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B. Transitional Input Tax: (Use This Problem For Numbers 49-52)

The document contains multiple choice questions regarding value-added tax (VAT) concepts in the Philippines. Question 46 defines transitional input tax as the input tax a newly registered VAT taxpayer can claim on inventory on hand when becoming liable for VAT. Question 47 asks to calculate the VAT payable for a coconut and corn cooking oil producer for January 2020. The VAT payable is P54,900. Question 48 asks to calculate the VAT payable for January 2020 for a first year VAT registered manufacturer, which is P57,000.

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377 views3 pages

B. Transitional Input Tax: (Use This Problem For Numbers 49-52)

The document contains multiple choice questions regarding value-added tax (VAT) concepts in the Philippines. Question 46 defines transitional input tax as the input tax a newly registered VAT taxpayer can claim on inventory on hand when becoming liable for VAT. Question 47 asks to calculate the VAT payable for a coconut and corn cooking oil producer for January 2020. The VAT payable is P54,900. Question 48 asks to calculate the VAT payable for January 2020 for a first year VAT registered manufacturer, which is P57,000.

Uploaded by

Camille Hornilla
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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46.

A person subject to VAT for the first time can have an input tax out of the inventory of goods, material and
supplies on hand at the time he become liable. This is called:
a. Value-added tax deemed paid
b. Transitional input tax
c. Presumptive input tax
d. None of the above

47. Mantika Corp, a VAT-registered corporation, is a producer of cooking oil from coconut and corn. It had
the following data for the month of January 2020:
Sales, gross of VAT 784,000
Corn & coconut, Dec 31, 2019 50,000
Purchases of Corn & coconut in 2020 330,000
Corn & coconut, Jan 31, 2020 20,000
Purchases from VAT suppliers, VAT included:
Packaging materials 56,000
Supplies 16,800

The VAT payable for the month:


a. P56,060
b. P54,900
c. P60,650
d. P63,000

48. Gallaxy Corporation, a manufacturer, had the following data for the first month of 2020: (first year of
VAT taxpayer)
Sales:
Export sales 2,000,000
Domestic sales (net) 1,000,000
Purchases:
Raw materials 300,000
Services 100,000
Machinery (useful life of 2 years) 400,000
On January 1, 2020, the company had inventories and taxes paid thereon as follows:
Cost VAT Paid
Raw materials 120,000 2,000
Supplies 40,000 4,000
During the month, additional raw materials were purchased from another enterprise with a total invoice
value of P61,600, not included above.
The VAT Payable of Gallaxy is:
a. P72,000
b. P57,000
c. P11,000
d. P66,000

(Use this problem for Numbers 49-52)


Olive is a producer of cooking oil from coconut and corn. Previously exempt from VAT, he became subject to
VAT on January 1, 2020. For January 2020, sales, VAT not included, amounted to P700,000. Olive had the
following other data, inclusive of VAT if applicable, for the month of January:
Inventory, January 1, 2020 Cost
Packaging materials purchased from VAT suppliers 22,400
Supplies purchased from VAT suppliers 11,200

Purchases during the month


Purchases during the month from coconut and corn farmers 330,000
Purchases during the month from VAT suppliers:
Packaging materials 56,000
Supplies 16,800

49. The correct amount of transitional input tax should be:


a. P672
b. P762
c. P3,600
d. P4,080

50. The amount of presumptive input tax should be


a. P13,200
b. P33,000
c. P6,600
d. P39,600

51. The total amount of creditable input taxes should be


a. P21,762
b. P24,600
c. P25,080
d. P21,672

52. The value-added tax payable for the month should be


a. P62,328
b. P58,920
c. P59,400
d. P24,600

53. Which of the following statements is correct regarding standard input tax?
Statement 1: Input tax that can be directly attributable to VAT taxable sales of goods and services to the
Government shall be credited against output taxes arising from sales to non-Government entities.
Statement 2: The government or any of its political subdivisions, instrumentalities or agencies as well as
purchasers in the course of trade or business shall deduct and withhold a final VAT due at the rate of 5%
of the gross payment.
a. I only
b. II only
c. Both I and II
d. Neither I nor II

54. If actual input VAT is less than the standard input tax (7% gross payment)
a. The excess may form part of the seller’s expense or cost
b. The difference must be closed to expense or cost
c. The excess shall be claimed as input tax credit from output tax on other sales/receipts
d. None of the above

55. A VAT registered trader has the following transactions for the month of July 2018:
Sale of goods to private entities, net of VAT 2,500,000
Purchases of goods sold to private entities, gross of 12% VAT 896,000
Sales to a government owned corporation (GOCC), net of VAT 1,500,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000
Purchases of Machineries, gross of VAT, useful life is 6 years 11,200,000

How much is the VAT payable to the BIR?


a. P280,000
b. P224,000
c. P191,500
d. P300,000

(Use the following data on items 56-58)


A franchisee, had the following data on revenues and receivables in 2020:
Quarter ending March 31, 2020 Revenues AR, beg AR, end
Covered by the franchise 4,000,000 600,000 800,000
Not covered by the franchise 1,200,000 - 160,000

56. If the franchisee is generating and selling electricity, the correct amount of business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800

57. If the franchisee is a gas and water utilities, the correct amount of business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800

58. If the franchisee is a radio and/or television broadcasting company, the correct amount of business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800

59. The value added tax due on the sale of taxable goods, property and services by any person whether or
not he has taken the necessary steps to be registered
a. Input tax
b. Output tax
c. Excise tax
d. Sales tax

60. The following are exempt from VAT, except


a. Sale of 1 sack of rice
b. Sale of lechon manok
c. Sale of pet food
d. Sale of newspaper

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