1. Which is subject to VAT? Sale or importation of prescription drugs and medicines for: a. Covid-19

b. High cholesterol

c. Tuberculosis

d. Heart attack and stroke

2. For a construction company, claim of input tax is based on? a. Progress billings b. Actual input tax paid c. Estimated income d. Estimated expense

3. XYZ Corp.'s output tax is Php 1 Million while its input tax is Php 1.5 Million. The excess can be treated based on the following, except:

a. Carried-over to the succeeding period

b. Applied for a tax credit certificate

c. Applied for refund in case of closure

d. Used as credit against income tax due 4. XYZ Corp. is a direct exporter. The input tax attributable to zero-rated sales were applied for refund. The Commissioner of Internal Revenue however denied the application due to technicality. The remedy of XYZ Corp. is?

a. File an appeal with the Court of Appeals

b. File a petition for review with the Court of Tax Appeals

c. File a request for reconsideration with the Commissioner

d. File an appeal to the Supreme Court

5. In 2019, the Samahang Walang Katulad Farmers Association, in a resolution by the body, imported an equipment valued at Php 1 Million to be used exclusively for farming and is for members use only. Due to shortage of funds, the association sold the equipment in 2021 to ABC Corp., a domestic corporation engaged in trading for Php 800,000.00.

S1 - The importation by the association is VAT-exempt.

S2 - The sale by the association to ABC Corp. is subject to 12% VAT.

a. Only S1 is true

b. Only S2 is true

c. Both are true

d. Both are false