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CHAPTER 9 INPUT VAT & 10 VAT STILL DUE + MISCELLANEOUS
REQUIREMENTS
True or False 1 True 1. Only VAT-registered taxpayers can claim input VAT. True 2. There is no input VAT from purchases made from non-VAT-registered suppliers. True 3. The total consideration pay by purchasers to VAT taxpayers includes the selling price and the VAT. False 4. Registrable persons can claim input VAT. True 5.Those who cannot claim input VAT can deduct those input VAT as part of their cost or expenses. False 6. Input VAT can be claimed as a tax credit or a deduction at the option of the taxpayer. True 7. The term creditable input VAT means input VAT deductible from output VAT. False 8. Exempt persons who issue VAT invoices can claim input VAT. False 9. Input VAT is computed as 12/112 of the selling price of the seller. True 10. Input VAT may come from importation and domestic purchase. True 11. The purchase of exempt goods and services has no input VAT/ True 12. If the VAT is not separately billed, it shall be computed as 12/112 of the selling price in the sales document. False 13. Input taxes on purchases for personal consumption are creditable against output VAT. True 14. Only input VAT for purchase of goods or services in the course of business is creditable. True 15. Input VAT needs to be evidenced by a VAT invoice or official receipt to be creditable.
True or False 2 False 1. The transitional input VAT is 2% of the vatable beginning inventory. True 2. The input VAT on importation is creditable upon release of the goods from the Customs custody. False 3. The input VAT on domestic purchase of goods is deductible upon payment. False 4. The input VAT on purchases of services is claimable in the month the services are rendered not when paid. True 5. Persons transitioning to the VAT system shall submit an inventory of goods. True 6. The input VAT on the purchase of real properties may be paid in installment. False 7.The input VAT on depreciable capital goods or properties must be amortized over a period of 60 months. False 8. The input VAT on depreciable capital goods or properties with aggregate acquisition costs exceeding P1M must be amortized over a period of 60 months. True 9. The input VAT on non-depreciable vehicles is disallowed as tax credit. False 10. The presumptive input VAT is 4% of the agricultural and marine purchases. False 11. Traders of sardines, mackerel, milk, and cooking oil can claim presumptive input VAT. False 12. The standard input VAT is 5% of sales to the government. False 13. The standard input Vat is 7% of the purchases sold to the government. True 14. There is a deductible expense when the actual input VAT exceeds the standard input VAT on government sales. True 15. There is a reduction in costs or expenses or an item of gross income when the standard input VAT exceeds the actual input VAT on government sales. True 16. The excess of the input VAT over the output VAT is referred to as input VAT carry- over. True 17. Input VAT carry-over is included as part of the creditable input VAT of the following month. True 18. The input VAT carry-over in a quarter is deductible in the following quarter. False 19. The input VAT carry-over cannot be credited over a period of 3 years. True 20. The input VAT carry-over in the second month of a quarter is creditable on the third month of that quarter. False 21. The Input VAT carry-over in the second month of a quarter is creditable on the third month of that quarter.
Multiple Choice – Theory:
D. Input VAT on the purchase of depreciable property
- The amortization of input VAT on certain properties is allowed when the aggregate acquisition costs A. exceeds P1M.
- 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.
Multiple Choice – Theory: Part 2
- The amortization period for depreciable capital goods or properties shall be B. whichever is shorter between the actual useful life in months or 60 months.
- Statement 1: The input VAT on non-depreciable vehicles shall be claimed to the month purchased. Statement 2: The input VAT on construction in progress shall be claimed in the month billing is paid. Which is correct? B. Statement 2
- The final withheld final VAT is B. 5% of the sales made to government.
- Which of the following cannot claim presumptive input VAT? B. Manufacturer of grease oil
- The presumptive input VAT is D. 4% of primary agricultural input.
- The standard input VAT is equivalent to A. 7% of the sales made to government.
- The withheld final percentage tax is B. 3% of the sales made to government.
- If the standard input VAT exceeds the actual input VAT traceable to
A. an item of gross income subject to income tax.
- Statement 1: VAT-registered persons do not pay VAT on zero-rated sales.
Statement 2: VAT-registered persons always pay VAT on government sales. Which statement is correct? C. Both statement
- Statement 1: The excess of the output VAT over creditable input VAT is paid to the government. Statement 2: The excess of creditable input VAT over output VAT is claimed as a tax credit or tax refund. Which statement is incorrect? B. Statement 2
- The excess of creditable input VAT over output VAT is C. Input VAT carry-over
- Which of the following Input VAT carry-over is creditable against output VAT of the quarterly VAT return? C. Those arising from the prior quarter
- Which of the following is creditable against the input VAT of the quarterly VAT return?
D. All of these
MC Problem Part 1
- Andrew, a VAT-taxpayer, imported a golden necklace as a gift to his girlfriend.
- A VAT-taxpayer purchase services from a non-VAT-registered person in which he paid a total of P56,000 on the purchase.
- A VAT-Taxpayer imported vatable goods from a non-resident person who is not engaged in trade or business.
- A non-VAT registered person purchased goods invoiced at P112,
- A VAT taxpayer incurred the following during the month: Consultancy fees P 700,
- A VAT registered taxpayer purchased equipment which is expected to last 10 years in January 2020. – P120,000; P
- In January 2020, a VAT taxpayer made the following purchases: Goods, exclusive of VAT P800,000 – P180,
- Popogiron Corporation – P192,
- Master Pogi – P0; P
- A VAT-registered individual purchased the following from various suppliers in November 2020: - P96,
- In the preceding problem, what is the creditable input VAT in the December quarterly VAT return – P3,
- A VAT-registered corporation reports on a fiscal year. – P2,
- In the preceding problem, what is the creditable input VAT in July 2020 – P2,
- In the preceding problem, what is the creditable input VAT for the quarter ending August 2020? – P79,
- A VAT-registered individual purchased the following capital goods – P3,
- In the preceding problem, what is the creditable input VAT in August 2020? – P5,
- Still on the same problem, September 2020 – P14,
- A VAT-taxpayer purchased a commercial lot payable in 10 monthly installments
- Thor Corporation – P2,
- In the preceding problem, what is the creditable input VAT for May 2020 – P122,
- In the preceding problem, what is the creditable input VAT for the quarter ended June 30, 2020 – P151,
- Lupao Corporation – P116,
- In the immediately preceding problem, what is the claimable input VAT in the second calendar – P120,
- VPI Corporation – March – P120,000; P102,
- In the immediately preceding problem, what is the creditable input VAT in the first quarter
8. Assuming the vatable purchases in the preceding problem were exclusive of VAT
- In the immediately preceding problem, what is to be included in the calculation
C. Flour
d. Timber
- 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 timbe r. d. The advanced input vat in lieu of the actual input vat traceable to the sales of refined sugar, flour or timber
- Which of the following tax credit can be claimed through a tax credit certificate c. Input VAT on sales to the government
- 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 can be claimed as VAT refund?
a. Input VAT on export sales b. Advanced Input VAT c. Input VAT on sales to the government d. A and B
- Which is not a tax credit against net VAT payable?
a. Advanced VAT c. Standard input VAT b. Monthly VAT payments d. Final withheld VAT
- Which Industry is not subject to VAT?
a. Mining c. Banking
L Construction d. Air transport
- Which is not a VAT compliance requirement?
a. VAT Invoicing b. Transactional Recording c. Filing monthly summary list d. None of these
- The summary list is required for
a. Large tax payers c Non-VAT taxpayers b. Non large taxpayers d. All VAT taxpayers
- 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
Multiple choice- Problems PART 1
1. Sabina Flour Milling (SFM) Corporation imports and mills wheat. B. 288, 2. Sugar Nanny Corporation (SNC) buys sugar cane from farmers and processes D. 336, 3. In the immediately preceding problem, what is the total credit C. 456, 4. A VAT Taxpayer had the following data on its VAT obligation on the last quarter of the year: B. 40, 5. Mr. Esperon, a VAT taxpayer, recorded the following during the month. A. 84,00 0
C. 297,
- A vat registered restaurant had the following transaction during the month: Receipt from foods served 600, 00 Receipts from soft drink 200, 00 Purchase of rice,meat and vegetable 200, 00 Purchase of vegetable 100, 00 Purchase of soft drink 120, 00
Purchase of food condiments
Assuming all amounts are exclusive of VAT, compute the vat Payable D. 72,
- A Vat-registered tax practitioner who uses the cash basis of accounting disclosed the ff results of operation (exclusive of Vat) d. 654,
- A manufacturing subcontractor generated the ff receipt from various clients.
Compute the VAT payable
D. 0
- DZQC, a radio broadcasting company with 8M annual receipt, generated a total revenue of 1M out f which of 800,000 was collected. A. O
- A Vat- taxpayer had the following data during the month. Regular sale 3M export sale 1.5 M input vat o reg sale 240k input vat on export sale 100k. compute the VAT payable B. B. B.100,
- An insurer had the ff receipt and input Vat data during the month. Compute the VAT payable.
D. 195,
- A lessor of commercial spaces had the ff receipts and input VAT data for the month. Compute for VATPayable B. 270,
- a domestic airliner had the following transaction during the month
B. 192,
- A seller of goods had the ff. sale
C. 48,
Chapter !0- MC Probs Part 3
1. Denzi company bought a building - B. 64, 000 2. A VAT- registered bus company has the following receipts on January 2020:
What is the VAT Payable for January
- B. 27, 400 3. A domestic sea carrier has the following receipts and attributable input VAT for the month:
What is the VAT payable:
- C 24, 000 4. A VAT registered television company with annual receipts of P8M reported P 1M total revenue What is the VAT payable:
- C. 68, 571 5. A bookstore had the following summary of transaction during the month:
- MC Problems Part
- Sardinia – P6,
- What is the total creditable input VAT of Sardinia – P18,
- A wholesale trader of canned sardines – P
- Sugarland Corporation – P20,
- A sugar refiner processes raw sugar – P
- Mr. Mantica – P30,
- Nizzin manufacturers – P
- Misamis Company – P38,
- Abenson Builders – P300, – P9,500 loss or expense
- In the immediately preceding problem, what is the final withholding VAT – P200,
- Still on the same problem, what is the standard input VAT – P280,
- Mayon Corporation – P60, 14. Still on the same problem, what is the treatment – P20 000 expense
- What is the creditable input VAT in April – P360,
- What is the input VAT carry-over to be credited in June – P40,
- – P60, 18. A VAT taxpayer had the following data in a quarter: Input VAT carry-over, prior quarter
- Him Corporation – P30,
