WorksheetsComputation of Excise Taxes and VAT on Imported Goods Quiz
Total questions: 100
Worksheet time: 50mins
What is the primary purpose of the manual titled "Computation of Excise Taxes and VAT on Imported Goods"?
To provide a clear, step-by-step methodology for accurately calculating excise taxes and VAT on imported goods.
To explain the history of excise taxes in the Philippines.
To compare excise taxes in different countries.
To discuss only the theory behind excise taxes without practical examples.
Which law is specifically mentioned as being amended and relevant to the computation of excise taxes and VAT in the manual?
TRAIN Law (RA 10963)
Customs Modernization Act
Philippine Tariff Law
Income Tax Reform Act
Which of the following is NOT one of the four main categories of imported goods covered in the manual?
Electronics
Petroleum Products
Sweetened Beverages
Non-Essential Goods
Why is it important to understand the foundational concepts in excise tax calculation before proceeding to specific product calculations?
To ensure accuracy and compliance, and prevent significant penalties and delays.
To memorize all tax rates.
To avoid paying any taxes.
To focus only on ad valorem taxes.
What is a "Specific Tax" as described in the manual?
A tax imposed based on a physical unit of measure, calculated on a fixed amount per unit.
A tax based on the value of the product.
A tax only applied to domestic goods.
A tax that changes monthly.
What is an Ad Valorem Tax?
A tax imposed as a percentage of the value of the goods.
A tax imposed based on the weight of the goods.
A tax imposed based on the volume of the goods.
A tax imposed as a fixed amount per item.
On what value is the Ad Valorem Tax calculation based?
Dutiable Value (DV)
Retail Price
Market Value
Net Profit
How is Value Added Tax (VAT) typically calculated in relation to excise tax?
On top of the base excise tax
On the retail price only
On the net profit
On the cost of production only
If a final tax amount inclusive of VAT is required, by what factor is the base excise tax amount multiplied?
1.12
1.10
1.15
1.20
How many liters are in 1 barrel (bbl)?
159 liters
100 liters
1,000 liters
10 liters
How many kilograms are in 1 pound (lb)?
0.4536 kilograms
2.2046 kilograms
1.000 kilograms
0.159 kilograms
How many pounds are in 1 kilogram (kg)?
2.2046 pounds
0.4536 pounds
1.000 pounds
16 pounds
How many liters are in 1 cubic meter (cbm)?
1,000 liters
159 liters
100 liters
10 liters
How many pounds are in 1 metric ton (MT)?
2,240 pounds
1,000 pounds
159 pounds
2.2046 pounds
How many kilograms are in 1 metric ton (MT)?
1,000 kilograms
2,240 kilograms
159 kilograms
0.4536 kilograms
Under Section 148 of the NIRC, what is the specific tax rate for lubricating oils & greases effective January 1, 2020?
P 10.00 per liter/kilogram
P 5.00 per liter
P 6.00 per liter
P 4.00 per liter
Which petroleum product has a specific tax rate of P 5.00 per liter effective January 1, 2020?
Kerosene
Processed gas
Aviation turbo jet fuel
Diesel fuel oil
What is the basis of measure for the excise tax on petroleum coke?
Per metric ton
Per liter
Per kilogram
Per gallon
Which of the following products is taxed at P 4.00 per liter according to the table?
Aviation turbo jet fuel / aviation gas
Unleaded premium gasoline
Waxes and petrolatum
Bunker fuel oil
According to the table, what is the specific tax rate for liquefied petroleum gas (LPG) for motive power?
P 6.00 per kilogram
P 10.00 per liter
P 5.00 per liter
P 4.00 per liter
What is the specific tax rate applied per kilogram for lubricating grease in the calculation walkthrough?
P 3.00
P 10.00
P 12.00
P 5.00
How is the total net weight of a shipment calculated according to the step-by-step solution?
Number of Pails × Tax Rate
Net Weight per Pail × Number of Pails
Total Weight ÷ Number of Pails
Tax Rate × VAT
What is the final step in computing the total specific tax, inclusive of VAT, for lubricating grease?
Subtracting the VAT from the base excise tax
Multiplying the base excise tax by 1.12
Dividing the base excise tax by 1.12
Adding the number of pails to the base excise tax
What is the total specific tax, inclusive of VAT, for a shipment of 750 pails of lubricating grease with a net weight of 24.5 kgs per pail?
P183,750.00
P205,800.00
P45,000.00
P18,375.00
Which of the following products is subject to a tax rate of P 3.00 per kilogram?
Naphtha & pyrolysis gasoline
Liquefied petroleum gas (LPG)
Petroleum coke
Lubricating oil
What is the total net weight of a shipment of 2,000 pails of lubricating oil, if the total net weight is given as 45,000 kgs?
24.5 kgs
18,375 kgs
45,000 kgs
2,000 kgs
What is the formula to determine the density of oil using the specific gravity (SG) of fresh water?
Density = SG of oil × 1,000 kgs/cbm
Density = SG of oil ÷ 1,000 kgs/cbm
Density = SG of oil + 1,000 kgs/cbm
Density = SG of oil - 1,000 kgs/cbm
If the specific gravity (SG) of oil is 0.90, what is its density in kgs/cbm?
900 kgs/cbm
1,000 kgs/cbm
1,100 kgs/cbm
0.90 kgs/cbm
How do you convert the total mass (net weight) to total volume in liters?
Total Liters = (Mass / Density) × 1,000
Total Liters = (Density / Mass) × 1,000
Total Liters = (Mass × Density) × 1,000
Total Liters = (Mass + Density) × 1,000
What is the total volume in liters if the total mass is 45,000 kgs and the density is 900 kgs/cbm?
50,000 liters
45,000 liters
900 liters
5,000 liters
What is the formula to calculate Excise Tax for oil if the tax rate is P10.00 per liter?
Excise Tax = Total Volume × Tax Rate
Excise Tax = Total Volume ÷ Tax Rate
Excise Tax = Total Volume + Tax Rate
Excise Tax = Total Volume - Tax Rate
What is the total specific tax, exclusive of VAT, for 50,000 liters at a tax rate of P10.00 per liter?
P500,000.00
P50,000.00
P5,000.00
P5,000,000.00
How do you convert the weight of a box from grams to kilograms?
Divide the weight in grams by 1,000
Multiply the weight in grams by 1,000
Add 1,000 to the weight in grams
Subtract 1,000 from the weight in grams
If a box weighs 24,948 grams, what is its weight in kilograms?
24.948 kgs
2.4948 kgs
249.48 kgs
0.24948 kgs
How do you calculate the total weight of a shipment in kilograms if you know the weight per box and the number of boxes?
Total Weight = Weight per Box (kg) × Number of Boxes
Total Weight = Weight per Box (kg) ÷ Number of Boxes
Total Weight = Weight per Box (kg) + Number of Boxes
Total Weight = Weight per Box (kg) - Number of Boxes
What is the total excise tax, net of VAT, for a shipment of 1,200 boxes each weighing 24.948 kgs, at a tax rate of P10.00 per kg?
P299,376.00
P29,937.60
P2,993,760.00
P293,760.00
What is the total excise tax, net of VAT, mentioned in the document?
P299,376.00
P200,000.00
P399,376.00
P100,000.00
What does the Fuel Marking Fee (FMF) apply to according to the Special Provision: Fuel Marking Program?
Gasoline, diesel, and kerosene
Only gasoline
Only diesel
Only kerosene
How is the Fuel Marking Fee (FMF) for gasoline calculated?
Declared Volume (liters) × 110% × Php 0.06884
Declared Volume (liters) × 102% × Php 0.06884
Declared Volume (liters) × Php 0.06884
Declared Volume (liters) × 120% × Php 0.06884
According to the document, what is the agreed contract price per actual liter of fuel marked (VAT inclusive)?
Php 0.06884
Php 0.08864
Php 0.06848
Php 0.08684
What is the main purpose of the excise tax on sweetened beverages as implemented by the TRAIN Law?
To regulate the consumption of sugary drinks
To increase the price of all beverages
To ban sugary drinks
To subsidize beverage manufacturers
How are Sweetened Beverages (SBs) defined in the document?
Non-alcoholic beverages that are pre-packaged and sealed, containing caloric and/or non-caloric sweeteners
Alcoholic beverages with added sugar
Only carbonated drinks
Only beverages made from natural fruit juice
Which rate applies to beverages using purely high fructose corn syrup (HFCS) or any sweetener combination that includes HFCS?
P6.00 per liter
P8.00 per liter
P10.00 per liter
P12.00 per liter
Which of the following beverage categories is NOT exempt from the excise tax?
100% natural fruit juices
All milk products
Beverages using HFCS
100% natural vegetable juices
What is the formula to calculate the total volume of a beverage shipment?
Number of Cases × Volume per Bottle
Number of Cases × Bottles per Case × Volume per Bottle
Bottles per Case × Volume per Bottle
Number of Cases + Bottles per Case + Volume per Bottle
If a shipment contains 1,500 cases, each with 10 bottles of 1.5 liters each, what is the total volume?
15,000 liters
22,500 liters
1,500 liters
10,000 liters
How do you compute the final excise tax (inclusive of VAT) for HFCS-sweetened beverages?
Multiply the base excise tax by 1.10
Multiply the base excise tax by 1.12
Add 12% to the base excise tax
Subtract 12% from the base excise tax
Which of the following is an example of a beverage exempt from the excise tax?
Super Cola with HFCS
100% natural fruit juice
Soda with aspartame
Energy drink with sucrose
What is the total specific tax, inclusive of VAT, for 2,000 boxes of Welch's grape juice with sucrose, each containing 12 tetra packs per box and 20 centiliters per pack?
P32,256.00
P28,800.00
P302,400.00
P24,000.00
How do you convert 480,000 centiliters to liters?
Divide by 100
Multiply by 100
Divide by 10
Multiply by 10
What is the base excise tax rate applied per liter for sucrose-sweetened beverages?
P6.00/liter
P12.00/liter
P1.12/liter
P750.00/liter
To compute the final tax (inclusive of VAT) for sucrose-sweetened beverages, what should you do after calculating the base excise tax?
Multiply the base excise tax by 1.12
Divide the base excise tax by 1.12
Add 1.12 to the base excise tax
Subtract 1.12 from the base excise tax
For powdered beverages, what is the serving label for each pack of Powdered Grape Juice with HFCS?
Each pack mixed with 750 ml of water
Each pack mixed with 500 ml of water
Each pack mixed with 1 liter of water
Each pack mixed with 250 ml of water
What is the correct conversion from milliliters to liters for a pack with a volume of 750 ml?
0.75 liters
1.5 liters
0.50 liters
1.0 liter
How is the total number of packs calculated if there are 350 boxes with 200 packs per box?
70,000 packs
7,000 packs
35,000 packs
2,000 packs
If the total volume is 52,500 liters and the tax rate is P12.00 per liter, what is the total excise tax?
P630,000.00
P525,000.00
P12,000.00
P75,000.00
What is the ad valorem tax rate for non-essential goods under Section 150 of the NIRC?
20%
12%
10%
5%
Which chapters of the AHTN codes are mentioned as important for classifying non-essential goods?
Chapters 71 and 33
Chapters 10 and 20
Chapters 50 and 60
Chapters 15 and 25
Unlike specific taxes, ad valorem taxes are based on which of the following?
Percentage of the shipment's Dutiable Value
Volume of the goods
Weight of the goods
Number of boxes
Which of the following goods is classified as non-essential and subject to tax?
Real or imitation jewelry
Surgical/dental instruments
Eyeglass frames
Dental gold/alloys
Which of the following is NOT classified as a non-essential good subject to tax?
Ivory
Perfumes and toilet waters
Yachts intended for pleasure
Surgical/dental instruments
What is the first step in calculating the Ad Valorem Tax (AVT) from CIP value?
Multiply the base AVT by 1.12
Apply the 20% ad valorem tax rate
Determine and convert dutiable value
Find the total VAT
If the Dutiable Value (DV) in PHP is P1,320,185.00, what is the Base Ad Valorem Tax (AVT) at a 20% rate?
P264,037.00
P1,320,185.00
P22,900.00
P57,650.00
How do you compute the final tax (inclusive of VAT) after finding the base AVT?
Multiply the base AVT by 1.12
Divide the base AVT by 1.12
Add 20% to the base AVT
Subtract 20% from the base AVT
What is the total ad valorem tax, inclusive of VAT, as calculated in the example?
P480,533.60
P295,721.44
P41,968.00
P37,950.00
In the step-by-step solution for calculating tax from DAP value, what is the insurance amount if the FOB value is $37,950.00 and the insurance rate is 4%?
$1,518.00
$2,500.00
$1,200.00
$1,000.00
What is the formula used to calculate the Free on Board (FOB) value in the given example?
FOB = DAP + (Destination Charges + Ocean Freight)
FOB = DAP - (Destination Charges + Ocean Freight)
FOB = DAP × (Destination Charges + Ocean Freight)
FOB = DAP ÷ (Destination Charges + Ocean Freight)
If the total Dutiable Value (DV) in USD is $41,968.00 and the exchange rate is P57.250/$1.00, what is the DV in Philippine Pesos (PHP)?
P480,533.60
P2,402,668.00
P295,721.44
P37,950.00
What is the final total ad valorem tax, net of VAT, as calculated in the example?
P295,721.44
P2,402,668.00
P480,533.60
P41,968.00
Which of the following mineral product categories is taxed at a specific rate per metric ton under the TRAIN Law?
Coal & Coke
Non-metallic minerals & quarry resources
Metallic minerals (copper, silver, gold, chromite, etc.)
All mineral products
What is the excise tax rate for non-metallic minerals and quarry resources according to Revenue Regulations 1-2018?
4% of Total Dutiable Value
P150.00 per Metric Ton
10% of Total Dutiable Value
2% of Total Dutiable Value
According to the document, what is the most common error importers make regarding excise tax on mineral products?
Failing to pay the tax on time
Failing to distinguish between coal, non-metallic minerals, and metallic minerals
Using the wrong currency for payment
Not declaring the shipment value
Which chapters of the AHTN classification are relevant for determining the correct tax methodology for mineral products?
Chapters 25, 26, and 27
Chapters 1, 2, and 3
Chapters 10, 11, and 12
Chapters 30, 31, and 32
How do you calculate the FOB value based on the information provided?
FOB = CFR + Freight
FOB = CFR - Freight
FOB = Freight - CFR
FOB = CFR x Freight
What is the formula to calculate the standard insurance as shown in the material?
Insurance = FOB × 2%
Insurance = FOB × 5%
Insurance = FOB × 10%
Insurance = FOB × 0.5%
If the FOB value is $51,700.00, what is the standard insurance at 2% of the FOB value?
$1,034.00
$2,000.00
$517.00
$5,170.00
How is the Dutiable Value (DV) in USD calculated according to the material?
DV = CV + FRT + INS
DV = FOB × Insurance Rate
DV = Invoice Price - Freight
DV = CV × Exchange Rate
What is the formula to calculate the Ad Valorem Tax (AVT) for metallic minerals?
AVT = DV (PHP) × 4%
AVT = DV (PHP) × 10%
AVT = DV (PHP) × 2%
AVT = DV (PHP) × 12%
Given a DV (PHP) of P3,276,404.50, what is the total ad valorem tax at a 4% rate?
P131,056.18
P32,764.05
P4,000.00
P327,640.45
If the total invoice price is $31,800.00 (inclusive of ocean freight $2,300.00), what is the Cost Value (CV)?
$29,500.00
$31,800.00
$2,300.00
$34,100.00
How do you convert a local insurance premium of P12,521.30 to USD using an exchange rate of P56.915/$1.00?
Insurance (USD) = P12,521.30 / 56.915
Insurance (USD) = P12,521.30 × 56.915
Insurance (USD) = P12,521.30 + 56.915
Insurance (USD) = P12,521.30 - 56.915
What is the Dutiable Value (DV) in USD if CV is $29,500.00, Freight is $2,300.00, and Insurance is $220.00?
$32,020.00
$31,800.00
$29,500.00
$2,520.00
If the DV in PHP is P1,822,418.30, what is the 4% ad valorem tax?
P72,896.73
P182,241.83
P7,288.96
P1,822.42
What is the formula to compute the Base Ad Valorem Tax (AVT)?
Base AVT = DV (PHP) × 4%
Base AVT = DV (PHP) × 10%
Base AVT = DV (PHP) × 12%
Base AVT = DV (PHP) × 1.12%
If the Base AVT is P72,896.73, what is the Final Tax (Inclusive of VAT)?
P81,644.34
P72,896.73
P80,000.00
P90,000.00
To compute the Final Tax (Inclusive of VAT), what should you do with the Base AVT?
Multiply the Base AVT by 1.12
Divide the Base AVT by 1.12
Add 1.12 to the Base AVT
Subtract 1.12 from the Base AVT
Which of the following is NOT a practice problem listed in the Comprehensive Knowledge Check?
Calculate the total specific tax for 1,000 bottles of wine.
Find the total specific tax paid upon importation for 250,000 jars of Apollo Petroleum Jelly.
Find the total specific tax, inclusive of VAT, for 2,750 cans of Denatured Alcohol for motive power.
Calculate the total specific tax for 750 cylinder tanks of LPG.
In Problem 4, what is the exchange rate given for converting US dollars to Philippine pesos?
P50.00/$1.00
P57.750/$1.00
P60.00/$1.00
P63.750/$1.00
According to Problem 5, how many packs are there in each case of powdered orange juice?
100 packs
120 packs
150 packs
200 packs
In Problem 6, what is the total number of tin cans of Petrolatum in the shipment?
10,000
50,000
100,000
150,000
For Problem 7, what is the gross weight per drum of asphalt?
250 pounds
500 pounds
650 pounds
700 pounds
In Problem 5, what is the net weight of each pack of powdered orange juice?
20 grams
25 grams
30 grams
50 grams
Which company is the importer in Problem 8?
Pure Foods Corp
Batangas Petrochemical Corp
Sweety Import Corp.
Silver Plated Bangles Corp
In Problem 9, how many LPG cylinders are included in the shipment?
3,000 cylinders
500 cylinders
650 cylinders
1,000 cylinders
What is the net weight per cylinder in Problem 8?
220 lbs
235 lbs
100 kgs
20 grams
What is the total LC value given in Problem 9?
P1,877,250.00
P38,250.00
$12,386.00
P2,000,000.00
Which product is being imported by Sweety Import Corp. in Problem 10?
Four Seasons Powdered Juice using high fructose sweetener
LPG cylinder tanks
Silver Plated Bangles
Petrochemical products
How many packs are there per case in Problem 10?
180 packs
220 packs
20 packs
650 packs
What is the net weight per pack in Problem 10?
20 grams
180 grams
220 grams
0.75 grams
Which of the following is NOT included in the list of charges for the shipment with a total invoice value of $19,250.25?
Packing/Handling charges: $100.00
Internal Insurance: $120.00
Origin THC: $175.00
Air Freight per AWB: $1,650.00
