1. Value Added Tax is a/an

a. Indirect Tax b. Direct Tax c. Local Tax d. Personal Tax

2. One of the following is not a major business internal revenue tax in the Tax Code

a. VAT b. Excise Tax c. Income Tax d. Percentage Tax

3. Who is the one statutorily liable for the payment of VAT?

a. Buyer b. Seller c. Consumer d. None of the choices

4. Rose, a non-VAT registered taxpayer, operates a grocery store. Her annual gross sales amounted to P2,000,000 for the year although her operations resulted to net loss for the year 2020. She is subject to

a. 3% OPT c. VAT

b. MCIT d. None, operation is a loss

5. Which of these is NOT a characteristic of Value Added Tax?

a. It is a uniform tax imposed on every sale

b. It is a form of sales tax

c. It is an equal amount imposed on firms

d. It is an indirect tax.

6. Which is not vatable as a separate entity?

a. A branch c. A spouse

b. A subsidiary company d. A parent company

7. To franchise grantees of radio or television, the VAT registration shall be

a. Revocable in 3 years c. revocable in 1 year

b. Irrevocable in 3 years d. irrevocable perpetually

8. Which statement is correct?

a. Husband and wife are considered separate taxpayers for business tax purposes.

b. For purposes of the VAT threshold, both exempt sales and receipts from services subject to percentage tax must be included.

c. A VAT-registered taxpayer must pay VAT on services subject to percentage tax.

d. All of these

9. What is the general lock-in period for those who voluntarily register as VAT taxpayers?

a. 3 years b. 5 years c. 1 year d. perpetual

10. What is the tax payable by a non-VAT taxpayer who issues a VAT invoice or VAT official receipt?

a. Output VAT plus 3% percentage tax

b. Output VAT less input VAT, plus 3% percentage tax and 50% surcharge

c. Output VAT plus 3% percentage tax and 50% surcharge

d. 3% percentage tax