FAR EASTERN UNIVERSITY - MANILA

TAKE HOME QUIZ NO. 1

FINAL PERIOD

1. The following are persons liable to VAT, except:

a. Importer
b. Lessee
c. Seller of goods
d. Seller of services

2. The general rule under the Tax Code, as amended, the person statutorily liable to
pay the VAT is the: a. Buyer
b. Seller
c. Either the seller or the buyer
d. Neither the seller of the buyer

3. 1st statement – The gross selling price excludes the VAT.

2nd statement – The excise tax, If any is part of the gross selling price.

a. Only the 1st statement is true

b. Only the 2nd statement is true
c. Both of the statements are true
d. Both of the statements are false

4.. The VAT threshold under the TRAIN law is:

a. Exceeding Php 1,919,500.00
b. Exceeding Php 1,500,000.00
c. Exceeding Php 3,000,000.00
d. Exceeding Php 5,000,000.00

5. If a taxpayer, not required to register as VAT, opted to become a VAT-registered

taxpayer, such option when taken is:
a. Forever irrevocable
b. Irrevocable for three (3) years
c. Revocable anytime
d. Revocable if the taxpayer’s actual gross receipts or gross sales did not exceed the
VAT threshold

6. JJ Realty Corp is a domestic corporation who is engaged in real estate business sold
a building

Statement 1. The sale is not subject to VAT because it is not a sale of a goods or services
Statement 2. The sale is subject to VAT, because sale of goods and properties are
subject to the value-added tax, and real estate is within the meaning of property.
a. True, True
b. False, False
c. True, False
d. False, True

7. Lesion is a lessor of real property and personal property (cars). The tax that he pays is:
A. Excise tax C. Transaction tax
B. Value-added tax D. None of these

8. Burgos is manufacturer of fermented liquors. In making sales, all taxes on the products
and transactions are passed on to the buyers. For purposes of the value-added tax,
which of these taxes listed below that he pays forms part of the gross selling price?

A. Excise tax C. Percentage tax

B. Value-added tax D. None of these

9. Cantor is a VAT-registered dealer of liquors. On his sales in the Philippines, his tax is:
A. Excise tax C. Percentage tax
B. Value-added tax D. None of these

10. Statement 1: A person subject to excise tax is also subject to value-added tax.
Statement 2: A person subject to percentage tax is also subject to value-added tax.

A. Both statements are correct

B. Statement 1 is correct while statement 2 is wrong
C. Both statements are wrong
D. Statement 1 is wrong while statement 2 is correct

11. Which statement is correct? The value-added tax on importation:

A. Should be paid by the tax-exempt importer, if he subsequently sells the goods to a
non-tax-exempt purchaser.
B. Should be paid by the non-tax-exempt purchaser to whom the tax-exempt importer
sells it.
C. Is a liability either of the tax-exempt importer or the non-tax-exempt purchaser.
D. Shall not pay the value-added tax because the transaction was exempt at the point
of importation.
12. Statement 1: The output value-added tax is computed by multiplying the gross
selling price by 12%; or multiplying the total amount indicated in the invoice by 12/112.
Statement 2: The output value-added tax is computed by multiplying the total amount
indicated in the invoice by 12%.
A. Both statements are correct
B. Both statements are wrong
C. The first statement is correct but the second statement is wrong
D. The first statement is wrong but the second statement is correct

13. 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 prepared invoice.
B. The invoice which shows the selling price and the value-added tax separately, but
with a total which is a correct amount is a properly prepared invoice.
C. An invoice which shows the selling price and the value-added tax separately, which
is paid by the buyer, is violative of the revenue regulations on issuance of sales invoice.
D. A sales invoice by a VAT taxpayer can be used only on a VAT sale.

14. S1: in the books of accounts of a VAT-registered taxpayer, sales are recorded net of
output taxes.

S2: in the books of accounts of a VAT-registered taxpayer, purchases are recorded net
of input taxes.
A. Both statements are correct
B. Both statements are wrong
C. The first statement is correct but the second statement is wrong
D. The first statement is wrong but the second statement is correct
PROBLEM SOLVING

Kenkoy inherited property on November 1, 2012, with a fair market value and a mortgage
at that time of P200,000 and P100,000, respectively. He married on January 10, 2013,
under the property relationship of conjugal partnership of gains. On March 5, 2014, he
borrowed P200,000 from a bank and mortgaged the same property. Kenkoy died without
paying any of the mortgage indebtedness.

15. Disregarding accrued interest on the mortgage indebtedness, deduction against

exclusive property is:

The following donations were made by Gord:

Date of Donation Amount

January 18, 2018 Php 1,000,000

May 30, 2018 Php 2,500,000

August 15, 2018 Php 500,000

16. The donor’s tax on January 18 is:

17. The donor’s tax payable on August 15 is:

All amounts given are total invoice costs/prices (VAT INCLUSIVE):

A, non-VAT taxpayer, sells to B, VAT taxpayer P 60,000

B, VAT taxpayer, sells to C, VAT taxpayer 100 800
C, VAT taxpayer, sells to D, VAT taxpayer, an exporter 168 000
D, VAT taxpayer, exports 300 000

18. The value-added tax of B (VAT PAYABLE):

19. The value-added tax of C (VAT PAYABLE):

Okada, a hotel operator that is a VAT-registered person earns P 10,000,000 from its
operations including in the said amount is the income of the hotel from its leases of luxury
vehicles to its hotel customers amounting to P 3,000,000 which is not part of normally part
of the regular conduct of the business.

Question:

20. Based on the foregoing facts, how much is the output tax that Okada will pay?
 ANSWER SHEET

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.