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VAT Q2

Total questions: 20

Worksheet time: 2hrs 40mins

Name
Class
Date
1.

Any person who becomes liable to value-added tax or who elects to be a VAT-registered person shall be allowed on his/her beginning inventory of goods, materials, and supplies, an input tax which shall be creditable against the output tax for the recent taxable year when the transition happened. What tax credit is this referring?

(a)  

2.

It means transfer. In taxation, this happens when the taxpayer shifted from the past year as being a non-VAT payer to a VAT payer for the current year.

a)

Presumptive

b)

Transitional

c)

Transition

d)

Deferred

3.

What is the transitional input tax rate if value of such inventory is higher than the actual value-added tax paid on such goods, materials and supplies (PPEs are not included)?

(a)  

4.

WHO MAY NOT AVAIL PRESUMPTIVE INPUT CREDITS?

a)

Processing of sardines, mackerel, and milk where agricultural products used as input in the process/manufacturing of the said products

b)

Manufacturing refined sugar and cooking oil and packed noodle-based instant meals where agricultural products are used as input in the process/manufacturing of the said products.

c)

Manufacturing refined sugar and cooking oil and packed noodle-based instant meals including marine products as such for the sardines and mackerel.

d)

Processing of sardines, mackerel, and milk except marine products as such for the sardines and mackerel.

5.

What is the presumptive tax rate of the gross value in money of their purchases of primary agricultural products which are used as inputs to his production?

(a)  

6.

Exempt sales will not give the privilege to the buyer to claim an Input VAT.

a)

True

b)

False

7.

Any person or firm engaged in processing and manufacturing are qualified to deduct 4% of the gross value in money of their purchases of primary agricultural products which are used in production and shall be allowed as input tax creditable against the output tax.

a)

True

b)

False

8.

Salary from Government (Local/National) or any of its political subdivisions, instrumentalities or agencies, including government-owned or controlled corporations (GOCCs) should taxed 12% VAT before payment.

a)

5% are withheld by the employer and 7% will be used as creditable input tax (Standard input VAT)

b)

5% are withheld by the employee and 7% will be used as creditable input tax (Standard input VAT)

c)

5% are withheld by the employer and 7% will be used as output tax (Standard input VAT)

d)

5% are withheld by the employee and 7% will be used as output tax (Standard input VAT)

9.

Anna's salary from Guimaras Capitol is P20,000 year. How much is the standard input VAT if VAT is exclusive?

a)

P1,400

b)

P1,250

c)

P1,000

10.

Anna's salary from Guimaras Capitol is P20,000 year. How much is the standard input VAT if VAT is inclusive?

a)

P1,450

b)

P1,250

c)

P1,000

11.

In Standard Input VAT,

a)

Seller is liable for 5% and 7% is to be paid by the buyer.

b)

Seller is liable for 5% and 7% is to be used as Standard input Vat by the buyer.

c)

Buyer is liable for 5% and 7% is to be paid by the buyer.

d)

Buyer is liable for 5% and 7% is to be used as Standard input Vat by the buyer.

12.

If standard input VAT is higher than the actual input VAT

a)

Recognized as loss

b)

Recognized as income

c)

Recognized as gain and should be close to income

d)

Recognized as seller's cost of goods.

13.

If Actual Input VAT is higher than Standard Input VAT,

a)

Recognized as income

b)

Recognized as loss

c)

Recognized as gain

d)

Recognized as cost of goods sold

14.

Non-resident persons who perform services in the Philippines are deemed to be making sales in the course of business, even if the performance of services is not regular. The one who performs the service is the one required to withhold and remit the VAT to the BIR as input tax

a)

True

b)

False

15.

Each of the following is a type of sale under VAT, which is not?

a)

Zero-Rated Sale

b)

VAT Exempt Sale

c)

12% VAT Sale

d)

Standard Input VAT

16.

Which doesn't define Zero-rated Sale?

a)

A sale, barter or exchange of goods, properties and/or services subject to 0% VAT.

b)

No output tax and input tax are considered tax refund.

c)

The input tax on purchases of goods, properties or services, related to such zero-rated sales, shall be available as tax credit in accordance with existing regulations.

d)

No output tax and no input tax.

17.

Which is TRUE?

1. Input VAT is debited when purchasing in a zero-rated sale.

2. Output VAT is credited together with sales in a zero-rated sale.

3. There is no input VAT.

4. There is no output VAT.

a)

1,3

b)

3,4

c)

2,3

d)

1,4

18.

There is VAT payable for zero-rated sale transaction which is creditable as input VAT.

a)

True

b)

False

19.

WHAT SERVICES IS NOT CONSIDERED AS ZERO-RATED TRANSACTIONS?

a)

Services rendered to a person engaged in business conducted outside the Philippines or to a non-resident person engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency.

b)

Services rendered to persons engaged in international shipping, including leases of property for use thereof; Provided, that these services shall be exclusively for international shipping.

c)

Transport of passengers and cargo by domestic air or sea carriers from the Philippines to a foreign country.

d)

Services rendered to persons engaged in air transport operations, including leases of property for use thereof; Provided, that these services shall be exclusively for air transport operations.

20.

WHAT SALES IS NOT CONSIDERED AS ZERO-RATED SALES?

a)

The sale of goods, supplies, equipment and fuel to persons engaged in international shipping or international air transport operations.

b)

The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported, paid in acceptable foreign currency or its equivalent in goods or services.

c)

The fuel bought by Cebu Pacific was used for flight in Manila-Cebu-USA flight.

d)

The fuel bought by Cebu Pacific was used for flight in Manila-Singapore-USA flight.