Vat Exercises

1. A tax on business is
a. Direct tax c. Property tax
b. Indirect tax d. None of the above
2. One of the following is not a major business internal revenue taxes in the tax code
a. Value added tax c. Income tax
b. Excise tax d. Percentage tax
3. Value added tax is a (an)
a. Indirect tax c. Progressive tax
b. Direct tax d. Regressive tax
4. In value added taxation, this is not a requirement for taxability of service?
a. In the course of business
b. Performed within or outside the Philippines
c. Consideration received actually or constructively
d. Supply of service is not exempt from VAT
5. Charlene is an operator of parking lots. What business tax is due on his income tax from the business?
a. Broker’s tax c. Common carrier’s tax
b. Caterer’s tax d. Value added tax
6. Mr. F is a lessor of real property and personal property (cars). The tax that he pays is
a. Excise tax c. Percentage tax
b. Value added tax d. None of the above
7. Mr. S Magler imported cigarettes from the United States for sale in the Philippines. What business taxes
in the Philippines are due?
a. VAT, excise tax, other percentage tax
b. VAT and excise tax
c. Other percentage tax and excise tax
d. VAT and percentage taxWhich of the following is not exempt from VAT
a. Importation in their original state of agricultural and marine food products
b. Importation of passenger or cargo vessel more than 5,000 tons to be used by the importer himself as
operator thereof;
c. Importation of personal and household effect belonging to residents of the Philippines returning from
abroad;
d. Importation of non-food agricultural products in their original state by a primary producer.
8. One of the following transactions by a VAT registered person does not result to output vAT
a. Cash sales c. Sales and leaseback
b. Sales on account d. Export sales

Computation of VAT payable

9. Tsukuba Company, a VAT registered business, had the following data during the quarter;
Export sales 1,815,000
Domestic sales (tax included) 1,232,000
Purchases of goods for export 672,000
Purchases of goods for domestic sales 323,120
Purchases of supplies on domestic sales, exclusive of tax 124,850

Assuming that the input taxes paid on purchases of goods for export are claimed as tax credit, the VAT payable
by Tsukuba Company is
a. 12,895 c. 177,895
b. 10,398 d. 84,895
10. In question no. 14, assuming that the input taxes attributable to export sales are being claimed as
refund, the amount refundable is
a. 72,000
b. 12,895
c. 84,895
d. Zero