1.

Presumptive input tax is 4% of primary agricultural products purchased

as raw materials by all kinds of business taxpayers.
FALSE (page 301)

2. Raw land of a realty development company is not included in items

subject to transitional input VAT being an item of PPE.
FALSE (page 294)

3. The revenue regulation treats construction in progress (CIP) as a

purchase of capital goods rather than service.
FALSE (page 299) the other way around.

4. Input VAT on non-depreciable vehicles are claimable on the month of

purchase. FALSE (page 295) Timing of credit of Reg. Input VAT

5. In filling out the allowable input VAT in the VAT return, input tax
allocable to exempt sales is a deduction from total available input
VAT.
TRUE

6. Creditable transitional input VAT is the lower of 2% of qualified

beginning inventory items or the actual VAT paid thereon.
FALSE (page 292) either of actual and 2%, whichever is HIGHER.

7. Exempt persons who issue VAT invoice can claim input VAT.
FALSE (page 291) requisites of a creditable VAT

8. Sale to the government by non-VAT taxpayers is subject to 3% final

percentage tax.
TRUE (page 305)

9. Input VAT credit is made in the month of purchase of goods or properties.

TRUE (page 295) Timing of credit of Reg. Input VAT

10. The following are reported by Solomon, Inc., VAT registered in the
first quarter of 2021: Domestic sales (VAT inclusive) - P8.4M; Direct
export - P4.5M; VAT- exempt sales - P3M; Sales to government
(excluding vat) - P5M; Input VAT traceable to domestic sales - P540,000;
Input VAT traceable to direct export sales - P300,000; Input VAT
attributable to exempt sales - P90,000; Input VAT traceable to government
sales is P358,000; Untraceable input VAT-P180,000; Cost of sales -
P8,874,000; Itemized deductions - P3M. Assume that Solomon applied
Tax Credit Certificate (TCC) on all input VAT applicable to zero rated
sales. How much is net VAT payable? (answer must all be numbers, no
peso sign, no commas, no decimals and no extra spaces between
numbers)
489,500
11. Property & equipment shall not be included in the inventory subject
to transitional input VAT.
TRUE (page 293)

12. Creditable input VAT is entirely different from allowable

input VAT. FALSE (page 309) they are the same.

13. On October 1, 2018, Mr. Titus, the owner of Wax Trading, a non-
VAT business, registered under the VAT system. Below are the data:
How much is net VAT payable in 4th quarter?
155 424

14. Presumptive input VAT is a tax incentive to buyers of VAT-

exempt products (agricultural) for sale of final consumers.
FALSE (page 301)

15. The employer is only allowed to provide one vehicle to an

employee valued not more than P2.4M for input VAT to be creditable.
Select
TRUE (page 298)

16. Input VAT on depreciable goods purchased with an aggregate

value of more than P1M in a month shall be amortized over their
useful lives or 60 months whichever is shorter.
FALSE, TRUE ? (page 296)

17. VAT on importation is imposed on both personal & business

related vatable imports.
TRUE

18. Input VAT attributable to zero-rated claim which have been applied
for TCC are to be included in input VAT carry over.
FALSE (page 306) to be excluded.

19. Input VAT that can be traced to a particular sales transaction is

prorated among all kinds of sales.
FALSE (page 307)

20. The input VAT carry-over in the second month of a quarter is not
deductible in the 3rd month of the quarter in computing net VAT
payable.
TRUE (page 305) Rules on Input carry-over

21. Unamortized input VAT on depreciable capital goods sold before

completion of input VAT amortization can only be claimed based on the
schedule of amortization until exhausted.
FALSE (page 297)
 22. Input VAT attributable to zero-rated sales that remain unclaimed
after 2 years can no longer be included in IVCO. Select one:
FALSE, TRUE ? (page 307)

23. Sale to the government by VAT taxpayer may result in a net VAT
payable after considering the allowable input VAT.
TRUE

24. Input VAT on depreciable goods purchased in a month w/ an

aggregate value of P1M should be amortized. Select one:
FALSE (page 296 and 297 problem example)

25. Input VAT on maintenance expenses of non depreciable

vehicles cannot be claimed as tax credit.
TRUE (page 295) Timing of credit of Reg. Input VAT

26. All input VAT paid on purchases by the business owner are
creditable against output VAT.
FALSE (page 291)

27. Transitional input VAT is recorded in the books by debiting

beginning inventory and crediting transitional input VAT.
FALSE (page 295) Debit Trans. Input VAT, Credit Beg. Inv.

28. The Purchaser of service can avail of Input VAT credit upon
payment of billing of the service provider. TRUE (page 295) Timing of
credit of Reg. Input VAT
29. Sale to government by VAT taxpayer is subject to 5% creditable
withholding VAT starting Jan.1, 2021 under TRAIN Law. TRUE
30. On October 1,2018, How much is allowable transitional input VAT? 36,576
31. On January 1,2018, How much is total creditable input VAT for all the
purchases made during the month? 47,812.50
32. Advance VAT which have been applied for TCC is no longer part of Input
VAT carry over. TRUE (page 306)
33 If the VAT is not billed separately, the selling price stated in the sales
document shall be deemed inclusive of VAT. TRUE (page 290)
34. The car for personal use is a depreciable asset for income tax purposes.
FALSE
35. On January 1,2018, The January aggregate cost for purposes of the P1M
threshold on purchases of capital goods is how much? 1,275,000
36. The purchases form non-VAT suppliers and purchases of VAT-exempt
goods or properties do not have any input VAT. TRUE
(page 291) requisites of a creditable VAT
37. Input VAT credit on purchase of service is made in the month billing is
received even if not paid yet on the same month. FALSE (page 295) month
when it is paid.
38. The Sardine manufacturer can claim presumptive input VAT on the
sardines purchased & placed inside the cans. FALSE (page 301 and 302)
primarily agri. Purchases in original state only.
39. Input VAT is creditable by VAT- registered persons when the vatable
items purchases are for business use. TRUE (page 291)
40. Input VAT on construction in progress is creditable upon payment of each
progress billing. TRUE (page 299)
41. The transitional input tax credit operated to benefit newly VAT-registered
persons. TRUE (page 293)
42. The VAT in purchase is usually reflected as a separate item in the ordinary
receipts issued by the supplier. FALSE (page 290) Official receipts or VAT
invoice, not Ordinary Receipts.
43. The amount of Input VAT that cannot be directly and entirely attributed any of
the sales transactions shall be allocated proportionately based on sales. TRUE
(page 307) under PRO-RATA allocation
44. Creditable input VAT can come only from local purchase of vatable goods from
Vat sellers. FALSE
45. The value of inventory exclusive of VAT shall be the basis of the 2%
transitional input VAT computation. TRUE, FALSE ? (page 293)
problem examples, where the VAT were being subjected to VAT
inclusive.
46. Input VAT on purchases not intended for business is creditable against
Output VAT if buyer is engaged in business. FALSE (page 291)
47. Registrable persons can claim input VAT. TRUE, FALSE ? (page 291) only
VAT registered persons. https://www.studocu.com/ph/document/university-of-
san-agustin/bs-accountancy/chapter-10/13673691
48. Transitional input VAT is based on vatable beginning inventoried in the
month of registration as a VAT taxpayer. TRUE (page 292)
49. “Monthly aggregate acquisition cost” of depreciable capital goods strictly
means total price (excluding- VAT) of these assets agreed to be acquired
during the month for purposes of the P1M threshold. FALSE (page 296)
50. For “labor only” CIP, input VAT on the purchases of materials should always be
claimed together with input VAT on payment of progress billing of CIP at all
times. FALSE (page 299)
51. The claimable input VAT on goods previously deemed sold shall be the
portion of the output Vat imposed upon the goods deemed sold. TRUE (page
300)
52. Goods exempt from VAT shall be included in the computation of transitional
input VAT. FALSE (page 293)
53. Input VAT carry over is the excess of output VAT over the input VAT in a
particular month or quarter. TRUE, FALSE? (page 305) excess of input VAT
over output VAT
54. For tax purposes, depreciation of yacht owned by the company not in the
yacht business is not deductible. TRUE (page 298) if only yacht is intended
for business purposes.
55. The input VAT of the buyer is the “Output VAT” on the VAT sales invoice or
VAT official receipt issued
by the seller. TRUE (sale on the part of seller, thus OUTPUT VAT. Purchase on
the part of buyer, thus INPUT VAT)