1. To be exempt from value-added tax, the lease of residential units shall have:

I. Monthly rental per unit of P15,000 or less.

II. Gross annual rentals exceeding P3,000,000.

a. Both I and II are necessary

b. Both I and II are not necessary

c. Only I is necessary

d. Only II is necessary

2. Arigato, a Japanese residing in the Philippine, bought garments from Halimuyak Corp., a domestic corporation, and exported the same to Japan. Total value of export is P 100,000. The output VAT due on the transaction is:

a. P 12,000

b. P 10,000

c. None, because 0% applies

d. None, because the sale is exempt from VAT

3. A VAT-registered supplier sold goods amounting to P 500,000 gross selling price to a government-controlled corporation during a quarter. Which of the following statements is incorrect in relation to the sale of goods?

a. The sale is subject to withholding of final VAT.

b. The government-controlled corporation will withhold P 25,000 final VAT.

c. The government-controlled corporation shall remit withholding VAT to the BIR within 10 days following the end of the month the withholding was made.

d. The VAT-registered supplier may refuse the withholding of VAT as long as it is willing to pay the full 12% VAT.

4. Bogart is an operator of parking lots. What business tax is due on his income from the business?

a. Broker's tax c. Caterer's tax

b. Common carrier's tax d. Value-added tax

5. Which of the following shall be subject to 0% VAT?

a. Sale of electricity by generation companies.

b. Sale of electricity by transmission companies.

c. Sale of electricity by distribution companies.

d. Sale of power or fuel generated through renewable sources of energy.

6. Which of the following sales of real properties shall not be exempt from VAT?

a. Sale of real properties not primarily for sale to customers or held for lease in the ordinary course of trade or business.

b. Sale of real properties utilized for low-cost and socialized housing.

c. Sale of real properties utilized for commercial purposes.

d. Sale of residential lot valued at P1,500,000 and below, or house and lot and other residential dwellings valued at P2,500,000, and below.

7. The term "poultry" for VAT purposes does not include:

a. Fowls b. ducks. c. geese d. fighting cocks

8. Marine food products which include fish and crustaceans are exempt from VAT. Which of the following is not exempt from VAT?

a. Eels c. prawns

b. Trout d. aquarium fish

9. If monthly rental is P15,000 and above per unit, but total annualized rent does not exceed P3,000,000, what is the tax liability of the taxpayer?

a. Subject to 3% percentage tax

b. Subject to both VAT and Percentage tax

c. Subject to 12% VAT

d. Exempt from both VAT and Percentage tax

10. One of the following is not a transaction deemed sale

a. Transfer, use or consumption not in the ordinary course of business of goods or properties originally intended for sale or for use in the course of business

b. Distribution or transfer to shareholders or investors of goods or properties as share in the profits of a vat - registered person or to creditors in payment of debt

c. Retirement from or cessation of business, with respect to inventories of taxable goods on hand as of the date of such retirement or cessation

d. Consignment of goods if actual sale is made within 60 days following the date such goods were consigned

11. Which of the following shall be subject to VAT?

a. Sale of a residential house and lot by its owner

b. Sales of private car by its owner

c. Sale of an apartment house

d. All of the above

12. Which of the following goods when sold or imported shall not be exempt from VAT?

a. agricultural and marine foods products in their original state

b. livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption

c. breeding stock and genetic materials therefore

d. processed or manufactured agricultural and marine food products

13. Which of the following sale or importation of goods shall not be exempt from VAT?

a. fertilizers

b. seeds, seedlings and fingerlings

c. fish, prawns, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds

d. specialty feeds

14. This refers to non-agricultural feeds and foods for racehorses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets

a. Fertilizers c. specialty feeds

b. fish, prawn, livestock and poultry feeds d. pet feeds

15. This refers to those persons producing for others poultry, livestock or other agricultural and marine foods products in their original state

a. agricultural contract growers c. agricultural operators

b. millers d. fishpond operators

16. Educational services are exempt from VAT if rendered by:

I. private educational institutions duly accredited by DepEd, CHED and TESDA

II. government educational institutions

a. both I and II are correct c. Only I is correct

b. neither I nor II is correct d. only II is correct

17. The exemption from VAT of educational services does not include:

I. seminars

II. in-service trainings

III. review classes

IV. other services rendered by persons who are not accredited by DepEd, the CHED and/or the TESDA

a. I, II, III, IV b. I, II, III c. I and II d. IV only

18. Which of the following shall not be exempt from VAT?

a. services rendered by individual pursuant to an employer-employee relationship

b. services rendered by regional or area headquarters established in the Philippines by multinational corporations which act as supervisory communications and coordinating centers for their affiliates, subsidiaries or branches in the Asia pacific region and do not earn or derive income from the Philippines

c. Transactions which are exempt under international agreements to which the Philippines is a signatory or under special laws

d. Services rendered by professionals such as CPAs, engineers, lawyers, etc.

19. Which of the following shall not be considered "deemed sale" pursuant to the Tax Code?

a. Transfer use or consumption not in the course of business of goods or properties originally intended for sale or for use in the course of business

b. Distribution or transfer to shareholders or investors in the profits of VAT-registered person or creditors in payment of debt or obligation

c. Consignment of goods if actual sale is made within 60 days following the date such goods were consigned

d. Retirement from or cessation of business with respect to all goods on hand, whether capital goods, stock-in-trade, supplies or materials as of the date of such retirement or cessation whether or not the business is continued by the new owner or successor