ANSWER UNDER RA 10963

PLEASE PROVIDE EXPLANATION I.E. SECTION IN NCC OR RR

1.Which of the following shall not be subject to vat?

I.MP Promotions, vat registered, but gross sales for the year do not exceed P 3,000,000

II.Mayweather Corporation, a foreign licensor or nonresident lessor who is not vat registered

III.Mailag Company, a domestic corporation required to register under vat system but failed to register

a.MP Promotions and Mayweather Corporation

b.MP Promotions and Mailag Company

c.All of the above

d.None of the above

2.A lessor of residential units shall be exempt from vat when:

I.Annual gross receipts do not exceed 3M

II.Monthly rental per unit does not exceed 15,000 a month

a.I only

b.II only

c.Either I and II

d.Both I and II

3.A lessor of commercial units shall be exempt from vat when:

I.Annual gross receipts do not exceed 3M

II.Monthly rental per unit does not exceed 15,000 a month

a.I only

b.II only

c.Either I and II

d.Both I and II

4.Which of the following is subject to vat?

a.Sale of vegetables in its original state

b.Sale of fruits in its original state

c.Sale of copra

d.Sale of olive oil

5.JJ owns a mango plantation. He sold his ripe mangoes to Paul, a fresh fruit vendor. Paul sold the ripe mangoes he bought from JJ to Francis. Who shall be subject to vat?

a.JJ

b.Paul

c.Francis

d.None of the above

6.Talion owns Eternal Gardens. He harvested fresh flowers and sold them to Joseph. Joseph sold the flowers in their original state to Alex. The sale of flowers by Joseph to Alex shall be:

a.Subject to vat

b.Exempt from vat

c.Exempt from vat or subject to vat depending on annual gross receipts of Pedro

d.Subject to vat if Juan did not subsequently sells it

7.Which of the following transactions is subject to value-added-tax?

a.Services subject to other percentage tax

b.Educational services duly approved by Department of Education, CHED, and TESDA or those operated by the Government.

c.Sale of coal and natural gas

d.None of the above

8.In the value-added tax on sale of services, the output tax is computed:

a.On billings of the month

b.On collections of the month on all billings made

c.On the contract price of contracts completed during the taxable period

d.Only and strictly on labor performed under the contract for services

9.Villamin Grill, a Vat registered business in Cavite, has the following data (exclusive of vat) for the third quarter of the current year.

Sales, food and beverages2,805,500

Sales, wines and beer1,524,000

Purchases, food and beverages - vat business1,102,200

Purchases, wines and beer - vat business1,012,500

The vat payable due for the third quarter is

a.201,340

b.211,470

c.221,480

d.265,780

10.Hananiah Corporation has the following sales and purchases for the quarter ending December 31, 2018:

OctoberSales50,000

Purchases40,000

November & DecemberSales100,000

Purchases80,000

Carry-over input tax from previous quarter 6,000

How much is vat payable (carry-over) for the quarter ending December 31, 2018?

a.5,000

b.3,500

c.(2,400)

d.(5,000)

11.One of the following is not subject to vat on importation

a.Goods brought into the Philippines in the course of trade or business by vat registered person.

b.Goods brought into the Philippines NOT in the course of trade or business by a person who is NOT vat registered.

c.Tax free goods imported by tax-exempt importer who transferred them to a person who does not enjoy exemption from vat on importation.

d.Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad.

12.Which of the following is NOT correct?

a.Non-stock, non-profit private organizations are not subject to vat if their income from sales is used for non-profit purposes.

b.A vat registered taxpayer can pass on the vat even to non-vat registered buyers.

c.Any business pursued by an individual where the aggregate gross sales or receipts do not exceed 100,000 during any 12-month period, shall be considered principally for subsistence or livelihood and not in the course of trade or business.

d.None of the above.

13.Which of the following statements is correct?

a.Under RA 7916, while an economic zone registered under PEZA is geographically within the Philippines, it is deemed a separate customs territory and is regarded in law as foreign soil.

b.Sales by suppliers from outside the borders of the economic zone to the entities within the separate customs territory are deemed as exports and treated as export sales.

c.Both "a" and "b"

d.Neither "a" nor "b"

14.On January 1, 2014, Pedro purchased a condominium unit worth 2,000,000 from Maxima Realty Corporation. A month after, Pedro purchased the adjacent unit for the same consideration. The purchased of the second (adjacent unit) is

a.Exempt from vat

b.Subject to vat

c.Subject to zero percent (0%) vat

d.None of the above

15.On January 1, 2014, Pedro purchased a condominium unit including a parking space worth 4,200,000 from Maxima Realty Corporation. The value of the condominium unit, as stated in the contract of sale was 3,200,000 while the parking space was worth 1,000,000. The transaction is

a.Exempt from vat

b.Subject to vat

c.Subject to zero percent (0%) vat

d.None of the above