Multiple Choice Problems 1

1.

Oceanizers, Inc. Purchased the following from abroad:

Sea shells and coral decors
Tuna and salmon
Total

320,000
120,000
440,000

What is amount of taxable importation?

a. 0
c. 200,000
b. 120,000
d. 320,000
2.

Mr. A imported various personal and household effects with a value

aggregating 400,000. 320,000 of these was subjected to a 8% customs
duty by the BOC What is the VAT on importation?.
a. 0
c. 42,240
b. 41,472
d. 48,000

3.

A bookstore company imported the following items:

Books
Professional instruments
School supplies
Total

Landed cost
350,000
200,000
350,000
900,000

What is the total VAT on importation?

a. 0
c. 72,000
b. 60,000
d. 100,000
4.

Mr. C a VAT-registered food retailer, imported the following from China:

Fruits
Vegetables
Frozen meat
Marinated milkfish
Total
Compute the Vat on importation
a. 0
c. 51,600
b. 12,000
d. 69,600

Landed cost
250,000
180,000
50,000
100,000
580,000

5.

Alexis Furnitures a percentage taxpayer, imported the following household

equipment:
Landed cost
Machineries, for business use
1,150,000
Heating system, for home use
250,000
Total
1,400,000
Compute the VAT on importation.
a. 0
c. 150,000
b. 27,000
d. 168,000

6.

Danes AgriCorp imported the following:

Seeds
Fertilizers
Farming equipment
Herbicides and pesticides
Total

Landed cost
400,000
750,000
450,000
250,000
1,850,000

Compute the VAT on importation.

a. 0
c. 72,000
b. 42,000
d. 84,000
7.

Home Appliance Company imported the following for personal use:

Furniture
Rattan
Lumber

600,000
250,000
450,000

Compute the VAT on importation.

a. 30,000
c. 156,000
b. 72,000
d. 204,000
8.

Mr. Huligan imported rice from Vietnam. Details of his importation show the following:
Total invoice value
Freight and insurance in transit
BOC and other charges
Compute the VAT on importation.

1,000,000
50,000
20,000

a.
b.
9.

0
120,000

c. 126,000
d. 128,400

An agricultural supply dealer imported the following:

Corn grits
Hog feeds
Specialty feeds

200,000
350,000
300,000

Compute the VAT on importation.

a. 0
c. 42,000
b. 36,000
d. 102,000
10.

The following data relates to the importation to the importation of cigarettes by

Mr. Shinto:
Total invoice value
BOC charges
Customs duties
Excise taxes

1,000,000
300,000
200,000
300,000

Compute the VAT on importation.

a. 120,000
c. 180,000
b. 156,000
d. 216,000
Multiple Choice-Problems 2
1.

Don Pepito imported a harvester from the United States with a total cost of
1,100,000 before Customs duties. The importation is subject to 10% Customs duties.
What is the VAT on importation?
a. 158,400
c. 129,600
b. 145,200
d. 0

2.

In the immediately preceding problem, assuming that the importation is made by

an agricultural cooperative. What is the VAT on importation?
a. 158,400
c. 129,600
b. 144,000
d. 0

3.

Mr. Smile a professional practitioner imported the following:

Calculators and computers for his firm
Books
Total

900,000
600,000
1,500,000

How much is a subject to VAT on importation?

a. 0
c. 1,200,000
b. 900,000
d. 1,500,000
4.

Mr. Juan Manuel Marquez arrives in the Philippines with an immigration visa. He had
with him the following:
Clothing, shoes and apparels
Professional instruments and implements
Personal car
Total costs of personal belongings

100,000
150,000
300,000
550,000

Compute the total amount subject to the VAT on importation?

a. 0
c. 300,000
b. 200,000
d. 550,000
5.

Mr. Xhi, a non-VAT taxpayer, made the following domestic Purchases of goods:
Purchase of scrap metals from PEZA- locator
Purchase of machine from a VAT supplier

200,000
800,000

What is the impossible VAT on importation?

a. 0
c. 96,000
b. 24,000
d. 120,000
6.

Atlantis Shipping Company imported 3,000,000 worth of vessel fuels and supplies for
domestic use. The company earmarked 60% of this for domestic use while 40% is
reserved for its international operations.
What is the VAT on importation?
a. 0
c. 216,000
b. 144,000
d. 360,000

7.

Mr. Beer, a VAT-registered trader, imported an equipment with a dutiable value of

$40,000 from abroad. The importation is subject to 100,000 BOC charges before 10%
customs duties on dutiable value. The exchange rate to the Peso was 43.00:$1.
Compute the VAT on importation?
a. 218,400
c. 232,400
b. 227,040
d. 239,040

8.

If an importer paid 15% custom duties in the amount of 24,000 plus 134,000 charges in
the Bureau of Customs, what is the VAT on importation?
a. 0
c. 35,280
b. 18,960
d. 38,160

9.

Shanum Company had the following data regarding its importation:

Invoice price in US Dollars
$
12,000
Other costs to bring goods to the Philippines
145,000
BOC charges
100,000
Customs duties is 10% of dutiable value
Peso-Dollar Exchange rate
42.80: $1
Compute the VAT on importation?
a. 0
c. 91,032.00
b. 81,643.20
d. 98,935.20

10.

Mr. Dolinger imported various merchandise from abroad. The importation was invoiced at
$5,000. Mr. Dolinger also incurred the following costs of of importation:
Insurance
Freight
Wharfage fee
Arrastre charge
Brokerage fee
Facilitation fee

4,000
15,000
4,000
7,000
8,000
5,000

Mr. Dolinger was also assessed 24,000 and 18,000 customs duties and excise tax,
respectively. The applicable exchange rate was 42.50:$1
What is the VAT on importation?
a. 25,500
c. 35,100
b. 30,540
d. 35,700