1.

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
2. Value Added Tax is a/an:
a. Indirect tax
b. Direct tax
c. Local tax
d. Personal tax

3. The VAT due on the sale of taxable goods, property, and services by any person,
whether or not he has taken the necessary steps to be registered.
a. Input tax
b. Output tax
c. Excise tax
d. Sales tax

4. J. Torres made the following sales during the year:

" Sales, VAT-taxable transactions: P1,960,000
. Sales, VAT zero-rated transactions: P1,990,000

Sales, VAT-exempt transactions: P540,000

" Total: P4,490,000

Is he required to VAT-register?
a. YES. The VAT-taxable and VAT zero-rated sales total P3,950,000 (P1,960,000 +
P1,990,000) which exceeds the minimum turnover of P3,000,000.
b. NO. The sales from VAT-taxable transactions do not exceed the threshold of
P3,000,000.
5. Which of the following importations is subject to VAT?
a. Importation of frozen meat
b. Importation of bamboo poles
c. Importation of drugs, vaccines, and medical devices for COVID-19 treatment before
January 1, 2024
d. Importation of grapes for sale
6. Which of the following is subject to VAT?
a. Sale of smoked fish
b. Sale of lechon

c. Sale of vitamin supplements

d. Sale of newspaper
e. Sale of drugs for diabetes, high cholesterol, hypertension, cancer, mental illness,
TB, and kidney diseases
7. One of the following is not an activity subject to VAT:
a. Sale in retail of goods by a dealer
b. Sale of bamboo poles by a dealer
c. Sublease of real property in the course of business
d. Importation of ordinary feeds for poultry chicken
 8. 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
9. Which of the following sales of real properties held primarily for sale to customers by
a VAT-registered seller shall NOT be subject to VAT?
a. Sale of parking lot where the selling price is P1,800,000
b. Sale of 2 adjacent residential lots in favor of one buyer from the same seller at
P725,000 per lot.
c. Sale of condominium unit at a price of P4,000,000.
d. None of the above.
10. Which of the following is not correct?
a. ll only
b. Ilonly
c. I only
d. I, I, and |I|
11. One of the following statements is incorrect:
are no longer subject to VAT.
a. Imported goods which are subject to excise tax
before the imported goods
b. VAT on importation is paid to the Bureau of Customs
are released from custody.
custody are
c. Expenses incurred after the goods are released from Customs
disregarded in computing the VAT on importation.
sells
d. When a person who enjoys a tax exemption on his importation subsequently
in the Philippines such imported articles to a non-exempt person, the purchaser-non
exempt person shall pay the VAT on such importation.

12. Which of the following input taxes can be refunded, converted into tax credit
certificates, or carried over to the next quarter at the option of the VAT-registered
taxpayer?
a. Input tax on raw materials
b. Input tax on importation of supplies
c. Input tax attributed to zero-rated sales of goods and services
d. Input tax on purchase of services
13. Statement 1 -A taxpayer whose gross sales exceeded theamount of P3,000,000
shall pay VAT even if he is not VAT registered; consequently, he is also entitled to
input taxes.
Statement 2 -Importer of goods for personal use is not subject to VAT if he is not
VAT registered.
a. Both statements are true
b. Both statements are false
c. Only statement1 is true
d. Only statement 2 is true
14. Which statement is correct?
a. Zero-rated sales are exempt from the VAT.
b. Aperson whose sales or receipts do not exceed P250,000 is exempt from VAT and
OPT.
c. A person who issues a VAT invoice on a VAT-exempt transaction is nevertheless
subject to VAT on the said transaction.
d. Entities which are exempt from income tax are also exempt from VAT.

15. The allowable transitional input tax is:

a. The lower between 2% of the value of beginning inventory or actual VAT paid on
such inventory
b. The higher between 2% of the value of beginning inventory or actual VAT paid on
such inventory
c. The actual VAT paid on the beginning inventory
d. 2% of the value of beginning inventory
16. ABC Restaurant recorded the following sales during the month (based on menu
prices):
" To regular customers: P 560,000

To senior citizen: P 224,000

" To person with disability: P 112,000
The output VAT is:
a. P 60,000
b. P 72,000
c. P 69,600
d. P 79,200
17. The taxpayer is a VAT-registered real estate dealer who sold a commercial lot in 2019
with the following details:
" Seling Price (net of VAT): P 6,000,000
Zonal Value: P 6,300,000

" FMV, in the assessment rolls: P 5,800,000

Payments, exclusive of VAT, made by the buyer:

" March 15, 2019: P 750,000
" October 15, 2019: P 750,000

" March 15, 2020:P 2,250,000

. October 15, 2020: P 2.250,000

The output taxes on March 15, 2019, and March 15, 2020, are:
a. P 90,000; P 94,500
b. P 756,000; P 270,000
c. P 283,500; P 756,000
d. P 94,500; P 283,500

18. Ais engaged in two (2) lines of businesses, one is VATregistered and the other is
Non-VAT. His records show the following (V¬T not included):
. Sales from VAT business: P 4,000,000
. Sales from Non-VAT business: P 6,000,000
" Purchases of goods from VAT suppliers:
. For VAT business: P 2,000,000
" For Non-VAT business: P 3,000,000

" For both businesses: P 20,000

" Operating expenses: P 1,800,000

The VAT payable is:
a. P 600,000

b. P 240,000
c. P 237,600
d. P 239,040

19. Before January 1, 2023, the Monthly VAT declaration was filed on or before the:
a. 10th day from the end of each month
b. 20th day from the end of each month
c. 25th day from the end of each month
d. 30th day from the end of each month
20. Quarterly VAT return shall be filed on or before the:
a. The 10th day from the end of each quarter
b. The 20th day from the end of each quarter
c. The 15th day from the end of each quarter
d. The 25th day from the end of each quarter
21. An individual taxpayer operates a Grocery Store and is not VAT-registered. His annual
gross sales amounted to P2,9 00,000for the year, although his operations resulted in a
net loss for the year 2022. He is subject to:
a. 3% OPT
b. VAT
c. MCIT - 2%
d. None, because operation resulted in a loss.

If he was qualified and chose to be taxed under the 8% income tax rate, he shall be subject
to
a. 3% OPT

b. VAT
c. MCIT - 2%
d. None of the above.

22. Which of the following lessors of residential units is/are subject to VAT?

A C D

No. of apartment units 100 20 16

Monthly rent/unit P14,800 P15,000 P15,400

a. B and D

b. C and D
c. B, C, and D
d. D only

23. "A imported an article from the US. The invoice value of the imported article was
$7,000 (S1 = P50). The following were incurred in relation to the importation (net of
VAT):

" Insurance: P15,000

" Freight: P10,000
" Postage: P5,000
" Wharfage: P7,000
" Arrastre charges: P8,000
" Brokerage fee: P25,000
" Facilitation fee: P3,000

The imported article is subject to P50,000 customs duty and P30,000 excise tax. "A' spent
P5,600 (inclusive of VAT) for trucking from the customs warehouse to its warehouse in
Quezon City. The VAT on importation is:
a. P60,600
b. P35,000
c. P50,500
d. P60,000
24. Assuming that the imported article above was sold for P600,000, VAT exclusive, the
VAT payable is:
a. P11,400
b. P12,000
c. P9,500
d. P9,200
25. TheA Bakers sells cakes and pastry to well-known hotels in Metro Manila. The hotels
are allowed credit based on their track record. The sale by the store in April 2023 was
P224,000, including the VAT. 75% of the sales are normally on account. How much is
the output tax for the month of April 2023?
a. P22,000
b. P20,000
c. P16,500
d. P24,000

26. "A", trader, made the following sales of goods during the month of June 2023,
exclusive of VAT:

" Cash Sales: P200,000

Open Account Sales: P100,000

Installment Sales: P100,000
.Note: Receipt frominstallment sales: P40,000
Consignment made (net of VAT):
June 15, 2023: P100,000

" May 15, 2023: P100,000

. April 15, 2023: P100,000

Output tax is:

a. P50,000
b. P34,000
c. P60,000
d. P72,000

27. A, VAT-registered, made the following purchases during the month of January:

" Goods for sale, inclusive of VAT: P224,000

Supplies, exclusive of VAT: P20,000
Office air conditioner, total invoice amount: P56.000

Home appliances for residence, gross of VAT: P17,600

Repair of store, total invoice amount evidenced by ordinary receipt of the contractor:
P4,400

Creditable input taxes are:

a. P26,400
b. P29,400
c. P24,000
d. P32,400
28. Ataxpayer registered underthe VAT system on January 1,2023. His records during
the month show.

. Value of inventory as of Dec. 31, 2022, purchased from VAT-registered persons:

P50,000

VAT paid on inventory as of Dec. 31, 2022: P6,000

Value of inventory as of Dec. 31, 2022, VAT-exempt goods: P60,000

Sales, net of VAT: P140,000

. Sales, gross of VAT: P45,000

. Purchases, net of VAT: P70,000

VAT payable is:

a. P11,1 00
b. P7221
c. P3,100
d. None of the above.

29. A VAT taxpayer purchased the following machineries for the second quarter of 2018
(VAT not included):

Asset Purchase Date Life Cost

Asset 1 April 10 4 years P800,000

Asset 2 April 20 5 years P1,000,000

Asset 3 May 14 3 years P600,000

Asset 4 May 20 2 years P400,000

Asset 5 June 10o 3 years P600,000

Asset 6 June 15 6 vears P1,200,000

The input tax for April 2018 is:

a. P216,000

b. P4,000
c. P98,000
d. P122,000

The input tax for May 2018 is:

a. P124,000
b. P120,000
c. P8,000
d. P4,000
The input tax for June 2018 is:
a. P4.400
b. P8,400
c. P216,000
d. P146,000
The input tax for the quarter ending June 2018 is:
a. P126,400
b. P134,400
c. P136,400

d. P12400

On January 2022, how much unutilized VAT may the taxpayer apply against any output
VAT until it is fully utilized?
a. P65,000
b. P70.500

c. P76,800
d. None of the above
30. AVAT taxpayer purchased the following machineries for the second quarter of 2022
(VAT not included):

Asset Purchase Date Life Cost

Asset 1 April 10 4years P800,000

Asset 2 April 20 5 years P1,000,000

Asset 3 May 14 3 years P600,000

Asset 4 May 20 2 years P400,000

Asset 5 June 10 years P600.000

Asset 6 June 1 5 years P1,200,000

The input tax for April 2022 is:

a. P116,000
b. P216,000
c. P98.000

d. None of the above

The input tax for May 2022 is:

a. P4,500
b. P120,000
c. P8,000
d. None of the above

The input tax for June 2022 is:

a, P4400
b. P230,000
c. P216,o00
d. None of the above

The input tax for the quarter ending June 2022 is:
a. P126,400
b. P134,400
c. P552,000
d. None of the above

31. The following are the data of City Appliance Marketing Corporation, for the last
quarter of 2023.

Sales up to December 15, total invoice value: P336,000

" Purchases up to December 15, net of input tax: P215,000

Additional information:

On December 16, 2023, City Appliance Marketing Corporation retired from its
business and the inventory valued at P190,000 was taken and transferred to New Cty
Appliance Corporation.
There is a deferred input tax from the third quarter of P3,500.

How much is the total VAT due and payable by City Appliance Marketing Corporation in its
operations and retirement from business in the last quarter of 20237?
a. P22,500
b. P3,500
c. P6,350

d. P29,500
32. Assuming that New City Appliance Corporation has the following data for the 4th
quarter of 2023:

Sales, total involce value: P448,000

. Purchases, total invoice value: P224,000

How much is the VAT payable of New City Appliance Corporation for the 4th quarter of
20237

a. P28,000
b. P1,200
c. P30,000
d. P24,000

33. ARefining Company manufactures refined sugar. It had the following data during the
first quarter of 2023:

. Sales of refined sugar, net of VAT: P2,000,000

" Purchases from farmers of sugar cane used in manufacture of refined sugar:
P500,000

" Purchases of Packaging mnaterials, gross of VAT: P784,000

Purchases of labels, gross of VAT: P112,000

The VAT payable is:

a. P124,000
b. P112,500
c. P70,000
d. P62,000

34. "A" is a VAT-registered dealer of appliances. The following data are for the last quarter
of 2023:

Sales, net of output tax: P6,800,000

Purchases, net of input tax: P5,500,000
" Sales returns: P200,000

. Purchase returns: P300,000

.Excess input tax from previous quarter: P9,500

The VAT payable of A for the last quarter of 2023 is:

a, P120,500
b. P70,500
c. P80,000
d. P158,500

35. AVAT registered person is engaged in the sale of VAT-taxable goods and at the same
time is also engaged in a non-VAT business, in the same business establishment.
During the year, total sales of the VAT business amounted to P336,000, Inclusive of
VAT. The sales of the non-VAT business amounted to P200,000 with a separate
percentage tax of P6,000 for a total of P206,000. During the same quarter, repairs on
the bulding amounted to P50,000 plus VAT of P6,000. Supplies purchased for
common use amounted to P10,000 plus P1,200 VAT. The VAT payable is:
a. P24,000
b. P25,000
c. P30,000
d. P26,400

36. Allan de Santos contracted Abel Yulo, a VAT-registered architect, to renovate the
bedrooms in Allan's house. Yulo billed Santos the total amount of P224,000
(P200,000 + VAT of P24,000). How much will Allan pay Yulo if the income payment is
subject to a 10% CWT?
a. P201,600
b. P244,000
c. P204,000
d. None of the above
37. M, a building contractor, showed the following data for the taxable year:

Cash received for labor performed (VAT included): P3,000,000

Cash recelved for materials used (VAT included): P360,000
Recelvables, VAT included, for work done (VAT included): P1,640,000
" Advances on other contracts still unearned (VAT included): P1,120,000
" Cash received and held in trust, to be paid to a supplier (VAT included): P560,000

Payments to VAT-registered suppliers

. For materials, net of VAT: P500,000
. For supplies, net of VAT: P100,000

" For services of sub-contractors (VAT included): P1,680,000

" Operating expenses: P200,000

The VAT payable of M is:

a. P228,000
b. P348,000
c. P283,71 4
d. None of the above

38. A, a V¬T taxpayer, billed his customer

Selling Price: P500,000

. Value Added Tax: P70,000
. Total: P570,000

The output tax is:

a. P70,000
b. P60,000
c. P61,071
d. P68,400
39. A PEZA-registered enterprise is paying the 5% preferential tax in lieu of all other taxes.
It is not VAT-registered. Can the same enterprise claim a TCC or refund from any VAT
that it pays on its purchases?
a. Yes, because it should not be paying the VAT as it is exempt from all taxes whether
direct or indirect.

b. No. Since it is VAT-exempt, it is not allowed to claim a refund of input tax paid.
c. Yes, because the issuance of a VAT invoice to the PEZA-registered enterprise was
erroneous.

d. None of the above.

40. Roel went out on a date with Janella and her uncle, Tito Chris (a senior citizen), in
Mike's Bistro for Janella's birthday. They ordered food which they all shared, and the
total bill amounted to P6,000, gross of VAT. How much will Mike's Bistro bill Roel?
a. P1,785.71
b. P5,428.57
c, P357.14
d. None of the above.
41. In the first quarter of 2023, M Corporation had the following transactions:

Sales to the government in the amount of P200,000 (net of VAT)

" Purchases of supplies of P160,000, net of VAT, directly attributable to sales to the
government

The government withheld a 1% EWT on its purchases from M Corporation.

How much would M Corporation receive from the government, and what would be its VAT
payable/(overpayment) for the quarter?
a) P212,000; P4,800
b) P200,000; P10,000
c) P212,000: (P5,200)
d) None of the above

42. In January 2023, J. Reyes started a car repair business. He did not expect his gross
receipts to exceed P3.0 million a year, and thus did not register for VAT. He also
signified in his first quarter ITR his intention to be taxed under the 8% income tax rate
option. However, by mid-June 2023, his receipts had already reached the amount of
P3,000,050.00.

When should J. Reyes register for VAT, and when will he start to become liable for VAT?
Will he still pay OPT under Section 116 of the Tax Code?
a) He should register in July 2023, which is the month following the month where his
gross receipts exceeded P3,000,000. He will become liable for VAT starting July 2023. He
will be liable for OPT for the months January to June 2023 and shall pay such OPT on or
before July 25.
b) He should register within 10 days after the end of June or from July 1 to July 10, 2023.
He shall be liable for VAT on August 1, 2023. He will no longer be liable to OPT.
c) He should register within 10 days after the end of December (the last month of the 12
month period) or from January 1 to 10, 2023. He shall be liable for VAT beginning on the
1st day of the month following his registration, or February 1, 2023. He will be liable for
OPT from January to December 2023.
d) None of the above.
43. 'A' Company, VAT-registered, is engaged in stock brokerage and dealership in
securities. It provided the following data for the 2nd quarter of 2024:

Total commissions earned from stock brokerage, net of VAT:

Commission received: P150,000
. Commission uncollected: P250.000

. Stock transactions (VAT excluded):

Stock Price Cost

A P500,000 P350.000

P600,000 P500,000
C P800,000 P650,000

All three stocks were sold in the stock exchange.

" Supplies bought: P88,000 (VAT included)

a. The percentage tax due is: None

b. The VAT payable of Ais:
A. P56,571
B. P34,765
C. P86,571
D. None of the above.
44. The Bureau of Internal Revenue may use "Oplan Kandado" against the following
taxpayer, except?
a) VAT-registered person who fails to issue receipts.
b) VAT-reqistered person who fails to file VAT returns.
c) VAT-registered person who understates its taxable sales by 30%.
d) VAT-registered person who understates its purchases by 30%.
45. Domestic Inc., VAT-registered, had the following data (net of business taxes) for the
4th quarter of 2023:

Sales Type October November December Quarterly Total

VATable sales to private entities P3,000,000 P1,500,000 P500,000 P5,000,000

Exernpt sales P100,000 P200,000 P100,000 P400,000

Sales to the govermment P200,000 P50,000 P50,000 P300,000

Export sales P100,000 P40,000 P60,000 P200,000

Compute the VAT payable for October 2023, November 2023, and the 4th Quarter of 2023,
if the taxpayer opted to file the monthly VAT forms:
a) P6,888 P175,900; P69,519
b) P10,788, P175,900; P65,619
c) P6,888, P173,900, P71,519
d) None of the above
46. In number 45, compute the VAT payable for October 2023, November 2023, and the
4th Quarter of 2023 if the taxpayer opted to only file the quarterly VAT form.
a) P6,888, P175,900, P69,519
b) PO; P0, P267.307
c) PO; P0; P252,3 07
d) None of the above