1. ABC Corporation (vat reg.) has the following data for the month of March:

Gross sales (VAT exclusive)P 8,000,000

Sales returns400,000

Goods shipped on consignment (net):

UnitsUnit Price

March 2540P 10,000

February 143010,000

January 82010,000

Goods withdrawn for use by the companyP 50,000

Goods taken as payment to creditor30,000

Purchases for the month of (net of VAT):

GoodsP 600,000

Supplies75,000

Capital goods (U.L = 4 years)1,100,000

Freight and insurance8,500

Salaries of employees385,000

Additional information:

Received cash representing payment for ten (10) units delivered on February 14. The amount received was net of ten percent (10%) commission.

A consignee reported and remitted P200,000 (gross of 10% commission) representing 20 units sold from goods consigned in March.

Required: Determine the VAT payable for the month of March.