Gracilla, Jayniel Angelo D.
Exporter
Part 1: Theoretical Questions (Choose 7. Which of the following is not a rule on
the Best Answer) taxable entities?
A. Husband and wife are one taxable
1. What is the nature of consumption tax? person.
A. Direct tax B. Parent and subsidiary are separate
B. National income tax taxable entities.
C. Tax on sale of goods C. Each person is a taxable person.
D. Tax on the utilization of goods or D. Home office and branch are one taxable
services person.
2. Under the destination principle, which of 8. A seller who is VAT-registered sells to a
the following is subject to consumption tax? non-VAT buyer. The buyer’s entry should
A. Exports record:
B. Foreign sales A. Purchases at gross + VAT
C. Domestic consumption B. Purchases at net
D. Services performed abroad C. Input VAT
D. VAT payable
[Link] is a general basis for VAT
exemption? 9. What type of business tax applies to non-
A. Luxury item VAT-registered taxpayers?
B. Political campaign A. Final Withholding VAT
C. Human necessity B. Percentage Tax (GPT)
D. Business profits C. Excise Tax
D. Import Duty
4. Which of the following is subject to VAT?
A. Sale to international organizations 10. A marginal income earner is someone
B. Sale of basic agricultural products who earns not more than:
C. Importation of goods A. ₱250,000
D. Export sale B. ₱3,000,000 ??
C. ₱100,000
5. Which principle justifies the exemption of D. ₱1,000,000
exports from VAT?
A. Origin principle 11. Which of the following is an indirect
B. Cross-border doctrine tax?
C. Value-added theory A. Corporate income tax
D. Benefit received theory B. Business tax
C. Estate tax
6. What is the statutory taxpayer in VAT on D. Donor’s tax
importation?
A. Seller 12. VAT is imposed on:
B. Importer A. Income
C. Government B. Wealth
C. Consumption D. Not taxable at all
D. Salary
19. Which of the following transactions is
13. Which of the following is a privilege effectively exempt from VAT?
tax? A. Sale by resident seller to resident buyer
A. Documentary stamp tax B. Importation of goods
B. Business tax C. Export sale
C. Excise tax D. Sale by non-resident to resident buyer
D. Final tax on royalties
20. Which principle means tax applies only
14. The tax imposed upon production or to goods/services consumed within the
importation of specific goods is: country?
A. Business Tax A. Cross-border doctrine
B. Excise Tax B. Residence principle
C. VAT C. Destination principle
D. Final Withholding VAT D. Source principle
15. A VAT-registered seller issues an 21. What is the economic taxpayer in
invoice to a VAT-registered buyer. Which is import VAT?
true? A. Seller
A. Output VAT is ignored B. Exporter
B. Input VAT can be claimed C. Buyer
C. Buyer pays only net amount D. BIR
D. Seller does not record VAT
22. Which of the following is a deductible
[Link] entity administers VAT on item for a VAT-registered taxpayer?
importation? A. Output VAT
A. Department of Trade and Industry B. Expanded Withholding Tax
B. Department of Finance C. Input VAT
C. Bureau of Internal Revenue D. Excise Tax
D. Bureau of Customs
23. When does VAT become payable in
17. What is the threshold for mandatory business transactions?
VAT registration? A. Upon shipment
A. ₱100,000 B. Upon sale
B. ₱1,000,000 C. Upon invoice
C. ₱3,000,000 D. Upon collection
D. ₱10,000,000
24. What is used to report VAT quarterly?
18. What is the tax treatment when a non- A. BIR Form 1601E
resident seller sells to a Philippine buyer? B. BIR Form 1701
A. Exempt from VAT C. BIR Form 2550Q
B. Subject to Business Tax only D. BIR Form 2551Q
C. Subject to Final Withholding VAT
25. A business whose gross sales/receipts Part 2: Problem-Based Questions
are below VAT threshold but registers (Choose the Best Answer)
voluntarily as VAT taxpayer is:
A. VAT-Exempt 1. Jaie, a VAT-registered seller, sold goods
B. VAT-Registrable worth ₱100,000 VAT Exclusive. What is the
C. VAT-Registered total amount receivable from a VAT-
D. GPT taxpayer registered buyer?
A. ₱100,000
26. How long is the lock-in period for B. ₱112,000 (100,000*12%)+100,000
optional VAT registration? C. ₱120,000
A. 1 year D. ₱110,000
B. 2 years
C. 3 years 2. If the buyer in No. 1 is a non-VAT
D. 5 years taxpayer, what is their recorded purchase?
A. ₱100,000
27. In business tax, who is the primary B. ₱112,000 (will not record Input)
statutory taxpayer? C. ₱12,000
A. Buyer D. ₱110,000
B. Seller
C. Government 3. Sam, a non-VAT taxpayer, sold ₱50,000
D. Customs worth of goods. What tax applies?
A. Output VAT of ₱6,000
28. Which transaction is considered out of B. General Percentage Tax of ₱1,500 (3%)
scope? C. Final Tax of ₱10,000
A. Sale of processed food D. None, exempt sale
B. Services by non-residents
C. Sales by government 4. Psy imported equipment worth ₱200,000.
D. Sale of imported books Customs duty was ₱10,000. Compute VAT
on importation using the given figures alone.
29. What is the tax base for GPT? A. ₱24,000
A. Net income B. ₱25,200 (200,000+10,000)*12%
B. Gross sales/receipts C. ₱21,600
C. Market value D. ₱12,000
D. VAT amount
5. Jude is a VAT-registered contractor. He
30. If both the seller and buyer are non- billed ₱300,000 to a client and incurred
VAT, the journal entry reflects: ₱50,000 Input VAT. Compute his VAT
A. Output VAT payable.
B. Input VAT A. ₱6,000
C. Gross only B. ₱36,000
D. VAT payable C. ₱50,000
D. ₱0.00 (300k*12%) - 50k = (14,000)
refundable
6. Using No. 5, if the client is a non-VAT Sales of Urn to a mute-deaf adult: ₱100k;
entity, how should the contractor invoice Total Input VAT: ₱8,000. Compute for VAT
them? Payable, given that all sales transactions
A. ₱300,000 (VAT Inclusive) are exclusive of VAT.
B. ₱336,000 A. ₱40,000
C. ₱350,000 B. ₱48,000
D. ₱312,000 C. ₱52,000
D. Impossible to compute.
7. Julienne, a GPT taxpayer, had ₱150,000
in quarterly gross receipts. What is her tax 12. A service provider earns ₱500,000 and
due at 3% rate? is non-VAT registered. What is the
A. ₱3,000 applicable tax?
B. ₱4,500 (150,000*3%) A. ₱15,000 GPT
C. ₱2,000 B. ₱60,000 VAT
D. ₱1,500 C. ₱12,000 Income Tax
D. ₱30,000 GPT
8. AJA Corp. VAT-registered sold goods to
Shiminet Leyk a resident citizen of China. 13. Sales price per tag = ₱896,000; Output
Goods were shipped out of the country. VAT = ?
Which of the following is correct based A. ₱107,520
solely on this premise? B. ₱33,000
A. VAT Taxable (Export Sale-0% VAT) C. ₱96,000
B. Exempt D. ₱800,000
C. Subject to Final Withholding VAT
D. Liable to 3% GPT 14. Total VAT sales: ₱1,200,000; Input
VAT: ₱100,000; Output VAT: ₱144,000.
9. Total Output VAT = ₱120,000; Total Input VAT Payable = ?
VAT = ₱90,000. What is VAT payable? A. ₱44,000
A. ₱120,000 B. ₱244,000
B. ₱90,000 C. ₱144,000
C. ₱30,000 (120,000-90,000) D. ₱100,000
D. ₱210,000
15. If John voluntarily registers for VAT but
10. Kiko, a VAT-registered buyer, earns only ₱2,500,000, he is locked in for:
purchased goods from a non-VAT seller A. 1 year
worth ₱112,000. How is the transaction B. 2 years
recorded? C. 3 years
A. Purchases ₱100k, Input VAT ₱12k D. Not locked-in
B. Purchases ₱112k (No Input VAT)
C. Purchases ₱100k only
D. Output VAT ₱12k
11. Bamsky is engaged in mixed
transactions. Sales from Soda: ₱400k;
