Which is a source of input VAT?

• Purchase of agricultural or marine food products from VAT-sellers

• Purchase if vatable goods or services from non-VAT suppliers

• Sale of vatable goods or services by a VAT seller

• Purchase of vatable goods or services from VAT suppliers

Answer explanation

You can only compute input VAT from purchases from VAT suppliers except for certain agriculturural products such as sugar/coconut etc.

A VAT taxpayer sold goods for ₱1,000,000.00 exclusive of VAT. He purchased the goods for ₱800,000,00 exclusive of ₱96,000.00 VAT. Assuming it is a sole transaction, how much is the VAT payable?

Answer explanation

Output VAT (1,000,000 x 12%)

P120,000 less input vat of P96,000 = P24,000

Which is vatable?

• Sale of fertilizers

• Sale of fruits

• Sale of bamboo handicrafts

• Sale of vegetables

Answer explanation

Bamboo crafts are agricultural product but not related to food , thus, vatable.

The VAT threshold for seller of goods and services is ₱1,000,000.00.

• True

• False

Evo Corporation, a VAT registered business purchased foams for the creation of their products amounting to P10,000,000.00 exclusive of VAT. Compute for the value of INPUT VAT.

• P1,200,000.00

• 0

• P600,000.00

• P120,000.00

Answer explanation

Exclusive of VAT:

10,000,000 x 12% = 1,200,000.

Evo Corporation, a VAT registered business purchased foams for the creation of their products amounting to P10,000,000.00 exclusive of VAT. Compute for the value of OUTPUT VAT.

• P1,200,000.00

• 0

• P600,000.00

• P120,000.00

Answer explanation

Output VAT are from SALES transaction.

Input VAT are computed from _____.

• Sales

• Purchases

• Official Receipt

• the heart

Answer explanation

Output = SALES

Input = PURCHASES

Output VAT are computed from _____.

• Sales

• Purchases

• Official Receipt

• the heart

Answer explanation

Output = SALES

Input = PURCHASES

Senglot Hardware Co., a VAT registered business sold rugby in their stores amounting P560,000.00 inclusive of VAT. Compute for the value of OUTPUT VAT.

• 60,000

• 0

• 67,200

• 75,264

Answer explanation

Inclusive of VAT

P560,000 x 12%/112% = 60,000

OR

P560,000/1.12 x 12% = 60,000

Senglot Hardware Co., a VAT registered business sold rugby in their stores amounting P560,000.00 EXCLUSIVE of VAT. Compute for the value of OUTPUT VAT.

• 60,000

• 0

• 67,200

• 75,264

Answer explanation

Exclusive of VAT

P560,000 x 12% = 67,200