Philippine Christian

University
NAME: _____________________________ DATE: _______________________
COURSE AND YEAR LEVEL: ______________ SCORE:_______________________

Multiple Choice:

Identify the choice that best completes the statement or answers the question. USE CAPITAL
LETTERS. STRICTLY NO ERASURES/ALTERATIONS. SHOW YOUR SOLUTION.

____1. A taxpayer collected the following from lessors of commercial spaces:

Billing for rentals Php 1,500,000

Less: Creditable withholding tax 75,000
Net receipt Php 1,425,000

Compute the output VAT.

a. 0 c. 180,000
b. 160,714 d. 200,000

____2. A VAT-registered taxpayer with several businesses had the following sales:

Last Current
12-month month
Sales of fertilizers and seeds 1,800,000 200,000
Sales of equipment 1,500,000 150,000
Input VAT on process foods 140,000 13,000

Compute the VAT payable for the current month.

a. 0 c. 18,000
b. 5,000 d. 29,000

____3. A non-VAT registered taxpayer purchased goods which was invoiced by the seller as follows:

Selling price 50,000

Output VAT 6,000
Total invoice 56,000

What is the claimable input VAT?

a. 0 c. 6.720
b. 6,000 d. 7,200

____4. Which of the ff. sales is subject to stock transaction tax?

a. The sale by an investor of a listed stock directly to buyer.
b. The sale by a listed corporation of shares through the PSE.
c. The sale by an investor of a listed stock through the PSE.
d. The sale by a listed corporation of shares directly to buyer.

____5. The gross receipt tax does not apply to

a. BSP
b. rural banks
c. urban banks
d. industrial banks

____6. All of the following pays monthly percentage tax, except

a. Franchise grantees of gas and wate
b. Domestic carriers and keepers of garage
c. Proprietors of cockpits
d. Life insurance companies

____7. Which is not exempt from the overseas communication tax?

a. PEZA locators c. Diplomatic services
b. Government d. News services

____8. Which is a vatable receipt to a franchise telephone franchise grantee?

a. Receipt from domestic dispatch of message
b. Receipt from incoming calls
c. Receipt from outgoing calls
 d. Both A and B
____9. Juan Cruz, a non-VAT registered senior citizen and owner of St. Joseph Drugstore, had the ff.
sales during the first quarter of 2019.

Medicine sold Sales to senior citizens Sales to regular customers

Sale of medicine for diabetes 10,000 70,000

Sale of medicine for hypertension 20,000 30,000
Sale of other medicines 90,000 120,000
Total sales Php 120,000 Php 220,000

Compute the exempt sales.

a. 0 c. 130,000
b. 120,000 d. 220,000

____10. A domestic airliner had the following receipts during the month:

Passenger fares 5,000,000

Cargoes, mails and excess baggage 2,000,000

What is the total amount subject to business tax?

a. 0 c. 5,000,000
b. 2,000,000 d. 7,000,000

____11. A bus operator has the following receipts during the month:

Passengers Php 140,000

Cargoes 10,000
Total Php 150,000

Determine the total amount subject to business tax.

a. 0 c 140,000
b. 10,000 d. 150,000

____12. Upland Developers sold three residential units:

Grey residence 1,900,000

Red residence 1,400,000
Blue residence 3,000,000

Grey residence and Blue residence are adjacent and were sold to two unrelated buyers.

What is the vatable sales?

a. 0 c. 3,000,000
b. 1,900,000 d. 3,300,000

____13. Mr. Gadon is both employed and self-employed. He had the following income receipts during
the month:

Gross compensation income Php 120,000

Director’s fees 80,000
Professional fess 200,000
Total gross income Php 400,000

The total amount subject to business tax is

a. 120,000 c. 280,000
b. 200,000 d. 400,000

____14. A business taxpayer had the following purchases ad receipts:

Import of goods or services Php 190,000

Domestic purchases of goods or services 100,000
Domestic sales of goods and services 150,000
Export sales of goods or services 50,000

Compute the total amount subject to consumption tax to the business.

a. 500,000 c. 350,000
b. 400,000 d. 340,000

____15. A person who imports goods or properties will more likely pay
a. a 3% percentage tax on the importation
b. a 12% VAT on the importation
c. either 3% or 12% tax on the importation
 d. no consumption tax

____16. Which is imposed with a tax of zero-percent (0%)?

a. All export sales
b. Export sales of VAT-registered taxpayers
c. Import sales of VAT-registered taxpayers
d. Export sales of non-VAT registered taxpayers only

____17. Which is a qualified exempt importation?

a. Importation by a cooperative of farm equipment
b. Importation by a cooperative of rice
c. Importation of books
d. Importation of marine food products

____18. Marine Inc. purchased the following from abroad:

Sea shells and coral décor Php 320,000

Tuna and salmon 120,000
Total Php 440,000

What is the amount of taxable importation?

a. 0 c. 200,000
b. 120,000 d. 320,000

____19. Agaton AgriCorp imported the following:

Landed cost
Seeds Php 400,000
Fertilizers 750,000
Farming equipment 450,000
Herbicides and pesticides 250,000
Total Php 1,850,000

Compute the VAT on importation.

a. 0 c. 72,000
b. 42,000 d. 84,000

____20. Mr. Dowager imported various merchandise from abroad. The importation was invoiced at
$ 5,000. Mr. Dowager also incurred the following costs of importation:

Insurance Php 4,000

Freight 15,000
Wharfage fee 4,000
Arrastre charge 7,000
Brokerage fee 8,000
Facilititation fee 5,000

Mr. Dowager was also assessed Php 24,000 and Php 18,000, respectively, for customs
duties and excise tax. The applicable exchange rate was Php 42.50:$1.

What is the VAT on importation?

a. 25,500 c. 35,100
b. 30,540 d. 35,700

____21. David (business owner) is a non-vat registered taxpayer who operates a convenience store.
The following were provided for 2018:
Sales of processed food items 280,000
Sales of non-food items 220,000
Purchases of processed foods items 100,000
Purchases of non-food items 80,000
Salaries of helpers 48,000

The percentage tax is

a. 15,000 c. 50,000
b. 32,000 d. 27,200

____22. Based on the preceding number, if David opted to be taxed at 8% on his gross sales and
Receipts, his applicable business tax is:
a. Subject to 12% vat
b. Vat exempt but subject to 3% OPT under Section 116
c. 12% vat or 3% OPT, at his option
d. None of the above

____23. A person whose business is to keep automobiles for hire or keep them stored for use or order
a. Keepers of garage
 b. Common carrier
c. Taxicab operator
d. Tourist bus operator

____24. The owner(s) of the vehicles, other than TNVS, used in transporting passengers and/or goods
in TNVS, shall be referred herein as _____________.
a. Domestic common carriers
b. International carriers
c. Tranportation network vehicles services (TNVS)
d. Partners

____25. Statement 1: Under RMC 70-2015, transport network vehicle services, such as but not
limited to the likes of UBER, GRAB TAXI, their Partners/suppliers and similar
arrangements, which are holders of a valid and current Certificate of Public Convenience
for the transport of passengers by land, shall be subject to 3% common carriers tax under
Sec. 117.
Statement 2: Transport network vehicle services, such as but not limited to the likes of
UBER, GRAB TAXI, their Partners/suppliers and similar arrangements, which are not
holders of a valid and current Certificate of Public Convenience for the transport of
passengers by land, shall also be subject to 35 common carriers tax under Sec. 117.
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.

____26. A right or privilege granted by the State to a person, individual or corporation, to operate a
public utility such as radio broadcasting, television station, electric light system, telephone
company, gas, and water utilities.
a. Franchise c. Dealers in securities
b. Common carriers d. Lending investors

____27. A franchise, had the following data on revenues and receivables in 2017:

Quarter ended, March 31, 2017 Revenues AR, beg. AR, end
Covered by the franchise 4,000,000 600,000 800,000
Not covered by the franchise 1,200,000 160,000
If the franchise is generating and selling electricity, the correct amount of business tax is:
a. 200,800 c. 580,800
b. 456,000 d. 238,800