VAT ON IMPORATION OF GOODS AND ACCOUNTING FOR VALUE-ADDED TAX

1. Importations of goods are subject or to value-added tax whether the imported are to be used in business or not.

• TRUE

• FALSE

2. Importations of goods are always subject to value-added tax whether the goods imported are to be used in business, for sale in the Philippines, or for personal use.

• TRUE

• FALSE

3. Importation of goods is subject to value-added tax but the tax rate is 0%.

• FALSE

• TRUE

4. Not included in the tax base on importation of goods

• WHARFAGE DUES

• ARRASTRE CHARGES

• FACILITATION FEE

• BROKERAGE FEE

5. Robin P. imported a car from the U.S.A for his personal use. Total landed cost is P250,000, including customs duties of P50,000. VAT payables is?

• 25,000

• 20,000

• 30,000

• None, because the importation is for personal use.

6. Importation of books, newspaper, magazines review or bulletin is subject to value-added tax

• FALSE

• TRUE

7. As a rule, the VAT account title that will appear in the balance sheet shall be..

• A. Output tax

• C. VAT payable

• D. Excess tax carry over

• B. Input tax

8. The account title Input Tax normally appears in the balance sheet at the end of the accounting period as current asset.

• TRUE

• FALSE

9. The account title Output tax normally appears in the balance sheet at the end of the accounting period as a current liability.

• FALSE

• TRUE

10. The account title VAT payable normally appears in the balance sheet at the end Of the actounting period as a current liability.

• TRUE

• FALSE