Midterm BSA3

Which is incorrect? Export sale is

• Exempt from percentage tax

• Exempt from VAT

• Exempt from excise tax

• All of these

Statement 1: Excise tax is always paid together with VAT or percentage tax.

Statement 2: Excise tax is paid at the point of sale.

• True; True

• True; False

• False; True

• False; False

Which is correct with VAT on importation?

• Payable only when the importer is engaged in business

• Payable only when the foreign seller is engaged in business

• Payable regardless of the purpose of the importation

• Payable only when the resident seller is not engaged in business

A Company, a resident business, renders services to Mr. B, a resident person who is not engaged in business. Identify the statutory taxpayer and the type of consumption tax.

• A Company – Business tax

• Mr. B – VAT on importation

• Mr. B – Business tax

• A Company – VAT on importation

Mr. Garcia, an employee, sold his residential lot to Mrs. Bautista, a real property dealer. Who is subject to consumption tax with respect to this transaction?

• Mr. Garcia

• Mrs. Bautista

• Mr. Garcia and Mrs. Bautista

• Neither of Mr. Garcia nor Mrs. Bautista

Mr. San Pedro imported P300,000 equipment for business use and a P1,200,000 car for personal use. What is the amount subject to VAT on importation?

• P0

• P300,000

• P1,200,000

• P1,500,000

Domestic consumption is taxable when the seller is

• A non-resident

• A resident

• Either a resident or a non-resident

• Both resident and a non-resident

Which is subject to business tax?

• Foreign consumption from resident sellers

• Foreign consumption from foreign sellers

• Domestic consumption from resident sellers

• Domestic consumption from foreign sellers

The tax on domestic consumption from resident suppliers is:

• VAT on importation

• Business tax

• Either VAT on importation or Business tax

• Neither Vat on importation nor Business tax

Statement 1: Exporters pay consumption tax to the government.

Statement 2: Importers pay consumption tax to non-resident sellers.

• True; True

• True; False

• False; True

• False; False