IV. MULTIPLE CHOICE (22pts). 1. An importer of flowers from abroad:

Is liable to VAT, despite the fact that it did not register as a VAT person and his total annual sales of flowers do not exceed P 3,000,000

Is liable to VAT, if it registers as a VAT person

Is exempt from VAT, because the goods are treated as agricultural products

Is exempt from VAT, provided that his total importation of flowers does not exceed P 3,000,000.

IV. MULTIPLE CHOICE (22pts). 2. Which of the following transactions is exempt from VAT?

Services arising from employee-employer relationship

Medical services such as dental and veterinary services rendered by professionals.

Services rendered by domestic air transport companies

IV. MULTIPLE CHOICE (22pts). 6. Which is not included in the landed cost?

Cost of transporting the goods from customs warehouse the importer's warehouse or residence

All incident cost of bringing the goods to the customs warehouse

Taxes other than VAT paid prior to the withdrawal of the goods

IV. MULTIPLE CHOICE (22pts). 8. Which must be present to construe the existence of a business?

b. Offering of services or goods to the public for a profit

c. Actual presence of profit during the period

IV. MULTIPLE CHOICE (22pts). 13. One of the following is subject to percentage tax

Telephone bill on a call by a mother in the Philippines to her son in the United States.

Monthly telephone bill from PLDT.

Telephone call by Magda in Hong Kong to her friend in Manila.

Long distance call by a son from Sta. Cruz, Manila to his father in lloilo City.

IV. MULTIPLE CHOICE (22pts). 14. Determine the business taxes of the following: I. Leases of residential units with a monthly rental per unit not exceeding P 15,000 (regardless aggregate annual gross rentals) II. Leases of residential units with a monthly rental per unit exceeding P 15,000 but the aggregate of such rentals of during the year do not exceed P 3,000,000 III. Lease of commercial units regardless of monthly rental per unit, but the aggregate value of such rentals during the year exceed P 3,000,000.

I = None; II = OPT; and III = VAT

I = VAT; II = VAT; and III = VAT

I = None; II = OPT; and III = OPT

I = None; II = VAT; and III = VAT

FINAL EXAMINATION - BUSINESS TAXATION Quiz

1.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
1. POKMARU Inc. is a real estate dealer. Details of its sales during the year showed the following:
Date of sale June 2, 2018
Consideration in the deed of sale P 10,000,000
Fair market value in the assessment 9,600,000
Zonal value 10,400,000
Schedule of Payments:
June 2, 2022 2,000,000
June 2, 2023 3,000,000
June 2, 2024 3,000,000
How much is the output tax to be recognized for the June 2, 2024 payment?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

2.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
2. POKMARU Inc. is a real estate dealer. Details of its sales during the year showed the following:
Date of sale June 2, 2018
Consideration in the deed of sale P 10,000,000
Fair market value in the assessment 9,600,000
Zonal value 10,400,000
Schedule of Payments:
June 2, 2022 2,000,000
June 2, 2023 3,000,000
June 2, 2024 3,000,000
Assuming that the scheduled payment on June 2, 2022 is P 4,000,000, how much is the output tax to be recognized for the June 2, 2024 payments?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

3.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 3 and 4 are based on the following information:
3. ALICE GUO had the following data for the month of June 2024 (all amount is vat exclusive):
CASE 1 CASE 2
Sales 3,800,000 1,800,000
Purchase of Goods 1,260,000 1,600,000
Purchases of machines 1,440,000 900,000
Machine Life 6 years 3 years
The amount of vat payable (excess tax) shall be on CASE 1:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

4.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 3 and 4 are based on the following information:
4. ALICE GUO had the following data for the month of June 2024 (all amount is vat exclusive):
CASE 1 CASE 2
Sales 3,800,000 1,800,000
Purchase of Goods 1,260,000 1,600,000
Purchases of machines 1,440,000 900,000
Machine Life 6 years 3 years
The amount of vat payable (excess tax) shall be on CASE 2:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

5.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
5. SENRISA, VAT registered, made the following purchases during the month of January 2021:
Goods for sale, inclusive of VAT 246,400
Supplies, exclusive of VAT 20,000
Packaging materials, total invoice amount 56,000
Home appliance for residence, gross of VAT 17,920
Office machines (5 pcs), 8 years useful life, net of VAT 2,000,000
Repair of store amounted to P 20,000, no supporting official receipt. Creditable input taxes are:
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

6.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
6. GuHuaPing, an owner of warehouse, which used to be vat exempt, because its annual receipts never exceeded the vat threshold, decided to register under the vat system on January 2 ,2024, The following data were from the 1st quarter ending March 31, 2024:
Rental from warehousing services, net of vat P 336,000
Purchases of supplies in February, gross of vat 112,000
Inventory of supplies, January 1, 2024 100,000
Vat on inventory of supplies, January 1, 2024 10,000
What is the VAT Payable for the quarter ending March 31,2024?
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

7.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 7 and 8 are based on the following information:

YOKO NA is a VAT registered processor of sardines. The following data were provided for purposes of determining the taxpayer’s payable:

SALES (processed sardines, exclusive of vat)                                            P800,000
PURCHASES/PAYMENTS:
Sardines purchased from fish dealers (invoice amount)                   200,000
Tomatoes purchased from farmers                                                        85,000
Purchased of olive oil (invoice amount)                                                 67,200
Purchased of can containers (excl. of vat)                                            25,000
Payments for paper labels (excl. of vat)                                                12,000
Purchased of cardboard for boxes (incl. of vat)                                   8,960
Payments for hauling services from non-VAT registered                 100,000

7. Determine the presumptive input VAT
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

8.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 7 and 8 are based on the following information:

YOKO NA is a VAT registered processor of sardines. The following data were provided for purposes of determining the taxpayer’s payable:

SALES (processed sardines, exclusive of vat)                                            P800,000
PURCHASES/PAYMENTS:
Sardines purchased from fish dealers (invoice amount)                   200,000
Tomatoes purchased from farmers                                                        85,000
Purchased of olive oil (invoice amount)                                                 67,200
Purchased of can containers (excl. of vat)                                            25,000
Payments for paper labels (excl. of vat)                                                12,000
Purchased of cardboard for boxes (incl. of vat)                                   8,960
Payments for hauling services from non-VAT registered                 100,000

8. Determine the value added tax payable/excess input tax of YOKO NA
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

9.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 9 and 10 are based on the following information:
SEAHNXTYIR is a VAT registered processor of fruits. The following data were provided for purposes of determining the taxpayer’s VAT payable:
Sales (processed fruits, inclusive of VAT) P 672,000
Purchases/payments:
Purchased of fruits from farmers 200,000
Purchased of raw sugar from millers 60,000
Purchased of bottles (invoice amount) 22,400
Purchased of can containers (exc. of VAT) 50,000
Payments for paper labels (incl. of VAT) 5,600
Purchased of cardboard for boxes (incl. of VAT) 3,360
Payments for hauling services from VAT registered
Forwarders (exc. of VAT) 60,000
9. Determine the presumptive input VAT
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

10.

FILL IN THE BLANK QUESTION

5 mins • 1 pt

I. PROBLEM SOLVING (10pts). NO SOLUTIONS, WRONG!!
Numbers 9 and 10 are based on the following information:
SEAHNXTYIR is a VAT registered processor of fruits. The following data were provided for purposes of determining the taxpayer’s VAT payable:
Sales (processed fruits, inclusive of VAT) P 672,000
Purchases/payments:
Purchased of fruits from farmers 200,000
Purchased of raw sugar from millers 60,000
Purchased of bottles (invoice amount) 22,400
Purchased of can containers (exc. of VAT) 50,000
Payments for paper labels (incl. of VAT) 5,600
Purchased of cardboard for boxes (incl. of VAT) 3,360
Payments for hauling services from VAT registered
Forwarders (exc. of VAT) 60,000
10. Determine the value added tax payable/excess input tax of SEAHNXTYIR
(NOTE: no peso sign, use comma for thousandths, no decimals, round off to nearest peso)

FINAL EXAMINATION - BUSINESS TAXATION

50 questions

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