Consumption Taxes

Question 1

Rationale of Consumption Taxes

Answer 1

1. Savings Formation
2. Benefit received theory
3. Wealth redistribution

Question 2

Types of Consumption

Answer 2

1. Domestic Consumption
2. Foreign Consumption

Question 3

Types of Domestic Consumption

Answer 3

1. Sales
2. Importation

Question 4

Types of Consumption Tax

Answer 4

1. Business Tax
2. VAT on Importation

Question 5

Types of Domestic consumption as to taxability

Answer 5

1. Exempt consumptions
2. Consumptions specifically subject to percentage tax
3. Vatable consumption

Question 6

Basis of Exempt Consumption

Answer 6

1. Human necessity
2. Out of scope of the tax
3. Tax incentives
4. International Comity

Question 7

Types of VAT on importation

Answer 7

1. VAT on import of goods
2. Final Withholding VAT for services

Question 8

Types of Business Taxes

Answer 8

1. Percentage Tax

• Specific percentage tax (BICAP FLOW)
• General percentage tax

2. Value Added Tax (VAT)
3. Excise Tax