MIDTERM EXAMINATION IN TAXATION

1. Value added tax as to subject matter is:

a. Indirect tax c. Local tax
b. Direct tax d. Transaction tax

2. Who is the one statutorily liable for the payment of VAT?

a. Consumer c. Seller
b. Buyer d. Buyer or the Seller

3. This refers to the sale of goods or properties and/or services and the use or lease of properties that is
not subject to VAT (output tax) and the seller is not allowed any tax credit of VAT (input tax) on
purchases.
a. VAT-exempt sales
b. Transactions deemed sales
c. Zero-rated sales
d. Taxable sales

4. Which of the following is subject to value-added tax?

a. Sale or importation agricultural and marine food product in their original state
b. Sale or importation of livestock and poultry used as, or producing foods for human consumption
c. Sale or importation of breeding stock and genetic materials
d. None of the choices

5. The following products shall be considered in their original state, except:

a. Products which undergone simple processes of preparation or preservation for the market
(freezing, drying, salting, broiling, roasting, smoking or stripping)
b. Brown sugar
c. Polished or husked rice
d. Corn grits

6. Which of the following sales will be exempt from value added tax?
I. Sale of copra
II. Sale of flowers in their original state.
III. Sale of cotton in their original state.
a. I only c. II only
b. III only d. I, II and III

7. Which of the following sale or importation of goods shall not be exempt from VAT?

a. Fertilizers
b. Seeds, seedlings and fingerlings
c. Fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or
imported, used in the manufacture of finished feeds
d. Specialty feeds.

8. One of the following is not an activity subject to VAT:

a. Sale of feeds for fighting cocks
b. Importation of feeds for race horses
c. Retail of feeds for aquarium fish
d. Importation of ordinary feeds for poultry chicken

9. The following services shall be exempt from VAT, except:

a. Services subject to percentage tax
b. Services by agricultural contract growers
c. Milling for others of palay into rice, corn into grits and sugar cane into raw sugar
d. Services rendered by professionals
10. Which of the following services is exempt from VAT?
a. Medical, dental, hospital and veterinary laboratory servies
b. Professional fees of Medical Doctors
c. Sale of drugs and medicine to patients confined in the hospital
d. Both “a” and “c”

11. The following educational services shall not be subject to VAT, except:
a. Rendered by private educational institutions accredited by Department of Education
b. Rendered by private educational institutions accredited by Commission on Higher Education
c. Rendered by private educational institutions accredited by Technical Education and Skills
Development Authority
d. Rendered by Review Schools

12. Which of the following is not considered “Educational services” for VAT exemption purposes?
a. Seminars
b. In-service training
c. Review classes
d. All of the choices

13. Which of the following transactions by an agricultural cooperative is not exempt from value-added
tax?
a. Sale to members of abaca produced by the agricultural cooperative.
b. Sale to non-members of abaca not produced by the agricultural cooperative.
c. Importation of direct farm inputs to be used directly and exclusively in the production or
processing of the agricultural cooperative’s produce.
d. Importation of agricultural products in their original state.

14. Cooperatives may be exempt from VAT. Which of the following is not?
a. Gross receipts lending activities by credit or multi-purpose cooperatives
b. Sales by non-agricultural, non-electric and non-credit cooperatives, the share capital contribution
of each member does not exceed Fifteen Thousand Pesos (P15,000)
c. Importation by non-agricultural, non-electric and non-credit cooperatives of machineries and
equipment, including spare parts thereof
d. All of the choices

15. If a non-VAT registered person exports goods, what is the treatment of such transaction for VAT
purposes?
a. Subject to 12% VAT
b. Subject to 0% VAT
c. Exempt
d. Either “b” or “c”

16. Poli, a real estate developer, sold to Justo two adjacent residential lots for P1,000,000 each. What is
tax treatment of the sale transaction for VAT purposes?
a. Subject to 12% VAT
b. Subject to 0% VAT
c. Exempt
d. Either “a” or “c”

17. Which of the following persons may be subject to VAT even if the transaction is for personal use?
a. Seller of goods and properties
b. Service providers
c. Importers
d. All of the choices
18. Which of the following statements as to the meaning of “In the Course of Trade or Business” is
incorrect?
a. It means the regular conduct or pursuit of a commercial or economic activity.
b. If the main activity is subject to VAT, all transactions related to it, even if incidental will be subject
to VAT as well.
c. A non-stock, non-profit private organization is exempt from VAT if its net income will be
exclusively used for its primary purpose/s and it sells exclusively to members and their guests
d. Non-resident persons who perform services in the Philippines are deemed to be making sales in
the course of trade or business, even if the performance of services is not regular.

19. Who of the following shall be subject to VAT?

I. VAT-registered person whose gross sales do not exceed P3,000,000
II. A non-resident lessor or foreign licensor who is not VAT-registered.
III. Any person who is required to register under VAT system but failed to register.
a. I, II and III c. II and III only
b. I and II only d. I and III only

20. The value added tax due on the sale of taxable goods, property and services by any person whether
or not he has taken the necessary steps to be registered.
a. Input tax c. Excise tax
b. Output tax d. Sales tax

21. The following transactions shall be “deemed sale” except:

a. A VAT-registered person withdraws goods from his business for personal use.
b. Distribution or transfer to shareholders or investors of property dividends taken from the inventory
of the business.
c. Consignment of goods if actual sale is made within 60 days following the date such goods were
consigned.
d. Retirement from or cessation of business with respect to all goods on hand, whether capital
goods, stock-in-trade, supplies or materials as of the date of such retirement or cessation,
whether or not the business is continued by the new owner or successor.

22. Mr. Ferds, VAT-registered real estate dealer, transferred a parcel of land held for sale to his son as
gift on account of his graduation. For VAT purposes, the transfer is:
a. Not subject to VAT because it is a gift
b. Subject to VAT because it is a deemed sale transaction
c. Not subject to VAT because it is subject to gift tax
d. Subject to VAT because it is considered an actual sale

23. Which of the following is not included in the term "gross selling price"?
a. Total amount of money or its equivalent paid by the purchaser
b. Amount receivable from the purchaser
c. Value-added tax passed on by the seller to the buyer
d. Excise tax

24. Evelyn, a trader of appliances, made the following sales of goods during the month of March 20 22,
exclusive of VAT:
Cash sales P200, 000
Open account sales 100, 000
Installment sales 100, 000
Note: Receipt from installment sales
is P20,000
Consignment made: (net of VAT)
January 15, 2013 100, 000
 February 15, 2013 100, 000
March 15, 2013 100, 000

Output tax is:

a. P60,000 c. P72,000
b. P40,800 d. P64,800

25. Which of the following is not included in computing initial payments for the purpose of determining
whether a real estate dealer can use installment method or not?
a. Downpayment
b. All payments actually or constructively received fduring the year of sale
c. Amount of mortgage on the property sold
d. Excess of unpaid mortgage on the property sold over its cost

26. Which of the following is not deductible from "Gross Selling Price"?
a. Discounts determined and granted at the time of sale, which are expressly indicated in the
invoice, the amount thereof forming part of the gross sales duly recorded in the books of accounts
b. Discount determined and granted after paying within a certain period of time
c. Sales discount indicated in the invoice at the time of sale, the grant of which is not dependent
upon the happening of a future event, deductible within the same month or quarter given
d. Sales returns and allowances for which a proper credit or refund was made during the month or
quarter to the buyer for sales previously recorded as taxable sales

27. On January 5, 2022, Towell Co., VAT-registered, sold on account goods for P112,000, gross of VAT.
The term was: 2/10, n/30. Payment was made on January 10, 2022. The output tax is:
a. P12,000 c. P11,760
b. P13,171 d. P13,440

28. Any input tax attributable to zero-rated sales by a VAT-registered person may at his option be:
a. Deducted from output tax
b. Refunded
c. Applied for a tax credit certificate which may be used in payment of other internal revenue taxes.
d. All of the above

29. T Corp. is a local export oriented enterprise engage in the business of manufacturing of sardines. It
sold to Mr. Bo Huang of China under the term FOB Shipping Point.

Mr. Huang wants a specialized packaging material for his sardines. He ordered the said packaging
materials from another Philippine Company Norhan Packaging Inc. (NPI). It was agreed that NPI will
deliver the packaging materials to T. Corp so that the latter can use the same for the sardines to be
delivered to Mr. Huang in China.

What is the tax treatment for VAT purposes of the sale of T. Corp. to Mr. Huang?
a. Subject to 12%
b. Subject to 0%
c. Exempt
d. None of the choices

30. Based on the preceding number, what is the tax treatment of the sale of NPI to Mr. Huang?
a. Subject to 12%
b. Subject to 0%
c. Exempt
d. None of the choices
31. Continuing number 41, suppose T Corp. bought packaging materials from NPI, what is status of the
sale?
a. Subject to 12%
b. Subject to 0%
c. Subject to 0% only if NPI’s export sales exceed 70% of total annual production in the current
year.
d. Subject to 0% only if T Corp.’s export sales exceed 70% of total annual production in the current
year.

32. Same scenario in number 43, except that T Corp.’s export sales in the preceding year did not exceed
70%, what is the status of the sale of NPI?
a. Subject to 12%
b. Subject to 0%
c. Subject to 0% only if NPI’s export sales exceed 70% of total annual production in the current
year.
d. Subject to 0% only if T Corp.’s export sales exceed 70% of total annual production in the current
year.

33. Petron Corp. sold fuel to China Eastern Airlines, an international air carrier. Which of the following
statements is correct?
a. The sale transaction is subject to 12% VAT
b. The sale transaction will fall under zero-rated transaction
c. The sale transaction is exempt from VAT
d. None of the choices

34. Flying V Inc. sold fuel to Philippine Airlines for its scheduled flight from Manila to Cebu to Hong Kong.
Which of the following statements is correct?
a. The sale of fuel that will be used for the entire scheduled flight is subject to 12% VAT
b. The sale of fuel that will be used for the entire scheduled flight is subject to 0%
c. The sale of fuel that will be used for the flight from Manila to Cebu is subject to 0%
d. The sale of fuel that will be used for the flight from Cebu to Hong Kong is subject to 0%

35. Which is not a requisite of “foreign currency denominated sales”?

a. The sales exceed an aggregate foreign exchange value of $US1,000.
b. The buyers are Filipinos abroad, returning overseas Filipino or other nonresidents of the
Philippines.
c. The goods are paid for in convertible foreign currency inwardly remitted through the banking
system in the Philippines.
d. The goods are assembled or made in the Philippines for household or personal use.

36. Which of the following local sales of goods or property and-services will not be at zero-rate?
a. Sales to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority
(SBMA)
b. Sales to enterprises duly registered and accredited with the Philippine Economic Zone Authority
(PEZA)
c. Sales to Development Bank of the Philippines (DBP)
d. Sales to International Rice Research Institute (IRRI)

37. Which of the following shall be subject to Value-Added Tax on sale or exchange of services?
a. Construction and service contractors
b. Stock, real estate, commercial, customs and immigration brokers
c. Lessors of property, whether personal or real
d. All of the choices

38. Which of the following shall not be included in the term "gross receipts"?
 a. Total amount of money or its equivalent representing the contract price, compensation, service
fee, rental or royalty.
b. Amount charged for materials supplied with the services.
c. Advance payments actually or constructively received during the taxable period for the services
performed or to be performed for another person.
d. Value-added tax.

39. Ms. Erica is a VAT-registered make-up artist. She charges her clients at cost plus 50%. In a month,
she used the following materials:
Lipstick 150,000
Blush-on 50,00
Foundation 150,000
Mascara 30,000
Eye shadow 20,000
Eye Liner 25,000

Assuming she was able to collect all fees for the services she rendered for the month, how much is
the output tax?
a. P76,500 c. P51,000
b. P25,500 d. nil

40. Vikings Manpower Agency has the following data in a month (net of VAT):

Collections for salaries of personnel 400,000

Collections for agency fee 100,000

How much is the output tax?

a. P60,000 c. P48,000
b. P12,000 d. nil

41. Based on the preceding number, if the taxpayer is a security agency, how much is the output tax?
a. P60,000 c. P48,000
b. P12,000 d. nil

42. Which of the following non-life insurance companies shall not be subject to Value-Added Tax?
a. Crop insurance companies
b. Fidelity companies
c. Surety companies
d. Bonding companies

43. Which of the following statements is incorrect?

a. Lease of property shall be subject to VAT regardless of the place where the contract of lease or
licensing agreement was executed if the property leased or used is located in the Philippines.
b. VAT on rental and/or royalties payable to non-resident foreign corporations or owners for the sale
of services and use of lease of properties in the Philippines shall be based on the contract price
agreed upon by the licensor and the licensee.
c. The licensee shall be responsible for the payment of VAT on such rentals and/or royalties in
behalf of the non-resident foreign corporation or owner.
d. None of the choices.

44. Which of the following advance payments by the lessee may be subject to VAT?
a. A loan to the lessor from the lessee
b. An option money for the property
 c. A security deposit to insure the faithful performance of certain obligations of the lessee to the
lessor
d. Pre-paid rental

45. Which of the following milling jobs shall not be exempt from VAT?
a. Palay into rice
b. Corn into corn grits
c. Wheat into flour
d. Sugar cane into raw sugar

46. Which of the following zero-rated services performed in the Philippines require that they be paid for in
acceptable foreign currency and accounted for in accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas (BSP)?
a. Processing, manufacturing, or repacking goods for other persons doing business outside the
Philippines, which goods are subsequently exported
b. Services, other than processing, manufacturing, or repacking rendered to a person engaged in
business conducted outside the Philippines or to a non-resident person not engaged in business
who is outside the Philippines when the services are performed
c. Both “a” and “b”
d. Neither “a” nor “b”

47. Philippine Airlines has daily flights from Philippines to Abroad. What business tax will apply on the
ticket sales?
a. Three percent (3%) percentage tax
b. Twelve percent (12%) VAT
c. VAT at zero percent (0%)
d. Exempt

48. Based on the preceding number, if the flights are domestic, what business tax will apply on the ticket
sales?
a. Three percent (3%) percentage tax
b. Twelve percent (12%) VAT
c. VAT at zero percent (0%)
d. Exempt

49. Which of the following shall be subject to 0% Value-Added Tax?

a. Sale of electricity by generation companies
b. Sale of electricity by transmission companies
c. Sale of electricity by distribution companies
d. Sale of power or fuel generated through renewable sources of energy

50. Tax credit for input taxes shall be allowed if:

a. Both the seller and the purchaser are VAT-registered.
b. Either one of the seller or the purchaser is VAT-registered.
c. Neither one of the seller or the purchaser is VAT-registered as long as VAT invoice is issued.
d. The seller is VAT-registered regardless of whether the purchaser is VAT-registered or not.

51. Which of the following transactions in the course of trade or business requires actual payment of VAT
before an input tax is allowed as tax credit from the output tax?

a. Purchase of services
b. Transactions deemed sale
c. Domestic purchase of goods for use as raw materials supplied in the sale of services
d. Domestic purchase of goods for use in trade or business for which deduction for depreciation or
amortization is allowed under the Tax Code
52. The input tax credit on importation of goods or local purchases of goods, properties or services by a
VAT-registered person shall be creditable to which of the following?
a. To the importer upon payment of VAT prior to the release of goods from customs custody
b. To the purchaser of the local goods or properties upon consummation of the sale
c. To the purchaser of services or the lessee or licensee upon payment of the compensation, rental,
royalty, or fee
d. All of the choices

53. Where a VAT-registered person purchases or imports capital goods, which are depreciable assets for
income tax purposes, the aggregate acquisition cost of which (exclusive of VAT) exceeds P1,000,000
in a calendar month regardless of the acquisition cost of each capital good, shall be claimed as credit:
a. over a period of 60 months regardless of the useful life.
b. over 60 months or useful life, whichever is shorter.
c. in full in the month acquired, if the estimated life is less than 5 years.
d. in full in the quarter acquired unless the estimated life is less than 5 years, in which case over the
actual number of months comprising the estimated life.

54. Maymay, VAT-registered, made the following purchases during the month of January, 2022:
Goods for sale, inclusive of VAT P 246,400
Supplies, exclusive of VAT 20, 000
Packaging materials, total invoice
amount 56, 000
Home appliances for residence,
gross of VAT 17,920
Office machines (5 pcs.), 8 years 2,000,000
useful life, net of VAT

Repair of store amounted to P20,000, no supporting official receipt.

Creditable Input tax is:____

55. Kusina Co., had its kitchen assembled by a VAT taxpayer. It took six months for the contractor to
finish the work. Kusina Co. purchased materials in July from VAT suppliers at a cost of P500,000,
VAT not included. Payment to the contractor in July 2022 on the Construction in Progress, VAT not
included was:

On contractor’s billing in June P100,000

On contractor’s billing in July 70,000

The input tax available in July is:

a. P0 c. P60,000
b. P80,400 d. P20,400

56. Hooratex Manufacturing Inc., a VAT-registered entity, is engaged in the business of manufacturing
foam. In a month, it hired the services of a foreign firm to conduct studies on how to improve
efficiency in the Company’s manufacturing process. The contract price is P5,000,000 immediately
paid during the month.

Also, it entered into a contract with another manufacturing firm abroad to allow the former to use the
latter’s technology. During the month, it paid P1,000,000 in royalties.

How much is the withholding VAT to be remitted by the Company to the Bureau of Internal Revenue?
a. P720,000 c. P120,000
b. P60,000 d. nil
57. The allowable transitional input tax is:
a. The lower between 2% of the value of beginning inventory or actual VAT paid on such inventory.
b. The higher between 2% of the value beginning inventory or actual VAT paid on such inventory.
c. The actual VAT paid on the beginning inventory.
d. 2% of the value of beginning inventory.

58. All of the following are allowed to claim presumptive input tax, except for one.
a. Processor of sardines, mackerel and milk.
b. Manufacturer of refined sugar and cooking oil.
c. Producers/manufacturers of packed noodles.
d. Supplier of books and other school supplies.

59. Which of the following statements is incorrect?

a. Imported goods which are subject to excise tax are no longer subject to value-added tax.
b. VAT on importation is paid to the Bureau of Customs before the imported goods are released
from its custody.
c. Expenses incurred after the goods are released from Customs custody are disregarded in
computing VAT on importation.
d. When a person who enjoys tax-exemption on his importation subsequently sells in the Philippines
such imported articles to non-exempts person, the purchaser-non-exempt person shall pay the
VAT on such importation.

60. The vat on importation of goods which are subsequently used or sold in the course of trade or
business by a vat registered importer shall be treated as
I. Tax credit
II. Inventoriable cost
III. Expense
a. I only c. III only
b. II only d. None of the choices

61. Nilda imported a car from USA for her personal use. Total landed cost is P250,000 excluding custom
duties of P50,000 and excise tax of P25,000. VAT on importation is:
a. P30,000 c. P36,000
b. P39,000 d. nil

62. An importer wishes to withdraw its importation from the Bureau of Customs. The imported goods
were subjected to 10% customs duty in the amount of P24,000 and other customs charges in the
amount of P10, 000. The value-added tax due is:
a. P24,000 c. P32,880
b. P25,200 d. P20,000

63. World Power Corp. imported an article from Japan. The invoice value of the imported articles was
$7,000 ($1- P50). The following were incurred in connection with the importation:
Insurance P 15,000
Freight from Japan 10,000
Postage 5,000
Wharfage 7,000
Arrastre charges 8,000
Brokerage fee 25,000
Facilitation fee 3,000

The imported article was imposed P50,000 customs duty and P30,000 excise tax.

The Company spent P5,000 for trucking, the carrier is not subject to VAT, from the customs
warehouse to its warehouse in Quezon City.
 The VAT on importation is:
a. P60,000 c. P60,600
b. P42,000 d. P80,000

64. Based on the preceding number, if the imported article was sold for P800,000, VAT exclusive, the
VAT payable is:
a. P24,000 c. P36,000
b. P12,000 d. P11,040

65. A VAT-registered supplier sold goods amounting to P500,000 to a government-controlled corporation

during a particular quarter. Which of the following statements is incorrect in relation to the sale in
relation to the sale of goods?
a. The sale is subject to final withholding VAT.
b. The government-controlled corporation will withhold VAT amounting to P25,000.
c. The government-controlled corporation shall remit the withholding of VAT to the BIR within 10
days following the end of the month the withholding was made.
d. The VAT-registered supplier may refuse the withholding of VAT as long as it is willing to pay the
full 12% VAT.

66. Government units making payments to VAT registered business is required to withhold the estimated
tax corresponding to its payment. The VAT withholding tax on payment to VAT registered suppliers is
a. 3% of gross payment
b. 5% of gross payment
c. 8.5% of gross payment
d. 10% of gross payment

Use the following data for the next five questions:

A VAT-registered trader has the following transactions:
Sales of good to private entities, P2,500,000
net of VAT
Purchases of goods sold to 896,000
private entities, gross of 12% VAT
Sales to a government owned 1,000,000
corporation (GOCC), net of VAT
Purchases of goods sold to 700,000
GOCC, net of 12% VAT

67. How much is the output tax?

a. P300,000 c. P420,000
b. P120,000 d. nil

68. How much is the standard input tax?

a. P20,000 c. P50,000
b. P70,000 d. nil

69. How much is the creditable input tax?

a. P166,000 c. P70,000
b. P96,000 d. P180,000

70. How much is the input tax closed to expense (income)?

a. P14,000 c. (P14,000)
b. P34,000 d. (P34,000)

71. How much is the VAT payable to the BIR?

a. P404,000 c. P204,000
 b. P390,000 d. nil

72. A VAT- registered person is engaged in the sale of VAT taxable goods and at the same time is also
engaged in non-VAT business, in the same business establishment.

During the quarter it made P300,000 sales plus value-added tax of P36,000. The sales of the non-
VAT business amounted to P200,000 with a separate percentage tax of P6,000 for a total of
P206,000. During the same quarter, repairs on the building amounted to P50,000 plus value tax of
P6,000. Supplies purchased for common use amounted to P10,000 value-added tax of P1,200.

The creditable input tax is:

a. P7,200 c. P4,320
b. P6,000 d. P3,600

73. Using the data in the preceding number, the VAT payable is:
a. P24,000 c. P31,680
b. P25,000 d. P26,400

74. Which statement is not correct?

a. The excess input taxes of a taxable month arising from domestic sales may be carried over to the
succeeding month
b. The excess input taxes of a taxable quarter arising from domestic sales may be carried over to
the succeeding quarter
c. The excess input taxes of a taxable period arising from domestic sales may be refunded
d. The excess input taxes of a payable period arising from exports sales may be refunded.

75. Which of the following excess input taxes can be refunded, converted into tax credit certificates or
carried over to the next quarter at the option of the VAT-registered taxpayer?
a. Input tax on purchase of capital goods.
b. Input tax on importation of supplies
c. Input tax on zero-rated sales of goods or services.
d. Input tax on purchase of real properties.

76. Leomar, a VAT-registered person has the following data:

Export sales, total invoice amount P3,000,000

Domestic sales, total invoice amount 6,720,000
Purchases used to manufacture Goods
for export and domestic sales:
Raw Materials, VAT inclusive 616,000
Supplies, VAT inclusive 448,000
Equipment, VAT exclusive 300,000

The amount of input tax which can be refunded or converted into tax credit certificates at the option of
Leomar is:
a. P120,000 c. P39,600
b. P118,800 d. P50,000

77. Based on the preceding number, if the refundable input taxes were not refunded but used as tax
credit, the VAT due is:
a. P576,000 c. P666,888
b. P697,888 d. P570,000

78. But assuming further that the taxpayer opted to claim them as refund, the VAT due is:
a. P576,000 c. P746,888
b. P697,888 d. P620,000
79. First statement: Unused input tax of persons whose registration had been cancelled may be
converted into tax credit certificate which may be used in payment of other NIRC taxes.
Second statement: Refund or tax credit certificate shall be granted within 25 days from the date of
submission of complete documents.
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second state statement is correct.

80. Monthly VAT declaration is filed on or before the:

a. 10th day from the end of each month.
b. 20th day from the end of each month.
c. 25th day from the end of each month.
d. 30th day from the end of each month.

81. Every person liable to pay VAT shall file a quarterly return of the amount of his quarterly gross sales
or receipts within how many days following the close of taxable quarter using the latest version of
Quarterly VAT Return if it is?
a. Thirty (30) days c. Twenty (20) days
b. Twenty-five (25) days d. Ten (10) days

82. The withholding agent of creditable value added tax is required to remit the amount of value added
tax withheld within:
a. 25 days following the end of month the withholding was made
b. 20 days following the end of month the withholding was made
c. 15 days following the end of month the withholding was made
d. 10 days following the end of month the withholding was made

83. Magnifeco Corp. is a VAT-registered dealer of appliances. The following data are for the last quarter
of 2022:
Sales, total invoice value P6,920,000
Purchases, net of input taxes 5,500,000
Sales return, total invoice value 200,000
Purchase return, net of VAT 300,000
Deferred input taxes (carried over from the
third quarter of 2022) 12,000
The value added tax payable for the last quarter of 2022 by Magnifeco Corp. is:
a. P84,000 c. P108,000
b. P96,000 d. P130,500

84. Calea Refining Company manufactures refined sugar. It had the following data during the first quarter
of 2022:
Sale of refined sugar, net of VAT P4,000,000
Purchases of sugar cane 2,500,000
Purchases of packaging materials,
gross of VAT 2,784,000
Purchases of labels, net of VAT 2,100,000

The VAT payable is:______