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
Other cost incurred to bring the goods to
Philippine port
Other inland costs prior to release of goods from
Customs
Customs duties
Freight cost to bring merchandise to Ammacians
warehouse

2,000,000
70,000
85,000
10%

Compute the Customs duties on the dutiable value.

a. P 207,000
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
d. P 284,460
10.
a.
b.
c.
d.

Which is subject to business tax?

Business for subsistence
Privilege stores
Non-resident sellers
All of these

11.
a.
b.
c.
d.

Which is considered pure consumption tax?

VAT on importation
Percentage tax
Value Added Tax on sales
Excise tax

12.
a.
b.
c.
d.

Who is statutory liable to pay the VAT on importation?

The non-resident seller
The resident buyer
Both seller and buyer
The Bureau of Customs

13. A business taxpayer had the following summarized transactions

during the quarter:
Cash sales
Sales on credit (account sales)
Installment sales (P30,000 collected)
Sales returns and allowances

P 400,000
600,000
100,000
20,000

Quota discounts
Advances for goods not yet delivered
Purchase of goods, including of P72,000 VAT
passed on by sellers

10,000
20,000
672,000

Compute the gross selling price.

a. P1,100,000
c. P1,030,000
b. P1,080,000
d. P1,010,000
14.

A lending investor had the following data during a month:

Cash collection for loan principal

Cash collection for interest
Cash collection for penalties
Uncollected loan principal
Billed but uncollected interest
Billed but uncollected penalties

P 400,000
50,000
6,000
300,000
2,000
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
16. A VAT registered seller made the following sales of goods
during a month:
To customer A
To customer B
To customer C
Total sales

Selling price
P
150,000
200,000
102,000
P
452,000

Fair value
P 180,000
190,000
150,000

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
City of San Fernando P
134,000

Fair value
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
Fees from PWD, before 20% discount
Fees received from regular customers
Total fees

P 225,000
75,000
340,000
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:

Residential lot
Residential dwelling

Zonal
Value
P 1,500,000
3,500,000

Assessed
Value
P 1,200,000
1,500,000

Selling
Price
P 1,700,000
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
Sales made through consignees
Sales made for consignors
Commission income from consignors
Commissions paid to consignees
Compute the output VAT.
a. P 96,000
c. P 80,400
b. P 92,400
d. P 62,400

500,000
150,000
100,000
20,000
30,000

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
Accounts receivables
Investments
Inventories
Property, plant and equipment
Total assets

50,000
120,000
180,000
200,000
800,000
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
Export for Hong Kong FOB destination
Export for Thailand
FOB destination
Export to Japan
FOB shipping point
Domestic
Sales to
Sales to
Sales to

sales
an PEZA
FOB destination
a non-VAT customer
a VAT customer

Payment
$ 100,000
P 450,000
800,000
P2,000,000
500,000
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.
b.
c.
d.

Exchange
Exchange
Exchange
Exchange

of
of
of
of

inventory for stocks

property, plants and equipment for stocks
inventory for property
stocks for property

26. A VAT taxpayer had the following data regarding its sales and
input VAT during a particular quarter:
Sales
Regular sales
Export sales
Sales to government
Exempt sales
Total

Amount

Traceable input
VAT
P 40,000
18,000
15,000
8,000
P 81,000

800,000
400,000
200,000
100,000
P 1,500,000

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
Sale of flour
Sale of fertilizers and seeds
Total

P
P

80,000
20,000
40,000
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:

Passengers
Cargoes, mails; excess baggage

Incoming
P 1,000,000
500,000

Outgoing
P
2,000,000
400,000

Compute the percentage tax.

a. P 72,000
c. P 12,000
b. P 60,000
d. P 0
30.
a.
b.
c.
d.

Which of the following is subject to value added tax?

Importation of grapes and apples
Sale of seaweeds
Sale of fire wood and charcoal
Sale of husked rice, corn grits and molasses

31.
a.
b.
c.
d.

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

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

32.
a.
b.
c.
d.

Which is subject to VAT?

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

33.
a.
b.
c.

Which is not subject to output VAT?

Sale of residential lot for P1,500,000
Direct export sales of goods
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
Transport of goods
Transport of cargoes

P 1,000,000
1,500,000
500,000

The output VAT and OPT due for the quarter are:
Output VAT
A.

P240,000

B.

360,000

OPT due
VAT
P C.
30,000
0 D.

Output
P 0

OPT due
P 90,000

360,000

30,000

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

Eggs
Dried fish
Marinated fish

100,000
150,000
200,000

Under current revenue regulations, what is the output VAT?

A. P 0
C. P24,000
B. P12,000
D. P36,000