1.

Statement 1: The account title "VAT payable” refers only to the excess of Output Tax
over the Input Tax 
Statement 2: In value-added tax, although the seller-businessman is the one statutorily
liable to pay he does not shoulder the burden of the tax 
Statement 3: Zero rated transactions are exempt transactions because it does not result
to output tax. -
Statement 4: There may be an export sale although there is no sale or shipment of the
goods from the Philippines to other countries 
Which of the following options is correct?
A. Statements 2 and 4 are true.
B. Statements 1 and 2 are false.
C. Statements 3 and 4 are true.
D. Statement 4 is false   

2. Tsutsuwap Company, a VAT-registered business, had the following data during the
quarter 
Export sales P 1,900,000
Domestic sales (tax included)     1,232,000
Purchases of goods for export and domestic sales       888,500
Purchases of supplies for export and domestic sales       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
B. 10,398
C. 177,895
D. 84,895

3. In Question 2, 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. 77,015
D. Zero

4. Joey, a non-VAT taxpayer purchased merchandise worth P11,200, VAT inclusive, from
Willie, a VAT registered seller. The passed on VAT of P1,200 on the purchases is -
A. an expense
B. part of the cost of purchases
 C. a tax credit
D. ignored

5. Altura sold goods at an invoice value of P123,200 to Beltran on account. Beltran sold the
same goods to Cantona for P143,000 (exclusive of tax) cash. All of them are VAT
registered taxpayers. The accounting entry to record the sales in the books of Beltran is.
A. Cash P 160,160
Sales P 143,000
Output tax (143,000 x 12%)          17,160
B. Cash     143,000
Sales     143,000
C. Cash     160,160
Sales     160,160
D. Cash     143,000
Sales     125,840
Output tax         17,160

Numbers 6  and 7  are based on the following information:

6. The Pastry Shop sells cakes and pastry items to well-known hotels around the Metro
Manila area. The hotels are allowed credit based on the track record of the hotels. The
total amounts received or receivable from sales by the Pastry Shop in the 2nd quarter of
2015 were P224,000, including the value-added tax. Seventy five percent of the sales are
normally on account. How much is the value-added tax on the sales for the 2nd quarter
of 2015? (RPCPA)
A. P20,000
B. 24,000
C. 26,880
D. 15,000

7. Cruz, a trader, made the following transactions of goods, exclusive of VAT during the
second quarter
Cash sales P  200,000
Open account sales            100,000
Consigned goods - delivered:              April 15 100,000
May 15 100,000
June 15 100,000
The output tax for the second quarter is -
A. P 40,000
B. 48,000
 C. 60,000
D. 36,000

Questions 17 through 19 are based on the following information:

8. Mongolia Company, a VAT registered business had the following data in its books on
July 31, 2015: 
Domestic sales P 709,500
Sales returns 26,400
Goods shipped on consignment (net of tax):
Units Unit Price 
July 5   25  P22,000
June 5   20   22,000
May 5   12   22,000 
Goods withdrawn for use by the company 38,500
Goods taken as payment to creditor 26,950
Freight and insurance of goods 4,675
Purchases
Raw materials 484,000
Supplies 61,600
Capital goods 60,500
Salaries of employees 235,000

During the month, one consignee remitted cash net of 20% commission representing the
payment for five (5) units delivered on June 5

Another consignee remitted cash of P220,000, gross of 20% commission, representing

payment for 10 units sold in July Other than the commission, Mongolia company gave 5%
discount/rebate to the consignee for selling ten (10) units in a one month period
The output tax in July is -
A. 124,450
B. 121,050
C. 161,106
D. 134 255

9. The input tax is -

A. 61,078
B. 73,293
 C. 65,440
D. None of the above

10. The amount of VAT payable is -

A. P 87,813.00
B. 69,350.00
C. 66,525.00 
D. 78,404 46

11. A creditable input tax allowed on one who becomes subject to VAT for the first time 
A. Presumptive input tax
B. Transitional input tax
C. Excess input tax
D. Total input tax

12. Isaac Company, a newly VAT registered business, has the following data in January (all
amounts are inclusive of tax)
Merchandise inventory P 204,000
Actual VAT paid on the inventory       16,000
Sales, total invoice amount     469,000
Purchases       57 400
Fifty percent (50%) of the merchandise inventory on January 1 were purchased from non-VAT
registered sellers
The VAT payable by Isaac Company is -
A. P 30,100 
B. 28,100
C. 3,960
D. 4,950

13.  An owner of heavy equipments is engaged in equipment rental It used to be VAT-
exempt because its annual receipts never exceeded P3,000,000. On January 2, 2020 it
decided to register under the VAT system. The following data were from the first quarter
ending March 31, 2020 
Rental from heavy equipments with 12% VAT P 336,000
Purchases of supplies (February) gross of VAT     112,000
Inventory of supplies
Subject to VAT Jan 1, 2020       50,400
Not subject to VAT       60,000
VAT paid on the inventory of supplies, Jan 1, 2020         5,400
 The VAT payable for the quarter ending March 2020  is
A. P12,171
B. 33,792
C. 18,600
D. 22,992

14. On January 22 Ginatan Company sold goods to Baduya Department Store worth
P16,800, gross of value-added tax. Term: 2/10, n/30. F.O.B. destination, freight prepaid,
P800, value-added tax not included. How much is the output tax? How much is  the input
tax?
Output tax Input tax
A. P2,016.00 P 96.00
B.    1,800.00   96.00
C.     1,800.00     85.71
D.     1,800.00     None

15. In the preceding number if there was a return of defective goods worth P2,240 (inclusive
of VAT) within the discount period and the balance of the receivable was collected on
January 30, the amount of the Output Tax upon collection is
A. DebitP5.20
B. Debit - 31.20
C. Credit -P 5.20
D. Credit - 34.94

16. Ben Door supplier in Manila, sold merchandise on May 5, 2015 for P100,000 (exclusive
of VAT) to Bay Yerr, a storeowner in Cebu. The terms are: 2/10, n/30 FOB shipping point,
freight prepaid Cost of freight per way bill is P1,120 .Payment was made by Bay on May
12, 2015 after a return of detective merchandise worth P5,600, tax inclusive. 
Based on the above transactions, how much is the balance of Output tax to Ben
Door? 11,172

17. Beth, had the following receipts during the month (exclusive of VAT):

Passenger Cargo
Jeepney 1 P20,000
Jeepney 2 P30,000
Bus P15,000 P8,500
Sea Vessel P1,500,000 P800,000
Cessna Plane for hire P800,000 P560.000
 The output tax during the period is -
a. 164,220
b. 441,000
c. 439,200
d. 440,220

18. Bonnevie is a real estate dealer. During the month of November 2015, he sold three (3)
lots under the following terms
Lot 1 Lot 2 Lot 3 
Selling price     P 250,000     P 200.000 P300.000
Cost         150,000         130,000   175.000
Gain / loss         100,000           70,000   125,000

Terms:
Downpayment, November 5             25,000             50,000     40.000
Due -
December 5 25,000   20,000 20,000
Jan to Dec 2016 200,000 130,000       
240,000

All amounts indicated above do not include the tax 

The value-added tax in November is 
A. P 26,500
B. 31,800
C. 34,800
D. 90,000
19. Based on the information given in No. 18 above, the value-added tax for the month of
December is - 
A. P 5,400 
B. 4,500
 C. 10,000
D. None

20. Dimagiba Construction Company entered into a contract with the government to
construct an edifice for a total contract price of P25,000,000. During the month, the
government paid P10,000,000 of which it withheld 5% final withholding tax How much is
the VAT payable by the company on the government contract?
A. P150,000
B. 850,000
C. 0

21. Celebrado, a VAT registered taxpayer, had the following data on importation in 2015
For Sale Own Use
Invoice cost (Exchange rate: $1 : Php 46) $ 5,650 $ 850
Customs duties 12% 10%
Freight 20,000 4,000
Insurance 28,000 4,250
Other charges before release from customs house 7,000 2,500
Facilitation fee - NON VAT 10,000 5,000
Freight from customs house to warehouse (net of VAT) 12,000 1,200
Assuming the customs duties are determined on the basis of the quantity or volume of the
goods, the VAT on the importation is 
A. 31,260
B. 37,285
C. 47,981.76
D. 44,742.00

22. In Question 39 above, how much is the VAT payable if the imported goods for
sale were sold for P665,000 (inclusive of tax) 10 days after its delivery to the warehouse
A. 28,279.44
B. 32,298.00
C. 17,540.00
D. 25.068,00

Numbers 23 to 25 are based on the following information

Sumilco, a manufacturer of refined sugar, became subject to VAT effective December 1 of the
current year. During the month, the following are its data:
 Refined sugar withdrawn from refinery, inclusive of VAT P 924,000
Purchases of -
Supplies from VAT registered suppliers 38,500
Packaging materials, VAT inclusive 27,060
Sugar cane from planters 350,000
Water bill 12,000
Salaries of officials and employees 150,000 

Inventory per balance sheet, December 1:

Packaging materials, purchased from VAT registered 17,875
Supplies purchased from VAT registered persons 14,850 

23. The presumptive input tax is - 

A. 35,000 
B. 5,250
C. 13,860
D. 14,000

24. The transitional input tax is -

A. 3,506.25
B. 2,975.00
C. 654.50
D. 2,998.00

25. The total creditable input taxes is -

A. 24,530.54
B. 13,828.00
C. 92,935.00
D. 22,935 00

26. The VAT payable is - 

A. 61,065.00
B. 70,172.00
C. 74.469.46 
D. 69,815.00
 27. Tala Company had the following data for the 1st quarter of the current year (VAT
exclusive)
Taxable sales P 600,000
Exempted sales 300,000
Zero-rated sales 100,000
Input tax which cannot be directly
attributed to any of the above sales 50,000 
The VAT payable for the quarter if the input tax on zero-rated sales is claimed as tax
credit is - 
A. 42,000 
B. 37,000
C. 32,000 
D. 22,000

28. Combined Company operates a VAT business and a non-VAT business. During the
month, its books revealed the following record of sales and purchases: 
Sales (VAT business) P 600,000
Sales (Non-VAT business) 200,000
Purchases (VAT business) 401,500
Purchases (Non-VAT business) 80,000
Purchases (for use in VAT and Non-VAT businesses) 64,000
The value-added tax payable by Combined Company is 18,060
29. Given the following data during the first quarter of the current year:

Month Output Tax Input Tax

January P20,000 P15,000
February P40,000 P22,000
March P50,000 P10,000
In the books of the taxpayer, there was a debit balance of input tax of P8,000 in the last
quarter of the preceding year.

The VAT Payable for the month of January --

a. P(3,000)
b. P 5,000
c. P0
d. P3,000

30. Vat payable for the month of February --

 a. P18,000
b. P15,000
c. P10,000
d. None
31.  Tax Payable that must appear on BIR form 2550Q?
a. 55,000
b. 63,000
c. 40,000
d. 53,000

32. Felicisma had the following data during the month :

Case 1 Case 2
Sales, net of VAT P   1,900,000 P1,800,000
Purchases of goods for sale, exclusive of vat P   1,260,000 P1,600,000
Purchase of Machines (VAT Not Included) P   1,440,000 P 900,000
Machine Life     6 years   3 years

The amount of VAT Payable ? ---

Case 1 ? 73,920
Case 2? (84,000)