Use the following data for the next five (5) questions:

AVAT-registered trader has the following transactionsduring 3d quarter of 2024:

Sale of goods to private entities, net of VAT P2,500,000
Purchases of goods sold to private entities, gross of 12% VAT 896,000
Amount billed to a government owned corporation (GOCC) for 1,000,000
services rendered, net of VAT
Purchases of goods sold to GOCC, net of 12% VAT 700,000
128. How much is the output tax?
a P300,000 C. P420,000
b. P120,000 d. nil

129.How much is the creditable input vat?

a. P166,000 C. P70,000
b. P96.000 d. P180,000

130. How much is the VAT payable to the BIR?

a P190,000 C. P204,000
b. P390,000 d. nil

131. Leomar,a VAT-registered person,has the following data:

Export sales,total invoice amount P3,000,000
Domesticsales, total invoice amount 6,720,000
PURCHASES, used to manufacture Goods for
export and domestic sales:
Raw Materials, VAT inclusive 616,000
Supplies, VAT inclusive 448,000
Equipment, VAT exclusive 300,000
The amount of input tax which can be refunded or
the option of Leomar should be: converted into tax credit certificates at
a P120,000 c. P39,600
b. P118,800 d. P50,000
132. Based on the preceding number, if the
as tax credit against output vat, the vat refundable input taxes were not refunded but used
a. P576,000
payable should be:
c. P666.888
b. P697,888 d.P570,000
133. Assume that Leomar opted to refund the
payable should be:
input vat attributable to zero-rated sale, the vat
P576,000 c. P746,888
b. P697,888 d. P620,000

628
 MIXED TRANSACTIONS

Usethe,following data for the next

three (3) questions:
UPalawan, vat registered, offers different
books of services to its quests. The
fromthe the taxpayer are for the 3rd
quarter of 2023:
following data taken
Gross Sales
or Revenues
Hotel rooms Collections Input vat
Dining Hal: P2,300,000 P1,500,000
Sale of food and refreshments
Sale of wine, beer and liquor 1,000,000 850,000
700,000 650,000
Disco:
Sale of fo0d and refreshments
Sale of wine, beer and liquor 600,000 550,000
500,000 450,000
Input vat on purchases directly
attributable to vatable transactions P125,000
Input vat on purchases directly
attributable tonon-vatable
transactions 70,000

Input vat on purchases not directly

attributable to any of the business
activities 200,000

134. How much is the applicable output vat for the 3rd quarter of 2023?
a. P240,000 C. P432,000
b. P360,000 d. P480,000
135. How much is the total creditable input vat for the 3rd quarter of 2023?
a. P60,000 c. P285,000
b. P275,000 d. P400,000

136. How much is the vat payable for the 3rd quarter of 2023?
a. P85.000 c. P150,000
b. P125,000 d. P360,000

Use the following data for the next three (3) questions:
Casa Palawwan, vat registered, offers different services to its guests. The following data taken
from
the books of the taxpayer are for the 3rd quarter of 2024:
Gross Sales
or Revenues Collections Input vat
P2,300,000 P1,500,000
Hotel rooms
Dining Hall: 1,000,000 850,000
Sale of food and refreshments 650,000
700,000
Sale of wine, beer and liquor

629
 141. 140. SALE 139. 138. 137.
d. b.subject In d. C btwenty Sale How How attributabletransactions
How activities Inputnon-vatable to
attributableInput
attributableInput Disco:
the OF
received Selling P195,000
of REALP225,000 a.P275,000
b. much P60,000 a.P360,000
b. much P240,000 a. Sale Sale
InstallmentSellingSelling price case Neither Both Sale Sale b. much vat vat
to five real vat
VÀT of 'a' of of on on of of
price price "a" and real percent
realpropertyPROPERTY is is is to purchases to on wine, food
by onsale the the the purchases vatable
the nor estateestate any
payments, of or the: of "b" vat total applicable purchases beer and
seller. fair fair real "b" (25%) of
by payable creditable transactions refreshments
marketmarket properties by by a the directly and
a of real not
including real areal the output business liquor
estate for directly directly
valuevalue estateestategross he
P480,000 d. C.tP400,000 d. input
C. P432,000 d. C.vat
whichever
whichever on P285,000 3rd P285,000 vatP480,000
interest the dealerdealer sellingdealer, for
quarter f or the
installment
price the the 3rd 600,000
500,000
and is is on on
initial of 3rd quarter
higherlower installment a in
deferred 2024?
penalties, plan, the quarter
payments
year of
the
basis basisof of 2024?
actually real 2024? 450,000
550,000
sale of
estate which
is
or considered
constructively dealer do
not 200,000 P125,000
shall exceed 70,000
be
142. Statement1: On a sale of real property on installments by a real estate dealer, the seller
chall be subject to VAT on the installment payment received, including interests and
Denalties for late payment.
Statement 2: On sale of real property on installments by real estate dealer, where the Vat
is computednot on the consideration in the deed of sale but on the higher fair market value,
the Vat must be billed separately with a specific mention that it is based on the market
value of the property.
Both statements are correct
b Both statements are not correct
C Only the first statement is correct
d Only the second statement is correct

143. Statement 1: In the case of sale on deferred payment basis not qualifying under the
installment plan, the transaction shall be treated as cash sale and the vat is payable on the
month of sale.
Statement 2: In the case of a sale on deferred payment basis not qualifying under the
installment plan, payments subsequent to the initial payments shall no longer be subject
to vat.
Both statements are correct
b Both statements are not correct
C Only the first statement is correct
d Only the secondstatement is correct

144. Kaktus Realty Inc. developeda condominium in Manila. During the month of January 2023,
it had the following data (VAT included):
Selling Price
Cash sale of a 3 bedroom unit P5,040,000
Sale of parking lot 560,000
Installment sale of 2 bedroom unit (initial payments
exceed 25% of the selling price) 3,920,000

The 3 bedroom unit sold for cash had a zonal value of P5,000,000 and the 2 bedroom unit
had a fair market value per Tax Declaration of P3,000,000.
How much is the output tax for the month?
a. P920,000 C. P1,020,000
b. P900,000 d. P1,080,000

145. West Star RealtyCorp. sells a commercial lot in the month of November 2023 under the
following terms (including VAT):
Total contract price P1,120,000
Down payment, 11-01-2023 112,000
First installment, 12-01-2023 112,000

The output VAT for the 4th quarter should be:

a. P12,000 C. P30,000
b. P24,000 d. P120,000

631
 146. Bahay Kubo Inc. is a real estate dealer. Details of its sales during the year showed the
following:
Date of sale June 2. 2022
Consideration in the deed of sale P5,000,000
Fair market value in the assessment rolls 4,800,000
Zonal Value 5,200,000
Schedule of payments:
June 2, 2022 1,000,000
June 2, 2023 2,000,000
June 2, 2024 2,000,000

How much is the output tax to be recognized for the June 2, 2024 payment?
a. P0 C. P249,600
b. P24,000 d. P624,000

147. Assuming that the scheduled payment on June 2, 2022 is P2,000,000, how much is the
output tax to be recognized for the June 2, 2024 payment?
a. P0 C. P249,600
b. P24,000 d. P624,000
Use the following data for the next two (2) questions:
JJ is a realestate dealer. During the month of October 2023, he sold three (3) commercial lots
under the following terms:
Lot 1 Lot 2 Lot 3
Selling Price P250,000 P200,000 P300,000
Cost 150,000 130,000 175,000
Gain/Loss 100,000 70,000 125,000
Terms:
Down, Oct. 5, 2023 25,000 50,000 40,000
Due:
Dec. 5,2023 25,000 20,000 20,000
Year 2023 200,000 130,000 240,000
Zonal Value 2023 350,000 260,000 250,000
148. How much is the output tax for October 2023?
a P26,500 C. P31,800
b P34,800 d. P40,200
149. How much is the output tax for December 2023?
C. P5,400 C. P6,600
d. P4,500 d. none

150. Statement 1: On asale of real property on installments by areal

" shall be subject to VAT on the installment estate dealer, the seller
payment received, including interests and
penalties for late payment.
Statement 2: On sale of real property on installments by'realestate dealer, where the
is computed not on the consideration in the deed of sale Vat
but on the higher fair market

632
 value,the Vat must be billed separately with a specific mention that it is based on the
market value of the property.
Both statements are correct
b Both statements are incorrect
C Only the first statement is correct
d. Only the second statement is correct.

151. Staterment 1: In the case of sale on deferred payment basis not qualifying under the
installment plan, the transaction shall be treated as cash sale and the Vat is payable on
the month of sale.
Statement 2: In the case of a sale on deferred payment basis not qualifying under the
installment plan, payments subsequent to the initial payments shallno longer be subject
to vat.
Both statements are correct
Both statements are incorrect
C. Only the first statement is correct
d. Only the second statement is correct.

152. Maharlika Residences Inc. is a domestic corporation engaged in real estate business. lt
has the following data for the last quarter of 2023:
Instaliment Sale ofaTownhouse:
Realized gross profit (GPR is 30%) P300,000
Gross selling price 4,000,000
Zonal value 5,000,000
Deferred Sale of a Parking Lot:
Gross selling price P1,000,000
Fair market value 1,500,000
Rental income 800,000
Rent receivable, beginning 300,000
Rent receivable,end 100,000
Importation of materials used in the construction 2,625,000

How much is the VAT due or payable?

a. P285,000 C. P135,000
b. P261,000 d. P111,0000
SALE BY ADEALER IN SECURITIES
153. is a merchant.of stocks or securities, whether an individual, partnership, or
orporation, with an established place of business, regularly engaged in the purchase of
securites and their resale to customers. He buys securities and sells them to customers
WIth a view to the gains and profits that may be derived therefrom.
a Dealer in securities
b Realestate dealer
C. Franchise grantees
d. Lending investor

633
 154.Adealer in securities hasthe following for the year 2023:
P5,000,000
Sales,shares held as inventory
Sales, shares held as investment 1,500,000
Cos of shares, held as inventory 2,000,000
Cos of shares, held as investment 500,000
Supplies expense, net of vat 100,000
Rent expense, net of vat 200,000

How much is the vat payable?

a. P470,000 C. P270,000
b. P324,000 d. vat exempt

VAT EXEMPTION AND DISCOUNT ON SALE TO SENIOR CITIZENS AND PWDs

inclusive of
155. Lola Lita, asenior citizen, bought a medicine with a selling price of P9,520
VAT. How much is the net amount to be paid by Lola?
a. P8,500 c. P6,916
b. P7,616 d. P6,800

156. Lolo Sot, a senior citizen went to Jollibee to treat his 4 grandchildren on account of his
retirement. They consumed foods and beverages with gross amount of P1,120 inclusive
of VAT. How much is amount to be paid by lolo Sot?
a. P896 C. P1,056
b. P920 d. P1,100

157.Gabriana Clinic, a VAT-registered entity, performed a prosthetic surgery on the legs of

Loyd, a personwith disability. The total cost of medical operation was P500,000. Being a
disabled person, Loyd received 20% discount from Gabriana. How much is the total
amount to be paid by Loyd?
a. P400,000 C. P500,000
b. P448,000 d. P560,000

Use the following data for the next three (3) questions:
Toothful Dental Clinic rendered dental services to a PWD. The professional fee amounted to
P1,120 inclusive of vat.
158. How much is the amount to be paid by the PWD?
a. P800 C. P1,000
b. P896 d. P1,120

159. How much is the business tax due of the clinic on its services
a. P26.88
rendered to the PWD?
c. P120
b. P96 d. nil

160. Assume the dental clinic is non-vat registered and its

exceeded the vat threshold. How much is the amount to beannual
paid by
gross receipts never
the PWD?
a. P800 C. P1,000
b. P896 d. P1,120

634
161. Based on the
dueof the assumption in the
immediately preceding number, how much is the business
clinic on its services
a. P26.88 rendered to the PWD?
b. P96
C. P120
d. nil
ac Ana, a qualitied Solo Parent, bought an
of VÁT. How much is the net infant milk with a selling price of P9,520 inclusiVe
a. P8,500 amount to be paid by Ana?
b. P7,650 C. P6,916
d. P6,800
463 Lorna,a qualified Solo Parent, bought an infant
non-vat seller. HowW much is the net amount to be milk withaselling price of P8,500 from a
paid by Lorna?
a. P8,500
b. P7,650 C. P6,916
d. P6,800
sO SPECIAL DISCOUNT TO SENIOR CITIZENS AND
BASIC AND PRIME COMMODITIES PWDS ON THEIR PURCHASE OF

164.Statement 1: Senior citizens (SC) are entitled to 5% special

basic and prime commodities subject to the guidelines of the discount on their puchases of
Industry (DTI) and Department of Agriculture (DA). Department of Trade and
Statement 2: Persons with disability (PWD) are entitled to 5% special discount on their
puchases of basic and prime commodities subiect to the guidelines of the Department of
Trade and Industry (DTI) and Department of Agriculture (DA).
Both statements are correct
b. Both statements are incorrect
C. Only the first statement is Correct
d. Only the second statement is correct.
165. Statement 1: Sale of basic and prime commodities to Senior citizens (SC) are not exempt
from value added tax.
Staterment 2: Sale of basic and prime commodities to Persons with disability (PWD) are
not exempt from value added tax.
a Both statements are correct
b. Both statements are incorrect
C. Only the first statement is correct
d. Only the second statement is correct.
166. are goods "vital to the needs of consumers, for their sustenance and
existence" while prime commodities are goods that are "essential" to them.
a. basic necessities C. agricultural products
b. prime commodities d. marine products

167. are goods not considered as basic necessities but are essential to
Consumers.. C. agricultural products
a. basic necessities
b. prime commodities d. marine products

635
 1b8. The maximum amount of purchase is one thousand three hundred pesos
(P1,300), per
calendar Week, without carrvover of the unused amount shall be:
a. P1,000 c. P1,300
b. P1,200 d. P1,500
169. Statement 1: In granting the 5% special discount, business
establishments assume the
responsiblity of correctly identifying if their inventory qualifies as either necessities or
commodities,which are eligible for the discount.
Statement 2: The Tax Code and previous BIR guidelines have clarified that those
discounts are required to keep separate and accurate records of sales to granting
Otherwise, the sales discount mav be disallowed as a deduction for income taX PWDs.
Both statements are correct purposes.
b Both
statements are incorrect
C Only the first
statement is correct
d. Only the second statement is
correct.
170. Which of the following
statements is correct?
Goods and services covered by the 20% discount comes with absolute VAT
exemption.
b Goods covered by the 5% special discount willonly be
VAT-exempt if they are
agricultural and marine food products in their original state
of the Tax Code. pursuant to Section 109
C Asenior citizen who isalso incidentally a PWD would not be
benefits. They can only claim the special discount as a PWD orentitled to cumulative
as a senior
not both. citizen,
d All of the above

FILING OF VAT RETURNS

171.Prior to January 1, 2023, filing of vat returns and
On a monthly basis only payment of vat due is required
b. On a quarterly basis only
C. On a monthly and quarterly basis
d. On a monthly, quarterly and annual basis
172.Beginning January 1,2023, filing ofvat
a On amonthly basis only returns and payment of vat due is required
b On a
quarterly basis only
C On a monthly and quarterly basis
On a monthly, quarterly and annual basis
173.Prior to January 1, 2023, vat returns and
monthly basis, should be filed and paid: paymenit of the corresponding vat due on a
a On or before the 15h day following the end
Onor before the 20th day of the month using BlR Form No.
b
following the end of the month using BIR Form 2550M
On or before the 25h day following the No. 2550M
On or before the 30th day following the endof the month using BIR Form No. 2550M
end of the month using BIR Form No.
2550M

636
174. Beginning January 1, 2023, vat returns and payment of the Corresponding vat due on a
monthly basis, should be filed and paid:
a Onor before the 15th day following the end of the
month
b On or before the 20th day following the end of the month using
using
BIR Form No. 2550M
C On or before the 25th day following the end of the month usingBIR
BIR
Fom No. 255OM
d Filing of vat return and payment of the Form No. 2550M
monthly basis beginning January 1,2023
coresponding vat due is not required on a

475 Prior to Januay 1, 2023, vat returns and payment of the corresponding vat due on a
quartertly basis, should be filed and paid:
On or before the 15th day following the end of the month using BlR Form No. 2550Q
On or before the 20th day following the end of the month using BIR Form No. 2550Q
C. On or before the 25th day following the endof the month using BIR Form No. 2550Q
d. On or before the 30th day following the end of the month using BIR Form No. 2550Q

176. Beginning January 1,2023, vat returns and payment of the corresponding vat due on a
quarterly basis, should be filed and paid:
a Onor before the 15th day following the end of the month using BIR Form No. 2550Q
b On or before the 20th day following the end of the month using BIR Form No. 2550Q
Onor before the 25th day following the end of the month using BIR Form No. 2550Q
d On or before the 30th day following the end of the month using BIR Form No. 2550Q
177. Statement 1: Effective May 10, 2023, a taxpayer has the option to file monthly vat return
and payment of the corresponding monthly vat due.
Statement 1: Effective May 10, 2023, a taxpayer has the option to file quarterly vat return
and payment of the corresponding quarterly vat due.
a. Only statement is Correct
b. Only statement 2 is correct
C Both statements are correct
d. Both statements are incorrect

1/8. The optional filing and payment of monthly vat is due

month using BIR Form No. 25500
a On or before the 15th day following end of the
the
25500
the end of the month using BIR Form No.
b. On or before the 20th day following 25500
C On or before the 25th dayfollowing
the end of the month using BIR Form No.
d. No due date
City under
corporation registered and located in Quezon.Prior
9. ABC Corporation is a domestic the Bureau of Internal Revenue. to the
Kevenue District Ofice (RDO) No. 39 of Corporation should file its quarterly vat return
efiectivity of RA 11976 or the EOPTA, ABC
with:
and pay the corresponding tax due
bank (AAB)
Any authorized agent (AAB) in Quezon City within the jurisdiction of RDO
Authorized agent banks
No.39
software providers (ATSP)
Any Authorized tax c. lorllonly
a. Ionly d. Any of the above
b. ll only

637
 180. ABCCorporation isadomesticcorporation registered and located in Quezon City under
Revenue District Office (RDO) No. 39 of the Bureau of Internal Revenue. Upon the
effectivity of RA 11976 or the EOPTA, ABC Corporation should file its quarterly vat retum
and pay the corresponding tax due with:
. Any authorized agent bank (AAB)
Authorized agent banks (AAB) in Quezon City within the jurisdiction of RDO
No.39
Any Authorized tax software providers (ATSP)
a. l only c. lor llonly
b. Ilonly d. Any of the above
OTHER ADMINISTRATIVE PROVISIONS

181.The Commissioner or his authorized representative is empowered to suspend the business

operations and temporarily close the business establishment of any person for:
Failure to issue receipts or invoices of a VAT- registered entity.
b. Failure to file a
VAT-return for VAT-registered person as required by the tax code.
C. Understatement of taxable sales or receipts by thirty percent (30%) or more of his
Correct taxable sales or receipts for the taxable quarter.
All of the above
182. Which statement is correct?
a The sales invoice that shows a total, with an indication that it includes the value
added tax,even if it does not show the tax separately, is a correctly
invoice. prepared
b The invoice which shows the selling price and the value
added tax separately, and
with atotal which is a correct amount isa properly prepared
An invoice which shows the selling price and the value invoice.
where the value added tax is wrong, which is paid by theadded tax separately, but
buyer, is a violation of the
revenue regulations on issuance of sales invoices.
d. A sales invoice bya vat taxpayer can be used only on a
VAT sale.
183. First statement: Unused input tax of persons whose
to retirement from or cessation of status may, registration had been cancelled due
within two (2) years from the date of
cancellation, apply for the issuance of tax credit certificate which may be used in payment
of other NIRCtaxes.
Second statement: The
'refund if it has no internaltaxpayer-claimant
in the preceding statement shallbe entitled to a
revenue tax liabilities against which the tax credit certificate may
be utilized.
a. Both statements are correct.
b. Both statements are incorrect.
C. Only the first statement is correct.
d. Only the second state statement is correct.

638
184.Ifaperson who is not
by the word"VAT, the
The
VAT-regi
erroneousstered issues an
issuance shallinvoice toor receipttshowing his TIN, followed
a
non-VAT perSon shall
transactions.
result the following, except which one?
be liable to the
b The non-VAT person
percentage taxes applicable lo
The non-VAT shall be liable to the VAT
due on the
d The non-VAT person shall have the benefit of input tax transactions.
C.

person shall be liable to a 50% credit.

Code. surcharge under Sec. 248 (B) ofthe 1ax
496 First statement. All persons
cale and transter of subject to an internal revenue tax shal, at the
merchandise or for services rendered point of each
(P500.00) more, issue
or duly registered invoices. valued at Five hundred pesos
Second statement: VAT-registered persons shall issue duly
of merchandise or for registered invoice regardless
of the amount of the sale and
a. Both statements are transfer services rendered.
h Both statements are correct.
C Only the first incorrect.
statement is
d. Only the second state Correct.
statement is correct.
186. First statement: Sellers of goods or services shall
issue Invoice when the buyer so requires,
regardless of the amount of transaction.
Second statement: If the sales amount per transaction is below the
aggregate sales amount at the end of the day is at least five hundred pesosthreshold but the
seller will issue one (1) invoice for the aggregate sales amount for such (P500.00), the
of the day. sales at the end
a. Both statements are correct.
Both statements are incorrect.
C. Only the first statement is correct.
d. Only the second state statement is correct.

PREPARATION OF VAT RETURN

Use the folowing data for the next four (4) questions:
Juan Dela Cruz.non-vat registered lessor of residential and commercial units, had the
tollowingdate for the 1st and 2ndquarters of 2023:
Gross Receipts
1st Quarter 2ndQuarter
Lease of Residential Units
Monthly rental of P13,000/unit P2,500,000 P2,300,000
Monthly rentalof P18,000/unit 1,000,000 1,200,000
Lease of commercial units 2,300,000 2,400,000
Input vat from vat suppliers 150,000 120,000
(attributable to commercial units)
187. How quarter?
much is the business tax due for the 1st
C. P396,000
a. P99,000
b. P174,000 d. P246,000

639
 17-Valae Allel Tap
188. How much is the business tax due for the 2nd quarter?
a. P432,000 c. P708,000
b. P312,000 d. P108,000

189. Assuming Mr. Dela Cruz is a vat registered taxpayer, how much is his business tax due
for the 1st quarter?
a. P246,000 C. P696,000
b. P546,000 d. P396,000
190. How much is the business tax due for the 2nd auarter assuming he registered as a VAT
taxpayer at the start of the 2nd quarter?
a. P432,000 C. P708,000
b. P312,000 d. P108,000

640