Question 1
1 / 1 pts
The following are exempt from Philippine business tax, except
A. Gross receipts of an international carrier from incoming flights
B. Gross receipts from incoming overseas call
C. Importation of goods
D. Export sales of domestic corporation
Question 2
1 / 1 pts
The sales of the following are exempt from Philippine business tax, except
A. Non stock non profit educational institution
B. Sole proprietorship with authority to operate as Barangay Micro Business enterprise – exempt from income
taxes only
C. CHED accredited higher educational institution
D. Non stock, non for profit hospitals
IncorrectQuestion 3
0 / 1 pts
Which of the following is not liable to Philippine business tax?
A. Services of non resident alien paid by resident of the Philippines – final tax
B. Sales to government units
C. Importation by non VAT person for personal use
D. Sales of CTE holder cooperatives to its members (and non-members) at the period when its accumulated
reserves is more than P10,000,000 – exempt from all national taxes
IncorrectQuestion 4
0 / 1 pts
STATEMENT 1, The gross receipts of domestic air carrier for outgoing and incoming transfers of passengers and goods
are VAT exempt. – VATable for passengers (OPT if by land) and cargoes whether land, air and sea
STATEMENT 2, The gross receipts of domestic sea carrier for incoming transfers of goods are VAT zero rated
transactions. - VATable
A. True, true
B. True, false
C. False true
D. False, false
Question 5
1 / 1 pts
The following are exempt from Philippine business tax, except
A. Sales from lending activities of accredited micro finance NGO
B. Sales of gold to BSP by an accredited small scale miner
C. Sales of general professional partnership
D. Sales of marginal income earner
Question 6
1 / 1 pts
Statement 1: Other percentage taxes are indirect taxes that can be passed on by person required to pay to another
person who shall bear the burden of paying the tax.
Statement 2: sales of luxury items that are subject to the other percentage taxes are no longer subject to the value
added tax but may be subject to excise tax.
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are not correct
Question 7
1 / 1 pts
Which of the following businesses which are generating revenue of more than
P3,000,000/year is not required to be registered under VAT system?
A. Professional doctors
B. Life insurance business
C. Freight truck operator
D. Lessor of commercial units
IncorrectQuestion 8
0 / 1 pts
Which of the following should be registered under VAT system if the gross receipts is more than P3,000,000/year?
A. Taxi operator
B. Public utility bus operator
C. Domestic ocean vessel
D. Local banks
Question 9
1 / 1 pts
The trading business reported an annual domestic Sales of P3,000,000 and its export sale is P4,000,000,
Which of the following is the best option?
A. Must be registered as VAT to claim INPUT VAT credit on its export sales.
B. Must be registered as Non VAT to avoid Payment of Input VAT on its payment to VAT persons
C. Must be registered as VAT to avoid Payment of Input VAT on its payment to VAT persons
D. Must be registered as Non VAT to avoid Philippine business tax on its export sales
Question 10
1 / 1 pts
They are statutory taxpayer to the Philippine business tax on importation, except?
A. Foreign seller
B. importer
C. Domestic buyer
D. none
IncorrectQuestion 11
0 / 1 pts
The taxpayer reported the following importations made during the taxable period:
• Goods intended for sale locally
• Supplies for business use
• Feeds for his expensive breed pets
If the importer is VAT registered person, which of the following is/are correct?
A. All of his importations are subject to Philippine business tax.
B. Only the importation of feeds is subject to Philippine business tax
C. Only the importation of feeds is not subject to Philippine business tax
D. Only the importation of goods for sale locally is not subject to Philippine business tax
Question 12
1 / 1 pts
The taxpayer reported the following importations made during the taxable period:
• Goods intended for sale locally
• Supplies for business use
• Feeds for his expensive breed pets
If the importer is non-VAT registered person, which of the following is/are correct?
A. All of his importations are subject to Philippine business tax.
B. Only the importation of feeds is subject to Philippine business tax
C. Only the importation of feeds is not subject to Philippine business tax
D. Only the importation of goods for sale locally is not subject to Philippine business tax
Question 13
1 / 1 pts
Reported importations of international shipping operator;
I. Importation of fuel for outgoing transport of cargo
II. Importation of fuel for incoming transport of passenger
III. Importation of fuel for outgoing transport of passenger
IV. Importation of fuel for incoming transport of cargo
• Which of the above is/are exempt from Philippine business tax?
A. i only
B. iii only
C. i and iii only
D. ii and iv only
Question 14
1 / 1 pts
A non VAT person made the following importation for the period:
• Frozen salmon fish
• Scented candles
• Decorative flowers
• School text books
His Philippine business tax is on
A. All the importations listed above
B. Frozen salmon and school text books
C. Scented candles and decorative flowers
D. All the importation, except frozen salmon
Question 15
1 / 1 pts
Which transport carrier has business tax exemption on its sales from its transport activities?
A. Domestic common carrier
B. International carrier
C. Both
D. None
Question 16
1 / 1 pts
Which of the following is/are liable to Philippine business tax?
A. Sales of international carrier from outgoing transport of passengers
B. Sales of international carrier from outgoing transport of cargoes
C. Sale of aircraft for domestic transport operation as authorized by MARINA
D. Sales of international carrier from incoming transport of passengers
IncorrectQuestion 17
0 / 1 pts
The sale of international carrier from incoming transport of cargoes is
A. Liable to 12% VAT
B. Exempt from Philippine business tax
C. VAT zero rated sale
D. Exempt from VAT and OPT
Question 18
1 / 1 pts
STATEMENT 1, The gross receipts of International carrier for incoming flights are Zero rated transactions. exempt
STATEMENT 2, The gross receipts of international carrier for transport of cargo originating from foreign
country is liable to 3% Philippine business tax. exempt
A. True, true
B. True, false
C. False, true
D. False, false
IncorrectQuestion 19
0 / 1 pts
In the consolidated 1701 ITR of Non VAT registered spouses X and Y they reported P2,000,000 professional fees from
practice of profession of X and P3,000,000 from the sales in the sari sari store business of Y.
Which of the following is correct?
A. Both husband and wife are liable to business tax on their sales
B. The combined sales of husband and wife are liable to 12% VAT
C. Only the P3,000,000 sari sari store is subject 12% VAT
D. The professional fee is exempt from business tax and the sales from sari sari store operation is liable to business
tax
IncorrectQuestion 20
0 / 1 pts
Which of the following is not correct business tax rate on the taxable transaction?
A. 3% if the sales is not among exempt sales and not OPT and not more than P3,000,000/year
B. 12% on the sales of VAT registered micro business under RA 11976
C. 12% If the annual sales of Video Okee operator is more than P3,000,000 – fixed 18% OPT
D. 12% if the annual sales of non-VAT trading business of small business under RA 11976 is more than
P3,000,000
IncorrectQuestion 21
0 / 1 pts
The non VAT registered sole proprietorship reported the following sales for the year:
• Land freight forwarding services, P2,500,000
• Rice trading 1,000,000 – exempt because this is agricultural produce in original state
• Professional fees 800,000
Its Philippine business tax liability is
A. 516,000
B. 396,000 (3.3M*.12)
C. 129,000
D. 99,000
IncorrectQuestion 22
0 / 1 pts
During the taxable year, a non-VAT registered business generated the following from its business activities:
• Domestic sales to VAT person P2,000,000
• Domestic sales to non VAT person 1,000,000
• VAT exempt sales to senior citizens 300,000
• Export sales 1,700,000
Its Philippine business tax liability for the year is
A. 592,800
B. 564,000
C. 360,000 (3M*.12)
D. 150,000
IncorrectQuestion 23
0 / 1 pts
The local bank reported the following ;
• Of interest income, P3,000,000
• Dividend income 2,000,000
• Royalty income 600,000
• Rent income 1,400,000
Its VAT exempt sales is
A. 7,000,000
B. 5,000,000
C. 2,000,000
D. None
Question 24
1 / 1 pts
An international carrier reported the following:
▪ P10,000,000 Sales from incoming transport of passengers
▪ P 1,000,000 Sales from outgoing transport of cargoes - OPT
▪ P 2,000,000 Sales from incoming transport of cargoes
▪ P 9,000,000 Sales from outgoing transport of passengers – VAT exempt
▪
The taxable base of Philippine business tax is
A. 22,000,000 B. 19,000,000 C. 3,000,000 D. 1,000,000
Question 25
1 / 1 pts
A local public bus owner/operator reported the following for the quarter:
Sales from transport of passengers P6,500,000*.03=195T
Sales from transport of cargoes 3,500,000*.12=420T
Its Philippine business tax liability is
a. 615,000 b. 300,000 c. 1,200,000 d. 420,000
Question 26
1 / 1 pts
The following are taxed with business tax rate of 3% on its sales within the
Philippines , Except
A. International Carrier
B. Water franchise holder – 2% including gas
C. Common carrier
D. Non-VAT lodging operator
Question 27
1 / 1 pts
Which of the following is liable to 12% VAT on their sales?
A. P3,000,000/yr sales from race tract operation
B. P5,000,000/yr sales of local bank
C. P10,000,000/yr sales from Radio broadcast franchise – 3%
D. P500,000/yr sales of VAT registered sole proprietor
IncorrectQuestion 28
0 / 1 pts
A non VAT lessor of real property for commercial purposes is
Statement 1, Liable to 12% VAT if the aggregate rent for the year is P3,000,000 – should be more than 3M
Statement 2, Not liable to business tax if the monthly rent per unit is P15,000
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are not correct
Question 29
1 / 1 pts
A domestic air carrier reported the following gross sales for the quarter:
• Domestic flights P20,000,000
• Incoming flights 30,000,000
• Outgoing flights 50,000,000 – zero-rated
Its sales that is taxable with Philippine business tax is
A. 70,000,000
B. 50,000,000
C. 30,000,000
D. None
Question 30
1 / 1 pts
This is the creditable INPUT VAT this year as VAT person from prior year as non-VAT person
A) PRESUMPTIVE INPUT TAX
B) TRANSITIONAL INPUT TAX
C) EXCESS INPUT TAX
D) TOTAL INPUT
Question 31
1 / 1 pts
X purchased from Y goods P1,344 inclusive of VAT.
Which of the following is correct?
A. If X is VAT registered the VAT payment to Y is his expense
B. If X is VAT registered the VAT payment to Y is his INPUT VAT
C. If X is Non-VAT the VAT payment to Y is creditable against his business tax liability
D. If X is Non-VAT the VAT payment to Y is his expense
Question 32
1 / 1 pts
X VAT registered consignor delivered P500,000 at selling price of consigned goods to VAT registered consignee on
January 15, 2024. As of March 31, the reporting date for 1 st quarter 2550Q only 60% of the consigned goods were
sold.
Which of the following is correct?
A. The VAT liability on the unsold consigned goods in on the consignee
B. The OUTPUT VAT of the consignor for the quarter is P36,000
C. The OUTPUT VAT of the consignee for the quarter is P24,000
D. For the quarter, consignor is liable to OUTPUT VAT on P500,000
Question 33
1 / 1 pts
For the quarter, the consignee remitted P436,500 of sold goods in behalf of the consignor. The amount remitted is
inclusive of 12% VAT, and net of consignee’s 15% commission.
On their respective 2550Q, Which of the following is true?
A. The consignor will report INPUT VAT of P54,000
B. The consignee will report INPUT VAT of P8,100
C. The consignor will report OUTPUT VAT of 54,000 (436.5/.97=450*.12)
D. The consignee will report OUTPUT VAT of 45,000
Question 34
1 / 1 pts
In the first quarter of its year 1 of operation, a VAT registered business reported the following, all inclusive of VAT;
Sales, 50% sold to non-VAT person, 952,000.00*12/112=102T
Purchase of inventory 649,600.00*12/112=(69.6T)
Ending Inventory 134,400.00
Its net VAT due / (excess credit) reportable its 2550Q for the quarter is
A. 32,400
B. 18,000
C. (18,600)
D. (33,000)
Question 35
1 / 1 pts
The Pastry Shop Sells Cakes And Pastry Items To Well-Known Hotels Around Metro Manila Area. The Hotels Are Allowed
Credit Based On The Track Record Of The Hotels. Pastry Shop received total Amount of P224,000, Including the VAT
from the sales which is seventy Five Percent Of The Sales Are on credit.
For the above sales, the seller will record
A. VAT payable of P24,000
B. OUTPUT VAT of P 20,000
C. INPUT VAT of P20,000
D. OUTPUT VAT of P24,000 (224T*12/112)
Question 36
1 / 1 pts
X VAT sales invoice to Y is P123,200.
Y sold the same goods to Z at 120% of cost
Both X and Y are VAT registered and Z is non-VAT.
The correct book entries in the books of Y to record its purchase from X is
A. Purchases 123,200
Cash 123,200
B. Purchases 123,200
Cash 110,000
OUTPUT VAT 13,200
C. Purchases 110,000
Cash 110,000
D. Purchases 110,000
INPUT VAT 13,200
Cash 123,200
Question 37
1 / 1 pts
X VAT sales invoice to Y is P123,200.
Y sold the same goods to Z at 120% of cost
Both X and Y are VAT registered and Z is non-VAT.
The correct book entries in the books of Y to record its SALES to Z is
A) Cash 147,840
Sales 147,840
B) Cash 132,000
Sales 132,000
C) Cash 16,315.20
Sales 16,315.20
D) Cash 147,840
Sales 132,000
OUTPUT VAT 15,840
Question 38
1 / 1 pts
X VAT sales invoice to Y is P151,200.
Y sold the same goods to Z for P151,200
Both X and Z are VAT registered and Y is non-VAT.
Which of the following entries is not correct?
To record Sales in the Books of X :
A) Cash 151,200
Sales 135,000
OUTPUT VAT 16,200
B) To record sales in the Books of Y:
Cash 151,200
Sales 135,000
OUTPUT VAT 16,200
C) To record the purchase in the books of Z
Purchases 151,200
Cash 151,200
D) To record the purchase in the books of Y
Purchases 151,200
Cash 151,200
Question 39
1 / 1 pts
The VAT registered business reported the following for the quarter:
Inclusive of VAT Exclusive of VAT
Sales to VAT person 1,008,000
Sales to Non-VAT person 200,000
Sales to neighbor Asian country 1,815,000
Purchases from another VAT registered person:
Goods for domestic sale 323,120
Goods for export sale 672,000
Services for domestic sale 124,850
The net VAT payable for the quarter is
a. 10,398 b. 12,895 c. 84,895 d. 177,895
IncorrectQuestion 40
0 / 1 pts
The VAT registered business reported the following for the quarter:
Inclusive of VAT Exclusive of VAT
Sales to VAT person 1,008,000
Sales to Non-VAT person 200,000
Sales to neighbor Asian country 1,815,000
Purchases from another VAT registered person:
Goods for domestic sale 323,120
Goods for export sale 672,000
Services for domestic sale 124,850
The impact of the export sale on the quarter VAT liability is
a. (44,830) b. (72,000) c. (84,895) d. Zero
Question 41
1 / 1 pts
On its sales to government unit, the VAT registered hotel received net proceeds of P88,275 for its billing inclusive of
VAT and net of 5% VAT withholding tax.
In the above transaction, the seller will record
A. INPUT VAT of P 9,900
B. OUTPUT VAT of P9,458
C. OUTPUT VAT of P9,900 (88,275/1.07=82,500*.12)
D. INPUT VAT of P9,458
Question 42
1 / 1 pts
The VAT registered business reported the following importations:
o P100,000 for personal use
o P400,000 for business use
o P500,000 for sale locally as part of its inventory
How much is the total tax base of the Philippine business tax ?
A. P1,000,000
B. P900,000
C. P500,000
D. none
Question 43
1 / 1 pts
A General Sales Agent of Domestic Air carrier reported the following for the quarter
• Amount of remittance to Domestic Air Carrier, P 319,290, computed as;
• The amount of Domestic Air carrier billings is sales of ticket x 112%, less 2% expanded w/tax.
• Deducted with General sales agent’s 3.5% commission x 112%, less 10% expanded withholding tax.
The total sales of domestic air carrier’s ticket sold by the GSA is
A. 250,000
B. 275,000
C. 300,000
D. 350,000
Question 44
1 / 1 pts
A General Sales Agent of Domestic Air carrier reported the following for the quarter
• Amount of remittance to Domestic Air Carrier, P 319,290, computed as;
• The amount of Domestic Air carrier billings is sales of ticket x 112%, less 2% expanded w/tax.
• Deducted with General sales agent’s 3.5% commission x 112%, less 10% expanded withholding tax.
For the above, the amount to be issued with 2307 for expanded w/tax remitted is
A. Domestic air carrier to issue 2307 for P6,000
B. General Sales agent to issue 2307 for P1,050
C. General Sales agent to issue 2307 for P6,050
D. Domestic air carrier to issue 2307 for P1,050
Question 45
1 / 1 pts
DATA for the following questions:
The following are the sales and merchandise purchases of VAT registered X, non VAT registered Y and VAT registered Z:
• Sales of X to Y P1,500,000, to Z P2,500,000
• Sales of Y to X P1,500,000, to Z P3,500,000
• Sales of Z to X P1,500,000, to Y P2,500,000, export sales P3,000,000
All of them are using perpetual method of recording inventory.
Which of the following is not correct amount of inventory recorded for the purchases?
A. X 3,045,000
B. Y 4,480,000
C. Z 6,000,000
D. None
IncorrectQuestion 46
0 / 1 pts
The following are the sales and merchandise purchases of VAT registered X, non VAT registered Y and VAT registered Z:
• Sales of X to Y P1,500,000, to Z P2,500,000
• Sales of Y to X P1,500,000, to Z P3,500,000
• Sales of Z to X P1,500,000, to Y P2,500,000, export sales P3,000,000
All of them are using perpetual method of recording inventory.
Which of them will record the largest amount of tax component of their purchases as expense
A. X
B. Y
C. Z
D. None
IncorrectQuestion 47
0 / 1 pts
The following are the sales and merchandise purchases of VAT registered X, non VAT registered Y and VAT registered Z:
• Sales of X to Y P1,500,000, to Z P2,500,000
• Sales of Y to X P1,500,000, to Z P3,500,000
• Sales of Z to X P1,500,000, to Y P2,500,000, export sales P3,000,000
All of them are using perpetual method of recording inventory.
Which of them will record the largest amount of tax component of their sales as expense
A. X
B. Y
C. Z
D. none
IncorrectQuestion 48
0 / 1 pts
The following are the sales and merchandise purchases of VAT registered X, non VAT registered Y and VAT registered Z:
• Sales of X to Y P1,500,000, to Z P2,500,000
• Sales of Y to X P1,500,000, to Z P3,500,000
• Sales of Z to X P1,500,000, to Y P2,500,000, export sales P3,000,000
All of them are using perpetual method of recording inventory.
Which of them will have the highest business tax burden after available tax credits?
A. X
B. Y
C. Z
D. none
Question 49
1 / 1 pts
The following are the sales and merchandise purchases of VAT registered X, non VAT registered Y and VAT registered Z:
• Sales of X to Y P1,500,000, to Z P2,500,000
• Sales of Y to X P1,500,000, to Z P3,500,000
• Sales of Z to X P1,500,000, to Y P2,500,000, export sales P3,000,000
All of them are using perpetual method of recording inventory.
If all them sold all inventory purchases the same period, which of them will report the lowest amount of gross business
income for the period?
A. X
B. Y
C. Z
D. Either X or Z
Question 50
1 / 1 pts
A General Sales Agent of Domestic Air carrier reported the following for the quarter
• Amount of remittance to Domestic Air Carrier, P 319,290, computed as;
• The amount of Domestic Air carrier billings is sales of ticket x 112%, less 2% expanded w/tax.
• Deducted with General sales agent’s 3.5% commission x 112%, less 10% expanded withholding tax.
The total sales of domestic air carrier’s ticket sold by the GSA is
A. 250,000
B. 275,000
C. 300,000
D. 350,000
