QUIZ NO. 1 INTRODUCTION TO CONSUMPTION TAXES

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

A tax on domestic consumption from resident suppliers.

• VAT on importation

• Business tax

• Either A or B

• Neither A nor B

A tax on domestic consumption from non-resident suppliers.

• VAT on importation

• Business tax

• Either A or B

• Neither A nor B

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

• VAT on importation

• Percentage tax

• Excise tax

• Final withholding tax

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

Home Buddies Company, a non-resident business, purchased P200,000 goods from Amang Company, a resident business. Which will pay the consumption on this transaction?

• Amang Company

• Home Buddies Company

• Both A and B

• Neither A nor B

Hershey Corporation, a resident business, purchased P100,000 goods from Cadbury Company, a non-resident business. Identify the statutory taxpayer and the type of consumption tax.

• Hershey Corporation – Business tax

• Cadbury Company – Business tax

• Hershey Corporation – VAT on importation

• Cadbury Company – VAT on importation

Mr. Wrong, an employee, sold his residential lot to Mrs. Right, a real property dealer. Who is subject to consumption tax with respect to this transaction?

• Mr. Wrong

• Mrs. Right

• A and B

• Neither A nor B