Consumption tax is levied upon businesses.

- False

Consumption is the acquisition or utilization of goods and services.- True

A purchase is a form of consumption.- True

Consumption tax is more consistent with the “ability to pay” theory rather than the “benefit received”
theory.- False

A tax on consumption would support savings initiative.- True

Consumption taxes should not apply to basic necessities.-True

Both domestic consumption and foreign consumption are subject to consumption tax.- False

Non-resident sellers are exempt from consumption taxes on their domestic sales.- True

Resident sellers shall pay consumption tax on foreign consumption.-False

The sale by non-resident persons abroad is subject to Philippine consumption tax.-False

The sale by non-resident persons in the Philippines consumption tax.-'False'.

The sale by non-resident persons in the Philippines is exempt from consumption tax.-'False'.

The consumption tax for purchases of goods or services from foreign sources shall be payable by the
buyer.- 'True'.

Business tax is a form of consumption tax.-'True'.

Business tax is imposed on the sales of sellers which is the purchases made by buyers.-'True'.

The VAT on importation is payable only by those regularly engaged in trade or business-'False'.

The importation of books and newspapers is VAT-exempt.-'True'.

The purchase of services from foreign consultants is exempt from final withholding VAT.-'False'.

The importation of fuel, goods, and supplies by international carriers is VAT-exempt.-'True'.

The VAT on importation is payable only by those engaged in business.-'False'.

Statement 1: A business which pays VAT normally does not pay percentage tax.

Statement 2: A business which pays percentage tax also pays VAT.

Which statement is correct?

Statement 1

Statement 1: Excise tax is always paid together with VAT or percentage tax.
Statement 2: Excise tax is paid at the point of sale.

Which statement is false?

Both statements

Which of the following business taxes applies only for domestic consumption?

a. VAT on sales

b. Percentage tax

c. Excise tax

d. All of these

Which of these is non-vatable?

a. Purchase of services from a foreign service provider who is not engaged in business

b. Purchase of goods from a foreign service provider who is engaged business abroad

c. Purchase of goods from economic zone enterprises

d. None of these

Which statement is conceptually incorrect?

a. The buyer pays the consumption tax on his/her purchase to the seller

b. The buyer pays the consumption tax to the government

c. The seller pays the consumption tax to the government

d. The seller collects consumption tax for the government

Who is the statutory taxpayer of business taxes?

a. The seller who must be engaged in trade or business

b. The seller, whether or not engaged in trade or business

c. The buyer who must be engaged in trade or business

d. The buyer, whether or not engaged in trade or business

Who shall pay the VAT on importation when a VAT-exempt entity subsequently sells an imported article
or goods to a non-exempt entity?

a. The exempt buyer

b. The non-exempt

c. Both a and b

d. Neither a nor b

Excise tax is paid by.

a. Sellers

b. Buyers

c. Importers or manufacturers

d. Seller or buyer depending on who agreed to pay the excise tax

Export sales is (select the incorrect one).

a. Exempt from percentage tax

b. Exempt from VAT

c. Exempt from excise tax

d. All of these

Generally, the tax basis of business tax is.

a. Sales or receipts

b. Purchase cost

c. Either A or B

d. Both A and B

Importation is not subject to VAT when

a. Made by a VAT-registered business.

b. Made by a non-VAT-registered business.

c. It involves exempt goods.

d. Coursed through an exempt importer.

Technically, the excise tax on the manufacture of certain articles is payable only when the article is
intended for.

a. Domestic consumption

b. Foreign consumption

c. Both A and B

d. Neither A nor B

The consumption tax on domestic purchases is imposed upon the.

a. Sales or receipts

b. Purchase cost

c. Either A or B

d. Both A and B

The deduction from Output VAT is called.

a. Percentage tax

b. VAT due and payable

c. Input VAT

d. VAT on importation

The economic taxpayers of consumption taxes are.

a. Sellers who are engaged in trade or business

b. Sellers, whether or not engaged in trade or business

c. Buyers who are engaged in trade or business

d. Buyers, whether or not engaged in trade or business

The tax basis of consumption tax on foreign purchase is.

a. Sales or receipts
b. Purchase costs

c. Either A or B

d. Both A and B

The VAT on domestic sales is an example of

a. A direct tax

b. An indirect tax

c. A regulatory tax

d. A specific tax

What is the method used to determine the VAT due and payable?

a. Direct method

b. Indirect method

c. Tax credit method

d. Withholding method

Which is a pure form of a sales tax?

a. Percentage tax

b. Value Added Tax

c. Both A and B

d. Neither A nor B

Which is correct with the VAT on importation?

a. Payable only when the importer is engaged in business

b. Payable only when the foreign seller is engaged in business

c. Payable regardless of the purpose of the importation

d. Payable only when the resident seller is not engaged in business

Which is correct?
a. The sales to foreigners must include a business tax

b. The sales to residents must include a business tax

c. The purchase from abroad must include a business tax

d. All of these

Which is imposed with a tax of zero percent (0%)?

a. All export sales

b. Export sales of VAT-registered taxpayers

c. Import sales of VAT-registered taxpayers

d. Export sales of non-VAT registered taxpayers only

Which is not included in landed cost?

a. Dutiable value

b. Custom's duty

c. Excise tax

d. Vat

Which is not included in the landed cost?

a. Purchase price

b. All incidental cost of bringing the goods to the customs warehouse

c. Taxes other than vat paid prior to the withdrawal the goods

d. Cost of transporting the goods from the customs warehouse to the importer's warehouse or
residence

Which is not subject to excise tax?

a. Sin products

b. Non-essential commodities

c. Food products

d. Mineral products
A business taxpayer had the following purchases and receipts

Import of goods or services P190,000

Domestic purchase of goods or services 100,000

Domestic sales of goods and services 150,000

Export sales of goods or services 50,000

Determine the total amount which will be subject to consumption tax to the business taxpayer.

a. P500,000

b. P400,000

c. P350,000

d. P340,000

In the immediately preceding problem, determine the amount subject to consumption tax if the
taxpayer is not engaged in business

a. P490,000

b. P390,000

c. P200,000

d. P190,000

A VAT-registered taxpayer recorded the following sales and purchases during the month:

Sales P300,000

Purchases 200,000

All amounts above are exclusive of any VAT.

What would be the output VAT?

a. P 48,000
b. P 36,000

c. P24,000

d. P12,000

What is the input VAT?

a. P48,000

b. P36,000

c. P24,000

d. P12,000

What is the VAT payable?

a. P36,000

b. P24,000

c. P12,000

d. P0

As a rule, all cooperatives are exempt from business tax, except.

a. Agricultural cooperatives.

b. Electric cooperatives.

c. Credit cooperatives.

d. None of these

Mandatory or voluntary registration as a VAT taxpayer under the general threshold is.

a. Revocable anytime.

b. Revocable after the lapse

c. Revocable within a year.

d. Perpetually irrevocable.
Realty dealers, developers or lessors are usually registered.

a. Excise taxpayers

b. Percentage taxpayers

c. VAT taxpayers

d. Any of these

The business tax on services specifically subject to percentage tax is.

a. VAT

b. Percentage tax

c. A or B

d. None of these

The consumption tax on domestic sales is.

a. VAT

b. Percentage tax

c. A or B

d. None of these

The export sales of non-VAT taxpayers are.

a. Exempt

b. Subject to percentage tax.

c. Subject to 12% VAT.

d. Subject to 0% VAT.

The lease of residential units is exempt from business tax provided that rent per month per unit is.

a. More than P12,800.

b. Less than P12,800.

c. Not more than P12,800.

d. not less than P12,800.

The mandatory or voluntary registration as VAT taxpayers under the special threshold is.

a. Revocable anytime.

b. Revocable after the lapse of three years.

c. Revocable within a year.

d. Perpetually irrevocable.

The receipts from outgoing transport of domestic carriers is.

a. Subject to zero percent tax

b. Subject to zero percent VAT.

c. Exempt from business tax.

d. Subject to excise tax.

The sale by non-VAT registered persons to entities in the Philippines with indirect tax exemption is
considered.

a. A domestic consumption subject to VAT.

b. A domestic consumption subject to percentage tax.

c. A foreign consumption exempt from business tax.

d. A foreign consumption subject to zero-rated VAT.

The sale of real property by a person not engaged in business is.

a. Subject to business tax.

b. Exempt from business tax.

c. Partially subject to business tax.

d. Automatically subject to VAT.

The term "gross receipts" excludes.

a. Reimbursements for customer expenses paid by the service provider

b. Reimbursements for out-of-pocket expenses incurred by the service provider

c. Advances made by the client for services yet to be rendered

d. Cash collections for services rendered

The term "gross selling price excludes.

a. The contract price of the goods sold

b. Discounts which are contingent upon future events

c. Delivery charges

d. Sales returns and allowances

The VAT registration upon commencement of operation based upon expectation of exceeding the VAT
threshold shall be.

Select one:

a. Revocable anytime.

b. Revocable after the lapse of three years.

c. Revocable within a year if sales do not actually exceed the VAT threshold.

d. Perpetually irrevocable.

To an international carrier, the receipts from inbound flights is.

Select one:

a. Subject to percentage tax.

b. Subject to VAT.

c. Subject to VAT for passenger and percentage tax for cargoes.

d. Exempt.

What is the general VAT threshold?

a. P1,919,800

b. P1,919,500

c. P1,500,000
d. P10,000,000

What is the price limit for the exemption of residential dwellings?

a. P1,000,000

b. P1,500,000

c. P1,919,500

d. P3,199,200

What is the price limit for the exemption of residential lot?

a. P1,000,000

b. P1,500,000

c. P1,919,500

d. P3,199,200

Which is a special VAT threshold?

Select one:

a. P1,919,800

b. P1,919,500

c. P1,500,000

d. P10,000,000

Which is more likely to qualify as a marginal income earner?

a. Artist

b. Consultant

c. Sales agent

d. Operator of a single unit tricycle

Which is not a constructive receipt?

a. Bank deposits made available to the service provider without restriction

b. Transfer of amounts retained by the payor to the account of contractor-service provider

c. Judicial consignation by the payor of the contract price which the service provider wishes to donate to
the payor

d. Collection of revenue for past services rendered

Which is part of gross receipts?

a. Amounts received which will be remitted to other persons

b. Receipt of notice from a debtor to offset the consideration of the service for the debt of the service
provider

c. Receipt from bank loans

d. Receipt from issuance of stocks or issuance of certificates of indebtedness

Which of the following activities related to books is exempt from tax?

a. Printing

b. Sale

c. Publication

d. All of these

Which of the following may not be subject to business tax when sold?

a. Property held for sale

b. Property held for lease

c. Property held for use

d. Property held as investment

Which of the following statements is correct?

a. The sale of real property by any person is subject to business tax.

b. The sale of real property is vatable only when the seller is a realty dealer.

c. The sale of property held for sale, lease or use in the course of business is subject tax.
d. The casual sale of real property used in business is subject to business tax

Which of these entities do not have indirect tax exemption?

a. Philippine Amusement and Gaming Corporation (PAGCOR)

b. Development Bank of the Philippines (DBP)

c. International Rice Research Institute (IRRI)

d. Embassies

Statement 1: Sellers of goods are subject to percentage tax.

Statement 2: Sellers of services are subject to VAT.

Which statement is correct?

a. Statement 1

b. Statement 2

c. Both statements

d. Neither statements

Statement 1: Both the husband and the wife are subject to either VAT or percentage tax

Statement 2: The husband may pay VAT while the wife may pay percentage tax

Which statement is false?

a. Both statements

b. Neither statements

c. Statement 1

d. Statement 2

Statement 1: An employed taxpayer will pay an annual registration fee.

Statement 2: A self-employed taxpayer will pay an annual registration fee.

Which statement is correct?

a. Statement 1

b. Statement 2

c. Both statements

d. Neither statements

Statement 1: Cooperatives are generally subject to VAT.

Statement 2: Cooperatives are generally subject to percentage tax.

Which is correct?

a. Statement 1

b. Statement 2

c. Both statements

d. Neither statements

Mr. Kim Jong, a security dealer, sold the following during the month: Sale of securities for own account

Sale of securities for own account P 400,000

Commission income on sale of securities of clients 36,000

Sale of vacant lot held as investment 1,000,000

What is the amount subject to business tax?

a. P0

b. P36,000
c. P 436,000

d. P 1,436,000

A non-stock charitable organization realized the following during the month:

Membership contributions P 300,000

Donation from various donors 400,000

Sale of souvenirs 200,000

Compute the amount subject to business tax.

a. P0

b. P200,000

c. P 500,000

d. P 900,000

JDC Corporation, a merchandiser, had the following sales during the month:

Sale of merchandise P200,000

Commission income from consignors 50,000

Sales of stocks investments 180,000

Compute the amount subject to business tax.

a. P 200,000

b. P 250,000
c. P 380,000

d. P 430,000

Mang Indio has a sari-sari store with P500,000 annual sales. He had the following sales during the
month:

Sale of various merchandise P30,000

Cash donated by his brother 200,000

Cash from proceeds of bank loan 300,000

Compute the amount subject to business tax.

a. P0

b. P 30,000

c. P 230,000

d. P 530,000

Mr. Mccullot is a consultant. During the month, he had only one client from which he derived the
following receipt:

Professional fees P150,000

Less: Withholding tax 7,500

Net amount received P142,500

========

What is the amount subject to business tax?

a. P0

b. P 7,500

c. P 142,500

d. P 150,000

Mr. Kwon imports Korean vegetables and sells them in the domestic market for Korean residents in the
Philippines. The following data relates to his operations during the period:

Total landed cost of importation P 800,000

Total sales 1,200,000

What is the VAT on importation?

a.P0

b.P24,000

c.P96,000

d.P 144,000

In the immediately preceding problem, what is the VAT on sales?

a. P0

b. P24,000

c. P96,000

d. P144,000

Mr. Louisville, an Australian foreign student, sold his cellphone for P50,000.

What is the business tax payable?

a. None.

b. P1,500 percentage tax

c. P6.000 VAT

d. Excise tax plus P6,000 VAT

A printing press had the following revenues and collections during the month:

Revenue Collection

Books P200,000 P180,000

Advertising magazines 250,000 150,000

Election campaign materials 700,000 400,000

Tarp 80.000 80,000

Total P1,230,000 P810.000

========== ========

Determine the vatable amount.

a. P480,000

b. P630,000

c. P780,000

d. P1,030,000

Mr. Panzer is both employed and self-employed. He had the following income receipts during the
month:
Gross compensation income P120,000

Director's fees 80,000

Professional fees 200,000

Total gross income P400,000

========

The total amount subject to business tax is

a. P120,000.

b. P200,000.

c. P280,000.

d. P400,000.

A radio or television broadcasting company with annual gross receipt not exceeding P9,000,000 shall
pay.

a. VAT

b. 3% percentage tax

c. 2% percentage tax

d. No business tax.

Agents of foreign insurance are subject to a.

a. 2% premiums tax

b. 5% premiums tax
c. 4% premiums tax

d. 10% premiums tax

All of the following pays monthly percentage tax, except.

a. Franchise grantees of gas and water

b. Domestic carriers and keepers of garage

c. Proprietors of cockpits

d. Life insurance companies

Franchise grantees of telephone, telegraph, and other communication equipment are subject to
percentage tax on.

a. Overseas dispatch of message

b. Domestic dispatch of message

c. Both A and B

d. Neither A nor B

From which of the following sources is the gross receipt of an international carrier subject to percentage
tax?

a. Outgoing transport of passengers

b. Outgoing transport of cargoes

c. Incoming transport of passengers or cargoes

d. None of these

If the block sale of primary shares exceeds 1/3 of the outstanding shares after the IPO, the IPO tax is.

a. 4%

b. 2%

c. 19%

d. ½ of 1%
Interest income on loans is specifically subject to by a.

a. Lending investor

b. Dealer in security

c. Quasi-banking institution

d. All of these

On transport of excess baggage, cargoes or mails, an international carrier shall pay.

a. Percentage tax if it is below the VAT threshold.

b. Percentage tax even if it is above the VAT threshold.

c. VAT regardless of whether it is below or above

d. No business tax.

Operators of discos or cabarets are subject to an amusement tax of.

a. 10%

b. 15%

c. 18%

d. 30%

The gross receipt tax does not apply to.

a. Bangko Sentral ng Pilipinas.

b. Rural banks.

c. Urban banks.

d. Industrial banks.

The gross receipt tax on banks from other items of gross income aside from interest income is.

a. 7%

b. 5%

c. 3%

d. 1%
The gross receipt tax on long-term interest income is.

a. 7%

b. 5%

c. 3%

d. 1%

The gross receipts of banks pertain to.

a. Principal collection.

b. Interest collection

c. Principal and interest collection

d. None of these

The overseas communication tax is.

a. 10% of revenue.

b. 10% of gross receipts.

c. 3% of revenue.

d. 3% of gross receipts

The percentage tax on double forecast, quinella, or trifecta bets on horse race is.

a. 3%

b. 4%

c. 5%

d. 10%

The percentage tax rates on services specifically subject to percentage ranges from

a. ½ of 1% to 3%

b. ½ of 1% to 30%

c. 1% to 3%

d. 1% to 30%
The percentage tax specifically imposed on certain domestic transporters is.

a. Common carrier's tax

b. Skipper's tax

c. Transporter's tax

d. Gross receipt tax

The premiums tax on insurance premium is.

a. 2%

b. 3%

c. 5%

d. 7%

The premiums tax on life insurance applies to.

a. Direct premium

b. Re-insurance premium

c. Refunded premium

d. All of these

To an operator of a domestic sea transport vessel, which of the following vatable?

a. Fares from passengers

b. Fares from baggage

c. Fares from cargoes and mails

d. All of these

What is the business tax liability of gas and water utilities with gross receipts exceeding P10,000,000?

a. VAT

b. 3% percentage tax
c. 2% percentage tax

d. Exempt

Which domestic common carrier is specifically subject to percentage tax?

a. Common carrier by land.

b. Common carrier by air

c. Common carrier by sea

d. All of these

Which is not specifically subject to common carrier's tax?

a. Bus

b. Taxi

c. Jeepney

d. Truck

Which is subject to 3% percentage tax?

Select one:

a. Kalesa

b. Bangka

c. Bulldozer

d. Car for hire

Which is subject to premiums tax?

a. Health insurance premiums

b. Reinsurance premiums

c. Property insurance premiums

d. Fire insurance premiums

Which is the correct percentage tax on the following service providers?

a. Operators of jai-alai - 30%

b. Keepers of garage - 5%

c. Franchisees of water utility -3%

d. Life insurance companies - 5%

Statement 1: The percentage of block sale in primary offering is determined using the outstanding
shares after the IPO.

Statement 2: The percentage of stock sale in secondary offering is determined using the outstanding
shares before the IPO.

Which is incorrect?

a. Statement 1

b. Statement 2

c. Both statements

d. Neither statements

Which of the following franchisees is subject to the franchise tax?

a. Electricity

b. Transportation

c. Water utility

d. Telephone

Which of the following sales is subject to stock transaction tax?

a. The sale by an investor of a listed stock directly to buyer

b. The sale by a listed corporation of shares through the PSE

c. The sale by an investor of a listed stock through the PSE

d. The sale by a listed corporation of shares directly to buyer

The gross receipt tax on long-term interest income is

a. 7%

b. 5%

c. 3%

d. 1%

A Domestic carrier which is also engaged in international transport operation is subject to.

a. VAT

b. Excise tax

c. Percentage tax

d. VAT and percentage tax

A jeepney operator with gross receipts from passenger fares exceeding P3M in any 12 month period is
subject to.

a. 3% percentage tax

b. 12% VAT

c. 8% percentage tax

d. 0% VAT

A VAT taxpayer cannot claim input VAT credit on.

a. Government sales

b. Exempt sales

c. Regular sales

d. Zero-rated sales

All of these businesses are vatable, except.

a. Banks

b. Merchandisers

c. Security dealers
d. Non-life insurance business

An international carrier is not involved in.

a. Sea transport

b. Land transport

c. Air transport

d. Any of these

From which of the following sources does the common carriers tax specifically apply?

a. Transport of passenger

b. Transport of goods

c. Both A and B

d. Neither A nor B

No input VAT is creditable on.

a. Government sales

b. Regular sales

c. Exempt sales

d. Export sales

Realty dealers are usually registered as.

a. Percentage taxpayers

b. VAT taxpayers

c. Excise taxpayers

d. All of these

The franchise tax on radio or television franchises is.

a. 3% of revenue

b. 3% of gross receipts
c. 2% of revenue

d. 2% of gross receipts

The input VAT on export sales is.

a. 12% of sales

b. 12% of value added

c. 0% of sales

d. None

The monthly VAT return is referred to as.

a. BIR FORM 2551M

b. BIR FORM 2550M

c. BIR FORM 2551Q

d. BIR FORM 2550Q

The output VAT on exempt sales is.

a. 12% of sales

b. 0% of sales

c. 12% of value added

d. None

The rental limit on residential dwellings does not apply to.

a. Motel

b. Apartment

c. Dormitory

d. House for rent

To an international carrier, the receipts from inbound flights is.

a. Subject to percentage tax

b. Subject to VAT

c. Subject to VAT for passenger and percentage tax for cargoes

d. Exempt

To be subject to the general percentage tax, a taxable person must not be.

a. Non-VAT registered

b. Vat registered

c. Operating below the VAT threshold

d. All of these

What is the business tax payable by a person who is VAT registrable?

a. The input VAT

b. The output VAT

c. Output VAT less input VAT

d. Output VAT plus 3% percentage tax

What is the tax liability of gas and water utilities with gross receipts exceeding P10M.

a. VAT

b. 3% PERCENTAGE TAX

c. 2% PERCENTAGE TAX

d. Exempt

Which is a possible source of input VAT?

a. Importation

b. Purchase from VAT- sellers

c. Purchase from non-VAT sellers

d. A and B

Which is non-vatable?
a. Export sales of non-Vat registered persons

b. Regular sales of registrable persons

c. Export sales of VAT- registered persons

d. Exempt sales billed as regular sales by VAT persons

Which is not exempt from the overseas communication tax?

a. Government

b. PEZA locators

c. Diplomatic services

d. News services

21.Which is not specifically subject to a percentage tax?

a. International sea or air carrier

b. Domestic common carrier by land

c. Domestic common carrier by sea

d. A and B

Which is not VAT-exempt?

a. Importation of agricultural products.

b. Receipts from taxicab

c. Gross receipts of professional practitioner.

d. Gross receipts of hospitals.

Which is not vatable as a separate entity?

a. Subsidiary company

b. A Branch

c. A spouse

d. A parent company
Which is VAT exempt receipt to a bus operator?

a. Receipts from cargoes

b. Receipts from baggage

c. Receipts from passengers

d. All of these

25.Which is vatable?

a. Sales of vessels

b. Sale of aircraft

c. Lease of vessels

d. Sale of buses

26.Which is vatable?

a. Sales of books

b. Sales of fertilizers

c. Sales of marine food products

d. Gross receipts CPA practitioner

Which of the following are vatable?

a. Bowling ally

b. A disco

c. An operator of cockpits

d. An operator of race tracks.

Which of the following will pay vat?

a. Food processor

b. Farmer

c. Fruit dealer

d. Rice miller
Which of these is vatable?

a. City taxis

b. City ses

c. Provincial buses

d. Sea vessels

Which of these is vatable?

a. Properties classified as capital assets

b. Properties classified as ordinary assets

c. Both A and B

d. Neither A nor B

A SERVICE PROVIDER HAD THE FOLLOWING DATA DURING THE MONTH:

Revenue, including VAT P268,000

Gross receipts including VAT 180,000

Input VAT 12,000

Assuming the taxpayer is a VAT registered. Compute the VAT payable.

a. 9,600

b. 7,286

c. 16,800

d. 19,286

Assuming the taxpayer is a VAT registrable person, Compute the VAT payable.
a. 9,600

b. 7,286

c. 16,800

d. 19,286

A SELLER OF GOODS HAD THE FOLLOWING DATA DURING THE MONTH.

Sales invoice ( total billed prices ) P436,800

Total cash collections 380,000

Sales returns and allowances, ( billed price 11,200

Input VAT 14,000

Assuming the taxpayer is VAT registered person, compute the VAT payable.

a. P0

b. P26,800

c. P31,600

d. P35,600

Assuming the taxpayer is a VAT registrable person, compute the VAT payable.

a. P0

b. P26,800

c. P45,600

d. P46,800

35. The following sales and purchases were taken from the books of accounts of a VAT taxpayer:
 APRIL MAY JUNE

Sales P625,000 P400,000 P600,000

Purchases 400,000 420,000 200,000

What is the VAT payable in June?

a. P72, 600

b. P72,000

c. P48,000

d. P45,600

A sale was invoiced by a VAT-seller at P500,000. Compute the output VAT.

a. P0

b. P50,000

c. P53,571

d. P60,000

A VAT-registered seller wishes to bill the sale of unprocessed meat for P50,000. At what amount should
the sale be billed?

a. P51,500

b. P50,000

c. P53,571

d. P560,000

A VAT-registered department store had an invoiced sale with the following selling prices:

1 cavan rice P2,500

Vegetables 1,500

Cooking oil 200

Noodles 1,300

Total P5,500

=======

What should be the invoice price?

a. P5,500

b. P5,545

c. P5,665

d. P5,680

The sale of fruits was invoiced in a VAT invoiced at P24,000.

What is the output VAT?

a. P0

b. P2,571

c. P2,880

d. P4,000

A taxpayer had the following purchases of vatable goods exclusive of VAT.

Purchases from non-VAT suppliers P180,000

Purchases from VAT suppliers 1,000,000

Total P1,180,000

What is the input VAT?

a. P107,143

b. P120,000

c. P126,429

d. P141,600

A non-VAT taxpayer sold goods for P200,000, half of which are paid by the buyer who gave promissory
note for the balance. The output VAT is

a. P0

b. P12,000

c. P24,000

d. P48,000

A VAT-taxpayer sold goods for P40,000 which excludes a P1,000 delivery charge and VAT. The buyer paid
P30,000 downpayment and promised to pay the balance of P11,000 plus the VAT in 30 days.

What is the output VAT?

a. P4,920

b. P3,600

c. P4,800

d. P0

A VAT-taxpayer compiled the following for purposes of filing his BIR FORM 2550M.

Sales to VAT-taxpayers P 200,000

Sales to non-VAT taxpayers 150,000

Total P350,000

What is the output VAT?

a.P0

b. P18,000

c. P24,000

d. P42,000

A restaurant which also caters for special events had the following data which may be relevant in filing
its BIR FORM 2550M.

Gross receipts from customers P500,000

Gross receipts from advanced reservations 50,000

Clients balances evidenced by promissory notes 70,000

Compute the output VAT.

a. P66,000

b. P60,000

c. P68,400

d. P74,400

A VAT-registered seller merely indicated an amount of P300,000 on a bill without separately indicating
then VAT thereon.

What is the out VAT?

a. P0

b. P32,143

c. P36,000

d. P40,000

ABC Insurance company has the following receipts and receivables from the insurance products.

LIFE PROPERTY TOTAL

Cash collections P 10M P5M P 15M

Checks 2M 1M 3M

Total P12M P6M P18M

Compute for the premium tax.

a. P240,000

b. P200,000

c. P300,000

d. P360,000

Billbank reported the following receipts during the month:

1 to 3 year loan P1,200,000

3 to 5 year loan 800,000

6 to 8 year loan 600,000

8 to 10 year loan 400,000

Compute for the gross receipt tax.

a. P100,000

b. P110,000

c. P70,000

d. P80,000

A Quasi-bank receives the following from its short-term placement of excess funds:

Dividend income P 500,000

Interest income net of final tax 800,000

Compute the total gross receipt tax.

a. P0

b. P50,000

c. P40,000

d. P91,000

A cellular Co., had the following receipts:

P2,000,000 from domestic calls

P3,000,000 from – incoming calls to the Philippines

P2,500,000 from Outgoing calls abroad

Compute the percentage tax.

a. P0

b. P250,000

c. P75,000

d. P165,000

Ads Co., sells bread to various customers and makes P150,000 monthly sales on the average. During the
month it made sales of P200,000 out of which only P150,000 was collected. Compute the percentage
tax.

a. P0

b. P6,000

c. P4,500

d. P4,800

A real property is sold by a dealer for P1,900,000. The property had a zonal value of P2,000,000,
assessed value of P1,800,000 and independent appraisal value of P2,400,000, What is the "gross selling
price" for VAT purposes?

a. P1,800,000

b. P1,900,000

c. P2,000,000

d. P2,400,000

What is the tax basis of the output VAT on installment sales?

a. Gross selling price

b. Installment received

c. Fair value of property sold

d. Fair value or gross selling price whichever is higher

What is the tax basis of the output VAT on sales of goods with unreasonably lower selling price?

a. Gross selling price

b. Gross receipts

c. Fair value

d. Fair value or gross selling price whichever is higher

What is the tax basis of the output VAT on sales of real properties?

a. Selling price

b. Gross receipts

c. Fair value

d. Fair value or selling price whichever is higher

Which is a deemed sale transaction?

a. Change in corporate name

b. Merger or consolidation of corporations

c. Sale of the entire business

d. Placement of an investment by a shareholder

Which is a deemed sales transaction subject to VAT?

a. Retirement of business by a non-VAT taxpayer

b. Dacion en pago of properties by a person not engaged in business

c. Distribution of property dividend by a VAT taxpayer

d. All of these

Which is not considered in the determination of the tax base of the VAT sale of real properties?

a. Selling price

b. Zonal value

c. Assessed value

d. Appraisal value

Which is not subject to the 12% output tax?

a. Gross receipts from restaurant

b. Gross receipts from professional practice

c. Gross receipts from race track operations.

d. Sale of medicines

Which is subject to the 12% regular output tax?

a. Sale of residential dwelling with P1,500,000 unit price

b. Gross receipts from residential dwelling with P15,000 monthly rental

c. Receipts from publishing of books

d. Gross receipts of hospital

Which is subject to the 12% regular output VAT?

a. Sale of silver to the Bangko Sentral ng Pilipinas

b. Sale of services to a non-resident person

c. Sale of office supplies to the Asian Development Bank

d. Export sale by a non-VAT taxpayer

Which of the following dividend declaration is a deemed VAT?

a. Distribution of stock dividends.

b. Distribution of investments as property dividends

c. Distribution of cash dividends

d. Distribution of properties held for sale as dividends

Which of the following is not subject to output tax when sold by a realty dealer?

a. Sale of properties held for sale

b. Sale of properties used in business

c. Sale of investment in stocks

d. Exchange of properties held for sale in settlement of debt

Which of the following is subject to the Output tax?

a. Sale of books

b. Sale of agricultural or marine food products

c. Sale of non-food agricultural or marine products

d. Sale of educational services by a school

Which of the following receipts from a domestic common carrier are not subject to regular output tax?

a. Receipts from transport of passengers by land

b. Receipts from transport of cargoes by land

c. Receipts from transport of passengers by sea

d. Receipts from transport of cargoes by air

Which of these is excluded in the gross selling price?

a. Excise tax

b. Output tax

c. Contract price.

d. Delivery charges

A non-VAT taxpayer sold goods for P20,000, half of which are paid by the buyer who gave a promissory
note for the balance. The output VAT is

a. P0

b. P1,200

c. P 2,400

d. P 4,800

A VAT-taxpayer sold goods for P40,000 which excludes a P1,000 delivery charge and VAT. The buyer paid
P30,000 downpayment and promised to pay the P11,000 balance plus the VAT in 30 days.

What is the output VAT?

a. P4,920

b. P4,800

c. P3,600

d. P0

A VAT-taxpayer compiled the following for the purpose of filing his BIR Form 2550M:

Sales to VAT taxpayers P 200,000

Sales to non-VAT taxpayers 150,000

Total P 350.000

========

What is the output VAT?

a. P0

b. P 18,000

c. P 24,000

d. P 42,000

A VAT-registered seller sold various merchandise at wholesale price, exclusive of VAT:

Product total retail price P300,000

Less: Trade discount (10%) 30,000

Product wholesale price P270,000

Less: Cash discount (5%)* 13,500

Net price due in 15 days P256,500

========

*If customer pays in 15 days

What is the output VAT?

a. P0

b. P30,780

c. P 32,400

d. P 36,000

A non-VAT taxpayer prepared the following summary of sales for the purpose of filing his BIR Form
25510:

Sales to VAT taxpayers P 200,000

Sales to non-VAT taxpayers 150.000

Total P 350.000

========

Compute the output VAT.

a. P0

b. P18,000

c. P24,000

d.P 36,000P42,000
Mr. Venta is a VAT-registered seller of "Hot Siopao". During the month, it sold a total of P 400,000 out of
which P300,000 were paid by customers During the month he made a total collection of P420,000
inclusive of collection of past accounts.

Compute the output VAT.

a. P50,400

b. P48,000

c. P36,000

d. P0

A VAT-registered practicing lawyer disclosed the following during a month:

Total professional fees billed P800,000

Total professional fees collected 600,000

Advances by certain clients 200,000

Compute the output VAT.

a. P120,000

b. P96,000

c. P72,000

d. P88,286

A VAT-registered service provider prepared the following list of cash collections during a month:

Gross receipts inclusive of VAT P504,000

Client advances 200,000

Proceeds of bank loan 300,000

Total P1,014,000

===========

Compute the output VAT.

a. P54,000

b. P78,000

c. P84,480

d. P108,643

A VAT-registered seller of goods billed a customer the following:

List price P800,000

Trade discount 125,000

Net price P675,000

========

The credit term for the sale was 2% /15, n/60 days.

What is the output VAT?

a. P 96,000

b. P 81,000

c. P 79,380
d. P 70,875

A VAT-registered seller of goods reported the following during a month:

Gross sales P500,000

Less:

Cash discount for early payment P50,000

Sale returns 20,000 70,000

Net sales P430,000

========

What is the output VAT for the month?

a. P51,600

b. P 54,000

c. P 57,600

d. P 60,000

A restaurant which also caters for special events had the following data which may be relevant in filing
its BIR Form 2550M:

Gross receipts from customers P500,000

Gross receipts from advanced reservations 50,000

Client balances evidenced by promissory notes 70,000

Total P620.000
 ========

Compute the output VAT.

a. P 60,000

b. P 66,000

c. P 66,000

d. P 74,400

A VAT-registered seller merely indicated an amount of P300,000 on a bill without separately indicating
the VAT thereon.

What is the output VAT?

a. P0

b. P 32,143

c. P 36,000

d. P 40,000

A VAT taxpayer had the following invoiced sales during the first quarter of 2020:

January P280,000

February 347,200

March 313,600

What is the reportable output VAT respectively in January, February and March?

a. P 33,600; P 41,664; P 37,632

b. P 33,600; P 41,664; P 112,896

c. P30,000; P 37.200: P 33,600

d. P 30,000; P 37,200; P 100,800

A real property dealer sold an agricultural lot for P2,500,000 with the following values:

Appraisal value P3,000,000

Zonal value 2,000,000

Assessed value. 1,500,000

Compute the output VAT.

a. P 180,000

b. P 240,000

c. P 300,000

d. P 360,000

A VAT-registered building contractor who reports under the calendar year basis had the following
billings and collections (inclusive of VAT) regarding its construction contracts:

Bill Collection

June P448,000 P403,200

July 504,000 453,600

August 336,000 302,400

What is the output VAT respectively in June and July?

a. P 53,760; P 114,240

b. P 48,000; P 54,000

c. P 43,200; P 91,800

d. P 43,200; P 48,600

In the immediately preceding problem, what is the output VAT in August?

a. P138,000

b. P 124,200

c. P 36,000

d. P 32,400

In June 2019, a realty dealer sold a residential lot for P2,000,000. The lot had a fair value of P2,500,000
at the date of sale. The buyer agreed to pay in P 100,000 monthly installments starting June 2019.

What is the output VAT respectively in June 2019 and July 2019?

a. P300,000; P0

b. P 124,200; P0

c. P 15,000; P 15,000

d. P 12000; P 12,000

On April, 2020, a VAT-registered realty developer sold a condominium unit at a selling price of
P3,600,000. The buyer agreed to pay in 36 monthly installments. The property had a zonal value of
P4,000,000 and assessed value of P3,000,000 at the date of sale.

What is the output VAT on every installment?

a. P13,333

b. P12.000

c. P 10,000

d. P0

A realtor sold a commercial land for P1,500,000 on November 2020. A 20% downpayment was required
and the balance was due in 20 monthly installment of P 60,000 starting December 2020.
What is the output VAT respectively for November and the quarter ending December 2020?

a. P 180,000; P 180,000

b. P 36,000; P 43,200

c. P 36,000; P7,200

d. P180,000; P0

A VAT-registered seller of goods reported the following in a month:

Cash sales P200,000

Credit sales 300,000

Installment sales 400,000

Consignment sales (30 days old) 100,000

Total P1,000,000

==========

Compute the output VAT.

a. P24,000

b. P60,000

c. P72,000

d. P108,000

A non-large-taxpayer shall file the application for effectively zero- rating with the.

a. RDO where the taxpayer is registered

b. RDO having jurisdiction over their principal place of business

c. Audit Information, Tax Exemption & Incentives Division

d. International Tax Affairs Division

An approved application for effectively zero-rating is given.

a. Prospective effect

b. Retrospective effect

c. A & B

d. No effect

Sale of services to this entity is subject to 12 VAT.

a. Development Bank of the Phils.

b. IRRI

c. PAGCOR

d. Philippine National Red Cross

The sale of services to the following can not qualify for zero-rating.

a. Sale to a resident person doing business in the Philippines.

b. Sale to non-resident doing business abroad

c. Sale to non-resident not engaged in business abroad

d. Sale to a resident export-oriented enterprise.

To which of the following is a sale subject to zero-rated VAT?

a. PAGCOR

b. Philippine National Red Cross

c. Ecozone entities

d. Government agencies

Which is correct?

a. All services rendered in the custom’s territory is subject to the 12% VAT

b. Services rendered to an ecozone entity is subject to 12% VAT

c. Services rendered abroad is subject to 0% VAT

d. Services rendered abroad is exempt from any business tax.

Which is incorrect with effectively zero-rated sales?

a. The sale must be rendered in the Philippines

b. The sale must be rendered to a person with indirect tax exemptions

c. The sale need not be paid for in acceptable foreign currencies

d. The sale must be made by a VAT-exempt person

Which is incorrect with foreign currency denominated sales?

a. The goods must be destined for consumption abroad

b. Title to the goods must pass to the buyer outside Philippine territory

c. The sale must be paid for in acceptable foreign currency

d. The remittance of the proceeds of the sale must be accounted for under Central bank rules.

Which is not a constructive export?

a. Sale to a bonded manufacturing warehouse of an export-oriented enterprise,

b. Sale to export processing zone.

c. Sale to diplomatic missions

d. Sale to a foreign customer abroad.

Which is not required in the zero-rating of services rendered to a non-resident?

a. The services must be performed in the Philippines.

b. The non-resident alien must be a resident of the Philippines at the time the services were rendered.

c. The services must be paid in acceptable foreign currency

d. The payment must be accounted for under the rules and regulations of the BSP

Which is not subject to zero-rating?

a. Services to an export-oriented enterprise.

b. Sale of services to BOI-registered enterprise

c. Sale of services to PEZA locators

d. Sale of services to embassies with VEC

Which is not subject to zero-rating?

a. Sale to a domestic air carrier on its international operations

b. Sale to a domestic se carrier on its domestic operations

c. Sale to an international air carrier

d. Sale to an international sea carrier

Which is subject to zero-rating?

a. Outgoing transport of passengers by an international carrier

b. Outgoing transport of mails, baggage or cargoes by an international carrier

c. Outgoing transport of passengers, mails, baggage or cargoes by domestic carriers

d. Incoming transport of passengers, cargoes, excess baggage or mails by a domestic carrier

Which of these entities subject to zero-rating on the sale on the sale of renewable sources of energy?

a. Generation companies

b. Transmission companies

c. Distribution companies

d. All of these

Which of these services is subject to zero-rating?

a. Incoming transport by an international se carrier

b. Incoming transport by a domestic sea carrier

c. Incoming transport by a domestic sea carrier

d. None of these
Which is subject to zero-rating?

CUSTOMER PLACE RENDERED AMOUNT

Select one:

a. Resident alien Philippines $150,000

b. Non-resident foreign corporation Philippines $ 200,000

c. Non-resident alien Abroad P5,000,000

d. Non-resident citizen Abroad Y 10,000,000

A business payer reported the following sale during a period:

Domestic sales P200,000

Deemed sales 100,000

Export sales 300,000

Compute the zero-rated sales assuming the seller is a VAT taxpayer and a non-VAT taxpayer?

a.P600,000; P0

b. P300,000; P0

c.P600,000; P300,000

d. P300,000; P300,000

An exporter entered into the following transactions during the month:

Type of transaction Amount Unsold portion

 Export sales P1,000,000 -

Export sales $ 100,000 -

60-day consignment abroad $ 50,000 40%

Forex rate = $1 : P42.50

Compute the zero rated sales.

Select one:

a. P0

b. P4,250,000

c. P6,100,000

d. P5,525,000

Export Co., made the following export and foreign consignments:

Types of transactions Amount

Export sales 1 P1,000,000

Export sales 2 $ 80,000

Consignment 1 $ 50,000

Consignment 2 $ 10,000
Export sales 2 pertains to goods owned by another entity where Export Co. Was granted 10% export
commission. Consignment 1 was sold by foreign consignees during the month. Consignment 2 remained
unsold 75 days as of the end of the current month. The applicable exchange rate is P43:1$.

Compute the total zero-rated sales or receipts.

a. P2,494,000

b. P2,924,000

c. P3,494,000

d. P5,590,000

JC Co. A maintenance contractor had the following receipts from the following clients in June 2019:

Receipts from Development Bank of the Phils. P 1,000,000

Receipts from Oceania an international carrier 1,200,000

Receipts from International Rice Research Institute 800,000

Compute the total zer-rated sales or receipts.

a. P0

b.P800,000

c. P2,000,000

d. P3,000,000

A non-VAT taxpayer had the following sales during the month:

Direct export sales $ 2,000

 Domestic sales P250,000

Assuming the exchange rate is P43.20 : $1, compute the zero-rated sales

a. P0

b. P86,400

c. P250,000

d. P336,400

HT a service provider had the following receipts during the month:

Receipts from clients inside PEZA P 3,000,000

Receipts from clients in the custom’s territory:

From the government agencies 1,000,000

From the Asian Development Bank 1,200,000

From non-profit clients 1,500,000

From private clients 2,000,000

What is the total amount of zero-rated sales?

a. P3,000,000

b. P4,000,000

c. P4,200,000

d. P5,200,000

A VAT service provider had the following receipts from services rendered in the Philippine in 2018:
 Paid for in Foreign Currency ( Peso equivalent )

Service rendered to non-residents P 500,000

Service rendered to residents 400,000

Paid for in local currency

Service rendered to non-residents P 800,000

Service rendered to residents 1,200,000

Service rendered to IRRI 200,000

What is the total zero-rated sales?

a. P500,000

b. P400,000

c. P700,000

d. P900,000

A PEZA locator had the following sales to entities within the customs territories:

Sale of goods to a domestic firm P4,000,000

Sale of scrap materials to a Philippine firm $100,000

What is the zero-rated sales? Forex rate is P43.00 : $1.

a. P0

b. P4,000,000

c. P4,300,000

d. P8,300,000

A BSP assay report on a sale of gold nuggets discloses the following:

Gold content (850 x P1,800/gram ) P 1,530,000

Silver content ( 250 x P38/ gram ) 9,500

What is the total vatable sales and the output VAT?

a. P1,539,500; P184,740

b. P1,539,500; P1,140

c. P9,500; P1,140

d. P1,530,000 ; P183,600

Only VAT- registered taxpayers can claim input VAT.

True

False

The total considerations paid by the purchaser to VAT taxpayers includes the selling price and the VAT

True

False

A non-VAT registered taxpayer can deduct their I put VAT from their gross income.
True

False

The term creditable input VAT is deductible from gross income.

True

False

Input VAT is computed as 12/112 of the selling price of the seller.

True

False

The purchase of exempt goods and services has no input VAT.

True

False

Input VAT on purchase for personal consumption are creditable against output VAT.

True

False

Input VAT need not be evidenced by a VAT invoice to be creditable.

True

False

The input VAT on importation is creditable on the month of importation.

True

False

The input VAT on purchases of services is creditable in the month of payment.

True

False

The input VAT on purchase of real properties can not be paid in installment.

True

False

The presumptive input VAT is 2% of primary agricultural products,

True

False

The standard input VAT is 7% of sales to the government.

True

False

The excess of output VAT over input VAT is referred to as input VAT carry over.

True

False

The input VAT carry over of the prior quarter is deductible in the first month of the current quarter.

True

False

There is no input VAT from purchases made from non-VAT-registered suppliers.

True

False

Registrable persons can claim input VAT.

True

False

Exempt persons who issue VAT invoices can claim input VAT.

True

False

Input VAT may come from importation and domestic purchase.

True

False

If the VAT is not separately billed, it shall be computed as 12/112 of the selling price in the sales
document.

True

False

Only input VAT for purchase of goods or services in the course of business is creditable.

True

False

The final withheld VAT is.

a. 7% of the sales made to the government

b. 5% of the sales made to the government

c. 7% of the Input VAT traceable to the government

d. 5% of the purchases on sales made to the government

Which of the following cannot claim presumptive input VAT?

a. Processor of sardines

b. Processor of milk

c. Manufacturer of grease oil

d. Manufacturer of packed noodles based instant meals

The withheld final percentage tax is.

a. 7% of the sales made to government.

b. 3% of the sales made to government.

c. 5% of the sales made to the government.

d. 3% of the purchases on sales made to the government.

If the standard input VAT exceeds the actual input VAT traceable to government sales, the excess is.

a. An item of gross income subject to income tax.

b. An item of deduction against gross income in income tax.

c. Claimable as a tax credit against other national taxes.

d. Ignored since it has no further use.

A VAT-registered purchaser received the following billing from a VAT registered seller:

Selling price P200,000

Output VAT 20,000

Invoice price P220,000

========

What is the creditable input VAT?

a. P0

b. P20,000

c. P23,571

d. P24,000

A VAT taxpayer made the following purchases during the year:

Purchases of goods, exclusive of VAT P50,000

Purchases of goods, inclusive of VAT 44,800

Purchase of services, exempt from VAT 10,000

Purchase of services, inclusive of VAT 23,520

Total P128,320

========

What is the input VAT?

a. P0

b.P12,677

c.P13,320

d.P14,198

Mr. Alarcon is a percentage taxpayer. He bought goods billed at an invoice price of P20,160 from a VAT-
registered taxpayer. Mr. Alarcon sold the goods in the same month at a price of P42,000. How much
input VAT is claimable by Mr. Alarcon?
a. P0

b. P160

c. P2,160

d. P2,419

A taxpayer who became subject to VAT on the third quarter of 2020 had the following input VAT:

August 2020 P 32,000

September 2020 40,000

October 2020 18,000

What is the claimable input VAT for the third quarter of 2020?

a. P32,000

b. P40,000

c. P72,000

d. P90,000

Mr. Donetsk, a VAT-taxpayer, purchased the following from a VAT-taxpayer:

VAT-exempt goods P20,000

Vatable goods 40,000

Total invoice price P60,000

=======

Compute the input VAT allowable to Mr. Donetsk.

a. P0

b. P2,143

c. P4,286

d. P4,800

Traders who import wheat shall not pat VAT

True

False

The importation of sugar cane is not subject to advance input VAT

True

False

A manufacturer of refined sugar shall pay advanced VAT before pulling out the refined sugar at the point
of production.

True

False

The owner of naturally grown timber shall pay advanced VAT prior to its transport to the buyers.

True

False

Traders of refined sugar and flour shall pay advanced VAT

True

False

A VAT overpayment may be carried –over in the succeeding periods.

True

False

Advance VAT is an input VAT

True

False

The quarterly VAT due of the taxpayer is paid within 25 days following the end of the quarter.

True

False

Wheat trader is a person who is engaged in the importing/buying and selling of imported wheat.

True

False

The unutilized input VAT arising from zero-rated sales may be claimed as a tax refund.

True

False

Andoy had the following transactions in August 2021:

Sale of VAT-exempt goods P200,000

Sales of vatable goods 400,000

Purchase of VAT exempt goods 120,000

Purchase of vatable goods 250,000

Compute the VAT payable, assume VAT are exclusive.

a. 42,000

b. 27,600

c. 21,000

d. 18,000

A seller of goods reported the following in the month:

Cash sales P450,000

Credit sales (40% collected ) 650,000

Installment sales ( 30$ collected ) 400,000

Total sales exclusive of VAT P1,500,000

Purchase of goods, VAT inclusive 448,000

Purchase of equipment, VAT inclusive 1,008,000

What is the VAT payable?

a. 132,000

b. 130,200

c. 24,000

d. P0

The net income of Aklan Trading Company during the quarter is as follows:
Gross income (40% of sales) P 360,000

Less: Expenses 120,000

Net income P 240.000

========

37.50% of the expenses were from VAT-suppliers. All inventories were purchased from VAT suppliers.
Inventory increased by P60,000 at the end of the month. Compute the VAT payable.

a. P45,000

b. P37,800

c. P30,600

d. P28,800

ABC Construction Company started work on a P5,600,000 fixed price construction contract. Details of its
operations during the quarter is presented below:

Total progress billings on the contract P2,688,000

Collection from the contract 2,240,000

Depreciation expense 600,000

Supplies expense 134.400

Salaries expense 400,000

Utilities expense, inclusive of P12,000 VAT 140,000

Assuming all data are inclusive of VAT, compute the VAT payable.

a. P 261,600

b. P 258,600

c. P213,600

d. P 210,600

Mrs. Baniaga, a fruit and vegetable dealer, had the following sales and purchases:

Sales of fruits and vegetables P800,000

Purchase of fruits and vegetables 500,000

Purchases of cellophane and containers, exclusive of VAT 20,000

Determine the VAT payable.

a. P0

b. P33,600

c. P36,000

d. P38,400

A domestic seller and exporter had the following summary of trading activities in the quarter:

Export sales P1,000,000

Domestic sales 1,500,000

Purchases 1,200,000
P 36,000 input VAT was applied for a tax refund during the period, P12,000 VAT was paid in the first two
prior months of the quarter. The VAT payable be still due should

a. P24,000

b. P36,000

c. P60,000

d. P72,000

A realty dealer disposed two residential units during the month:

Unit 141-B P2,500,000

Unit 142-C 3,500,000

Total sales, exclusive of VAT P6,000,000

Total input VAT during the month P210,000

Compute the VAT payable.

a. P720,000

b. P 510,000

c. P 297,500

d. P 210,000

A VAT-registered restaurant had the following transactions during the month:

Receipts from foods served

Receipts from softdrinks

Purchase of rice, meat and vegetables

Purchase of vegetables

Purchase of softdrinks

Purchase of food condiments

Assuming all amounts are exclusive of VAT, compute the VAT payable.

Select one:

a. P0

b. P9,600

c. P36,000

d. P72,000

A VAT-registered tax practitioner who uses the cash basis of accounting disclosed the following results of
operations (exclusive of VAT):

Receipts from clients P5,000,000

Advances from clients. 1,000,000

Salaries expense 3,000,000

Depreciation expense 200,000

Office supplies expense 500,000

Utilities expense 50,000

Compute the VAT payable.

a. P150,000

b. P534,000

c. P634,000

d. P654,000

DZQC, a radio broadcasting company with P 8M annual receipts, generated a total revenue of P1M out
of which P 800,000 was collected during the month. It incurred P600,000 total expenditures out of
which P224,000 was paid to VAT suppliers. Compute the VAT payable.

a. P0

b. P 24,000

c. P 48,000

d. P 72,000

Denzi Marketing bought a building to house its retail activities. The following relate to its sales and input
VAT during the quarter:

Sales of goods P3,000,000

Export sales 1,500,000

Sales of VAT-exempt goods 500,000

Total sales, exclusive of VAT P5,000,000

==========

Input VAT carry-over in the prior quarter P60,000

Input VAT on purchase of vatable goods 150,000

Input VAT on building (20 year life) 180,000

VAT paid in prior months 80,000

The building was acquired on the second month of the quarter.

What is the VAT payable?

a. P0

b. P64,000

c. P 70,000

d. P130,000

A domestic sea carrier had the following receipts and attributable input VAT for the month:

Receipts from passengers P2,400,000

Receipts from cargoes 600,000

Total input VAT for the month 240,000

What is the VAT payable?

a. P120,000

b. P48,000

c. P24,000

d. P0

A VAT registered television company with annual receipts of PBM reported P1M total revenue for the
month of June 2020. It collected P 1,200,000 from various clients including advances and paid P800,000
of expenses, P560,000 of which was paid to VAT suppliers.

The collections and payments are inclusive of VAT.

What is the VAT payable?

a. P0

b. P52,800

c. P68,571

d. P76,800

Sweet Papa Corporation is a VAT-registered sugar refiner. Details of its operations are as follows:

Domestic sale of refined sugar P3,000,000

Export sales of refined sugar 2,000,000

Purchases of sugar cane P1,000,000

Other purchases, inclusive of VAT 448,000

Advanced input VAT paid P 240,000

What is the VAT payable?

a. P312,000

b. P272,000

c. P72,000

d. P32,000

A VAT-registered professional review school had the following receipts during the month:

Tuition fees P800,000

Miscellaneous fees 100,000

Sale of snacks 150,000

Reviewer salaries 300,000

Purchase of supplies, exclusive of VAT 150,000

Other expenses, inclusive of P 16,000 VAT 220,000

Compute the VAT payable.

a. P0

b. P 2,000

c. P 92,000

d. P 110,000

The amortization of input VAT on certain properties is allowed when the aggregate acquisition costs.

a. Exceeds P1M.

b. Do not exceed P1M.

c. Exceeds P1,919,500.
d. Exceeds P10M.

The amortization period for depreciable capital goods or properties shall be.

a. Whichever is longer between the actual useful life in months or 60 months

b. Whichever is shorter between the actual useful life in months or 60

c. 60 months if the useful life of the capital goods or properties does not exceed 5 years.

d. 60 months, without regard to the actual useful life in months.

The input VAT on purchases of real properties may be claimed in installment if.

a. The VAT seller is subject to VAT on the installment payments.

b. The sale of the real property is qualified as a deferred payment sale.

c. The seller is a realty dealer.

d. The seller is a non-realty dealer.

The presumptive input VAT is.

a. 2% of primary agricultural input.

b. 2% of primary marine input.

c. 4% of primary agricultural or marine input.

d. 4% of primary agricultural input.

The standard input VAT is equivalent to.

a. 7% of the sales made to government.

b. 5% of the sales made to government.

c. 7% of the input VAT traceable to the government.

d. 5% of the purchases on sales made to the government.

The summary list is required for.

a. Large taxpayers

b. Non-VAT taxpayers
c. Non-VAT taxpayers

d. All VAT taxpayers

The withheld final VAT is.

a. 7% of the sales made to government.

b. 5% of the sales made to government.

c. 7% of the input VAT traceable to the government.

d. 5% of the purchases on sales made to the government

What is the effectivity of the request for cancellation of VAT registration?

a. On the day of the request is approved

b. On the day following the date the request was approved

c. On the month following the month the cancellation was approved

d. On the quarter following the quarter when the cancellation was approved

What is the requirement for zero-rating of sales to a PEZA-registered enterprise?

a. The goods must be actually imported

b. Export sales must exceed 70% of annual production

c. Production must be 100% exported

d. None

What is the requirement for zero-rating of sales to BOI-registered enterprises?

a. At least 70% of production must be exported

b. More than 70% of production must be exported

c. 100% of production must be exported

d. More than 100% of production must be exported

What sale is not subject to zero-rating?

a. Sale to a senior citizen

b. Sale to a registered export trader

c. Sale to a bonded manufacturing warehouse of an export trader

d. Sale to an export processing zone

Which industry is not subject to VAT?

a. Mining

b. Construction

c. Banking

d. Air transport

Which is a correct statement regarding the advanced input VAT?

a. The advanced input VAT is synonymous to the VAT on importation.

b. The advanced input VAT is the final VAT due from the seller.

c. The advanced input VAT is a down payment of the VAT on the ultimate sale of refined sugar, flour or
timber.

d. The advanced input VAT is in lieu of the actual input VAT traceable to the sales of refined sugar, flour,
or timber.

Which is correct regarding the treatment of input VAT?

a. Input VAT on zero-rated sales is deductible from gross income.

b. Input VAT on zero-rated sales is creditable against output VAT or refundable.

c. Input VAT on zero-rated sales is both deductible from gross income and creditable against output VAT.

d. Input VAT on exempt sales is refundable or creditable.

Which is included in the VAT basis of the 2% transitional input VAT?

a. Inventory of processed foods

b. Inventory of fruits and vegetables

c. Inventory of non-food goods

d. A and C
Which is non-vatable?

a. Sales to a domestic shipping company

b. Sales to an international carrier

c. Sale of goods to a BOI-registered manufacturer which exports 80% of its annual production

d. Sales to senior citizens

Which is not a constructive export?

a. Direct export to a foreign country

b. Sale to ecozones

c. Sales to diplomatic missions

d. Sales to export-oriented enterprises

Which is not a tax credit against.net VAT payable?

a. Advanced VAT

b. Monthly VAT payments

c. Standard input VAT

d. Final withheld VAT

Which is not a VAT compliance requirement?

a. VAT invoicing

b. Transactional Recording

c. Filing of monthly summary list

d. None of these

Which is not subject to payment of advanced input VAT?

a. Milk

b. Refined sugar

c. Flour

d. Timber
Which is subject to a zero-rated VAT?

a. Sale of fruits and vegetable to an embassy personnel with VEIC

b. Sale of fruits and vegetables to senior citizens

c. Sale of fruits and vegetables to persons with disability

d. Sales of any goods to the government

Which of the following can be claimed as VAT refund?

a. Input VAT on export

b. Advanced input VAT

c. Input VAT on sales to the government.

d. A and B

Which of the following cannot claim presumptive input VAT?

a. Processor of sardines.

b. Manufacturer of grease oil

c. Manufacturer of packed noodle based instant meals.

d. Processor of milk

Which of the following input VAT may be amortized?

a. Input VAT on the sale of services

b. Input VAT on the purchase of goods on installment

c. Input VAT on the purchase of non-depreciable property

d. Input VAT on the purchase of depreciable property

Which of the following is not subject to the requirement to pay advanced VAT?

a. Wheat traders

b. Millers of flour

c. Sugar refineries which process sugar for their own accounts

d. Owners of harvested timber

Which of the following properties may be included in the basis of the 2% transitional input VAT?

a. Building subject to periodic provision for depreciation

b. Land and other properties not subject to depreciation

c. Land or building classified as inventory held for sale

d. Land or building classified as property held for use

Which of the following requires prior BIR application for effective zero-rating?

a. Sales to PEZA locators as locators

b. Direct export sales

c. Foreign currency denominated sales

d. Sales to export-oriented enterprises

Which of the following tax credit can be claimed through a tax credit certificate?

a. Input VAT on export sales

b. Advanced input VAT

c. Input VAT on sales to the government

d. A and B

Which statement is correct?

a. Zero-rated sales are taxable, but will not result in an output VAT.

b. Zero-rated sales are non-taxable; hence, these will not result in an output VAT.

c. VAT zero-rating and VAT exemption are synonymous concepts.

d. All of these

Statement 1: The export of VAT-exempt goods is subject to zero-rated VAT.

Statement 2: The domestic sale of VAT-exempt goods is subject 12% VAT.

Which is incorrect?

a. Statement 1

b. Statement 2
c. Both statements

d. Neither statement

A business payer reported the following sale during a period:

Domestic sales P200,000

Deemed sales 100,000

Export sales 300,000

Total P600,000

========

Compute the zero-rated sales assuming the seller is respectively a VAT taxpayer and a non-VAT
taxpayer?

a. P 600,000; P0

b. P 300,000; P0

c. P 600,000; P 300,000

d. P 300,000; P 300,000

A VAT-registered export trader purchased and sold an equipment. The details of the purchase and sale
are as follows:

Export sales P400,000

Purchases. 200,000

Input VAT 12,000

Compute the gross income for taxation purposes.

a. P 188,000

b. P 200,000

c. P212,000

d. P 224,000

For a taxpayer subject to 30% tax rate, compute respectively the tax benefits of a P60,000 input VAT
deduction and a P40,000 input VAT credit.

a. P60,000;P40,000

b. P 18,000; P40,000

c. P 60,000; P12,000

d. P 18,000; P12,000

A Philippine company exported goods for $140,000 to a non-resident customer. The payment; however,
was not inwardly remitted. The same was remitted to its home office abroad.

Which is correct?

a. The sale is a zero-rated sale.

b. The sale is an exempt sale.

c. The sale is subject to 12% VAT.

d. The sale is subject to 3% percentage tax.

A VAT-registered taxpayer made the following sales:

Sales destination Terms Payment

China FOB destination $10,000

Malaysia FOB destination P450,000

Hong Kong FOB shipping point Y800,000

Philippines FOB shipping point P300,000

The applicable exchange rate to the Peso was \$1:P42 and ¥1:P0.50.

Compute the total zero-rated sales.

a. P420,000

b. P820,000

c. P1,270,000

d. P1,570,000

Compute the output VAT.

a. P0

b. P 36,000

c. P 54,000

d. P 90,000

An exporter entered into the following transactions during the month:

Type of transaction Amount Unsold portion

Export sales P1,000,000 -

Export sales $100,000 -

60-day consignment abroad $50,000 40%

Forex rate= $1: P42.50.

Compute the zero-rated sales.

a. P0

b. P 4,250,000

c. P6,100,000

d. P5,525,000

Export Co. Made the following export and foreign consignments:

Type of transaction Amount

Export sales 1 P1,000,000

Export sales 2 $80,000

Consignment 1 $50,000

Consignment 2 $10,000

Export sales 2 pertains to goods owned by another entity where Export Co. Was granted 10% export
commission. Consignment 1 was sold by foreign consignees during the month. Consignment 2 remained
unsold 75 days as of the end of the current month. The applicable exchange rate is P43: $1.

Compute the total zero-rated sales or receipts.

a. P2,494,000

b. P2,924,000

c. P3,494,000

d. P5,590,000

Carefree, a security service provider, had the following receipts during the month:
Receipts from clients inside PEZA P3,000,000

Receipts from clients in the customs territory:

- From the government agencies and GOCCS 1,000,000

- From the Asian Development Bank 1,200,000

- From non-profit clients 1,500,000

- From private clients 2,000,000

What is the total amount of zero-rated sales?

a. P 3,000,000

b. P4,000,000

c. P4,200,000

d. P5,200,000

A VAT-registered service provider had the following receipts from services rendered in the Philippines in
February 2018:

Paid for in foreign currencies (Peso equivalent)

Services rendered to non-residents P500,000

Services rendered to residents 400,000

Paid for in the local currency

Services rendered to non-residents P800,000

Services rendered to residents 1,200,000

Services rendered to IRRI 200,000

What is the total zero-rated sale?

a. P 400,000

b. P 500,000

c. P 700,000

d. P 900,000

A PEZA locator made the following sales to entities within the custom territories:

Sale of goods to a Philippine firm P4,000,000

Sale of scrap materials to a Philippine firm $100,000

Forex rate: P43.00: $1

What is the zero-rated sales?

a. P0

b. P4,000,000

c. P4,300,000

d. P8,300,000

Mr. Alarcon is a percentage taxpayer. He bought goods billed at an invoice price of P20,160 from a VAT-
registered taxpayer. Mr. Alarcon sold the goods in the same month at a price of P42,000. How much
input VAT is claimable by Mr. Alarcon?
a. P0

b. P160

c. P2,160

d. P2,419

A taxpayer who became subject to VAT on the third quarter of 2020 had the following input VAT

August 2020 P32,000

September 2020 40,000

October 2020 18,000

What is the claimable input VAT for the third quarter of 2020?

a. P32,000

b. P40,000

c. P72,000

d. P90,000

Mr. Donetsk, a VAT-taxpayer, purchased the following from a VAT-taxpayer:

VAT-exempt goods P20,000

Vatable goods 40,000

Total invoice price P60,000

========

Compute the input VAT allowable to Mr. Donetsk.

a. P0
b. P2,143

c. P4,286

d. P4,800

Ms. Kibungan, a VAT-taxpayer, made the following purchases (net of VAT) of vatable goods during the
month:

Purchase from non-VAT taxpayers P 50,000

Purchases from VAT taxpayers 250,000

Total P300,000

========

What is the input VAT?

a. P0

b. P 6,000

c. P 30,000

d. P 36,000

A VAT-taxpayer received and paid the following billings for vatable goods purchased:

Purchase from non-VAT taxpayers P 50,000

Purchases from VAT taxpayers 250,000

Total P300,000
 ========

What is the claimable input VAT?

a. P0

b. P5,357

c. P26,786

d. P32,143

Denzi Marketing bought a building to house its retail activities. The following relate to its sales and input
VAT during the quarter:

Sales of goods P3,000,000

Export sales 1,500,000

Sales of VAT-exempt goods 500,000

Total sales, exclusive of VAT P5,000,000

==========

Input VAT carry-over in the prior quarter P 60,000

Input VAT on purchase of vatable goods 150,000

Input VAT on building (20 year life) 180,000

VAT paid in prior months 80,000

The building was acquired on the second month of the quarter.

What is the VAT payable?

a. P0

b. P64,000

c. P70,000

d. P130,000

A domestic sea carrier had the following receipts and attributable input VAT for the month:

Receipts from passengers P2,400,000

Receipts from cargoes 600,000

Total input VAT for the month 240,000

What is the VAT payable?

a. P 120,000

b. P48,000

c. P24,000

d. P0

A VAT registered television company with annual receipts of PBM reported P 1M total revenue for the
month of June 2020. It collected P 1,200,000 from various clients including advances and paid P800,000
of expenses, P560,000 of which was paid to VAT suppliers.

The collections and payments are inclusive of VAT.

What is the VAT payable?

a. P0

b. P52,800

c. P68,571

d. P76,800

A VAT-registered professional review school had the following receipts during the month:

Tuition fees P800,000

Miscellaneous fees 100,000

Sale of snacks 150,000

Reviewer salaries 300,000

Purchase of supplies, exclusive of VAT 150,000

Other expenses, inclusive of P 16,000 VAT 220,000

Compute the VAT payable.

a. P0

b. P2,000

c. P 92,000

d. P 110,000

It is a donee of a real property in a last will and testament.

a. Heir

b. Devisee

c. Legatee
d. Successor

IT is a donee of personal property in a last will and testament.

a. Heir

b. Devisee

c. Legatee

d. Successor

It is a mode of gratuitous acquisition of property by the death of a decedent.

a. Donation

b. Succession

c. Inheritance

d. Testate

IT is a mode of gratuitous acquisition of property out of the generosity of a person.

a. Succession

b. Donation

c. Loan

d. None of these

It is succession by will and operation of law.

a. Testamentary

b. Intestate

c. Mixed

d. None of these

It is succession in the absence of a will.

a. Testamentary

b. Intestate
c. Mixed

d. None of these

It is the property, rights and obligations of the decedent not extinguished by his death.

a. Estate

b. Estate tax

c. Codicil

d. Legitime

It is written document which sets forth how the decedent's property will be distributed after death.

a. Will

b. Testamentary disposition.

c. Intestate disposition

d. Mixed

The donor in a donation mortis causa is.

a. Dead.

b. Living.

c. Either living or dead.

d. In a coma.

There are several estate tax laws in the history of estate taxation in the Philippines, Which applies to a
particular decedent?

a. The estate tax law in effect when the properties of the decedent are being accumulated

b. The estate tax law in effect at the date of the decedent's death

c. The estate tax law in effect at the date the last will and testament was prepared

d. The estate tax law in effect upon determination of the legal heirs

They are the successors in interest of the decedent.

a. Heirs

b. Estate

c. Devisees

d. Legatees

This is a person appointed by the court to manage the distribution of the estate.

a. Administrator

b. Executor

c. Guardian

d. Trustee

This is a person handpicked by the decedent to implement his will.

a. Administrator

b. Executor

c. Guardian

d. Trustee

Which is correct regarding estate tax?

a. A privilege tax

b. A national tax

c. A final tax

d. A fiscal tax

Which is not a form of succession?

a. Testamentary

b. Compulsory

c. Intestate.

d. Mixed
Which is not an element of succession?

a. Decedent

b. Estate tax

c. Estate

d. Heirs

Which of the following heirs will not inherit?

a. Illegitimate child

b. Surviving spouse

c. Nephew

d. Legitimate child

Which will not inherit from the following group?

a. Grandchild from a deceased son of the decedent

b. A daughter of the decedent

c. Grandson from a living daughter of the decedent

d. An illegitimate child of the decedent

Who is not a compulsory heir?

a. An adopted child

b. Children of a deceased child

c. The surviving spouse

d. A brother

Who may not inherit under an intestate succession?

a. Grandparents

b. Grandchildren

c. First cousin

d. Best friends
Who shall inherit from the following group?

a. Legitimate child

b. Parents

c. Grandparents

d. Brothers and sisters

Who shall inherit from the following potential heirs?

a. 1st cousins

b. Brothers and sisters

c. Niece sand nephews

d. Second cousins

Who will be disinherited from the following?

a. Widow

b. Legitimate children

c. Illegitimate

d. Parents

Who will inherit among the following?

a. A legitimate child

b. Parents

c. Grandchildren

d. First cousin

Statement 1: Succession will not effect until and unless the estate tax is paid.

Statement 2: Estate tax is payable even in the absence of relatives who may inherit the estate.

Which is correct?

a. Statement 1

b. Statement 2
c. Both statements.

d. Neither statement

Statement 1: No estate tax is due if the net taxable estate is negative.

Statement 2: Once there is death, the estate tax is always payable.

Which is incorrect?

a. Statement 1

b. Statement 2

c. Both statements.

d. Neither statement

Statement 1: A resident citizen is taxable on his estate wherever situated.

Statement 2: A non-resident citizen is taxable only on his estate situated in the Philippines.

Which is correct?

a. Statement 1

b. Statement 2

c. Both statements.

d. Neither statement

A decedent died intestate with P1,000,000 net estate. If he has four legitimate children and two
illegitimate children, how much shall each legitimate and each illegitimate child respectively receive?

a. P0; P0

b. P 100, P50,000

c. P 200,000; P100,000

d. P 166,667: P166,667

A married decedent died intestate leaving behind P1,500,000 of his separate property and P6,000,000
common properties with his surviving spouse. If he has three children and one illegitimate child. How
much shall each legitimate child receive?
a. P 1,666,667

b.P 1,000,000

c. P 666,667

d. P 333,333

In the immediately preceding problem, compute the total properties of then surviving spouse after
partition of the properties.

a. P 3,000,000

b. P 4,000,000

c. P 4,666,667

d. P 3,666,667

As a rule, all decedents are taxable on world estate, except.

a. Non-resident alien.

b. Non-resident citizen.

c. Resident alien.

d. Non-residents.

As a rule, the gross estate of non-resident alien decedents includes.

a. Intangible personal properties located abroad

b. Real properties located abroad

c. Intangible personal properties located in the Philippines

d. Tangible personal properties located abroad

Gross estate means.

a. Properties, whether or not owned by the decedent, existing at the point of death

b. Properties owned by the decedent at the point of death

c. Present properties in the possession of the decedent at the point of death

d. Any of these

If the family home is a conjugal or community property, what is the maximum allowable deduction?

a. 5% of gross estate

b. P 2,500,000

c. P 5,000,000

d. P10,000,000

In determining the property regime of the spouses, which is given primacy?

a. Agreement

b. Conjugal partnership of gains

c. Absolute community of property

d. Absolute separation of property

Non-resident alien decedents can claim prorated amounts for the following deductions, except.

a. Taxes

b. Losses

c. Indebtedness

d. Vanishing deductions

The allowable amount of standard deduction is.

a. 5% of gross estate

b. P 200,000

c. P 500,000

d. P 5,000,000

The allowable deductible amount of family home is.

a. 5% of gross estate

b. P 2,000,000
c. P 5,000,000

d. P 10,000,000

The gross estate of resident or citizen decedents does not include.

a. Properties located abroad

b. Properties located in the Philippines

c. Intangible personal property located abroad

d. Properties not owned

The proceeds of life insurance designated by the decedent to his wife is excluded in gross estate.

a. If the designation is revocable.

b. If the designation is irrevocable

c. Without regard to the designation as revocable or irrevocable.

d. Under no circumstances.

The proceeds of life insurance designated by the decedent to his/her child is included in gross estate.

a. If the designation is revocable.

b. If the designation is irrevocable.

c. Without regard to the designation as revocable or irrevocable.

d. In all circumstances.

The proceeds of life insurance designated by the decedent to his/her estate is included in gross estate.

a. If the designation is revocable.

b. If the designation is irrevocable.

c. Without regard to the designation as revocable or irrevocable.

d. In all circumstances.

The proceeds of life insurance designated by the decedent to his/her executor is excluded in gross
estate.
a. If the designation is revocable.

b. If the designation is irrevocable.

c. Without regard to the designation as revocable or irrevocable.

d. Under no circumstances.

What is the maximum amount of deductible casualty losses?

a. None

b. P 500,000

c. P1,000,000

d. 10% of gross estate

Which has reciprocity exemption?

a. Resident alien

b. Non-resident alien

c. Non-resident citizen

d. All of these

Which is a capital property under the absolute community of property?

a. Properties before marriage of the wife with a descendant in a prior marriage

b. Fruits of separate property of the wife

c. Properties for exclusive personal use of the husband

d. Compensation income of the husband

Which is a conjugal property?

a. Property inherited during marriage

b. Property inherited before marriage

c. Property received from exercise of profession during marriage

d. Property received from a donation during marriage

Which is a paraphernal property under absolute community of property?

a. Property inherited by the husband

b. Property inherited by the wife

c. Earned from separate properties of the husband

d. Property from the exercise of profession by the wife

Which is a paraphernal property under the conjugal partnership of gains?

a. Property brought into the marriage by the wife

b. Income of properties donated to the wife during the marriage

c. Income from the separate industry of the husband

d. Income from the separate industry of the wife

Which is an inclusion in gross estate?

a. Separate properties of the surviving spouse

b. Common properties of the spouses

c. Separate properties of the heirs

d. Properties acquired from group insurance

Which is correct regarding deductible obligations of the estate?

a. It must always be notarized.

b. It must be incurred before filing of the estate tax return.

c. It must be paid before the filing of the estate tax return.

d. It must be incurred before the death of the decedent.

Which is not a property regime?

a. Absolute separation of property

b. Conjugal partnership of gains

c. Absolute community of property

d. Pooling of interest
Which is not considered a separate property of the recipient spouse?

a. Acquisition of property as a trustee

b. Acquisition of property as a fiduciary heir

c. Acquisition of property as a usufructuary

d. All of these

Which is not considered in computing the share of surviving spouse?

a. Claim against

b. Transfer for public use the estate

c. Standard deduction

d. Vanishing deduction

Which is not included in gross estate?

a. Revocable transfers

b. Transfers in contemplation of death there

c. Transfer under special power of appointment

d. All of these

Which obligation is deductible against gross estate?

a. Bank loans acquired for the medication of the decedent

b. Income tax of the decedent before death

c. Sole obligation of the surviving spouse

d. Real property tax of the separate property of the surviving spouse

Which of the following decedents cannot claim special deductions for family home?

a. Resident citizen

b. Resident alien

c. Non-resident alien

d. Non-resident citizen
Which of the following losses is not deductible?

a. Losses of properties compensated for by insurance

b. Losses arising from fires

c. Losses arising from theft or embezzlement

d. Losses arising from storms or shipwreck

Which of these do not diminish the hereditary estate of the decedent?

a. Judicial expense

b. Transfer for public use

c. Medical expense paid before death

d. Funeral expense sale

Which of these is a capital property under conjugal partnership of gains?

a. Properties brought into the marriage by the wife

b. Properties inherited by the husband

c. Fruits of properties donated to the husband.

d. Properties for exclusive use of the husband

A CPA Certification is required if the gross estate.

a. Exceeds P1,000,000.

b. Exceeds P2,000,000.

c. Exceeds P5,000,000.

d. Contains registrable properties without regard to the value of the estate.

The estate tax return shall be filed within.

a. 30 days from the date of death.

b. 45 days from the date of death.

c. 6 months from the date of death.

d. 1 year from the date of death.

The taxable estate of the following includes all properties wherever situated, except a.

a. Resident citizen.

b. Non-resident alien

c. Resident alien

d. Non-resident citizen.

What is the maximum extension allowable in filing of the estate tax return?

a. 5 years

b. 2 years

c. 2 months

d. 30 days

Which decedent cannot claim deduction for tax credit?

a. Resident citizen

b. Non-resident alien M

c. Resident alien

d. Non-resident alien

Which is correct regarding the deduction for the share of the surviving spouse?

a. One-half of the gross estate after ordinary deductions:

b. One half of the common properties plus the separate properties of the surviving spouse

c. One-half of the net common properties

d. It is the actual share which the surviving spouse gets of the common properties.

Which is excluded in the computation of the net taxable estate and in the computation of the net
distributable estate?

a. Share of the surviving spouse

b. Vanishing deductions

c. Estate tax
d. Family home

Which is included in the net taxable estate?

a. Family home in excess of P10,000,000

b. Separate property of the surviving spouse

c. Amount paid for medical expenses of the decedent

d. Share of the surviving spouse

Which is not considered in the computation of the share of the surviving spouse?

a. Medical expenses

b. Family home

c. Obligations

d. Standard deductions

Which of the following is normally deductible against common properties?

a. Medical expenses

b. Standard deductions

c. Funeral expenses

d. Vanishing deductions

Who is directly liable to pay the estate tax?

a. The decedent

b. The heirs

c. The estate administrator or executor

d. The surviving spouse

Statement 1: No estate tax is due on an estate with P5,000,000 worth of properties.

Statement 2: An estate with only a family home worth P15,000,000 as its property will not pay estate
tax.
Which is correct?

a. Statement 1

b. Statement 2

c. Both are true

d. Both are false

A single decedent died with the following data regarding his estate:

Family home P14,000,000

Agricultural land 6,000,000

Cash and other personal properties 8,000,000

Total P28.000.000

===========

Expenses and claims against the estate:

Funeral expenses P400,000

Medical expenses 200,000

Judicial expenses 300,000

Unpaid taxes 300,000

Claim against the estate 500,000

Total P1,700,000

==========

Compute the net taxable estate

a. P12,200,000

b. P22,000,000

c. P22,200,000

d. P27,200,000

Compute the net distributable estate before estate tax deduction.

a. P25,100,000

b. P26,300,000

c. P26,500,000

d. P27,200,000

The following data relates to the estate of single resident decedent without dependents:

Gross estate, including P15M family home P30,000,000

Ordinary deductions 2,800,000

What is the net taxable estate?

a. P11,200,000

b. P12,200,000

c. P22,200,000

d. P27,200,000
Romeo died leaving his wife, Juliet, the following net conjugal properties:

Gross estate, including P12M family home P28,000,000

Less: ordinary deductions 2,400,000

Net conjugal properties P25,600,000

===========

Compute the net taxable estate.

a. P10,600,000

b. P5,600,000

c. P1,800,000

d. P0

Capt. Jeffrey Magiting, an unmarried Filipino, died in action leaving the following net estate to his
mother who is living with him:

Family home P12,000,000

Other properties 8,000,000

Total properties P20,000,000

Less:

Funeral expenses P300,000

Judicial expenses 200,000

Unpaid medical expenses 600,000

Claims against the estate 1,500,000 2,600,000

Net estate P17,400,000

==========

Compute the net taxable estate.

a. P12,900,000

b. P11,500,000

c. P3,500,000

d. P2,400,000

A single resident alien without a family home had net properties of P12,000,000 after allowable
deduction for ordinary deductions items. Totaling P 8,000,000. 40% of the properties of the decedent
were in the Philippines.

Compute the estate tax due.

a. P0

b. P240,000

c. P420,000

d. P720,000

An American residing in Japan died leaving net properties of P4,000,001 the Philippines and P26,000,000
abroad. He paid P1,300,000 estate tax abroad.

Compute the estate tax payable in the Philippines.

a. P 210,000

b. P 236,000

c. P 440,000
d. P 470,000

Which of the following decedents cannot claim special deductions for family home?

a. Resident citizen

b. Resident alien

c. Non-resident alien

d. Non-resident citizen