BUSINESS TAX

Which of the following is not subject to business tax?

• Sale of goods, services and lease of property in the ordinary course of trade or business

• Importation of goods into the Philippines, whether for personal or business use

• Gratuitous transfer

• All of the above

Answer explanation

Gratuitous transfer = donor's tax or estate tax

The term "in the course of trade or business" does not include

• Regular conduct or pursuit of a commercial or economic activity

• Incidental business transactions

• Transactions by any person, regardless of whether or not the person engaged therein is a non-stock, non-profit private organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members) or governement entity

• None of the above

Answer explanation

Under the vat law, incidental transactions (i.e., sale of asset used in business) is subject to value added tax

Value added tax

• Is a form of sales tax

• ls likewise imposed on barters or exchanges

• It is collected through the tax credit method or invoice method

• All of the above

The main object of the value added tax is the transaction. A transaction subject to vat could either be:

• A sale, barter, or exchange of goods or properties in the ordinary course of trade or business

• A sale of service in the course of trade or business

• An importation of goods, whether or not made in the ordinary course of trade or business

• All of the above

Who is the one statutorily liable for the payment of VAT?

• Consumer

• Buyer

• Seller

• Buyer or Seller

Which of the following taxes describes the value added tax?

• Income tax

• Sales tax

• Indirect tax

• Personal tax

Which of the following is not a business tax?

• Excise tax

• Value-added tax

• Other percentage tax

• Income tax

One of the following is not an activity subject to VAT

• Sale in retail of goods by a dealer

• Sale of Bamboo poles by a dealer

• Sublease of real property in the course of business

• Importation of ordinary feeds for poultry chicken

The following are exempt from vat, except

• Sale of 1 sack of rice

• Sale of lechon manok

• Sale of pet food

• Sale of newspaper

Which of the following shall be exempt from vat?

• Service of banks

• Services of money changers and pawnshops

• Services of credit cooperatives

• All of the above