VAT Quiz

A VAT enterprise had a VAT exempt transaction, however, it only has a VAT invoice. As the accountant what will you advise?

• Stamp “VAT EXEMPT” on the duplicate VAT invoice

• Charge and collect output VAT from client

• Charge output and refund to client

• Error in transaction does not pay output

Which of the following is exempt from VAT?

• Export sale by non-VAT individuals

• Foreign currency denominated transactions

• Sale or services to entities duly registered with PEZA

• Sale to Ramon Magsaysay Awards Foundation

Sale of orchids by a flower shop which raises its flower in Tagaytay is subject to?

• 6% VAT

• 12% VAT

• Exempt from VAT

• None of the above

When to file VAT return?

• Monthly

• Quarterly

• Yearly

• Weekly

What input taxes may be credited?

• Input taxes from non-VAT suppliers

• Input taxes from purchase of direct labor

• Input taxes from importation of goods for sale

• None of the above

Refers to a local sale of service by VAT-registered person to a person or entity who was granted indirect tax exemption under the special laws or international agreement

• Automatic zero-rated transactions

• Effective zero-rated transactions

• VAT-exempt transactions

• Zero-rated transactions

Statement 1: A person subject to excise tax is also subject to VAT

Statement 2: A person subject to percentage tax is also subject to VAT

• Both statements are correct

• Both statements are wrong

• Statement 1 is correct while Statement 2 is wrong

• Statement 2 is correct while Statement 1 is wrong

Which of the following importation is subject to VAT?

• Importation of frozen meat

• Importation of apples for personal consumption

• Importation of bamboo poles

• Importation of grapes for sales

Which of the following is subject to VAT?

• Sale of vegetables in its original state

• Sale of fruits in its original state

• Sale of copra

• Sale of olive oil

Zero-rated VAT means goods are exempt from Value-added tax

• True

• False