134 Php
d) None
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42. Suppose Mr. Moan, instead, offered Lady Osang the necessary service
of carrying on her behalf the banana inventories of the lady for the
rain coat in exchange, how much will be the related VAT on the
transaction?
a) 120 Php
b) 107 Php
c) 134 Php
d) None
43. Suppose Mr. Moan got some 600 pesos in his pocket. If Lady Osang
however accepts the money, hence, incurring a net loss of 400 pesos,
how much will be the related VAT?
a) 107 Php
b) 72 Php
c) 64 Php
d) None
44. One year later, Mr. Moan and Lady Osang met again. This time,
the handsome man, in gratitude for the kindness of the lady way back,
decided to buy all the banana cues in her stall worth 5,000 pesos.
How much is the related VAT therefrom?
a) 600 Php
b) 536 Php
c) 672 Php
d) None
45. Suppose, however, Lady Osang, hesitant to accept the offer, instead
sold her inventories worth 5,000 pesos for a loss of 20%. How much
will be the resulting VAT, if any?
a) 480 Php
b) 429 Php
c) 600 Php
d) None, its on a loss
46. Sony International acquired 80% of Sony Philippines. During the year,
Sony Phils incurred advertising expenses worth P20 million. Sony
International decided to subsidize the subsidiary for the amount
incurred. How much output VAT can Sony International claim from the
pertinent transaction?
a) 2,400,000
b) 2,142,857
c) 2,688,000
d) Output VAT not allowed
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48. Ayala Land Incorporated, a real state conglomerate, acquired a fleet of
vehicles for the exclusive use of its employees in line of its business.
The management, however, decided to sell the vehicles to its
employees. Was the transaction entered under a normal course of
business?
a) No, it was violative of the Rule of Regularity.
b) No, it was not undertaken in business activity.
c) No, there was an employer-employee relationship. Hence, not a
business.
d) Yes, it is an incidental transaction.
49. Any person shall be held liable, under sec. 105, who in the course or
trade of business renders the following, but
a) Sells, barters, or exchanges
b) Leases goods or properties
c) Renders services
d) Imports goods
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