Test I. Modified True or False. Write TRUE if the statement is correct but if the statement is false underline
the phrase or word that made the statement incorrect and modify it. 2 points each
Ex: Zero rated sales is e
...
Test I. Modified True or False. Write TRUE if the statement is correct but if the statement is false underline
the phrase or word that made the statement incorrect and modify it. 2 points each
Ex: Zero rated sales is exempt from the VAT –subject to VAT at 0%
1. A VAT-registered person may apply for the issuance of tax credit certificate or refund of input taxes paid
on capital goods imported or locally purchased to the extent that such input taxes have not been applied
against output taxes. The application may be made only within two years after the close of the taxable
quarter when the importation was made. - sale
2. Excise taxes imposed and based on weight or volume capacity or any other physical unit of
measurement shall be referred to as ad valorem tax. – Specific tax
3. The term “export sales” for VAT purposes shall include, but not limited to sale of gold to the Bangko
Sentral ng Pilipinas. True
4. The gross receipts from cockpits are subject to specific percentage tax of 20%. – Percentage of 18%
5. A taxpayer whose annual gross receipts/sales exceed P3,000,000 shall pay VAT even if he is not VAT
registered. True
6. The 5/10 of 1% tax stock transaction is a final withholding tax on income. True
7. Percentage tax maybe imposed together with excise tax.- With VAT
8. An importation not in the course of trade or business is generally not subject to VAT. True
9. Incidental and isolated transactions may be subject to VAT. Incidental transaction
10. Sale to an entity located in an ECOZONE, even though such entity is not qualified to avail income tax
holiday or 5% gross income tax, is an exempt sale. True
11. Gross receipts of a PRC-licensed doctor is subject to VAT on professionals. True
1
CERT. NO.: 50500643 QM15
CERTIFIED TO ISO 9001:2015
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12. ECOZONEs are not separate customs territory by fiction of law. ECOZONEs are separate
13. Sale of bagasse is subject to 12% Output VAT.
14. Sale of power or fuel generated thru renewable sources of energy is subject to Percentage Tax. True
15. Insurance commissions in a life and non-life insurance policy are subject to VAT. True
Test II. Situational Problem Solving. Choose the correct answers for each question.
For items 1 to 3, refer to the following information:
Namjoon is engaged in the manufacture and sale of butter pancakes. Namjoon purchased P2,500,000
worth of raw materials, VAT-exclusive, from VAT-registered local suppliers. During the taxable year
2021, it was able to generate export sales of P2,000,000, and domestic sales of P2,500,000 for its
pancakes.
1. Is Namjoon required to be a VAT-registered taxpayer?
a. Yes, because his sales breached the P3,000,000 threshold.
b. Yes, because his VAT-subject sales breached the P3,000,000 threshold.
c. No, because his sales have not breached the P3,000,000 threshold.
d. No, because an exporter need not be a VAT-registered taxpayer.
2. Assuming Namjoon is not required to be a VAT-registered taxpayer and remains to be a non-vat
registered taxpayer, which of the following statements is true?
I. Namjoon is liable of percentage tax under Section 116 (3%, temporarily 1% under CREATE Act)
II. Namjoon is liable to pay value-added taxes.
III. Namjoon cannot claim input tax credit from his purchases.
a. I and III only
b. II and III only
c. I and II only
d. I, II, and III
3. Assuming Namjoon is required to be a VAT-registered taxpayer and remains to be a non-vat
registered taxpayer, which of the following statements is true?
I. Namjoon is liable of percentage tax under Section 116 (3%, temporarily 1% under CREATE Act)
II. Namjoon is liable to pay value-added taxes
III. Namjoon cannot claim input tax credit from his purchases.
a. I and III only
b. II and III only
c. I and II only
d. I, II, and III
Rafael is the sole proprietor of a VAT-registered t-shirt printing business. During the taxable month of
September 2018, he made the following transactions:
2
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A+
Transactions Value
Importation of clothing for personal use P 189,000
Importation of clothing to be resold in business 1,240,000
Importation of printers 975,000
Domestic purchase of t-shirt ink 880,000
Payment for maintenance services rendered for business 358,000
Total P 3,642,000
4. How much is the input VAT?
a. 265,800 c. 414,360
b. 371,400 d. 437,040
5. Which of the follow
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