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Chapter Exercises - Value Added Tax: VAT Exempt Transactions

1. The document contains a 12 question multiple choice quiz about value added tax (VAT) exempt transactions and items subject to VAT in the Philippines. 2. The questions cover topics such as which types of businesses and transactions are exempt from VAT, including small businesses, foreign licensors, and agricultural products sold in their original state. 3. The questions also address items that are subject to VAT, the benefits to VAT registered taxpayers of a 0% VAT rate, and exemptions for certain cooperatives and educational services.

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Bea Christine
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896 views2 pages

Chapter Exercises - Value Added Tax: VAT Exempt Transactions

1. The document contains a 12 question multiple choice quiz about value added tax (VAT) exempt transactions and items subject to VAT in the Philippines. 2. The questions cover topics such as which types of businesses and transactions are exempt from VAT, including small businesses, foreign licensors, and agricultural products sold in their original state. 3. The questions also address items that are subject to VAT, the benefits to VAT registered taxpayers of a 0% VAT rate, and exemptions for certain cooperatives and educational services.

Uploaded by

Bea Christine
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter Exercises – Value Added Tax

MULTIPLE CHOICE

VAT Exempt Transactions

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 P3,000,000.
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 P3,000,000
II. Monthly rental per unit does not exceed P15,000
a. I only c. Either I and II
b. II only d. Both I and II
3. A lessor of commercial units shall be exempt from vat when:
a. Annual gross receipts do not exceed P3,000,000
b. Monthly rental per unit does not exceed P15,000
a. I only c. Either I and II
b. II only 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. One of the following goods is not in its original state
a. Salted eggs c. Polished or husked rice
b. Corn grits d. Refined brown sugar
6. One of the following is not a poultry for VAT purposes
a. Duck c. Goose
b. Fowl d. Fighting Cock
7. One of the following is not a livestock for VAT purposes
a. Rabbit c. Pig
b. Cow d. Racehorse
8. 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 c. Francis
b. Paul d. None of the above
9. Tailor owns Eternal Gardens. He harvested fresh flowers and sold them to Joseph. Joseph sold
the flowers in their original state to Alex shall be:
Chapter Exercises – Value Added Tax
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 sell it
10. Which of the following is the benefit of a vat registered taxpayer if he is subject to zero percent
(0%) vat rate?
a. Exclusion from tax audit by tax examiner.
b. Not required to file VAT return whether monthly or quarterly.
c. He does not have any output tax although he may an input tax credit which can be
claimed or refund.
d. He is entitled to tax discount equivalent to 20%.
11. 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.
12. Which of the following shall be exempt from value-added tax?
I. Sales by agricultural cooperatives, duly registered with the Cooperative Development
Authority to their members as well as sale of their products, whether in its original state
or processed form, to non-members.
II. Gross receipts from lending activities by credit or multi-purpose cooperatives duly
registered with the Cooperative Development Authority.
III. Sales by non-agricultural, non-electric and non-credit cooperatives duly registered with
the Cooperative Development Authority.
a. I and II only c. II and III only
b. I only d. I, II and III

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