FINAL EXAM (VAT)

1. The Vatable base of services rendered by hotels include all of the following, except:
o Cake shop sales
o Lease to concessionaries
o Food and beverages consumption
o Local taxes
2. Which of the following franchise grantees shall not be subject to value added tax?
o Franchise grantees of electric utilities
o Franchise grantees of telephone and telegraph
o Franchise grantees of gas and water
o Franchise grantees of radio and / or television broadcasting
3. A sale of real property by a real estate dealer is subject to the value added tax at 12% of the gross selling
price.
Gross selling price is
o Whichever is higher between the consideration stated in the deed of sale and the zonal value of the
property
o Whichever is higher between the consideration stated in the deed of sale and fair market value in
the assessment rolls
o Whichever is higher between the fair market value in the assessment rolls and zonal value
o Whichever is highest of the consideration stated in the deed of sale, fair market value in the
assessment rolls and the zonal value of the property
4. Which of the following shall be subject to VAT?
o Sale of goods by non Vat registered person exceeding P 3,000,000
o Sale of a residential house and lot
o Sale of private car by its owner
o All of the above
5. The following transactions are considered deemed sales, except
o Consignment of goods for more than 60 days.
o Sale of goods from the Philippines to foreign country.
o Distribution o inventory to partners or shareholders as dividend or share in profit.
o Transfer of inventory by a debtor to a creditor as payment of debt.
6. Sale of or importation of the following prescription drugs and medicines are VAT exempt beginning
January 1,2020, except for:
o Diabetes
o Cholesterol
o Hypertension
o Kidney diseases
7. Statement 1: Export sales by VAT person is subject to 0% Output VAT.
Statement 2: Export sales by VAT – person is allowed with creditable Input VAT.
o Only statement 1 is correct.
o Only statement 2 is correct.
o Both statements are correct.
o Both statements are incorrect.
8. Which of the following business is allowed a presumptive input value added tax?
o Manufacturer of canned goods
o Manufacturer of packed noodles
o Manufacturer of pack juices
o Manufacturer of dried fish
9. Which of the following is not a source of creditable Input VAT?
o Purchases and payments of services to other VAT – registered businesses
FINAL EXAM (VAT)

o Goods received through donation

o Importation of Goods (for business use or for sale locally)
o Transitional and Presumptive Input VAT
10. Which of the following is not included in the term “gross selling price”?
o Total amount of money or its equivalent paid by the purchaser
o Delivery, freight and insurance paid by the purchaser
o Value added tax passed on by the seller to the buyer
o Excise tax
11. Statement 1: Businesses can be subject to excise tax at the same time value added tax.
Statement 2: Businesses can be subject to percentage tax and at the same time value added tax.
o Only statement 1 is correct
o Only statement 2 is correct
o Both statements are correct
o Both statements are incorrect
12. Statement 1: Gross receipts of domestic corporation from transport of passengers and cargoes by air or sea
from Philippines to a foreign country are Zero-rated transactions.
Statement 2: Gross receipts of domestic corporation carrier within the Philippines from transport of cargoes
by land are VAT taxable transactions.
o Only statement 1 is correct
o Only statement 2 is correct
o Both statements are correct
o Both statements are incorrect
13. Which of the following is not considered a deemed sales?
o Installment sale of real property
o Merchandise inventory left upon retirement.
o Distribution of inventory to creditors
o Consignment of goods if not sold within 60 days.
14. Which of the following shall be subject to Value Added Tax on sale or exchange of services?
o Construction and service contractors
o Stocks, real estate, commercial, customs and immigration brokers
o Lessor of property, whether personal or not
o All of the choices
15. Statement 1: The taxable base for supply of service is the gross receipts.
Statement 2: Taxable base on services include accounts receivable.
o Only statement 1 is correct
o Only statement 2 is correct
o Both statements are correct
o Both statements are incorrect
16. Which of the following business is not subject to percentage tax?
o Carriers of passengers
o Life insurance
o Carries of cargoes
o Sale of shares of stocks in the local stock exchange
17. Which of the following is correct?
o The monthly VAT payment is reported on form 2550Q
o The monthly VAT return is filed in quadruplicate
o The monthly VAT payment for the first 2 months of the quarter is on or before the 25th of the
month following the close of taxable month
o The payment of VAT payable is through the authorized bank
FINAL EXAM (VAT)

18. A non VAT registered person whose total sales for the year exceed P 3,000,000 is
o Exempt from VAT
o Subject to 0% VAT
o Subject to 12% VAT
o Subject to percentage tax

19. Statement 1: The Output VAT is 12% of sales or gross receipts.

Statement 2: The Output VAT on P 13,000,000 VAT sales invoice amount is P1,350
o Only statement 1 is correct
o Only statement 2 is correct
o Both statements are correct
o Both statements are incorrect
20. Which of the following leases of residential units would be subject to VAT?
o Aggregate collection is P 5,000,000 and the monthly rent per unit is P 10,000
o Aggregate collection is P 2,500,000 and the monthly rent per unit is P 16,000
o Aggregate collection is P 3,500,000 and the monthly rent per unit is P 16,000
o Aggregate collection is P 2,500,000 and the monthly rent per unit is P 10,000
21. Which of the following earnings is subject to 12% Vat?
o Compensation income amounting P 3,500,000
o Professional fee amounting to 3,000,000
o Gross receipts derived from business amounting to P3,500,000
o Renumeration for services rendered to SBMA registered enterprises amounting to P10,000,000
22. All the following are VAT exempt transactions, except:
o Lease of a residential unit with a monthly rental not exceeding Fifteen thousand pesos (P 15,000)
o Sale of gold to the Banko Sentral ng Pilipinas (BSP)
o Export sales by persons who are not VAT – registered
o Transport of passengers by domestic carriers by sea
23. Gross receipts of radio and / or television broadcasting of the preceding year not exceeding Ten Million (P
10,000,000) shall be subject to
o 3% percentage tax
o 12% VAT
o 2% franchise tax
o 0% VAT
24. Export sales of VAT registered person is
o Exempt from VAT
o Subject to 0% VAT
o Subject to 12% VAT
o Subject to percentage tax
25. A VAT registered person whose total sales for the yar did not exceed P 3,000,000 is
o Exempt from VAT
o Subject to percentage tax
o Subject to 0% VAT
o Subject to 12% VAT
26. All the following items are components of gross receipts subject to VAT, except:
o Advance payments
o Amount charged for materials supplied
o Notes receivable
o Contract price
27. The following transactions are subject to 12% VAT, except
FINAL EXAM (VAT)

o Importations
o Sale of goods from the Philippines to foreign country
o P 2,000,000 domestic sales for the year of a non- VAT business
o Transfers of inventory by a VAT – registered business deemed sales
28. For dealers in securities, the term gross receipts means:
o Gross selling price
o Gross selling price less cost of the securities sold
o Gross receipts without any deduction
o None pf the choices
29. 1. Installment payments of the value added tax is allowed if the initial payment do not exceed
o 35% of selling price in the year of sale
o 25% of selling price in the year of sale
o 35% of all collection in the year of sale
o 25% of all collections in the year of sale
30. The due date for the monthly Vat remittance would on or before the
o 10th of the month for the first two months of the quarter
o 25th of the following for the first 2 months of the quarter
o 20th of the following for the first 2 months of the quarter
o 25th of the following month for the quarter
31. The VAT on purchases is called
o Output Tax
o Input tax
o Deferred tax
o Excise tax
32. If the cost of goods acquired subject to depreciation / amortization exceeds P 1,000,000, excluding VAT,
the related input VAT should be spread over
o 60 months
o 60 days of its useful life, whichever is determinable
o 60 months or its useful life whichever is longer
o 60 months or its useful life whichever is shorter
33. Which of the following receipts of VAT business is not subject to VAT?
o From transport of passengers by sea
o From transport of passengers by land
o From transport of cargo by land
o From transport of cargo by sea
34. The value added tax 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 is called
o Output tax
o Input tax
o Excise tax
o Sales tax
35. Statement 1: All sales of VAT-registered person, domestic sales and export sales are subject to 12% Output
VAT
Statement 2: VAT taxable sales of VAT person sold to non- VAT person is exempt from 12% Output VAT.
o Only statement 1 is correct.
o Only statement 2 is correct.
o Both statements are correct.
o Both statements are incorrect.
FINAL EXAM (VAT)

36. Gross receipts of radio and/or television broadcasting of the preceding year not exceeding Ten Million (P
10,000,000) shall be subject to
o 2% franchise tax
o 0% VAT
o 3% percentage tax
o 12% VAT
37. Which of the following input taxes can be refunded, converted into tax credit certificates or carried over to
the next quarter at the option of the VAT-registered taxpayer?
o Input tax on purchase of services
o Input tax on importation of supplies
o Input tax on raw materials
o Input tax on zero-rated sales of goods and services

38. Which of the following is not example of constructive receipt?

o Acceptance of notice to offset a debt by the seller.
o Deposit in bank in favor of the seller without restriction
o Advance payment received
o Transfer of amounts retained by the contraction to the account of the contractor
39. An individual taxpayer operates a grocery store and is not VAT-registered. His annual gross sales
amounted to P2,900,000 for the year although his operations resulted to a net loss for the year 2020.
Which of the following taxes is he subject to?
o VAT
o none because the operation resulted to a loss
o 3% OPT
o MCIT 2%
40. The following transactions are considered deemed sales except
o Sales of goods from the Philippines to foreign country
o Consignment of goods for more than 60 days.
o Distribution of inventory to partners or shareholders as dividend or share in profit
o Transfer of inventory by a debtor to a creditor as payment of debt
41. Which of the following rentals shall be subject to VAT?
o Monthly rental of P15,000 per unit per month and aggregate annual rentals exceed P3,000,000
o Monthly rental exceeding P15,000 per unit per month and aggregate annual rentals exceed
P3,000,000
o Monthly rental not exceeding P15,000 per unit per month but the aggregate annual rentals do not
exceed P3,000,000
o Monthly rental exceeding P15,000 per unit per month but the aggregate annual rentals do not exceed
P3,000,000
42. An individual taxpayer operate a grocery store and is not VAT- registered. His annual gross sales amounted
to P2,900,000 for the year although his operations resulted to a net loss for the year 2020.

If he opted and chose to be taxed under the 8% income tax rate, which of the following taxes is he subject to?

o 3%OPT
o MCIT 2%
o none of the above
o VAT
43. Services rendered in the Philippines may be subject to:
o All of the above
o 12% VAT
FINAL EXAM (VAT)

o VAT Exempt
o Zero rated VAT
44. Statement 1: Businesses can be subject to excise tax and at the same time value added tax.

Statement 2: Businesses can be subject to percentage tax and at the same time value added tax.

o Both statements are incorrect.

o Both statement are correct.
o Only statement 1 is correct.
o Only statement 2 is correct.
45. When output tax exceed input tax, there is
o none of the above
o VAT exemption
o deferred input tax
o VAT payable

46. How much is the VAT on a sale if:

Selling price, VAT not included is P 2,800,000
336,000
47. How much is the VAT on a sale if:
Selling price, VAT included is P 168,000?
18,000
48.
2nd Quarter

1st Quarter 1st month 2nd month 3rd month

Sales P2,000,000 P3,000,000 P4,000,000 P5,000,000
Purchases 1,500,000 1,900,000 2,200,000 2,700,000
How much was the VAT payable for the 2nd month of the second quarter? 216,000

49.
2nd Quarter

1st Quarter 1st month 2nd month 3rd month

Sales P2,000,000 P3,000,000 P4,000,000 P5,000,000
Purchases 1,500,000 1,900,000 2,200,000 2,700,000
How much was the VAT payable for the 1st month of the second quarter? 132,000

50.
2nd Quarter

1st Quarter 1st month 2nd month 3rd month

Sales P2,000,000 P3,000,000 P4,000,000 P5,000,000
Purchases 1,500,000 1,900,000 2,200,000 2,700,000
How much was the VAT payable at the end of the second quarter? 276,000

51. A VAT taxpayer purchased the following equipment for the second quarter of 2020 (VAT not included)
Date Purchased Life Cost
Equipment 1 April 10 2 years P 800,000
Equipment 1 April 25 5 years 1,600,000
Equipment 1 May 5 3 years 400,000
FINAL EXAM (VAT)

Equipment 1 May 15 2 years 400,000

How much is the available input tax on April 2020 on the acquisition of capital goods?
o P192,000
o P7,200
o P288,000
o P96,000

52. A VAT taxpayer purchased the following equipment for the second quarter of 2020. (VAT not included)
Date Purchased Life Cost
Equipment 1 April 10 2 years P 800,000
Equipment 1 April 25 5 years 1,600,000
Equipment 1 May 5 3 years 600,000
Equipment 1 May 15 2 years 200,000

How much is the available input tax on May, 2020 on the acquisition of capital goods?
o P103,200
o P96,000
o P10,200
o 3,000

53. CC Bakers sells cakes and pastry to well known hotels in the Metro Manila area. The hotels are allowed
credit based on the track record of the hotels The sale by the store in May 2020 was P224,000 including
the VAT, 75% of the sales are normally on account.
How much is the output tax for the month?
o P24,000
o P18,000
o P26,880
o P6,000

54. G. is a VAT registered business. The following data are for the last quarter of 2020
Sales, net of output tax P6,800,000
Purchase, net of input tax 5,500,000
Sales Return 200,000
Purchase returns 300,000
Deferred input tax 9,500

The VAT payable for the last quarter of 2020 by G is:

o P146,500
o P158,500
o P168,000
o P156,000

55. RR Co. Is a VAT trader, made the following sales of goods for the month of June, 2020, exclusive of VAT:
Cash Sales P200,000
On account sales 100,000
Installment sales 100,000
Note: Receipts from installment 40,000
Consignment made (net of VAT)
FINAL EXAM (VAT)

June 15 100,000
May 15 100,000
April 15 100,000

How much is the output tax on his sales for the month?
o P72,000
o P52,800
o P60,000
o 64,800

56. F. Refining Company manufactures refined sugar, it had the following data during the first quarter of 2020:
Sales of refined sugar, net of VAT P2,000,000
Purchasers from farmers of sugar cane used 500,000
In manufacture of refined sugar
Purchases of packaging materials, gross of VAT 784,000
Purchases of labels, gross of VAT 112,000

How much is the VAT payable?

o P144,000
o P132,480
o P124,000
o P112,480

57. The following were cumulative data, VAT not included of AA Corp
2nd Quarter
1st Quarter 1st month 2nd month 3rd month
Sales P 2,000,000 P 3,000,000 P 4,000,000 P 5,000,000
Purchases 2,250,000 2,800,000 3,200,000 2,700,000

How much is the VAT payable for the second quarter?

o P366,000
o P306,000
o P276,000
o P396,000

58. The taxpayer is a VAT registered real estate dealer:

Selling price (net of VAT) P6,000,000
Zonal Value 6,300,000
Fair market value in the assessment rolls 5,800,000
Payment as follows:
March 15,2019 750,000
October 15, 2019 750,000
March 15, 2020 2,250,000
October 15, 2020 2,250,000

How much is the output value added tax on March 15, 2019 collection?
o 283,500
o 756,000
o 90,000
o 94,500
FINAL EXAM (VAT)

59. The following are the data of Triple E Appliance Marketing Corporation, for the last quarter of 2019.
Sales up to December 15, total invoice value P336,000
Purchases up to December 15, net of input tax 215,000

Additional information:

On December 16, 2019, Triple E Appliance Marketing Corporation retired from its business and the inventory
valued at P190,000 was taken and transferred to New Triple E Appliance Marketing Corporation.
There is a deferred input tax from the third quarter of P3,500.
How much is the total VAT due and payable by Triple E Appliance Marketing Corporation in its operations in the
last quarter ans its retirement from business?
o P3500
o P22,500
o P29,500
o P6,350

60. BB is engaged in two lines of business, one with VAT and the other one id Non-VAT. His record show the
following data: (VAT not included)
Sales:
From VAT business P4,000,000
From Non- VAT business 6,000,000
Purchases:
For VAT business P2,000,000
For Non-VAT business 3,000,000
Purchases from VAT suppliers of supplies used for 20,000
both VAT business and Non-VAT business
Operating Expenses 1,800,000

The VAT payable is

o P240,000
o P237,600
o P600,000
o P239,040

61. UV Company is a VAT business. UV Company had the following data for the month. VAT not included

Sales, VAT business P630,000

Sales, non VAT business 370,000
Purchases of goods from VAT suppliers attributable to 275,000
VAT business
Purchases of goods from non VAT suppliers for Vat 100,000
and non Vat business

How much is the value added tax payable?

o P35,040
o P42,600
o P30,600
o P25,500
FINAL EXAM (VAT)

Question 48
The taxpayer is a VAT registered real estate dealer:
Selling Price (net of VAT) P 6,000,0000
Zonal Value 6,300,000
Fair market value in the assessment rolls 5,800,000
Payments as follows :
March 15, 2019 750,000
October 15, 2019 750,000
March 15, 2020 2,250,000
October 15, 2020 2,250,000
How much is the output value-added tax on March 15, 2020 collection?
o P756,000
o 0
o P94,500
o P283,500

62. The following were the data. VAT not included, of AA Corp.
2nd Quarter
1 Quarter
st
1 month
st
2nd month 3rd month
Sales P 2,000,000 P 3,000,000 P 4,000,000 P 5,000,000
Purchases 2,250,000 2,650,000 2,200,000 2,700,000
How much is the VAT payable for the 1st month of the second quarter?
o P30,000
o P42,000
o P12,000
o P30,000

63. H, building contractor for, showed the following data

Contract Price, net P 5,000,000
Cash received for labor (VAT included) 3,000,000
Cash received for materials (VAT included ) 360,000
Receivables 2,000,000
Advances on other contracts still unearned (VAT not 1,000,000
included)
Payments:
For materials net of VAT 500,000
For supplies net of VAT 100,000
For services of sub-contractions (VAT included) 1,680,000

The VAT payable of H is

o P228,000
o P348,000
o P468,000
o none of the above
FINAL EXAM (VAT)