VAT Computation – Part 2

1. Poseidon is a real estate dealer. During the month of November 2017, he sold three lots under
the following terms:
Lot 1 Lot 2 Lot 3
Selling price P250,000 P200,000 P300,000
Cost 150,000 130,000 175,000
Gain/Loss 100,000 70,000 125,000
Terms:
Downpayment, Nov 5 25,000 50,000 40,000
Due-Dec 5 25,000 20,000 20,000
Jan to Dec 2018 200,000 130,000 240,000

All amounts indicated above do not include the tax.

a. How much is the VAT on November?
b. How much is the VAT on December?

2. Zeus Construction Co. entered into a contract with the government to construct an edifice for a
total contract price of P25,000,000. During the month, the government paid P10,000,000 of
which it withheld 5% final withholding tax. How much is the VAT payable?
3. Hercules, a VAT registered taxpayer, had the following data on importation in 2017:
For sale Own use
Invoice cost (exchange rate: $1:P46) $5,650 $850
Custom duties 12% 10%
Freight P20,000 P4,000
Insurance P28,000 P4,250
Other charges before release from customs house P7,000 P2,500
Facilitation fee P10,000 P5,000
Freight from customs house to warehouse (net of VAT) P12,000 P1,200

a. Assuming the customs duties are determined on the basis of the quantity or volume of the
goods, how much is the VAT on the importation?
b. How much is the VAT payable if the imported goods for sale were sold for P665,000
(inclusive of tax) 10 days after its delivery to the warehouse?
4. Atlas Company operates two lines of business. Business A is subject to VAT, while Business B is
not. Data for the month are as follows:
Sales:
VAT business, VAT included 560,000
Non-VAT business 100,000
Purchases:
Merchandise, VAT business, VAT included 154,000
Merchandise, Non-VAT business, VAT included 67,100
Capital goods, VAT business, VAT included 34,776
Capital goods, Non-VAT business, VAT included 27,500
Capital goods, for use in both business, VAT included 56,000
Rent of store space, VAT business, VAT included 14,560
Rent of warehouse, VAT and Non-VAT business, VAT excluded 6,200
 Freight of goods, VAT and Non-VAT business, VAT included 2,576
Telephone bills, VAT and Non-VAT, VAT included 1,624

a. How much is the input tax on Business A?

b. How much is the VAT payable?

5. Mercury Enterprises, a VAT registered trader had the following data during the last quarter of
the year:
Purchases Sales
October 627,200 392,000
November 599,200 862,400
December 959,616 789,600

a. How much is the VAT payable for the month of October?

b. How much is the VAT payable for the month of November?
c. How much is the VAT payable/excess for the last quarter?