BUSTAX

QUIZ 3
2nd Semester, A.Y. 2024-2025

1. Which statement is wrong?

a. There is a transitional input tax on sales of goods or properties.
b There is a transitional input tax on sales of services.
There is a presumptive input tax on sales of goods or properties.
d There is a presumptive input tax on sales of services.
2. Allof the following are allowed presumptive input tax,except for one.
a Processor of sardines, mackerel and milk.
b Manufacturer of refined sugar and cooking oil.
Producersimanufacturers of packed noodies:
d) Suppliers of books and other school supplies.
3. Czennie Corp.,a VAT-registered Corp., is aproducer of cooking oil from coconut and corn. It had
the following data for the month of January 2021:
oUtput

Sales, gross of VAT P 784,000

Corr ant Cocomut; Dec: 3t, 2020-(Prtsumphit) 50,000
f3,200)
Purchases of Corn and Coconut on January 2021 330,000 x
Corn and Coconut, Jan. 31, 2021 20,000
Purchases from VAT Suppliers, vat inclusive:
Packaging Materials 56,000 2. 100)
Supplies 16,800 (79.8G0) D 69.000
The-value- added-tax payable-for. January-2021:

a. 56,060 60,650
b. 54,900 d., 63,000
4. Aperson subject to Vat for the first time can have an input tax out of the inventory of goods,
materials and supplies on hand at the time he becomeliable, This is called:

Value added tax deemed paid C. Presumptive input tax

d. None of the above
b. Transitional input tax
5. Which of the following shallbe included in the beginning inventory for purposes of determining
the transitional input vat?

a. Goods purchased for resale in the ordinary course of trade or business.

b. Materials purchased for further processing which have not yet undergone processing.
Goods which have been manufactured by the taxpayer. v
All of the above

6. Statement 1: The transitional input tax shall be 2% of the value of the-beginning inventory on
hand, or actual VAT paid on such goods, materials and supplies, whichever is higher, which/
amount shallbe creditable against the output tax of VAT-registered persons.
Statement 2: The value allowed for income tax purposes on inventories shall be the basis for the
computation of the 2% transitional input tax, including goods that are exempt for VAT under Sec.
109-of the TaxCode:
tading
Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
Onlythe second statement is correct

7. Taxpayers who became VAT registered persons upon exceeding the vat threshold of P3,000,000
in any 12-month period,or who voluntarily register even if their turnover does not exceed
P3,000,000 shall be entitled to a transitional input tax on the inventory on hand as of the
effectivity of their vat registration on the following, except
a. Supplies for use in the course of taxpayer's trade or business.
b. Goods which have been manufactured by the taxpayer.
Goods in processed for sale.
Capital goods being used in the operation of the business.
8. Transitional input tax can be claimed as deduction from output tay. Which of the following
statements is correct as to when it can be allowed as deduction?

a. It can be claimed by a vat registrable person.

It can be claimed by a taxpayer who registered as vat taxpayer from the inception of businesS.
C. It can be claimed by a taxpayer who is initially subject to vat and subsequenty cancelled his vat
registration.
lt can be claimed by a taxpayer who is initially paying percentage tax and subsequently registered
as vat taxpayer.

9. An owner of warehouse, which used to be vat exempt, because its annual receipts never
exceeded P3,000,000decided to register under the vat system on January 2, 2021.The following
data were from the 1 uarter ending March 31, 2021: P336.000 1 ] . u0,320
Rental from warehousing services,net of vat 112,000-in (12600) 1P
Purchases of supplies in February, gross of vat
Inventory of supplies, January 1, 2021 Tron 9,0003100,00o (1a.000) T
Vat on inventory of supplies, January 1, 2021 Ooo 10,000 T30
How much was the vat payable for the quarter ending March 2021?
a. 26,320.
18,320
14,000
d. 0

2021. His records during the month

10. A taxpayer registered under the VAT system on January 1,
show:

Value of inventory as of December 31, 2020 purchased from

P112,000
VAT-registered persons 12,000
VAT paid on inventory as of December 31, 2020
from
Value of inventory as of December 31, 2020 purchased, 518,000
Non-VAT persons 281,000
Sales, net of VAT
Purchases during the month, net of VAT 70,000
Purchases during the month of vat exempt goods 50,000
The VAT payable should be:

a. 23.080
b. 25,320
C. 12,720
d. 12,320

the month of January 2022:

11. 7Dream Corporation, a manufacturer, had the following data for
(First year as a VAT Taxpayer)
Sales:
Export sale P2,000,000
Domestic sales (net) 1,000,000
PurchasOs: 36.000
Raw materials 300,000 v19: 12:000
Services 100,000 9
Machinery (usefull life ls 2 yeara) 400,000 v (2 42,00o|o7 2000
9,u00
taxes paid thereon as followS:
On January 1, 2022, the company had inventories and Vat.Paid
Cost.
Raw materials P120,000 P2,000
40,000
19,200 4,000
Supplies enterprise with a total
raw materials were purchased from another
During the month, additional ZDream should be:
invoice value of P61,600, not included above.)The VAT payable of

a. 72,000
b. 57,000
C. 11,000
d. 66,000
 12-15) Haechan is a producer of cooking oil
value added tax, he became subject to value from coconut and corn. Previously exempt from
added tax on January 1, 2022. For January 2022,
sales exclusive of vat amounted to P700,000, Haechan had the following other data, inclusive of
vat if applicable,for January 2022:
Inventor. January 1 2022
Packaging materials purchased from vat suppliers Cost
22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
Purchases during the month from coconut and corn farmers 330,000
Purcheses during the month from vat suppliers:
Packaging materials 58,000 1).800X122 1.e0
Supplies 16,800
The correct amount of transitional input tax should be?
2),A00
a: G72 41,200
b. 762
c) 3,600
d 4,080
612
13. The amount of presumptive input tax should be?
13,200 C. 6,600 a0.000 4 B,200
33,000 d. 39,600
14. The totalamount of creditable input taxes should be? -PeqiT 7,100
-TIT 3,100
a 21,762 C. 25,080 -PIT 13.200
b.) 24,600 d. 21,672

15. The value added tax payable for the month should be? 4.000 OT
Soles 1aGK 2 |
(24.600) IT
62,328 59,400
b. 58,920 d. 62,328 59400

16. Unless exempt under the law, sale of goods or services to the government or any of its political
subdivisions, instrumentalities or agencies, including government-owned or controlled
corporations (GOCCs) shallbe subject to vat rate of:
a. 0% 7%
b. 5% 12%

17. Statement 1: The government or any of its political subdivisions, instrumentalities or agenciss,
inciuding government-owned or controlled corporations (GOCCs) shali, before making payment
on account of each purchase of goods and/or sevices taxed at twelve percent (12%) cat
pursuant to Sections 106 and 108 of the Tax Code, deduct and withhold a vat due at the rate of
five percent (5%) of the gross payment.
Statement 2: The 5% vat withheld by the government or any of its political subdivisions,
instrumentalities or agencies, including government-owned or controlled corporations (GOCCs)
shallbe deductible from the(vat due ofthe seller.
Only statement 1 is correct
b. Oniy staternent 2is correct
eBoth statements are correct
d. Both statements are incorrect

18. Beginning 2021, which institutions are required to deduct and withhold a creditable vatof 5%-on
the purchase ofgoods or services subject to vat?

National government or any political subdivision thereof

b. Government-owned or controlled corporations
C. ) Both aand b
d. Neither a nor b

19. Beginning 2021,the alowableinput valon sale to the government including government owned
and controlled corporations (GOCCs) shallbe:

a. 12% vat on purchases of goods sold to the government.

The 5% withheld by the government is the allowable input vat.
Standard input vat computed at 79% of gross payment by the government.
None of the above
20. AVAT-registered supplier sold goods amounting to P500,000 to a
government-controlled
corporation during a particular quarter. Which of the following statements
the sale of goods? ió incorrect jn relation to

a. The sale is subject to creditable withholding vat of

b. The GOCC shall withhold P25,000 vat. 5%.
The GOCCshallremit the withholding vat to the BIR within 10 days followingthe
month the withholding was made. end of the
d.)The VAT-Tegistered supplier may refuse the withholding of VAT as long as it is willing to pay the
full 12% output vat.

21. (21-25) AVAT registered trader has the following transactions during 2022:
Sales of goods to private entities, net of VAT P2.500,000
Purchases of goods sold to private entities, gross of 12% VAT 896,000
Sale to a government ownedcorporation (GOCC), net of VAT 1,000,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000
How much is the output tax?
a. 300,000 Sale to PE (9.49019|) gn0.00O0

120,000 to Gov (1.000,1 11) 120.000

G 420,000 TA Out pat o00-0T
nil
Inpu tot
22. How much is the standard input tax? Gov (itn1) 70,000

a. 20,000 q,.00 (196.0001- CiV

b) 70,000
C 50,000
d. nil
Les0o5561) 20000

23. How much is the creditable input vat (CIV)?

IP purh to Gol str] ) z4.G00
stondod 1f 70,00

a.)166,000
96,000
C 70,000
d. 180,000
Outp
24. How much is the input tax closed to income or (expense)?

a nil
b. 34,000
(14,000)
(34,000)
25. How much is the VAT payable to the BIR?
a. 190,000
b. 390,000
( 204,000
nil

26. Sale of real property by a real estate dealer, the initlal payments of which do not exceed twenty
five percept (259) of the gross selling price in the year or 'sale is considered:
Sale of real estate by a real estate dealer on a deferred basis
Sales of realestate by a real estate dealer on installment basis
Both a and b
d. Neither a nor b
27. In the case of sale of real properties on the installment plan, the real estate dealer shallbe
subject [o VAb on the:
a. Selling price
b. Selling price or fair market value which is lower
& Selling príce of fair market value which is hiaher
d. Installment payments, including interest and penalties, actually or constructively received by the
seller.
c0. Statement 1: On a sale of real pronerty on installments by a real estate dealer, the seller shall be
Subectto VAT on the ifstallment payment received, including interests and penalties for late
payment.

Statement 2: On sale of real property on installments by realestate dealer, where the vat is
computed not on the consideration in the deed of sale but on the higher fair market value, the vat
must be biled separately with a specific mention that it is based on the market value of the
property.
Both statements are correct
Both statements are not correct
C. Only the first statement is correct
d. Only the second statement is correct
29. Statement 1:In the case of sale on deferred payment basis hot qualifying-under the installment
plan, the transaction shall be treated as cash sale and the vat is payable on the month of sale.
Statement 2: In the case of a sale on deferred payment basis not qualifying under the instalment
plan, payments subsequent to the initial payments shallno longer be sutbjectto vat.
Both statements are correct
Both statements are not correct
C. Only the first statement is correct
d. Only the second statement is correct

30. Statement 1: On asale of real property on installments by a real estate dealer, the seller shall be
subject to VAT on the installment payment received, including interests and penalties for late
payment.

Statement 2: On sale of real property on installments by real estate dealer, where the vat is
computed not on the consideration in the deed of sale but on the higher fair market value, the vat
must be billed separately with a specific mention that it is based on the market value of the
property.
Both statements are correct
Both statements are incorrect
Only the first statement is correct
d. Only the second statement is correct