Midterm QUIZ TAX2 - tax PDF

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Which is vatable? a. Internet service providers b. Schools - EXEMPT c. Local water district – 2% FRANCHISE TAX (NOT COVERED UNDER VAT) d. Gasoline stations -2% FRANCHISE TAX (NOT COVERED UNDER VAT) Which will not pay VAT on its receipts? a. Bookstores b. Hospitals c. Real property dealers d. Taxicab...

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1. Which is vatable? a. Internet service providers b. Schools - EXEMPT c. Local water district – 2% FRANCHISE TAX (NOT COVERED UNDER VAT) d. Gasoline stations -2% FRANCHISE TAX (NOT COVERED UNDER VAT)

2. Which will not pay VAT on its receipts? a. Bookstores b. Hospitals c. Real property dealers d. Taxicab operators (3% CCT) A, B AND C ARE GENERALLY SUBJECT TO VAT 3. Vat is paid monthly and quarterly. IF MONTHLY (BIR FORM 2550M; IF QUARTERLY BIR FORM 2550Q) As a rule, percentage tax is paid monthly. BUT AS TO FILING QUARTERLY(BIR FORM 2551Q). Which is true? a. Statement 1 b. Statement 2 c. Neither statements d. Both 4. A VAT taxpayer who purchases goods from non-VAT suppliers will not effectively pay a VAT equivalent to the output VAT. DEPENDE MAN PUD SA IYANG GINABALIGYA. IF IN CASE NA WALA NAKA INDICATE NA NON-VATABLE, IT WILL BE VATABLE. No output VAT shall be billed on export sales and exempt sales. PRECISELY Which is incorrect? a. Statement 1 b. Statement 2 c. Neither statements d. Both 5. The export sale of a VAT taxpayer is not an exempt sale. ZERO RATED VAT STILL VATABLE A non-VAT registered person who invoiced VAT on his sale shall be subject to 12% VAT without the benefit of an input VAT and 3% percentage tax and a surcharge like in a simple neglect of paying taxes. MUST BE SURCHAGE LIKE IN WILLFUL NEGLECT WHICH IS 50%. IF SIMPLE NEGLECT, 25% ONLY. a. Both are false b. Both are true c. True, false d. False, true 6. What is the tax basis of the output VAT on instalment sales? a. Fair value or gross selling price whichever is higher b. Instalment received

c. Gross selling price d. Fair value of property sold GROSS SELLING PRICE UNDER THE REGULATIONS MEANS THE HIGHER BETWEEN CONSIDERATION (INCLUSIVE OF VAT) AND FV OF THE PROPERTY (ZONAL VALUE AND FV PER ASSESSMENT – VAT EXCLUSIVE) 7. The exchange of investments in payment of debt is subject to VAT. ONLY AN INVESTING TRANSACTION. NO ACTUAL OR EVEN CONSTRUCTIVE SALE HAPPENED The sales of all ordinary assets are VAT exempt. MUST BE VATABLE a. Statement 1 is true b. Statement 2 is true c. Both are true d. True, False e. Only statement 1 is false f. Neither statements are true 8. Which of the following selling prices is considered unreasonably lower? Fair value Selling price Discount a. 200,000 240,000 0 b. 250,000 175,000 77,500 c. 400,000 250,000 100,000 d. 500,000 380,000 120,000 DO THE RECOMPUTATION OF DISCOUNT. 9. Which of the following is excluded in gross receipts? PERTAINS TO ACTUAL COLLECTIONS ONLY AS WELL AS ADVANCE PAYMENTS FROM CUSTOMERS. a. Promissory notes given by the buyer b. Check collection c. None of these d. Cash collection 10. Which of the following properties is not subject to VAT? a. Corporate building b. Cars held for sale c. Investment property held for rentals d. Shares of stock sold to a buyer A, B AND C ARE ORDINAR ASSETS HENCE VATABLE 11. The sale of fruits was invoiced in a VAT invoice at P 24,500. What is the output vat? a. 0 b. 2,571 c. 2,625 d. 2,880 LIABLE TO PAY VAT. MUST BE SPECIFICALLY INDICATED IN THE INVOICE THAT IT IS EXEMPT.

12. A service provider had the following data during the month: Revenue, including VAT P 268,800 Gross receipts, exclusive of VAT 180,000 Input VAT 12,000 Assuming he is VAT-registered, compute the VAT payable. a. 7,283 b. 9,600 c. 16,800 d. 19,286 OV 180,000 X 12% = 21,600 – IV 12,000 = 9,600 13. What a. b. c. d.

if he is VAT-registrable, compute the VAT payable. 9,600 19,286 21,600 7,283

14. A VAT-taxpayer sold goods for P 40,000 which includes a P 1,000 delivery and VAT. The buyer paid P 30,000 down-payment and promised to pay the P 11,000 balance plus the VAT in 30 days. What is the output VAT? a. 4,920 b. 4,179 c. 4,680 d. 4,286 40,000 x12/112 = 4,286 15. A VAT-registered seller sold various merchandise at wholesale price, exclusive of VAT: Product total retail price Less: Trade discount Product wholesale price Less: Cash discount (5%) Net price due in 15 days

P 300,000 30,000 P 270,000 13,500 P 256,500

*If customer pays in 15 days What is the input VAT? a. 32,400 b. 0 c. 30,780 d. 36,000 16. A VAT-registrable service provider prepared the following list of cash collections during the month: Gross receipts VAT inclusive Advances from client Proceeds from bank loan

P 504,000 200,000 300,000

Total

P 1,014,000

Gross purchases amounted to P 350,000 is to be recorded by the taxpayer due to omission of its bookkeeper. Compute the VAT payable. a. 84,480 b. 54,000 c. 78,000 d. 108,643 OV 504,000/1.12 + 200,000 = 650,000 X 12% = 78,000 – IV NONE = VP 78,000 17. Relating to the previous problem, how much its output VAT if he is VAT-registered? a. 84,480 b. 0 c. 78,000 d. 108,643 18. A VAT-registered seller indicated the following in a VAT invoice evidencing the sale of vegetables. Selling price P 5,000, Output VAT P 600. What is the output VAT? a. 6,720 b. 600 c. 6,520 d. 0 19. Relating to the previous problem, compute the output VAT assuming the sale is made by a non-VAT seller. a. 0 b. 600 c. 6,720 d. 6,520 SINCE IT WAS INDIACTED IN THE VAT INVOICE THAT THE SALE OF VEGETABLES WERE VATABLE, HENCE 600 PA RIN. SIYA PA RIN BA? SURE KA BA TALAGA? NABASA MO TALAGA BA. KAW HA. YEE NIKATAWA. 20. An insurance company had the following gross receipts during the month. Cash collections from life premiums P1,800,000; Notes receivable for life premiums P200,000; notes receivable for non-life premiums P 300,000 and cash collections from non-life premiums P 1,100,000. How much is the business tax? a. 172,000 b. 360,000 c. 348,000 d. 168,000 e. 208,000 1,800,000 + 200,000 = 2,000,000 X 2% PREMIUMS TAX + 1,100,000 X 12% VAT = TOTAL BUSINESS TAX 172,000

21. The following data pertain to a business taxpayer during a quarter: January 200,000 180,000

Revenue Collections

February 240,000 240,000

March 230,000 220,000

April 250,000 175,000

Which of these properly reflect the reporting of a non-VAT service provider? January February March April a. 0 0 640,000 175,000 b.

170,000

240,000

640,000

250,000

c.

0

0

670,000

250,000

d.

180,000

240,000

220,000

815,000

22. Which of these properly reflect the reporting of a non-VAT seller of goods? January February March April a. 200,000 240,000 230,000 920,000 b.

170,000

240,000

640,000

250,000

c.

200,000

250,000

220,000

0

d.

0

0

670,000

250,000

23. Which of these properly reflect the reporting of a VAT service provider? January February March April a. 180,000 240,000 640,000 175,000 b.

200,000

250,000

220,000

250,000

c.

180,000

240,000

220,000

640,000

d.

200,000

250,000

670,000

920,000

24. Which of these properly reflect the reporting of a VAT seller of goods? January February March April a. 180,000 240,000 640,000 175,000 b.

200,000

240,000

670,000

250,000

c.

180,000

240,000

220,000

640,000

d.

200,000

250,000

670,000

230,000

25. Which is not included in landed cost? a. Excise tax b. Custom’s duty c. Dutiable value d. VAT...