CHAPTER 1: INTRODUCTION TO CONSUMPTION TAXES

Which form of consumption is tax-free?

• Sales to a resident

• Sales to a non-resident

• Importation by an importer engaged in business

• Importation by an importer not engaged in business

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

• Petmalu Company – Business tax

• Mr. Igop – VAT on importation

• Mr. Igop – Business tax

• Petmalu Company – VAT on importation

It is basically a tax on sales

• VAT

• Percentage tax

• Excise tax

• Final withholding VAT

Mr. Llamado, an employee, imported a pair of shoes from Hong Kong. Which consumption tax is he liable to pay?

• Business tax

• VAT on importation

• Both A and B

• None of the choices

Mr. Manila produces an excisable article for sale in the Philippine market. Which is incorrect with respect to Mr. Manila’s business taxation?

• Mr. Manila is subject to either VAT or percentage tax.

• Mr. Manila pays excise tax in addition to VAT or percentage tax

• Mr. Manila pays excise tax in addition to VAT and percentage tax

• Mr. Manila will pay excise tax without regard to whether he is a VAT or non-VAT taxpayer

It is an imposition on sin products and non-essential commodities.

• VAT on importation

• Percentage tax

• Excise tax

• Final withholding tax

Which of these import consumptions is tax-free?

• Importation from a seller not engaged in trade or business

• Importation from a seller engaged in trade or business

• Both A and B

• Neither A nor B

Which importation is subject to the VAT on importation?

• Importation by a person engaged in business

• Importation by a person not engaged in business

• Both A and B

• Neither A nor B

Who is the statutory taxpayer to the VAT on importation?

• Foreign seller

• Domestic buyer

• Both A and B

• None of these

Who is the statutory taxpayer of business taxes?

• The seller who must be engaged in trade or business

• The seller whether or not engaged in trade or business

• The buyer who must be engaged in trade or business

• The buyer whether or not engaged in trade or business