Cipeda Department Store had the following Sales for the last 12-month period
Fertilizers, seed, poultry and hog feed 1,200,000
Fruits and vegetables 800,000
Groceries 1,000,000
Clothes, shoes and other apparels 900,000
Furniture 1,500,000
Total 5,400,000
Required: Compute the total vatable sales
onth period
1,000,000
900,000
1,500,000
3,400,000
In June 2020. Mabaca Corporation made the following sales:
Cash sales 200,000
Sales on account (P80,000 collected) 100,000
Installment sales (P120,000 collected) 300,000
Delivery charges 15,000
Advances from customers 50,000
Total sales 665,000
Required:
Compute the gross selling price and the output VAT
200,000
100,000
300,000
15,000
615,000
12%
73,800
Assume ABC Company purchased goods from a VAT supplier on account.
The supplier billed ABC Company at P78,400 inclusive of VAT
How much is the Input VAT?
Mrs. Aguilar had a P230,000 output VAT in the month. She also made the
following purchases during the month.
Goods from non-VAT suppliers
Goods from VAT suppliers with VAT invoices
Importation of merchandise for sale, VAT inclusive
Required: Compute for the VAT due of Mrs. Aguilar
Input VAT Goods from VAT suppliers with VAT invoices
(224,000 x 12%/112%)
Importation of merchandise for sale, VAT inclusive
(896,000 x 12%/112%)
Output VAT
Input VAT
Vat due
n account.
o made the
280,000
224,000
896,000
24,000
96,000
120,000
230,000
120,000
110,000
A VAT taxpayer using the calendar year had the following
output VAT and input VAT during the months starting January
to April 2016
January February
Output VAT 80,000 90,000
Input VAT 60,000 80,000
Required: Compute the VAT due and payable
January February
Output VAT 80,000 90,000
Less: Input VAT (60,000) (80,000)
Vat due 20,000 10,000
Less: VAT paid in prior months
e following
tarting January
March April
85,000 75,000
65,000 70,000
March April
255,000 75,000
(205,000) (70,000)
50,000 5,000
(30,000)
20,000
Exempt Sales of Goods or Properties
1. Sale of goods to sernior citizens and persons with disability
This covers sale of essential goods only.
2. Sales of exempt goods
a. Agricultural and marine food products in their original s
b. Fertilizers, seeds, seedlings and fingerlings, fish, prawn,
livestock and poultry fees, including ingredients used in
the manufacture of finished feeds
c. Books, newspaper and magazines
d. Medicines prescribed for diabetes and hypertension
e. Passenger or cargo vessels and aircrafts
3. Sales of goods by cooperatives
a. Sales by agricultural cooperative duly registered in good
standing with the Cooperative Development Authority (
to their members, as well as sales of their produce, whe
in its original state or processed form, to non members,
their importation of direct farm inputs, machineries and
equipment, including spare parts thereof, to be used
directly and exclusively in the production and or proces
of their produce
b. Sales by non-agricultural,non-electric and non-credit
cooperatives duly registered and in good standing with
the CDA.
4. Sales of residential properties
a. Sales of real properties utilized for low-cost housing
b. Sales of real properties utilized for socialized housing
c. Sale of residential lot valued at P1,919,500 and below a
below and other residential dwelling valued at P3,199,2
and below.
5. Export sales by non-VAT persons
6. Treaty-exempt sales of goods
Sales of goods exempt under international agreement t
which the Philippines is a signatory or under special law
7. Tax-free exchange of property
The exchange of properties in pursuant to a plan of mer
or consolidation or the transfer or property that resulte
in the initial acquisition of corporate control
8. Sale of gold to the Bangko Sentral ng Pilipinas
The sale of fold to the BSP is not a VAT-exempt transacti
which is previously considered a zero-rated sale.
Exempt Sales of Service
1. Schools
Educations services rendered by private educational institution
duly arredited by the Department of Education, Commission on
Higher Education and Technical Education and Skills Developme
Authority and those rendered by government education institu
2. Employees
Services performed by individuals in pursuant to an employer a
employee relationship
3. Agricultural contract growers and millers
Services by agricultural contract growers and milling for others
palay into rice, corn into corn grits, and sugar cone into raw sug
4. Residentail leasing
Lease of residential unit with monthly rental not exceeding P15
5. Cooperative services
Gross receipts from lending activities by credit or multi-purpose
cooepratives duly registered and in good standing with the
Cooperative Development Authority
6. Hospitals
Medical, dental, hospitals, and veterinary services except those
rendered by professionals and sales of drugs by a hospital drug
store
7. Home owner's association or condomium corporations
Association dues, membership fees and other assessments
and charges collected homeowner's associations and condomin
corporations.
8. Lease passenger or Cargo vessels and aircrafts, including engine
equipment and spare parts thereof for domestic or internationa
transport operations
9. Treaty-exempt services
Transactions which are exempt under internation agreement to
the Philippines is a signatory or under special laws
10. Regional area headquarters
Services rendered by regional or area headquarters established
the Philippines by multinational corporations which acts as
supervisory communications, and coordinating centers for their
affiliates, subsidiaries or branches in the Asia Pacific Region and
do not or derive income from the Philippines
11. International carriers
Transport of passengers by international carriers
12. Printer or publishers
Sale, printing or publication of books and any newspaper, maga
review, or bulletin which appears at regular intervals with fixed
prices for subscription and sale and which is not devoted princi
to the publication of paid advertisements.
13. Senior citizens and persons with disability
Sales of basic essential services to senior citizens and persons w
disability by service establishment such as:
a. Restaurant
b. Hotels and lodging establishment
c. Recreation centers, such as theater, cinema houses, con
halls, carnivals and such other place of leisure or amuse
Other exempt sales of goods or services
1. Sales of goods or services taxed by special taxes
a. Sales of goods or services by Ecozone locators
b. Sale of amusement service by theaters and cinemas
2. Sales by persons not engaged in businesses
Sale goods, real properties or service by persons not engaged
in business is not subject to business taxes
3. Sale of assets held for use
Sale of assets held for use such as supplies and items of propert
plant and equipment such as: land and building, machineries,
office furniture and fixture, and office equipment is normally
exempt from business tax. For VAT-registered taxpayers, howe
the sale of these ordinary assets is considered "incidental trans
subject to VAT.
with disability
in their original state
ings, fish, prawn,
gredients used in
hypertension
registered in good
pment Authority (CDA)
heir produce, whether
to non members,
, machineries and
eof, to be used
on and or processing
and non-credit
od standing with
-cost housing
ialized housing
,500 and below and
alued at P3,199,200
onal agreement to
under special laws
t to a plan of merger
perty that resulted
-exempt transaction
rated sale.
ational institutions
n, Commission on
d Skills Development
education institutions
to an employer and
milling for others of
cone into raw sugar.
not exceeding P15,000
t or multi-purpose
ding with the
vices except those
by a hospital drug
porations
assessments
ons and condominium
, including engine
tic or international
tion agreement to which
arters established in
which acts as
g centers for their
Pacific Region and
newspaper, magazine.
tervals with fixed
ot devoted principally
ens and persons with
nema houses, concert
leisure or amusement.
ocators
s and cinemas
ns not engaged
d items of property,
ng, machineries,
ent is normally
d taxpayers, however,
"incidental transactions"
