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Modified Finals Vat

This document contains a series of true/false, multiple choice, and fill-in-the-blank questions regarding value-added tax (VAT) in the Philippines. It tests knowledge of which entities and transactions are subject to VAT, exempt from VAT, or zero-rated. It also addresses input tax credits, VAT registration thresholds, filing deadlines, and other VAT concepts.

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Clyden Jaile Ramirez
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59 views

Modified Finals Vat

This document contains a series of true/false, multiple choice, and fill-in-the-blank questions regarding value-added tax (VAT) in the Philippines. It tests knowledge of which entities and transactions are subject to VAT, exempt from VAT, or zero-rated. It also addresses input tax credits, VAT registration thresholds, filing deadlines, and other VAT concepts.

Uploaded by

Clyden Jaile Ramirez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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I – True or False

1. Value added and percentage taxes cannot be imposed at the same time.
2. VAT, being indirect tax, can be shifted or passed on the buyer, transferee or lessee of goods, property, or services.
3. A person may be subject to business tax even if he is not engaged in business.
4. In a manufacture of products, it is possible that VAT and percentage taxes are simultaneously imposed.
5. VAT is a privilege tax.
6. The term “engage” connotes a single act of isolated transactions.
7. Government Corporations are not exempt from VAT.
8. On transactions in the course of trade or business, non-stock, non-profit private organizations are not exempt from
VAT.
9. Any business or business pursued by an individual where the aggregate gross sales or receipts do not exceed 100,000
during any 12-month period shall be considered principally for subsistence or livelihood and not in the course of
business.
10. Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or property, renders
services, and any persons who import goods shall be subject to VAT.
II – False or True
1. Any who barters shall be subject to VAT.
2. For VAT purposes, a taxable person is any person liable to pay the VAT, whether registered or registrable in
accordance with the tax code.
3. The status of a “vat registered person” as a VAT-registered person shall continue until the cancellation of such.
4. Value added tax is an indirect tax.
5. Association dues, membership fee, and other collected by homeowners’ association are subject to VAT.
6. A non-stock, non-profit organization or government entity is liable to pay VAT on sale of goods and services.
7. Sale of an apartment house is subject to VAT.
8. Sale of a private car by its owner is subject to VAT.
9. Sale of gold to Bangko Sentral ng Pilipinas is an export sale.
10. Distribution or transfer to creditors in payment of debt or obligation is a transaction deemed sale.

III – Multiple choice


1. Which of the ff. input taxes can be refunded, converted into tax credit certificates or carried into the next quarter at
the option of the VAT-registered taxpayers?
a. input tax on raw materials
b. input tax on importation of supplies
c. input tax on zero-rated sales of goods and services
d. input tax on purchase of services
2. VAT is an a. indirect tax b. direct tax c. local tax d. personal tax
3. Which statement is correct?
a. Zero-rated sales are exempt from VAT
b. a person whose sales/receipts don’t exceed 250,000 is exempt from VAT and OPT
c. entities which are exempt from income tax are also exempt from VAT
d. one who issues a VAT invoice on a VAT exempt transaction is nevertheless subject to VAT on that transaction
4. the VAT due on the sale of taxable goods, property and services by any person whether or not he has taken the
necessary steps to be registered
a. input tax b. output tax c. excise tax d. sales tax
5. An individual taxpayer operates a grocery store and is not VAT-registered. His annual gross sales amounted to
2,900,000 for the year although his operations resulted to a net loss for 2018. He is subject to
a. 3% OPT b. VAT c. MCIT of 2% d. none, because of loss

IIII – White V if vatable; Z if zero-rated; E if exempt.


1. Sales by agricultural cooperatives duly registered and in good standing with the CDA to their members.
2. Electric cooperatives registered with National Electrification Administration.
3. Sales or lease of goods and services to Senior Citizen and PWDs.
4. Consignment of goods if actual sales is not made w/in 60 days ff. the date such goods were consigned.
5. Services rendered to processing and repacking goods for person which goods are subsequently exported.
6. Transport of passengers and cargo by domestic air or sea from Philippines to foreign country.
7. Local sales to enterprises registered with Philippine Economic Zone Authority.
8. Sales to bonded manufacturing warehouses of export-oriented manufacturers.
9. Importation of breeding stock and genetic materials.
10. Sale of poultry producing foods for human consumption.
11. Services rendered by individuals pursuant to an employer-employee relationship.
12. Sales of domestic common carrier by air and sea relative to their transport of passengers/goods/cargoes.
13. In general, any person who brings goods into Philippines, whether or not in the course of trade or business.
14. Sale of real properties not primarily held for sale to customers.
15. Lease of residential unit with monthly rental not exceeding 15,000, regardless of the amount of aggregate
rentals received by the lessor during the year.
16. Those who have VAT-exempt business but choose to register under VAT-system.
17. Sale of power or fuel generated through renewable sources of energy.
18. Sale of raw cane sugar.
19. Importation of personal and household effects belonging to residents of Philippines returning from abroad.
20. Sales by agricultural cooperatives who is registered and in good standing with the CDA.
21. Sale of books and magazines in electronic format.
22. Sales to bonded manufacturing warehouses of export-oriented manufacturers.
23. Services rendered to processing and repacking goods for person which goods are subsequently exported.
24. Sales of domestic common carrier by air and sea relative to their transport of passengers/goods/cargoes.
25. In general, any person who brings goods into Philippines, whether or not in the course of trade or business.
26. Lease of residential unit with monthly rental not exceeding 15,000, regardless of the amount of aggregate
rentals received by the lessor during the year.
27. Local sales of VAT-registered person to Asian Development Bank.
28. Sale or lease of intangible properties.
29. Non-life insurance companies including surety, fidelity, indemnity, and bonding companies.
30. Sale of goods to foreign country and paid for in acceptable foreign currency.

IIII - Identification
1. An input tax allowed when a person becoming a VAT-registered for the first time exceeds the minimum 3M sales.
2. An input tax allowed to those persons or firms engaged in processing of sardines, milk, cooking oil, etc. etc.
3. _________________ Gross amount of sales/receipts on all line of business to be registered mandatory.
4. Monthly VAT for May shall be filed on _______________________.
5. Monthly VAT for September shall be file on ____________________.
6. Monthly VAT for November shall be filed on _______________________.
7. Monthly VAT for March shall be file on ____________________.
8. _________% of input tax allowed when a person becoming a VAT-registered for the first time exceeds the minimum
3M sales.
9. _______ % of input tax allowed to those persons or firms engaged in processing of sardines, milk, cooking oil, etc. etc.
10. _____________________ Which is not a major business tax? (VAT, EXCISE TAX, DONOR’S TAX, OPT)

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