WorksheetsIntro to Taxation
Total questions: 20
Worksheet time: 23mins
Statement 1: Business taxes are paid by sellers while the VAT on importation is paid by the buyers.
Statement 2: Domestic sellers pay consumption tax to the government.
True, False
False, True
True, True
False, False
Statement 1: The consumption tax for purchases of goods or services from foreign sources shall be payable by the buyer.
Statement 2: The sale by non-resident persons in the Philippines is exempt from consumption tax.
True, False
False, True
True, True
False, False
Statement 1: Both domestic consumption and foreign consumption are subject to consumption tax.
Statement 2: Non-resident sellers are exempt from consumption taxes on their domestic sales.
True, False
False, True
True, True
False, False
Statement 1: Domestic sales are subject to business tax regardless if seller is business or not.
Statement 2: Importations are subject to VAT regardless if seller is business or not.
True, False
False, True
True, True
False, False
Statement 1: Consumption taxes should not apply to basic necessities.
Statement 2: Income tax is a tax to all, while consumption tax is a tax to the capable.
True, False
False, True
True, True
False, False
Who is the statutory taxpayer of business taxes?
The seller who must be engaged in business or trade
The seller, whether or not engaged in business or trade
The buyer who must be engaged in business or trade
The buyer, whether or not engaged in business or trade
Which statement is conceptually incorrect?
The buyer pays the consumption tax on his purchases to the seller
The buyer pays the consumption tax to the government
The seller pays the consumption tax to the government
The seller collects the consumption tax for the government
Fedi Company, a non-resident business, purchased P200,000 from Kultura Company, a resident business. Which will pay the consumption tax on this transaction?
Kultura Company
Fedi Company
Both Fedi and Kultura
Neither Fedi nor Kultura
Mr. Reid, an employee, imported a pair of shoes from Singapore. Which consumption tax is he liable to pay?
Business tax
VAT on importation
Business tax and VAT on importation
None
Sinadya Company, a VAT-registered taxpayer, purchased P400,000 worth of goods and sold the same for P800,000. Assuming that the business operation is limited to Philippine residents, what is the total business tax it will report on its sales?
P96,000
P48,000
P24,000
0
Which is a vatable agricultural input?
Fertilizers
Pesticides
Seeds
Seedlings
Which of these agricultural products is not considered as being in its original state?
Kopra
Muscovado sugar
Refined sugar
Ordinary salt
By revenue regulation, which of the items below is not considered in original state?
Marinated fish
Dried fish
Frozen meat
Smoked fish
Which is not exempt from VAT on importation?
Importation of books
Importation of school supplies
Importation of magazines
All of these
Transport vehicles: A. Bus B. Cars C. Vessels D. Aircraft
Which is not exempt from VAT when imported?
C and D
A and B
All of these
None of these
Which importer is exempt from VAT on importation of fuel, goods and supplies?
Domestic carriers
International carriers
Domestic carriers on their international operations
Either B or C
Which of the following items is subject to VAT on importation to an individual who is intending to settle in the Philippines?
Vehicles
Professional instruments
Household effects
Personal effects
Itumba Furnitures, a percentage taxpayer, imported the following household equipment:
Landed Cost
Machineries for business use P1,150,000
Heating system, for home use 250,000
Total P1,400,000
Compute the VAT on importation
0
P27,000
P150,000
P168,000
Home Appliance Company imported the following for personal use:
Furniture P600,000
Rattan 250,000
Lumber 450,000
Compute the VAT on importation.
P30,000
P72,000
P156,000
P204,000
Mr. Schun imported various merchandise from abroad. The importation was invoiced at $5,000. Mr Schun also incurred the following costs of importation:
Insurance P 4,000
Freight 15,000
Wharfage fee 4,000
Arrastre charge 7,000
Brokerage fee 8,000
Facilitation fee 5,000
Mr. Schun was also assessed P24,000 and P18,000, respectively, for customs duties and excise tax. The applicable exchange rate was P42.50:$1. What is the VAT on importation?
P25,500
P30,540
P35,100
P35,700
