University of Perpetual Help System laguna – Isabela CampusMinante 1, Cauayan City, Isabela College of Business and Accountancy Business Taxation 2 nd Semester, A.Y. 2017 - 2018 Name: ________________________________________ Date: ___________ Course Year & Section: _____________________ Score: __________ Midterm Quiz 1 (Erasure/Alteration means wrong) I. MULTIPLE CHOICE. Choose the best answer. Encircle the letter of your choice. Show you solutions for questions 11 to 20. 1. When to file VAT return? (1 Point) A. Monthly B. Yearly C. Quarterly D. Weekly 2. Which of the following are zero-rated transactions? (1 Point) A. Sale of services to Asian Development Bank B. Sale of services to International Rice Research Institute C. Sale of gold to Bangko Sentral ng Pilipinas D. Sale of services to duly registered and accredited enterprises with Philippine Economic Zone Authority. 3. What input taxes may be credited? (1 Point) A. Input taxes from non-VAT suppliers B. Input taxes from purchase of direct labor C. Input taxes from importation of goods for sale D. Input taxes from importation of personal and household effects. 4. Diety is non-stock, non-profit organization made an importation of agricultural food product in its original state from a Chinese farmer amounting to P 2,240,000. If you are the Customs Collector, how will you treat such importation? A. Subject to 12% VAT. B. Subject to zero-rated VAT. Page 1 of 6 12% VAT B. Importation of books and any newspapers. 0% VAT C.000 P12. C. 5. 3% other percentage tax 6. Is subject to: A. Three of the following are exempt from the value-added tax. of apartment units 20 15 10 10 Monthly rent/unit P9. prawn. Importation of frozen meat B. B. Importation of petroleum products and their raw materials. Importation of agricultural and marine food products in their original state. livestock and poultry feeds. Which is the exception? A. The services are paid for in US $ and duly accounted for with the rulings of Bangko Sentral ng Pilipinas. Subject to 3% other percentage tax.000. None of the above 7. 8. C and D D. D only 9. Mr. C. Exempted from VAT.000 P10. Which of the following importation is subject to VAT? A. 12% VAT B. Exempt from VAT D. Exempt from VAT D. Call Center operated by a domestic enterprises in Makati that exclusively the reservations of a hotel chain which are all located in North America. San Diego approached you and asked for your professional help with regard to a sale of his ancestral house and lot in the amount of P 5.000 A. Your advise would be: Such transaction will be subject to A. B and D B. C and D C. Zero-rated VAT C. review or bulletin. Importation or sale of fish. magazines.000 P14. Importation of apples for personal consumption Page 2 of 6 . D. Which of the following lessors of residential units is/are subject to VAT? A B C D No. D.000. B. B. Beginning P 100.000 Purchase Discount 5. P 240.000 August . C. Is imposed on an importation for personal use.000 C. P12. (input tax on importation is availbale only for business related importation) 11. The following accounting records reveal: Accounts Receivable. Beginning 50. Importation of grapes for sales 10.000 Inventory. August. C. P 250. D. Ending 110.440 12. P12.received an invoice amount of P 112. Importation of bamboo poles D.paid the services.000 Page 3 of 6 .000 Accounts Receivable. Is not available as input tax even if related to business.000 Sales Return 10.perfomance of services July . Ending 65. The following events happen in a VAT enterprise: June .000 C. Which statement is wrong? Value-added tax on importation of goods: A. August. P 230. July.000 Purchases 90. When and how much input VAT will be claimed? A.000 B.000 Inventory. July. Should be paid prior to removal from customs custody.000 How much is the vatable sales?\ A.000 Collections 200. P13.000 Cost of Sales 70.440 D.000 Sales 250.000 B. P13. Is imposed on an importation for sale or for use in business. During the same quarter. Supplies purchased for common use amounted to P10. P 200. D.800. Using the above data.600 B.000 with a separated percentage tax of P6. total sales invoice of the VAT business amounted to P336.200 VAT. P4.000 plus value added tax of P6. net of output tax P 6. P 10. P 8. net of input tax 5. A VAT registered person is engaged in the sale of VAT taxable goods and at the same time is also engaged in non-VAT business. P26. P1.800 D.000 Sales return 200. in the same business establishment.320 16.000 Purchases. The following data are for the last quarter of 2006 Sales. P6. P7. The creditable input tax is A. A.000 B. P 28. P25.000.000 plus P1. P 30.680 D.000 D.000 14. is a VAT – registered dealer of appliances. During the year.000 for a total of P206.000 13. P31. repairs on the building amounted to P50.000 Page 4 of 6 .200 C. P24.400 17. None 15.800 D. The sales of the non-VAT business amounted to P200. P 27. How much is the input VAT? A.400 C.200 B.000. P 24.000 C. P 10. How much is the outout VAT? A.500. the VAT payable is A.000 B.000.000 C. 500 C.000 VAT payable is A.000 B.000 Facilitation fee 3. P18.000 VAT paid on inventory as of December 31. P50.000 The imported article is subject to P50. A taxpayer registered under the VAT system on January 1. His records during the month show Value of inventory as of December 31. VAT exempt goods 60. P70.500 B.000 Arrastre charges 8. Purchase return 300.000 ($1:P50). 2006.500 The VAT payable for the last quarter of 2006 by A is A.000 C. P35. P50. P80. The invoice value of the imported article was $7. The VAT on importation is: A. P60.100 19.000 Postage 5.100 B. 2007.000 Deferred input tax (carried over from the third quarter of 2006 9. P11. P158. net of VAT 70. 2006 6.000 Purchases.000 customs duty and P30.500 D. gross of VAT 45.500 18. P3. The following were incurred in relation with the importation Insurance P15.000 Freight 10.000 excise tax. A imported an article from USA.100 D. A spent P5.000 D. P50.221 C.000 Value of inventory as of December 31. P120.000 Wharfage 7. 2006.000 for trucking from the customs warehouse in Quezon City.000 Sales.000 Sales. P7. net of VAT 140.000 Brokerage fee 25. purchased from VAT registered persons .000 Page 5 of 6 . 000 Purchases 800.000 How much is the VAT payable for the third and fourth quarters? Page 6 of 6 .20.000 Purchases 1.100.000 Fourth quarter: Sales 1.500.000.000 Excess input VAT as of end of second quarter 25. The following data are taken from the books of accounts of a VAT-registered taxpayer: Third quarter: Sales P 1.