AUGUST 4-5

TAX02-IRR4-T/TH/F-7:10-8:10PM/4:00-5:00PM/4:00-5:00PM

1. What are transactions deemed sale?

2. What is Foreign currency denominated sales?
3. Shakira, a VAT-taxpayer, is closing her business. She had in his inventory 10 sacks of rice
valued at P100,000. How much is the Output Vat?
The rice inventories shall not be subject to VAT upon cessation of business. Even if these are
deemed sold, their sale is not subject to VAT because they are VAT-exempt items.
4. Is sale of properties not in the course of business vatable?
5. Are professional instrument and implements, wearing apparel, domestic animals and personal
household effects subject to VAT?
6. What are the statutory rates for output VAT and input VAT.
7. Who can avail of input tax credits?
8. Give at least 3 examples of goods subject to vat
9. Explain the rules on tax on radio and/or television broadcasting companies.
10. What does Gross selling price mean?
11. Are vegetables exempt or vatable?
12. Mr. ABC, a VAT-registered real property dealer sold a commercial lot in July 2016. The
following relates to the sale:
Appraisal Value: P 4,500,000
Zonal Value:
P 4,000,000
Assessed Value:
P 2,500,000
Selling Price:
P 3,800,000
The output VAT shall be?
13. What are the sales of goods subject to zero-rated VAT?
14. Who are required to file vat returns?
15. When is an export sales VAT-exempt?
16. Who are the persons exempted from VAT under Special Laws?
17. Discuss the VAT threshold.
18. What is Cross Border Doctrine and the Destination Principle?
19. Is San Beda college vatable?
20. What is the rule on importation of personal and household effects?
21. Mr. A bought frozen lamb meat from Garcia's supermarket. Garcia's supermarket imported the
lamb meat from Australian Lamb Exporter Co. Who is liable for the VAT with respect to the
importation and sale of the frozen lamb meat?
22. If a lawyer has 2 sources of income, one is teaching in a private school and the second is
working on cases for his clients, is he subject or exempt from Vat?
23. What is the meaning of "in original state"?
24. The sale to government and GOCCs is subject to what?
25. Ligo Manufacturing is a VAT registered business engaged in the processing of sardines. It buys
its primary materials directly from the fishermen who are not VAT registered. During the period,
Ligo's total raw materials purchases amounted to P2,500,000; however, only P2,000,000 worth
of raw materials were used in the production. How much is the presumptive input VAT?
26. Is the sale of real property subject to VAT?
27. Mr. J is a CPA. He works as a part-time professor in University of Sto. Tomas. He owns a
grocery store in Davao and on his free time, he practices his profession as a consultant. Is he
subject to VAT?

AUGUST 4-5
TAX02-IRR4-T/TH/F-7:10-8:10PM/4:00-5:00PM/4:00-5:00PM

28. What are the instances when a VAT-registered person may cancel his VAT registration?
29. What are the methods used in getting the taxable base of transactions deemed sale?
30. Who are the persons that can claim or credit presumptive input VAT?
31. If Mr. B a non-VAT taxpayer issued a VAT invoice and collected P 896,000 inclusive of VAT
from Ms. A, how much should Mr. B pay if the BIR found out his violation, when he was about
to pay his 3% percentage tax?
32. Mr. B was a non-VAT taxpayer but became subject to VAT effective January 2016. On
December 31, 2015, he had the following data on his business:
Inventory, purchased from VAT taxpayers,
P 800,000
Supplies, purchased from VAT suppliers
P 300,000
Fixed asset purchased from VAT taxpayers
P 2,000,000
How much is the transitional input tax on inventory, supply and fixed asset?
33. Big corporation and its wholly owned subsidiaries: small and little corporations had the
following sales for the immediately preceding 12-month period:
Big Corporation 1,500,000
Small Corporation 1,800,000
Little Corporation 1,000,000
Who are required to register as VAT taxpayer/s?
34. In 2011, Mr. Jelo becomes liable to VAT. In the records, it has shown that he has P300,000
worth of Merchandise Inventory. His actual payments of VAT on purchases from VAT-registered
persons amounted to P27,000. How much is Mr. Jelo entitled to transitional input tax credit?
35. DEF Corporation, a VAT-registered realty dealer sold the following for July 2016:
Zonal
Assessed
SP
Residential lot:
900,000
750,000
850,000
Residential dwelling:
2,900,000
3,000,000
3,199,200
How much is the Output VAT?
36. Charlie & Copper, partners in CC partnership, a VAT-registered merchandising business,
decided to dissolve their partnership. The dissolution and liquidation resulted in the distribution of P200,000 merchandise inventory to each of the partner. Record shows that the inventory
was acquired at the total cost of P300,000. Compute the output VAT.
37. A VAT-registered seller wrote the following in the sales invoice for Customer A:
Selling Price: 150,000
Output VAT: 15,000
Invoice Price: 165,000
How much is the Output VAT?
38. Chow Queen restaurant, a VAT taxpayer, recorded the following receipts during the month:
Receipts from senior citizens, before 20% discount 225,000
Receipts from PWD, before 20% discount
75,000
Receipts from regular customers
340,000
Compute for Output Vat

1. What are the 0 rated transactions under sale of services?

2. What must the cash register receipts show?
3. What is the treatment if there is an excess input or output tax?

AUGUST 4-5
TAX02-IRR4-T/TH/F-7:10-8:10PM/4:00-5:00PM/4:00-5:00PM

4. Shakira, a VAT-taxpayer, is closing her business. She had in his inventory 10 sacks of rice
valued at P100,000. How much is the Output Vat?
The rice inventories shall not be subject to VAT upon cesaation of business. Even if these
are deemed sold, their sale is not subject to VAT because they are VAT-exempt items.
5. Is mergers and consolidations considered deemed sale?
No, they are not considered deemed sale. They are just transfers in from, not in substance.
In a merger or consolidation, the unused input tax of the dissolved corporation, as of the
date of merger or consolidation, shall be absorbed by the surviving corporation.
6. Give at least 2 limitations to Deemed Sale Transactions.
1. In general, deemed sales are not permitted to use the unreasonable gross selling price;
2. Applicable only to sales of inventory goods and/or properties classified as ordinary asset;
3. VAT-exempt and OPT transactions are not covered by deemed sale transactions. It is
applicable only to transactions subject to VAT; and
4. Any loss related to deemed sales transactions are nondeductible for income tax purposes.
7. Juan, a Vat taxpayer, is closing his business. He had in his inventories 100 sacks of rice
valued at 200,000. Is the rice inventories subject to VAT?
8. Mr. A produces crustaceans from his farm in Masbate City. His products are sold and
delivered to ABC Company, VAT-registered, a food processor who in turn sells them while
sealed in cans to DEF corporation, Vat- registered, wholesaler/exporter. The canned goods
are delivered to retailers while others are exported to Japan. The retailers sell the goods to
households.
Are the individual transfers subject to VAT?
9. When is the period within which refund or tax credit of input taxes shall be made?
10. If the business originally named ABC Company in 2012 and they decided in 2017 to change
the name into XYZ Company, will the government (BIR) consider the change of the
company's name deemed sales?
11. What is the tax base for taxable sale of services?