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VAT ON IMPORATION OF GOODS AND ACCOUNTING FOR VALUE-ADDED TAX

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

1. Importations of goods are subject or to value-added tax whether the imported are to be used in business or not.

a)

TRUE

b)

FALSE

2.

2. Importations of goods are always subject to value-added tax whether the goods imported are to be used in business, for sale in the Philippines, or for personal use.

a)

TRUE

b)

FALSE

3.

3. Importation of goods is subject to value-added tax but the tax rate is 0%.

a)

FALSE

b)

TRUE

4.

4. Not included in the tax base on importation of goods

a)

WHARFAGE DUES

b)

ARRASTRE CHARGES

c)

FACILITATION FEE

d)

BROKERAGE FEE

5.

5. Robin P. imported a car from the U.S.A for his personal use. Total landed cost is P250,000, including customs duties of P50,000. VAT payables is?

a)

25,000

b)

20,000

c)

30,000

d)

None, because the importation is for personal use.

6.

6. Importation of books, newspaper, magazines review or bulletin is subject to value-added tax

a)

FALSE

b)

TRUE

7.

7. As a rule, the VAT account title that will appear in the balance sheet shall be..

a)

A. Output tax

b)

C. VAT payable

c)

D. Excess tax carry over

d)

B. Input tax

8.

8. The account title Input Tax normally appears in the balance sheet at the end of the accounting period as current asset.

a)

TRUE

b)

FALSE

9.

9. The account title Output tax normally appears in the balance sheet at the end of the accounting period as a current liability.

a)

FALSE

b)

TRUE

10.

10. The account title VAT payable normally appears in the balance sheet at the end Of the actounting period as a current liability.

a)

TRUE

b)

FALSE