1. Which is incorrect with respect to business taxes?

a. VAT is a top-up tax on sales

b. Percentage tax is an expensed tax
c. VAT is due quarterly but is paid monthly
d. Percentage tax is an explicit consumption tax

2. Which of the following transactions has no consumption tax?

a. Importation
b. Domestic consumption from VAT suppliers
c. Domestic consumption from non-VAT suppliers
d. Exportation

3. Which of these importations is subject to VAT?

a. Lumber
b. Flour
c. Canned tuna
d. Wine

4. The sale of which of the following is exempt from business tax?

a. Urea fertilizer
b. Hybrid corn seeds
c. Herbicides
d. Chicken dung

5. Which of the following ingredients is exempt from the VAT on importation?

a. Ingredients in the manufacture of Improvised Explosive Devices
b. Ingredient used in the manufacture of human foods
c. Ingredients used in the manufacture of pet feeds
d. Ingredients used in the manufacture of poultry or livestock feeds

6. Which of the following agricultural products is not exempt from business tax on sales?
a. Ginseng
b. Coffee beans
c. Tobacco leaf
d. Tea leaf

7. Mabiga Cooperative is an agricultural cooperative which processes the coffee production of its
members for sale to NesFe Corporation, a coffee processing company selling bottled instant
cofee. Mabiga imported a coffee drier from Colombia Coffee Machineries Corporation. After 3
years of active use, Mabiga disposed the drier to Pedro Mabanag, a member.

Which of the following is subject to VAT?

a. Importation of coffee drier from Colombia
b. Sale of coffee drier to Mr. Mabanag
c. Sale of coffee to NesFe Corporation
d. Sale of coffee by members to Mabiga Cooperative
8. Ammacian Corporation imported goods from abroad for domestic sale. The details of the
importation is given below:

Peso value of suppliers invoice P 2,000,000

Other cost incurred to bring the goods to Philippine port 70,000
Other inland costs prior to release of goods from Customs 85,000
Customs duties 10%
Freight cost to bring merchandise to Ammacians warehouse 20,000

Compute the Customs duties on the dutiable value.

a. P 207,000 (2M+70Kx10%) c. P 215,500
b. P 200,000 d. P 208,500

9. Compute the VAT on importation on the landed cost.

a. P 258,600 c. P 282,600
b. P 283,440(2.07M+80K+207Kx12%) d. P 284,460

10. Which is subject to business tax?

a. Business for subsistence
b. Privilege stores
c. Non-resident sellers
d. All of these

11. Which is considered pure consumption tax?

a. VAT on importation
b. Percentage tax
c. Value Added Tax on sales
d. Excise tax

12. Who is statutory liable to pay the VAT on importation?

a. The non-resident seller
b. The resident buyer
c. Both seller and buyer
d. The Bureau of Customs

13. A business taxpayer had the following summarized transactions during the quarter:

Cash sales P 400,000

Sales on credit (account sales) 600,000
Installment sales (P30,000 collected) 100,000
Sales returns and allowances 20,000
Quota discounts 10,000
Advances for goods not yet delivered 20,000
Purchase of goods, including of P72,000 VAT
passed on by sellers 672,000

Compute the gross selling price.

a. P1,100,000 c. P1,030,000
 b. P1,080,000(400+600+100-20) d. P1,010,000

14. A lending investor had the following data during a month:

Cash collection for loan principal P 400,000

Cash collection for interest 50,000
Cash collection for penalties 6,000
Uncollected loan principal 300,000
Billed but uncollected interest 2,000
Billed but uncollected penalties 1,000

What is the gross receipt?

a. P 456,000 c. P 59,000
b. P 450,000 d. P 56,000

15. Geneva Corporation, a VAT lessor which leases commercial spaces to various businesses,
received P1,284,000 rentals from various clients, net of 5% withholding tax. What is the gross
receipt?
a. P 1,200,000 c. P 1,284,000
b. P 1,351,579 d. P 1,219,800

16. A VAT registered seller made the following sales of goods during a month:

Selling price Fair value

To customer A P 150,000 P 180,000
To customer B 200,000 190,000
To customer C 102,000 150,000
Total sales P 452,000

Compute the output VAT.

a. P 60,000 c. P 62,400
b. P 54,240 d. P 63,600

17. A VAT-registered seller made the following sales to the following entities:

Selling price Fair value

City of San Fernando P 134,000 P 200,000
ABC Trading Company 100,500 150,000

What is the output VAT?

a. P 34,080 c. P 42,000
b. P 28,080 d. P 40,500

18. The following pertain to a VAT-registered taxpayer in July 2016:

Fees from senior citizens, before 20% discount P 225,000

 Fees from PWD, before 20% discount 75,000
Fees received from regular customers 340,000
Total fees P 640,000

Compute the output VAT assuming the given figures are exclusive of VAT.
a. P 48,000 c. P
b. P 40,800 d. P 69,312

19. DEF Realty Corporation, a VAT-registered realty dealer, sold the following residential properties
during the month:

Zonal Assessed Selling

Value Value Price
Residential lot P 1,500,000 P 1,200,000 P 1,700,000
Residential dwelling 3,500,000 1,500,000 3,200,000

Compute the output VAT.

a. P 0 c. P 624,000
b. P 580,000 d. P 420,000

20. A VAT-registered taxpayer has its own sales operations but also sells goods through consignees. It
also sells goods on consignment for a commission. The following were the results of operations
for the month ended April 30, 2016:

Sales of own inventories P 500,000

Sales made through consignees 150,000
Sales made for consignors 100,000
Commission income from consignors 20,000
Commissions paid to consignees 30,000

Compute the output VAT.

a. P 96,000 c. P 80,400
b. P 92,400 d. P 62,400

21. Mr. Misamis, a VAT-registered taxpayer, ceases business operation in May 2015. His business
properties upon termination of business operation include the following:

Cash P 50,000
Accounts receivables 120,000
Investments 180,000
Inventories 200,000
Property, plant and equipment 800,000
Total assets P 1,350,000

Compute the Output VAT on deemed sales.

a. P 162,000 c. P 24,000
b. P 120,000 d. P 0
22. Mr. Digong sold a commercial land with a selling price of P2,100,000 but with a zonal value of
P2,240,000 and assessed value of P 1,500,000.

What is the output VAT?

a. P 268,800 c. P 240,000
b. P 252,000 d. P 225,000

23. Assuming the same data in the previous problem except that the commercial land was sold for
P2,464,000, what would be the output VAT.
a. P 295,680 c. P 264,000
b. P 268,800 d. P 240,000

24. Guimaras Company made the following export and domestic sales during the month:

Export destination Terms Payment

Export for Hong Kong FOB destination $ 100,000
Export for Thailand FOB destination P 450,000
Export to Japan FOB shipping point 800,000

Domestic sales
Sales to an PEZA FOB destination P2,000,000
Sales to a non-VAT customer 500,000
Sales to a VAT customer 1,000,000

The exchange rates were as follows: $1 = P45; 1 = P0.50.

Compute the output VAT for the month.

a. P 474,000 c. P 180,000
b. P 420,000 d. P 120,000

25. Which is not a deemed sale transaction?

a. Exchange of inventory for stocks
b. Exchange of property, plants and equipment for stocks
c. Exchange of inventory for property
d. Exchange of stocks for property

26. A VAT taxpayer had the following data regarding its sales and input VAT during a particular
quarter:

Sales Amount Traceable input VAT

Regular sales P 800,000 P 40,000
Export sales 400,000 18,000
Sales to government 200,000 15,000
Exempt sales 100,000 8,000
Total P 1,500,000 P 81,000

Non-traceable input VAT totaled P 24,000. Input VAT applied for tax refund totaled P 6,000.
 Compute the total Output VAT.
a. P 180,000 c. P 120,000
b. P 168,000 d. P 96,000

27. The sale of a VAT registered taxpayer for the last 12 months failed to exceed the VAT threshold.
It made the following sales during the month:

Sales of rice P 80,000

Sale of flour 20,000
Sale of fertilizers and seeds 40,000
Total P 140,000

Compute the output VAT.

a. P 0 c. P 7,200
b. P 2,400 d. P 16,800

28. A non-VAT professional service provider which exceeded the VAT threshold had the following
revenue and collections during the quarter:

Total collections, inclusive of P13,440 advances P 268,800

Total revenue 392,000

Compute the total output VAT.

a. P 0 c. P 28,800
b. P 27,360 d. P 42,000

29. An international carrier generated the following receipts:

Incoming Outgoing
Passengers P 1,000,000 P 2,000,000
Cargoes, mails; excess baggage 500,000 400,000

Compute the percentage tax.

a. P 72,000 c. P 12,000
b. P 60,000 d. P 0

30. Which of the following is subject to value added tax?

a. Importation of grapes and apples
b. Sale of seaweeds
c. Sale of fire wood and charcoal
d. Sale of husked rice, corn grits and molasses

31. All of the following entities are VAT-exempt, except?

a. Notre Dame, a proprietary hospital
b. Philippine Airlines, a domestic air carrier
c. Bank of the Philippine Islands, a commercial bank
 d. Tagbilaran University, a proprietary educational institution

32. Which is subject to VAT?

a. Life insurance companies
b. Operators of hotels, motels and inns
c. International air or sea carrier
d. Agricultural, credit or multi-purpose cooperative

33. Which is not subject to output VAT?

a. Sale of residential lot for P1,500,000
b. Direct export sales of goods
c. Cessation of status as VAT taxpayer with respect to all goods or properties on hand
d. Sale of residential dwelling for P2,800,000

34. Which is not a zero-rated sale of goods or service?

a. Transmission of messages message originating from the Philippines to abroad other than
news services, embassies and diplomatic calls.
b. Sale of gold to the Bangko Sentral ng Pilipinas
c. Sale of electricity from hydropower and solar power plants
d. Transport of passengers by air or sea from Philippines to abroad

35. Which is correct statement?

a. If the monthly aggregate acquisition cost of capital goods exceeds P1,000,000, the input VAT
shall be allocated over a period of 60 months starting from the month of purchase.
b. The export sales of non-VAT taxpayers are exempt from VAT.
c. The excess of input VAT over standard input VAT on government sales is a taxable gain
subject to income tax.
d. Monthly VAT is due 25 days from the end of each month with the quarterly VAT payable 20
days from the end of each quarter.

36. Phil Co. raised its total outstanding shares by 40% to 70,000,000. This was made by conducting
an initial public offering through the Philippine Stock Exchange. The IPO shares were offered
and sold for P20 per share. The stock transaction tax is
a. P16,000,000 c. P7,000,000
b. P8,000,000 d. P4,000,000

37. Which is a correct statement?

a. Distraint and levy should not be implemented simultaneously so as not to violate the
proprietary interest of the taxpayer.
b. Assessment must be made by the BIR within 5 years from the date the return is filed.
Collection shall be enforced within 3 years from the date of such assessment.
c. VAT taxpayers shall issue receipts regardless of the amount of the sale.
d. Distrait and levy can be effected even in the absence of a prior assessment.

38. A dealer in securities has the following data for the quarter:
Sales, shares held as inventory 5,000,000
Sales, shares held as investment 1,500,000
 Cost, shares held as inventory 2,000,000
Cost, shares held as investment 500,000
Supplies expense, net of VAT 100,000
Rent expense, net of VAT 200,000

How much is the VAT payable?

A. 470,000 C. 270,000
B. 324,000 D. Not subject to VAT

39. Beneco is a holder of franchise to distribute and sell electricity. In a particular quarter, its gross
receipts amounted to P2,000,000 from distribution and sale of electricity. It has also receipts from
the lease of its auditorium amounting to P600,000.

The value-added tax or percentage tax due for the quarter is:
a. P40,000 percentage tax c. P52,000 percentage tax
b. P72,000 value-added tax d. P312,000 value-added tax

40. Chavit, a Filipino citizen, promoted a Philippine boxing championship in Manila featuring Mark,
the champion and Zeus, his challenger. Gate receipts amounted to P3,000,000 and additional
receipts from television coverage was P2,000,000. The amusement tax due is:
A. Exempt C. P300,000
B. P500,000 D. P600,000

41. Gloria, a security dealer, purchased P500,000 shares of Tabako Corp. The corporations shares
are listed and are traded in the local stock exchange. Gloria sold the shares for P350,000 through
the local stock exchange. The percentage tax on the sale is:
A. P 0 C. P1,750
B. P3,500 D. P2,500

42. Victory Bus Lines had the following receipts during the quarter:

Gross receipts, without tax:

Transport of passengers P 1,000,000
Transport of goods 1,500,000
Transport of cargoes 500,000

The output VAT and OPT due for the quarter are:

Output VAT OPT due Output VAT OPT due

A. P240,000 P 30,000 C. P 0 P 90,000
B. 360,000 0 D. 360,000 30,000

43. A VAT-registered customer ordered the following from a non-VAT-registered supplier:

Eggs P 100,000
Dried fish 150,000
Marinated fish 200,000
Under current revenue regulations, what is the output VAT?
A. P 0 C. P24,000
B. P12,000 D. P36,000