SITUATION 1

The Elco Cooperative is requesting the Bureau of Internal Revenue to exempt it from the payment of the value-added tax on its purchases of prime commodities from suppliers and manufacturers for the reason that it is enjoying exemption from all taxes under the Cooperative Code of the Philippines. Based on your understanding, will the BIR grant the request for Elco Cooperative? Explain your answer.

SITUATION 2

Kopika Cooperative is an agricultural cooperative which processes the coffee production of its members for sale to NesFe Corporation, a coffee processing company selling bottled instant cofee. Kopika imported a coffee drier from Colombus Coffee Machineries Corporation. After 3

years of active use, Kopika disposed the drier to Pedro Mabanag, a member. Which among these transactions will be subject to VAT and why?

SITUATION 3

A subdivision developer sold five (5) residential house and lots, each to different vendees, for P2,000,000 per lot, or total sales of P10,000,000 for the taxable period. How will these sales be classified and why do you think these shall be classified as such?

SITUATION 4

The financial records of Benz Corp., a VAT-registered taxpayer, for the taxable year 2018 disclosed the following:

Local sales to private entities 1,500,000

Export Sales 500,000

Local sales to government 1,000,000

1. How much is the total sales subject to value-added tax?

2. How much is the total output tax?

SITUATION 5

A lessor of residential units has the following gross receipts for 2018:

Monthly Rental Per Unit

Number of Units

Total

P 11,000

5

P 660,000

P 12,000

5

P 720,000

P 13,000

5

P 780,000

P 14,000

5

P 840,000

TOTAL

P 3,000,000

Will the lessor be subject to VAT? If yes, how much is the output tax? If no, why not?