BAM 208: BUSINESS TAX P3 QUIZ

1. Value added tax __________

• Is a form of sales tax

• Is likewise imposed on barters or exchanges.

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

• All of the above

2. 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 if 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

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

• consumer

• buyer

• seller

• buyer or seller

4. Statement 1: Nonstock and nonprofit private organizations which sell exclusively to their members In the regular conduct or pursuit of commercial or economic activity are exempt from value-added tax.

Statement 2: Government entities engaged in commercial or economic activity are generally exempt from value-added tax.

• Both statements are correct.

• Both statements are incorrect.

• Only the first statement is correct.

• Only the second state statement is correct.

5. Which is incorrect?

• A taxpayer whose annual gross receipts or sales exceed P3,000,000 shall pay vat even if not vat registered.

• A taxpayer whose annual receipts or sales do not exceed P3,000,000but who is vat registered shall pay vat.

• A non-resident lessor or foreign Iicensor who is not vat-registered is subject to vat.

• An individual taxpayer whose gross sales or receipts do not exceed P100,000 is exempt from VAT provided he pays the 3% other percentage tax.

6. Registration of taxpayers under the vat system may be classified as, except

• Mandatory vat registration.

• Optional vat registration

• Mixed vat registration

• None of the above

7. The following data were provided by spouses' Luffy and Nami. In 2020. Pedro's groan receipts from his practice of profession was P2,850.000 while her wife, Nami. has gross sales of P2,200.000 derived from her trading business. Assuming they are not vat registered, will they be subject to vat?

• Yes, because their aggregate gross receipts/sales exceeded the vat threshold of P3,000,000.

• No, because for purposes of vat threshold, husband and wife shall be considered as separate taxpayers.

• Yes, because their gross receipts/sales are not specifically exempt from vat as provided in the Tax Code.

• None of the above

8. Luffy is a certified public accountant. He applied for work and was hired by a Firm which is engage in Business Process Outsourcing. handling accounting work for US entities. He was paid for his services. How should Luffy treat such payment for business tax purposes?

• Subject to 12% VAT

• Subject to Percentage Tax

• Exempt from VAT and Percentage Tax

• it is a zero-rated transaction

9. 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

10. Petron sold fuel to an international shipping carrier whose voyage is from a port in the Philippines directly to a foreign port without docking or stopping at any other port in the Philippines. What is the treatment of the transaction for VAT purposes?

• Exempt

• Zero-rated transaction

• Subject to 12% VAT

• Either "b" or "c"