VAT Flashcards

1
Q

Agricultural and marine food products shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, broiling, roasting, smoking or stripping. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Polished and/or husked rice, corn grits, raw cane sugar and molasses, ordinary salt, and copra shall not be considered in their original state, hence, subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Sale of flowers, in its original state is exempt from VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Sales of drugs and medicines of pharmacy run by the hospital to outpatients are subject to VAT. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Pharmacy items used in the performance of medical procedures in hospital units such as in the operating and delivery rooms and by other departments are considered part of medical services rendered by the hospital, hence, not subject to VAT. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Agricultural contract growers are subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Gross receipts of duly registered credit or multi-purpose cooperatives from lending activities to non-members are subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Non-stock, non-profit private organizations which sell exclusively to their members in the regular conduct or pursuit of commercial or economic activity are exempt from VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Government entities engaged in commercial or economic activity are generally exempted from VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The term “goods” from value added tax purposes shall mean all tangible and intangible objects which are capable of pecuniary estimate and shall include, but not limited to radio, television, satellite television, and cable television time. T or F?

A

true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Export sale by a VAT registered entity is exempt from VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Export sale by a non-VAT registered entity is subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The input taxes attributable to zero-rated sales may be refunded, or credited against any other internal revenue taxes due from the taxpayer. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The input taxes attributable to zero-rated sales may be refunded or credited against any other internal revenue taxes due from the taxpayer. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

For VAT purposes, condominiums, including its allotted parking space, are classified as other dwellings. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Transactions treated as sales due to the absence of actual exchanges are subject to VAT. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The output VAT is computed by multiplying the gross selling price by 12% or multiplying the total amount indicated in the invoice by 12/112 if VAT-inclusive. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

An importation of goods by a non-profit charitable organization shall not be subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In the case of importation, the importer is not the one liable for the VAT but the person who shall buy the imported goods. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Input VAT for the acquisition of capital goods with aggregate acquisition cost of not more than P1,000,000 for the year should be allocated based on the life of the related asset but not to exceed sixty months. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

VAT on importation is imposed regardless of whether such importation is for personal business use. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Facilitation expense shall be included in the determination of applicable input vat on importation. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Persons or firms engaged in the processing of sardines, mackerel, and milk, and in manufacturing refined sugar and cooking oil, shall be allowed a presumptive input tax of 2% of the gross value in money of their purchases of primary agricultural products which are used as inputs to their production. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Gross receipts from lease of commercial units are subject to 12% VAT regardless of the place where the property is located. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

On installment sale by a real estate dealer, the installment VAT is allowed only if the initial payments on the sale do not exceed 25% of the gross selling price. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Withholding of VAT is done when the buyer is the government or any of its political subdivisions. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Initial payments do not include notes or other evidences of indebtedness issued by the purchaser to the seller at the time of sale. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Services subject to other percentage taxes are also subject to VAT. T or F?

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

A nonresident foreign lessor or licensor who is not VAT-registered is subject to VAT. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Persons whose transactions are exempt from VAT under Section 109 because their gross sales and/or receipts do not exceed P3,000,000, as amended, may voluntarily apply for registration under the VAT system. T or F?

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which of the following shall not be subject to VAT?
I. MP Promotions, VAT-registered, but gross sales for the year do not exceed P3,000,000
II. Mayweather Corporation, a foreign licensor or nonresident lessor who is not VAT-registered
III. Mailag Company, a domestic corporation required to register under VAT system but failed to register

A

All the following are subject to VAT

I. MP Promotions, VAT-registered, but gross sales for the year do not exceed P3,000,000
II. Mayweather Corporation, a foreign licensor or nonresident lessor who is not VAT-registered
III. Mailag Company, a domestic corporation required to register under VAT system but failed to register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

A lessor of residential units shall be exempt from VAT when:

I. Annual gross receipts do not exceed P3,000,000
II. Monthly rental per unit does not exceed P15,000

A

Either I and II

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which of the following is subject to VAT?

a. Sales of vegetables
b. Sale of fruits
c. Sale of copra
d. Sales of olive oil

A

Sales of olive oil

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

One of the following goods is not in its original state

a. Salted eggs
b. Corn grits
c. Polished or husked rice
d. Refined brown sugar

A

Refined brown sugar

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

One of the following is not a poultry for VAT purposes

a. Duck
b. Fowl
c. Goose
d. Fighting Cock

A

Fighting Cock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

One of the following is not a livestock for VAT purposes

a. Rabbit
b. Cow
c. Pig
d. Race horse

A

Race horse

37
Q

JJ owns a mango plantation. He sold his ripe mangoes to Paul, a fresh fruit vendor. Paul sold the ripe mangoes he bought from JJ to Francis. Who shall be subject to VAT?

a. JJ
b. Paul
c. Francis
d. None of the above

A

None of the above

38
Q

Arturo owns Eternal Gardens. He harvested fresh flowers and sold them to Leo. Leo sold the followers in their original state to Raymund. The sale of flowers by Leo to Raymund shall be:

a. Subject to VAT
b. Exempt from VAT
c. Exempt or subject to VAT at the option of Leo
d. None of the above

A

Subject to VAT

39
Q

A lessor of commercial units shall be exempt from VAT when
I. Annual gross receipts do not exceed P3,000,000
II. Monthly rental per unit does not exceed P15,000

40
Q

Which of the following is the benefit of a VAT-registered taxpayer if he is subject to 0% VAT rate?

a. Exclusion from tax audit by tax examiner
b. Not required to file VAT return, whether monthly or quarterly
c. He does not have any output tax, although he may have an input tax credit which can be claimed for refund
d. He is entitled to tax discount equivalent to 20%

A

He does not have any output tax, although he may have an input tax credit which can be claimed for refund

41
Q

Which of the following transactions is subject to VAT?

a. Services subject to OPT
b. Educational services duly approved by the DepED, CHED, and TESDA, or those operated by the Government
c. Sale of coal and natural gas
d. None of the above

A

Sale of coal and natural gas

42
Q

Which of the following shall be exempt from VAT?

I. Sales by agricultural cooperatives, duly registered with the CDA to their members as well as the sale of their products, whether in its original state or processed form, to non-members
II. Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with the CDS
III. Sales by non-agricultural, non-electric and non-credit cooperatives, duly registered with the CDA

A

I and II only

43
Q

Which of the following transactions is exempt from VAT?
a. Sale of books, newspapers, and magazines
b. Sales of literary works
c. Sales of musical composition
d. All of the above

A

Sale of books, newspapers, and magazines

44
Q

All the following, except one, are subject to VAT

a. Importation of radio and TV equipment by broadcasting and TV stations
b. Lease of cold storage rooms in ice plants and cold storage
c. Sale of painting
d. None of the above

A

All of the following are subject to VAT

45
Q

Which of the following transactions is exempt from VAT

a. Medical services, such as dental and veterinary services rendered by professionals
b. Legal services
c. Services arising from employee-employer relationship
d. Services rendered by domestic air transport companies

A

Services arising from employee-employer relationship

46
Q

Which of the following is not subject to VAT?

a. Importation of goods in the ordinary course of business
b. Importation of items for personal use
c. Franchise grantees of radio broadcasting whose gross receipt for the preceding year was P9,000,000
d. VAT-registered person, whose annual gross receipt, is less than P3,000,000

A

Franchise grantees of radio broadcasting whose gross receipt for the preceding year was P9,000,000

47
Q

Which of the following is not correct?

a. Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes
b. A VAT-registered taxpayer can pass on the VAT, even to non-VAT registered buyers
c. Any business pursued by an individual where the aggregate gross sales or receipts do not exceed P100,000 during any 12-month period, shall be considered principally for subsistence or livelihood and not in the course of trade or business
d. None of the above

A

Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes

48
Q

One of the following is not subject to VAT on importation

a. Goods brought into the Philippines in the course of trade or business by as VAT registered person
b. Goods brought into the Philippines not in the course of trade or business by a person who is not VAT registered
c. Tax-free goods imported by a tax-exempt importer who transferred them to a person who does not enjoy exemption from VAT on importation
d. Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad

A

Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad

49
Q

Gross selling price includes all of the following, except

a. Total amount which the purchaser pays to the seller
b. Total amount which the purchaser is obligated to pay to the seller
c. Excise tax
d. VAT

50
Q

Which of the following statements is correct?

a. Export sale by a VAT-registered person is subject to 0% VAT
b. Export sale by a non-VAT registered person is subject to 3% percentage tax
c. Both “a” and “b”
d. Neither “a” nor “b”

A

Export sale by a VAT-registered person is subject to 0% VAT

51
Q

Which of the following statements is correct?

a. Under RA 7916, while an economic zone registered under PEZA is geographically within the Philippines, it is deemed a separate customs territory and is regarded in law as foreign soil
b. Sale of services, including provision of basic infrastructure, utilities, and maintenance, repair and overhaul of equipment, to a Registered Export Enterprise (REE), to be used directly and exclusively in its registered project or activity
c. Both “a” and “b”
d. Neither “a” nor “b”

A

Both “a” and “b”

52
Q

Which of the following is subject to zero percent VAT?

a. Sale, importation or lease of passenger or cargo vessel and aircraft including engine, equipment, and spare parts thereof for domestic and international transport operations
b. Importation of fuel, goods, and supplies by persons engaged in international shipping or transport operations
c. Transport of passengers and cargo by domestic carrier (air or sea) from the Philippines to foreign country
d. All of these

A

Transport of passengers and cargo by domestic carrier (air or sea) from the Philippines to foreign country

53
Q

Under the TRAIN Law, which of the following is not a zero-rated sale?

a. Export sales
b. Foreign currency denominated sales
c. Both “a” and “b”
d. Neither “a” nor “b”

A

Foreign currency denominated sales

54
Q

In the lease contract, which of the advance payment by the lessee is subject to output VAT?

a. A loan to the lessor from the lessee
b. Prepaid rental
c. An option money for the property
d. A security deposit to insure the faithful performance of certain obligations of the lessee to the lessor

A

Prepaid rental

55
Q

Which of the following shall be subject to VAT?

a. Sale of a residential house and lot by the owners for P5,000,000
b. Sale of private car by its owner
c. Sale of commercial property by a real estate dealer for P1,500,000
d. All of the above

A

Sale of commercial property by a real estate dealer for P1,500,000

56
Q

On January 1, 2021, Pedro purchased a condominium unit worth P2,000,000 from Maxima Realty Corporation. The purchased of the condominium is

a. Exempt from VAT
b. Subject to VAT
c. Subject to 0%
d. None of the above

A

Exempt from VAT

57
Q

On January 1, 2021, Pedro purchased a condominium unit including parking space worth P4,200,000 from Maxima Realty Corporation. The value of the condominium unit, as stated in the contract of sale, was P3,200,000 while the parking space was worth P1,000,000. The transaction is

a. Exempt from VAT
b. Subject to VAT
c. Subject to 0% VAT
d. None of the above

A

Subject to VAT

58
Q

Which statement is correct? Leasing of property shall be subject to VAT on sale of services:

a. If the property is in the Philippines and the lease agreement was executed in the Philippines
b. If the property is in the Philippines and the lease agreement was executed outside the Philippines
c. If the property is in the Philippines and the lease agreement was executed within or outside the Philippines
d. All of the above

A

If the property is in the Philippines and the lease agreement was executed within or outside the Philippines

59
Q

Which of the following receipts for 2021 current year from lease of residential unit is subject to VAT?
I. Monthly rental per unit-P14,000; Aggregate annual rent-P3,150,000
II. Monthly rental per unit-P18,000; Aggregate annual rent-P3,800,000
III. Monthly rental per unit-P18,000; Aggregate annual rent-P3,000,000
IV. Monthly rental per unit-P20,000; Aggregate annual rent-P4,000,000

A

II. Monthly rental per unit-P18,000; Aggregate annual rent-P3,800,000
IV. Monthly rental per unit-P20,000; Aggregate annual rent-P4,000,000

60
Q

Which is true? On sale of service, the tax base in computing for the VAT is

a. Gross selling price
b. Gross receipts
c. Amount per invoice
d. Amount shown in official receipt

A

Gross receipts

61
Q

In the value-added tax on sale of services, the output tax is computed

a. On billings of the month
b. On collection of the month on all billings made
c. On the contract price of the contracts completed during the taxable period
d. Only and strictly on labor performed under the contract for services

A

On collection of the month on all billings made

62
Q

Which of the following statements is false?

a. Construction in progress is not depreciated until the asset is placed in service
b. For purposes of claiming input tax, as a purchase of service, the value of which shall be determined based on the progress billing
c. The input tax credit on the labor contracted shall be recognized on the month the payment was made based on the progress billing
d. Once the input tax, has already been claimed while the construction is still in progress, no additional input tax can be claimed upon completion of the asset when it has been reclassified as depreciable capital asset and depreciated

A

For purposes of claiming input tax, as a purchase of service, the value of which shall be determined based on the progress billing

63
Q

A merchant of stock or securities, whether individual, partnership, or corporation, with an established place of business, regularly engaged in the purchase of securities and the resale thereof to customers, and who, as a merchant, buys securities and resells them to customers with a view to the gains and profits that may be derived there form

a. Dealer in securities
b. Stock brokers
c. Underwriters
d. Stock merchants

A

Dealer in securities

64
Q

Which of the following statements is correct?

I. Certain transactions which are not actually sale because of the absence of actual exchange between the buyer and the seller, are considered sale for VAT purposes
II. Output VAT should be imposed on certain transactions which are not actually sale to avoid a situation where a VAT-registered taxpayer avail of input VAT credit without being liable for the corresponding output VAT

A

Both I and II

65
Q

Which statement is correct? The output VAT on goods or properties sold:

a. is based on gross sales and not on net sales
b. is not imposed on goods exported
c. is imposed on actual sale only
d. maybe due even in the absence of actual sale

A

maybe due even in the absence of actual sale

66
Q

Which of the following is not a sale and therefore is not subject to the VAT?

a. Transfer, use or consumption not in the ordinary course of business of goods or properties ordinarily intended for sale or use in the course of business
b. Distribution or transfer to shareholders or investors of share in the profits of a VAT-registered person
c. Distribution or transfer to creditors in payment of debt
d. Consignment sales

A

Consignment sales

67
Q

One of the following is a transaction deemed sale under VAT

a. Transfer, use or consumption in the course of business of goods or properties intended for sale or use in the course of business
b. Distribution or transfer to creditors in payment of debt
c. Consignment of goods if actual sale is not made within 40 days from the date the goods were consigned
d. Retirement from or cessation of business with respect to beginning inventories of taxable goods existing as of such retirement or cessation

A

Distribution or transfer to creditors in payment of debt

68
Q

“Deemed sale” for VAT purposes includes inventories of taxable goods existing at the time of

a. Change of control of a corporation through the acquisition of the controlling interest
b. Change in the trade name or corporate name of the business
c. Merger or consolidation
d. Dissolution of a partnership and the creation of a new partnership

A

Dissolution of a partnership and the creation of a new partnership

69
Q

Choose the correct statement(s) from the following:

a. A non-VAT registered person could not claim the input VAT on its purchases as a tax credit against its business taxes
b. In the books of a VAT-registered person, the input VAT is an asset account
c. Purchases on account from VAT-registered person, the input VAT is an asset account
d. All of the above

A

All of the above

70
Q

Which statement is not correct?

a. The excess input taxes of a taxable month arising from domestic sales may be carried over to the succeeding month
b. The excess input taxes of a taxable quarter arising from domestic sales may be carried over to the succeeding quarter
c. The excess input taxes of a taxable period arising from domestic sales may be refunded
d. The excess input taxes of a payable period arising from export sales may be refunded

A

The excess input taxes of a taxable period arising from domestic sales may be refunded

71
Q

Which of the following importation is subject to VAT?

a. Importation for personal use of the importer
b. Importation intended for resale
c. Importation of machinery for the importers factory
d. All of the above

A

All of the above

72
Q

Lester, not a VAT registered taxpayer, was sent a package of goods by his friend Clifford who was abroad. The package was claimed by Lester. The Bureau of Customs required him to pay VAT on importation. Lester refused to pay the VAT, claiming that since he is a non-VAT registered person that the package sent to him is intended for personal use only, he should be exempt from paying input VAT on importation. Was Lester’s ground in refusing to pay VAT correct?

a. Yes, because only VAT registered importers should be subject to VAT
b. No, because importations, unless exempted, should be subject to VAT
c. Yes, because the package was intended for personal use, and therefore, he was not an importer
d. No, because Lester may actually sell the package, depriving the BOC to collect the applicable input VAT.

A

No, because importations, unless exempted, should be subject to VAT

73
Q

Which of the following statements is correct?

I. An importation of goods by a non-profit charitable organization shall not be subject to VAT
II. In the case of importation, the importer is not the one liable for the VAT, but the person who shall buy the imported goods
III. Non-exempt persons or entities who acquire tax-free imported goods from exempted persons, entities, or agencies shall be considered the importer for Philippine VAT purposes

74
Q

Which statement is correct? VAT on importation

a. Should be paid by the tax-exempt importer, if he subsequently sells the goods to a non-tax-exempt purchaser
b. Should be paid by the non-tax-exempt purchaser to whom the tax-exempt importer sells it
c. Is a liability shall either of the tax-exempt importer or the non-tax exempt purchaser
d. Shall not pay the VAT because the transaction was exempt at the point of importation

A

Should be paid by the non-tax-exempt purchaser to whom the tax-exempt importer sells it

75
Q

One of the following is not subject to VAT on importation

a. Goods brought into the Philippines in the course of trade or business by a VAT-registered person
b. Goods brought into the Philippines not in the course of trade or business by a person who is not VAT-registered
c. Tax-free goods imported by tax-exempt importer who transferred them to a person who does not enjoy exemption from importation tax
d. Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad

A

Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad

76
Q

Which of the following is not a proper inclusion for the computation of VAT on imported items?

a. Customs duty on importation
b. Excise tax on importation
c. Invoice price of the imported items
d. Facilitation expense

A

Facilitation expense

77
Q

Input VAT on purchases of capital assets prior to 2022 taxable year shall be spread (amortized over 60 months or useful lives of the capital assets if shorter than 60 months) when:

a. Capital assets have been acquired from enterprises registered and located at the export processing zones
b. Value of asset, excluding VAT, exceeds P1,000,000
c. Aggregate monthly purchases of capital assets, excluding VAT, exceeds P1,000,000
d. VAT taxpayer has secured prior approval for him to amortized input tax on purchases of capital assets

A

Aggregate monthly purchases of capital assets, excluding VAT, exceeds P1,000,000

78
Q

Statement 1: The input VAT on purchase of capital goods prior to 2022 taxable year valued at P1,000,000 shall be spread over 60 months if the life of property is equivalent to five years or more
Statement 2: The input VAT on purchase of capital goods prior to the 2022 taxable year valued at P1,000,000 shall be spread over the life of the property if less than 5 years

Which of the following is correct/

A

Statement 1 and 2 are false

79
Q

For purposes of claiming input VAT on depreciable assets purchased prior to 2022 taxable year, the aggregate acquisition cost of a depreciable asset in any calendar month refers to the:

a. Total price agreed upon for one or more assets acquired during the calendar month
b. Payments actually made during the calendar month
c. Total price agreed upon for one asset only acquired during the calendar month
d. Initial payments made if purchased on installment plan

A

Total price agreed upon for one or more assets acquired during the calendar month

80
Q

A taxpayer has excess credit as a result of input taxes paid on purchases of capital goods. He may:

a. Have his excess tax credit refunded to a VAT-registered person
b. Make his application for refund in the subsequent period following the period during which the purchases were made
c. Carry-over and apply his excess tax credit against output taxes in the subsequent period or periods
d. Use it in payment of any internal revenue tax of a VAT registered person

A

Carry-over and apply his excess tax credit against output taxes in the subsequent period or periods

81
Q

If the depreciable capital good purchased prior to 2022 taxable year is sold or transferred within a period of 5 years or prior to the exhaustion of the amortizable input tax thereon, the unamortized input tax on the capital goods sold or transferred can be:

a. Claimed as input tax credit in its entirety during the month or quarter when the sale or transfer was made
b. Amortized over the remaining life of the capital good
c. Claimed as input tax credit in its entirety or amortized over the remaining life of the capital good at the option of the taxpayer
d. Expensed outright in the month or quarter the sale or transfer is made

A

Claimed as input tax credit in its entirety during the month or quarter when the sale or transfer was made

82
Q

Persons or firms engaged in the processing of sardines, mackerel, and milk, and in manufacturing of refined sugar and cooking oil shall be allowed

I. Creditable input tax
II. Transitional input tax
III. Presumptive input tax
IV. Refundable input tax

A

I. Creditable input tax
II. Transitional input tax
III. Presumptive input tax

83
Q

Which of the following business is allowed a presumptive input VAT?

a. Manufacturer of canned goods
b. Manufacturer of packed noodles
c. Manufacturer of packed juices
d. Manufacturer of dried fish

A

Manufacturer of packed noodles

84
Q

Who may claim transitional input tax as tax credit against output tax?

a. Processor or manufacturer of cooking oil or refined sugar
b. Those whose transaction is subject to zero percent VAT
c. VAT taxpayer from being VAT-exempt or non-VAT taxpayer
d. Those who sell goods or services to persons or entities whose exemption from tax is provided by special law or by international agreement to which the Philippines is a signatory

A

VAT taxpayer from being VAT-exempt or non-VAT taxpayer

85
Q

One of the following shall not be entitled to transition input tax.

a. Taxpayers who become liable to VAT for the first time under a new legislation
b. Taxpayers who are already VAT registered person and also deal in goods or property, the sale of which is exempt bur becomes vatable transaction under a new amendatory law
c. Taxpayers whose taxable transactions exceeded the VAT registration threshold of P3,000,000
d. Taxpayers who elect to revert to being a VAT-exempt from being VAT-subject

A

Taxpayers who elect to revert to being a VAT-exempt from being VAT-subject

86
Q

Once optionally registered as a VAT person, the taxpayer shall be liable to output tax and be entitled to input tax credit beginning on the

a. First day of the month following the registration
b. First day of the month following the close of the first quarter after registration
c. Tenth day of the month following the close of the first quarter after registration
d. Twenty-fifth day following the close of the quarter

A

First day of the month following the registration

87
Q

Statement 1: The government or any of its political subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations (GOCCs) shall, before making payment on the account of each purchase of goods and/or services subject to VAT, deduct and withhold a creditable VAT due at the rate of five percent of the gross payment thereof beginning 2021 taxable year
Statement 2: Beginning 2021 taxable year, the five percent withholding VAT shall be creditable against the output VAT of the seller

Which of the folowing statements is correct?

A

Statement 1 and 2 are true

88
Q

Statement 1: On a sale 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 FMV, the VAT must be billed separately