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How much is the revenue to be reported by a VAT registered lessor from rental payments made by a VAT registered lessee from which total cash that will be received by the lessor and paid by the lessee is P107,000? Exclude withholding tax.
How much is the revenue to be reported by a VAT registered lessor from rental payments made by a VAT registered lessee from which total cash that will be received by the lessor and paid by the lessee is P107,000? Exclude withholding tax.
- P119,840.00.
- P107,000.00.
- P100,000.00. (correct)
- P95,535.71.
A VAT registered entity has a total Sales for the 2nd quarter of 2022 of P3,023,000, composed of sales subject to VAT, P2,400,000; zero rated sales, P200,000; and VAT exempt sales, P423,000. Purchases, on the other hand, amounted to P631,300 which is composed of purchases subject to VAT, P330,100 and purchases not subject to VAT, P301,200. Assuming there is no input VAT carryover from previous quarter, how much is the VAT payable for the quarter?
A VAT registered entity has a total Sales for the 2nd quarter of 2022 of P3,023,000, composed of sales subject to VAT, P2,400,000; zero rated sales, P200,000; and VAT exempt sales, P423,000. Purchases, on the other hand, amounted to P631,300 which is composed of purchases subject to VAT, P330,100 and purchases not subject to VAT, P301,200. Assuming there is no input VAT carryover from previous quarter, how much is the VAT payable for the quarter?
- P323,148.
- P287,004.
- P248,388.
- P212,244. (correct)
Using the information above, what general ledger account should be credited upon remittance of the VAT payable to the BIR?
Using the information above, what general ledger account should be credited upon remittance of the VAT payable to the BIR?
- VAT Payable
- Cash (correct)
- Output VAT
- Sales
A VAT registered entity has a total Sales for the 2nd quarter of 2022 of P13,623,000, composed of sales subject to VAT, P1,400,000 and VAT exempt sales, P12,223,000. Purchases, on the other hand, amounted to P13,631,300 which is composed of purchases subject to VAT, P4,330,100 and purchases not subject to VAT, P9,301,200. Assuming input VAT carryover from previous quarter is P200,000, how much is the VAT payable for the quarter?
A VAT registered entity has a total Sales for the 2nd quarter of 2022 of P13,623,000, composed of sales subject to VAT, P1,400,000 and VAT exempt sales, P12,223,000. Purchases, on the other hand, amounted to P13,631,300 which is composed of purchases subject to VAT, P4,330,100 and purchases not subject to VAT, P9,301,200. Assuming input VAT carryover from previous quarter is P200,000, how much is the VAT payable for the quarter?
Using the information above, how much should be the ending balance of the account Input VAT in the general ledger at the end of quarter 2?
Using the information above, how much should be the ending balance of the account Input VAT in the general ledger at the end of quarter 2?
Section 108 of the tax code, as amended, pertains to:
Section 108 of the tax code, as amended, pertains to:
Prior to the EOPT Act, the basis of 12% VAT on sale of goods or properties is:
Prior to the EOPT Act, the basis of 12% VAT on sale of goods or properties is:
The basis of 12% VAT on sale of services under the EOPT Act:
The basis of 12% VAT on sale of services under the EOPT Act:
Which of the following is not a consequence of issuing erroneous VAT invoice or VAT official receipt?
Which of the following is not a consequence of issuing erroneous VAT invoice or VAT official receipt?
Which of the following is not a VAT exempt transaction pursuant to Section 109 of the Tax Code, as amended?
Which of the following is not a VAT exempt transaction pursuant to Section 109 of the Tax Code, as amended?
For the year 2023, Mr. A purchased a condominium unit from Mr. Z, a unit owner, amounting to P3,000,000. In the same year, Mr. A purchased a parking space from the condominium developer amounting to P800,000. How much is the total VAT paid by Mr. A for the year 2023?
For the year 2023, Mr. A purchased a condominium unit from Mr. Z, a unit owner, amounting to P3,000,000. In the same year, Mr. A purchased a parking space from the condominium developer amounting to P800,000. How much is the total VAT paid by Mr. A for the year 2023?
Senior Chang, a resident citizen, 70 years of age, bought a medicine with a selling price of P9,520 inclusive of VAT. How much is the total amount to be paid by Senior Chang?
Senior Chang, a resident citizen, 70 years of age, bought a medicine with a selling price of P9,520 inclusive of VAT. How much is the total amount to be paid by Senior Chang?
A VAT registered taxpayer, engaged in selling services, was being assessed by the BIR upon its tax audit of under-declaration of income resulting to an income tax deficiency. The BIR examiner compared sales per income tax return and total sales per VAT returns and come up with a conclusion that the taxpayer is not reporting a certain amount of sales in its income tax return because total sales per VAT returns were higher than sales per income tax return. What would be the possible reason for the higher amount of sales per VAT returns as compared to sales per income tax return assuming the taxpayer correctly reported its sales for both returns?
A VAT registered taxpayer, engaged in selling services, was being assessed by the BIR upon its tax audit of under-declaration of income resulting to an income tax deficiency. The BIR examiner compared sales per income tax return and total sales per VAT returns and come up with a conclusion that the taxpayer is not reporting a certain amount of sales in its income tax return because total sales per VAT returns were higher than sales per income tax return. What would be the possible reason for the higher amount of sales per VAT returns as compared to sales per income tax return assuming the taxpayer correctly reported its sales for both returns?
Prior to the EOPT Act, the 12% VAT is based on gross receipts of which transaction?
Prior to the EOPT Act, the 12% VAT is based on gross receipts of which transaction?
A VAT registered entity has the following transactions during the taxable year 2022:
Sale of goods to private entities, net of VAT, 2,800,000
VATable purchases of goods, VAT inclusive, 1,680,000
Sale to GOCCs, net of VAT, 2,000,000
How much is the output tax?
A VAT registered entity has the following transactions during the taxable year 2022: Sale of goods to private entities, net of VAT, 2,800,000 VATable purchases of goods, VAT inclusive, 1,680,000 Sale to GOCCs, net of VAT, 2,000,000 How much is the output tax?
Using the same information above, how much is the creditable input tax?
Using the same information above, how much is the creditable input tax?
Using the same information above, how much is the VAT payable to BIR?
Using the same information above, how much is the VAT payable to BIR?
How much is the business tax due of Mr. ELT for the 1st QTR of 2023?
How much is the business tax due of Mr. ELT for the 1st QTR of 2023?
Using the same information of Mr. ELT above, how much is the business tax due of Mr. ELT for the 2nd QTR of 2023?
Using the same information of Mr. ELT above, how much is the business tax due of Mr. ELT for the 2nd QTR of 2023?
Using the same information of Mr. ELT above, how much is the business tax due of Mr. ELT for the 2nd QTR of 2023, assuming Mr. ELT registered as VAT taxpayer at the start of 2nd QTR?
Using the same information of Mr. ELT above, how much is the business tax due of Mr. ELT for the 2nd QTR of 2023, assuming Mr. ELT registered as VAT taxpayer at the start of 2nd QTR?
Using the same information of Mr. ELT above and assuming that he is VAT registered for the whole year of 2023, how much is his total business tax due for the 1st and 2nd QTR of 2023?
Using the same information of Mr. ELT above and assuming that he is VAT registered for the whole year of 2023, how much is his total business tax due for the 1st and 2nd QTR of 2023?
X is a VAT registered person. He purchased goods from Y, also VAT registered, for P125,000 exclusive of VAT thereon. X then sold these same goods for P150,000 VAT inclusive. Assuming that it is the only transaction for the quarter, how much VAT should X remit to the BIR?
X is a VAT registered person. He purchased goods from Y, also VAT registered, for P125,000 exclusive of VAT thereon. X then sold these same goods for P150,000 VAT inclusive. Assuming that it is the only transaction for the quarter, how much VAT should X remit to the BIR?
Using the information above, how much is the gross profit of X?
Using the information above, how much is the gross profit of X?
Mr. Jason, a senior citizen, bought a medicine with a selling price of P12,500 inclusive of VAT. How much should Mr. Jason pay upon presentation of his senior citizen identification?
Mr. Jason, a senior citizen, bought a medicine with a selling price of P12,500 inclusive of VAT. How much should Mr. Jason pay upon presentation of his senior citizen identification?
Using the information in number 6 above, which of the following is part of the correct journal entry to record the transaction?
Using the information in number 6 above, which of the following is part of the correct journal entry to record the transaction?
Koko Corporation, a domestic corporation, imported goods from Japan with an invoice amount of ¥1,000,000 (where ¥1 = Php0.40). The following additional importation costs were incurred:
Insurance, P15,000.
Freight, P10,000.
Postage, P5,000.
Wharfage, P7,000.
Arrastre, P8,000.
Facilitation Fee (bribe), P3,000.- not included
Customs duty, P50,000.
Excise Tax, P30,000
Trucking fee from port to warehouse, P50,000 (VAT inclusive)
The VAT due on importation is:
Koko Corporation, a domestic corporation, imported goods from Japan with an invoice amount of ¥1,000,000 (where ¥1 = Php0.40). The following additional importation costs were incurred: Insurance, P15,000. Freight, P10,000. Postage, P5,000. Wharfage, P7,000. Arrastre, P8,000. Facilitation Fee (bribe), P3,000.- not included Customs duty, P50,000. Excise Tax, P30,000 Trucking fee from port to warehouse, P50,000 (VAT inclusive) The VAT due on importation is:
Using the information in number 8 above, if the goods were eventually sold for P800,000 VAT exclusive, the total VAT payable from the transaction should be:
Using the information in number 8 above, if the goods were eventually sold for P800,000 VAT exclusive, the total VAT payable from the transaction should be:
Statement 1: The sale of real property not primarily held for sale in the ordinary course of business is exempt from VAT.
Statement 2: The sale of parking lot as an adjunct of a condominium unit in the course of trade or business at a gross selling price of P500k is exempt from VAT as long as its price, together with the unit, does not exceed the VAT threshold.
Statement 1: The sale of real property not primarily held for sale in the ordinary course of business is exempt from VAT. Statement 2: The sale of parking lot as an adjunct of a condominium unit in the course of trade or business at a gross selling price of P500k is exempt from VAT as long as its price, together with the unit, does not exceed the VAT threshold.
During 2023, a subdivision developer sold five (5) residential house and lots to different buyers for P4,000,000 per lot, or for a total sales of P20,000,000. The sales shall be:
During 2023, a subdivision developer sold five (5) residential house and lots to different buyers for P4,000,000 per lot, or for a total sales of P20,000,000. The sales shall be:
Which of the following is a transaction not subject to VAT?
Which of the following is a transaction not subject to VAT?
A VAT registered seller of goods sold on account goods amounting to P180,000 VAT inclusive. The credit term was 2/10, n/30. If the buyer pays within the discount period, the total collection of the seller is:
A VAT registered seller of goods sold on account goods amounting to P180,000 VAT inclusive. The credit term was 2/10, n/30. If the buyer pays within the discount period, the total collection of the seller is:
The following information was gathered from a VAT registered seller of goods:
Sale of goods to private entities, net of VAT 2,500,000.00
Purchases of goods sold to private entities, gross of VAT 896,000.00
Sale to GOCC, net of VAT 1,000,000.00
Purchases of goods sold to GOCC, net of VAT 700,000.00
How much is the output tax?
The following information was gathered from a VAT registered seller of goods: Sale of goods to private entities, net of VAT 2,500,000.00 Purchases of goods sold to private entities, gross of VAT 896,000.00 Sale to GOCC, net of VAT 1,000,000.00 Purchases of goods sold to GOCC, net of VAT 700,000.00 How much is the output tax?
Flashcards
VAT Revenue Reporting
VAT Revenue Reporting
Revenue to be reported by a VAT-registered lessor from rental payments.
Remitting VAT
Remitting VAT
Debit VAT Payable when remitting VAT to the BIR.
VAT on Services/Properties
VAT on Services/Properties
VAT on sale of services and use or lease of properties is subject to VAT.
VAT Exempt Display
VAT Exempt Display
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VAT Exempt Transaction
VAT Exempt Transaction
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VAT and Real Property
VAT and Real Property
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VAT Rate
VAT Rate
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Zero Rated Transaction
Zero Rated Transaction
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Cancellation Threshold
Cancellation Threshold
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Transaction Deemed Sale
Transaction Deemed Sale
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Study Notes
- Here are the study notes from the provided text.
VAT Revenue from Rental Payments
- Revenue reported by a VAT-registered lessor from a VAT-registered lessee is P95,535.71 when the total cash received and paid by the lessee is P107,000, excluding withholding tax.
VAT Payable Calculation
- A VAT-registered entity reports total sales of P3,023,000, including P2,400,000 in sales subject to VAT, P200,000 in zero-rated sales, and P423,000 in VAT-exempt sales, along with purchases of P631,300, including P330,100 subject to VAT and P301,200 not subject to VAT. Assuming no input VAT carryover, the VAT payable for the quarter is P248,388.
General Ledger Account for VAT Remittance
- The general ledger account credited when remitting VAT payable to the BIR is VAT Payable.
VAT Payable with Exempt Sales and Input Tax Carryover
- Entity with total sales of P13,623,000, composed of P1,400,000 in sales subject to VAT and P12,223,000 in VAT exempt sales, and has P13,631,300 in purchases, composed of P4,330,100 in purchases subject to VAT and P9,301,200 not subject to VAT. Assuming input VAT carryover of P200,000, the VAT payable is P351,612
Ending Balance of Input VAT Account
- Using the information above, the ending balance of the Input VAT account in the general ledger is P351,612 at the end of quarter 2.
Section 108 of the Tax Code
- Section 108 of the tax code, as amended, pertains to VAT on sale of services and use of properties.
Basis of 12% VAT (Prior to EOPT Act)
- Before the EOPT Act, the 12% VAT on sale of goods or properties is based on the gross selling price.
Basis of 12% VAT (Under EOPT Act)
- Under the EOPT Act, the basis of 12% VAT on sale of services is gross receipts.
Consequences of Erroneous VAT Invoice
- A non-VAT registered person issuing a VAT official receipt will be liable for VAT.
- If a VAT registered person issues a VAT official receipt for VAT exempt transaction and fails to display the term "VAT exempt", he shall be liable for VAT.
VAT Exempt Transactions
- According to Section 109 of the Tax Code, the sale or importation of agricultural and marine food products is a VAT exempt transaction.
- Services subject to percentage tax under Title V of the tax code are VAT exempt.
- Lease of a residential unit with a monthly rental not exceeding P15,000 is VAT exempt.
VAT on Condominium and Parking Space
- If Mr. A buys a condominium unit for P3,000,000 and a parking space for P800,000 from the developer, the total VAT paid is P456,000.
VAT Payment for Senior Citizens
- Senior Chang, 70 years of age, bought a medicine for P9,520 inclusive of VAT, they will pay P8,500.
Sales per VAT Return vs Income Tax Return
- A possible reason for the higher amount of sales per VAT returns as compared to sales per income tax return assuming the taxpayer correctly reported its sales for both returns is the Year-end accrual of certain income.
12% VAT Basis Prior to EOPT Act
- Prior to the EOPT Act, the 12% VAT is based on the gross receipts of importation.
Output Tax Calculation
- For a VAT registered entity with sales of goods to private entities (net of VAT: P2,800,000), VATable purchases of goods (VAT inclusive: P1,680,000), and sales to GOCCs (net of VAT: P2,000,000), the output tax is P576,000.
Creditable Input Tax Calculation
- The creditable input tax based on the information above is P201,600.
VAT Payable to BIR
- The VAT payable to BIR based on the information above is P375,000.
VAT Due Date
- VAT due on importation is P69,360.
VAT Payable from Goods Sold
- If goods were eventually sold for P800,000 VAT exclusive, total VAT payable should be P27,642.86.
VAT Exemption on Real Property Sales
- Statement 1: The sale of real property not primarily held for sale in the ordinary course of business is exempt from VAT.
- Statement 2: The sale of a parking lot as an adjunct of a condominium unit in the course of trade or business at a gross selling price of P500k is exempt from VAT as long as its price, together with the unit, does not exceed the VAT threshold.
- Answer: Both statements are correct.
VAT on Residential Sales
- During 2023, a subdivision developer sold five (5) residential house and lots to different buyers for P4,000,000 per lot, or for a total sales of P20,000,000. The sales shall be Subject to 12% VAT.
Transactions Not Subject to VAT
- Sale of bamboo poles by a dealer
- Importation of ordinary feeds for poultry chicken
Total Collection with Discount
- A VAT registered seller of goods sold on account goods amounting to P180,000 VAT inclusive and the credit term was 2/10, n/30. If the buyer pays within the discount period, the total collection of the seller is P176,400.00.
Output Tax Calculation
- Sale of goods to private entities, net of VAT 2,500,000.00
- Purchases of goods sold to private entities, gross of VAT 896,000.00
- Sale to GOCC, net of VAT 1,000,000.00
- Purchases of goods sold to GOCC, net of VAT 700,000.00
- How much is the output tax*
- Output tax is P420,000
Creditable Input Tax
- The creditable input tax is P96,000.
VAT Payable to the BIR
- The VAT payable to the BIR is P390,000.
Kaizen Manufacturing VAT
- Kaizen Manufacturing, a Registered Export Enterprise (REE), has the following information:
- Export Sales 3,000,000.00
- Domestic Sales, VAT exclusive 500,000.00
- Purchase directly and exclusively used for manufacturing: Raw Materials, VAT inclusive 616,000.00
- Supplies, VAT inclusive 448,000.00
- Equipment, VAT exclusive 300,000.00
Kaizen Manufacturing Claim
- Kaizen Manufacturing can claim 128,571.43 as either input tax refund or tax credit certificate.
Kaizen's Input Tax as Credit
- Kaizen opts to use the input tax as credits to its out tax and the VAT payable is 10,000.
ABC Corporation
- ABC Corporation has total Sales for the 2nd quarter of 2022 of P13,623,000, composed of sales subject to VAT, P1,400,000 and VAT exempt sales, P12,223,000. Purchases, on the other hand, amounted to P13,631,300 which is composed of purchases subject to VAT, P4,330,100 and purchases not subject to VAT, P9,301,200. Assuming input VAT carryover from previous quarter is P200,000, how much is the VAT payable for the quarter?
- Answer: P351,612.
Input VAT in General Ledger Balance at the End of Quarter 2
- Input Vat is zero
VAT and Lease of Parking Lots/Residential Units
- Statement 1: Lease of a parking lot attached to a residential unit at P8,000 per month is exempt from VAT.
- Statement 2: Lease of eight (8) residential units at P18,500 per month is subject to VAT.
- Answer: Both statements are correct.
Presumptive Input Tax
- All of the following are allowed presumptive input tax, except:
- Manufacturer of refined sugar and cooking oil.
Transaction Deemed Sale
- Phrase "transaction deemed sale" include the following, except:
- Consignment of goods if actual sale is not made within 60 days, following the date such goods were purchased.
Threshold and VAT Exempt Sales
- Statement 1: For the purposes of the threshold of P3,000,000, the husband and wife shall be considered separate taxpayers. Statement 2: VAT exempt sales shall not be included in determining the VAT threshold.
- Answer: Both statements are correct.
VAT and Zero-Rated Transaction
- Statement 1: Zero-rated transaction is a non-taxable transaction since no output tax will accrue therefrom.
- Statement 2: Input tax attributable to zero-rated transactions may be claimed as tax credit or tax refund.
- Answer: Both statements are correct.
Statements about VAT Registration
- Statement 1: In optional VAT registration, any person who elects to register shall not be allowed to cancel his registration for the next five (5) years.
- Statement 2: A VAT registered person may cancel his registration if he makes a written application and can demonstrate to the commissioner's satisfaction that his gross sales or receipts for the following twenty four (24) months, other than those that are exempt under Section 109, will not exceed Three Million Pesos (P3,000,000.00). 3 years
- Answer: Only Statement 1 is correct.
Statements about VAT
- Statement 1: If a VAT-registered person issues a VAT invoice or VAT official receipt for a VAT-exempt transaction but fails to display prominently on the invoice or receipt the words "VAT-EXEMPT SALE", the transaction shall become taxable and the issuer shall be liable to pay the VAT thereon.
- Statement 2: Any person who becomes liable to VAT and fails to register as such shall be liable to pay the output tax as if he is a VAT-registered person and claim the appropriate input tax credits for the period.
- Answer: Only statement 1 is correct.
Monthly Rental Statements
- Statement 1: In case where the monthly rental per unit does not exceed P15,000 and the total gross receipts also do not exceed the VAT threshold of P3,000,000, the lessor is not subject to VAT and Other Percentage Taxes.
- Statement 2: In case where the monthly rental per unit exceed P15,000 but the total gross receipts exceed the VAT threshold of P3,000,000, the lessor is still not subject to both VAT and OPT.
- Answer: Only statement 1 is correct
Facts on VAT
- Statement 1: In case where the monthly rental per unit exceeds P15,000 but the aggregate of such rentals during the year do not exceed the VAT threshold of P3,000,000, the same shall likewise be exempt from VAT but it is subject to OPT.
- Statement 2: In case where the monthly rental per unit exceeds P15,000 and the aggregate of such rentals during the year exceeds the VAT threshold of P3,000,000, the lessor is now subject to VAT.
- Answer: Both statements are correct.
What Transactions are Subject to VAT?
- Importation of specialty feeds for race horses
Facts about Sales or Exchange of Services
- Sale or exchange of services means the performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration, including:
- Operators of restaurants and other eating places
Benefits of VAT Registered Taxpayer
- Which of the following is the benefit of a VAT registered taxpayer if his sale transactions are purely zero rated?
- He can claim input tax refund, if any, since he doesn't have any output tax.
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