VAT

The following are the persons statutorily liable to VAT, except:

• seller of goods

• seller of service

• lessee of properties

• importer

Non-stock, non profit entities are considered to be engaged in trade or business even if their transactions are exempted from income tax

• True

• False

The term goods or properties include/s

• Tangible properties only

• Intangible properties only

• Both tangible and intangible properties

How many from below are seller of services:

1. Jollibee
2. Dairy Queen
3. Macao Imperial Tea
4. University or College

• 1

• 2

• 3

• 4

VAT as an indirect tax means

• Shifting of the payment of the VAT to the buyer

• Shifting of the burden of payment of the VAT to the buyer

1st - Output tax is the VAT on purchase.

2nd - Input tax is the VAT on sale

• 1st is True

• 2nd is True

• Both are True

• Both are False

If a taxpayer reached gross sales or receipts in the amount of Php 3 Million, he is MANDATORILY required to register as VAT

• True

• False

If a person is mandatorily required to register as VAT, he cannot change his registration for the next three years.

• True

• False

Effect of failure to register as VAT when required:

• Liable to pay output tax but with transitional input tax

• Liable to pay output tax without input tax

• Liable to pay output tax and criminally liable

• Liable to pay output tax only but with penalties

The following discounts are deductible from gross income, EXCEPT:

• Senior citizen discount

• PWD discount

• National athlete discount

• Trade discount