CHAPTER 1: INTRODUCTION TO c.

Not pay consumption tax if the seller is a non-

CONSUMPTION TAXES resident
d. Not pay consumption tax regardless of the
Multiple Choice – Part 1 residency of the seller
1. Which type of consumption will pay
consumption tax? 9. The tax on domestic consumption is referred
a. Domestic consumption to as
b. Foreign consumption a. VAT on importation
c. Both domestic and foreign consumption b. Business tax
d. Neither domestic nor foreign consumption c. Either A or B
d. Neither A nor B
2. Which is a tax upon the usage of income?
a. Saving tax 10. The tax on domestic consumption from
b. Investment tax foreign suppliers is
c. Consumption tax a. VAT on importation
d. Business tax b. Business tax
c. Either A or B
3. Which is subject to the VAT on importation? d. Neither A nor B
a. Foreign consumption from resident sellers
b. Foreign consumption from foreign sellers 11. The tax on domestic consumption from
c. Domestic consumption from resident sellers resident suppliers is
d. Domestic consumption from foreign sellers a. VAT on importation
b. Business tax
4. Which is subject to business tax? c. Either A or B
a. Foreign consumption from resident sellers d. Neither A nor B
b. Foreign consumption from foreign sellers
c. Domestic consumption from resident sellers 12. Which is not a business tax?
d. Domestic consumption from foreign sellers a. VAT on importation
b. VAT on sales
5. Which is an incorrect statement regarding c. Percentage tax
consumption taxes? d. Excise tax
a. They are always indirect in nature
b. They effectively tax everyone in the state 13. The percentage tax is generally
c. They apply only when the goods or services a. 3% of sales or receipts
are destined for consumption within Philippines b. 3% of purchases
d. Consumption taxes may encourage savings c. 3% of mark-up
formation. d. 12% of mark-up

6. Which is correct regarding consumption tax? 14. The VAT as a business tax is
a. It may help in the redistribution of wealth to a. 12% of sales or receipts
society. b. 12% of purchases
b. It is entirely based upon the consumers’ c. 12% of mark-up
ability to pay. d. 3% of mark-up
c. It applies to both domestic and foreign
consumption. 15. The VAT on importation is
d. It applies only when the seller is non- a. 12% of sales
resident. b. 12% of purchases
c. 12% of mark-up
7. Domestic consumption is taxable when the d. 3% of mark-up
seller is
a. A non-resident 16. Which form of consumption is tax-free?
b. A resident a. Sales to a resident
c. Either a resident or non-resident b. Sales to a non-resident
d. Both a resident and non-resident c. Importation by an importer engaged in
business
8. Foreign consumption shall d. Importation by an importer not engaged in
a. Pay consumption tax if the seller is a resident business
b. Pay consumption tax if the seller is a non-
resident
17. As to incidence of tax, a VAT on importation a. Direct method
is a form of b. Indirect method
a. Direct tax c. Tax credit method
b. Indirect tax d. Withholding method
c. Ad valorem tax
d. Specific tax 5. Which statement is conceptually incorrect?
18. Which of these import consumptions is tax- a. The buyer pays the consumption tax on
free? his/her purchase to the seller
a. Importation from a seller not engaged in b. The buyer pays the consumption tax to the
trade or business government
b. Importation from a seller engaged in trade or c. The seller pays the consumption tax to the
business government
c. Both A or B d. The seller collects consumption tax for the
d. Neither A nor B government

19. Which importation is subject to the VAT on 6. Which is correct?

importation? a. The sale to foreigners must include a business
a. Importation by a person engaged in business tax
b. Importation by a person not engaged in b. The sale to residents must include a business
business tax
c. Both A or B c. The purchase from abroad must include a
d. Neither A nor B business tax
d. All of these
20. Who is the statutory taxpayer to the VAT on
importation? 7. The deduction from Output VAT is called’
a. Foreign seller a. Percentage tax
b. Domestic buyer b. Value Added Tax
c. Both A and B c. Input VAT
d. None of these d. VAT on importation

Multiple Choice – Part 2 8. Which is pure form of a sales tax?

a. Percentage tax
1. Generally, the tax basis of business tax is b. Value Added Tax
a. Sales or receipts c. Either A or B
b. Purchase costs d. Neither A nor B
c. Either A or B
d. Neither A nor B 9. Statement 1: A business which pays VAT
normally does not pay percentage tax.
2. Who is the statutory taxpayer of business Statement 2: A business which pays percentage
tax? tax also pays VAT
a. The seller who must be engaged in trade or Which statement is correct?
business a. Statement 1
b. The seller, whether or not engaged in trade b. Statement 2
or business c. Both statements
c. The buyer who must be engaged in trade or d. Neither statements
business
d. The buyer, whether or not engaged in trade 10. Which of the following business taxes
or business applies only for domestic consumption?
a. VAT on sales
3. The economic taxpayers of consumption b. Percentage tax
taxes are c. Excise Tax
a. Sellers who are engaged in trade or business d. All of these
b. Sellers, whether or not engaged in trade or
business 11. Excise tax is paid by
c. Buyers who are engaged in trade or business a. Sellers
d. Buyers, whether engaged in trade or business b. Buyers
c. Importers or manufacturers
4. What is the method used to determine the d. Seller or buyer depending who agreed to pay
VAT due and payable? the excise tax
 c. Payable regardless of the purpose of the
12. Export sale is (select the incorrect one) importation
a. Exempt from percentage tax d. Payable only when the resident seller is not
b. Exempt from VAT engaged in business
c. Exempt from excise tax
d. All of these 20. The VAT on domestic sales is an example of
13. Statement 1: Excise tax is always paid a. A direct tax
together with VAT or percentage tax b. An indirect tax
Statement 2: Excise tax is paid at the point of c. A regulatory tax
sale d. A specific tax
Which statement is false?
a. Statement 1 Multiple Choice – Problem 1
b. Statement 2
c. Both statements 1. Free Company, a resident business, renders
d. Neither statements services to Mr. Erlwin, a resident person who is
not engaged in business.
14. Which is imposed with a tax of zero percent Identify the statutory taxpayer and the type of
(0%)? consumption tax.
a. All export sales a. Free Company – business tax
b. Export sales of VAT-registered taxpayers b. Mr. Erlwin – VAT on importation
c. Import sales of VAT-registered taxpayers c. Mr. Erlwin – business tax
d. Export sales of non-VAT registered taxpayers d. Free Company – VAT on importation
only
2. Baliwag Company, a non-resident business,
15. Which is not subject to excise tax? purchased P200,000 from Cauayan Company, a
a. Sin products resident business. Which will pay the
b. Non-essential commodities consumption tax on this transaction?
c. Food products a. Cauayan Company
d. Mineral products b. Baliwag Company
c. Both A and B
16. The tax basis of consumption tax on foreign d. Neither A nor B
purchase is
a. Sales or receipts 3. Heidenberg Corporation, a resident business,
b. Purchase costs purchased P100,000 goods from Kiwi Company,
c. Either A or B a non-resident business.
d. Neither A nor B Identify the statutory taxpayer and the type of
consumption tax.
17. The consumption tax on domestic purchases a. Heidenberg Corporation – business tax
is imposed upon the b. Kiwi Company – business tax
a. Sales or receipts c. Heidenberg Corporation – VAT on
b. Purchase costs importation
c. Either A or B d. Kiwi Company – VAT on importation
d. Neither A nor B
4. Mr. Cedric, an employee, sold his residential
18. Technically, the excise tax on the lot to Mrs. Corneto a real property dealer. Who
manufacture of certain articles is payable only is subject to consumption tax with respect to
when the article is intended for this transaction?
a. Domestic consumption a. Mr. Cedric
b. Foreign consumption b. Mrs. Corneto
c. Either A or B c. A and B
d. Neither A nor B d. Neither A nor B

19. Which is correct with the VAT on 5. Mr. Porma made a causal sale involving a car
importation? to Ms. Totyal, a resident buyer. Mr. Porma is
a. Payable only when the importer is engaged in not a car dealer. Who Is sunject to consumption
business tax?
b. Payable only when the foreign seller is a. Mr. Porma
engaged in business b. Ms. Tutyal
c. Both A and B
d. Neither A nor B 11. A person who imports goods or properties
will more likely to pay
6. Mr. Llama, an employee, imported a pair of a. a 3% percentage tax on the importation
shoes in Hong Kong. Which consumption tax is b. a 12% VAT on the importation
he liable to pay? c. Either 3% or 12% tax on the importation
a. Business tax d. No consumption tax
b. VAT on importation
c. Both 12. A personal who is not regularly engaged in
d. None trade or business made a casual sale of a
property for P100,000. What will be the invoice
7. Kapederasyon, a charitable non-profit price of the sale?
corporations, imports various office supplies a. P100,000
from XG Manufacturing Industries in China. b. P103,000
Which is correct? c. P112,000
a. Kapederasyon is exempt from VAT on d. Either B or C
importation
b. Kapederasyon is subject to VAT on 13. Alison is regularly engaged in the sale of
importation goods. He will pay
c. XG Manufacturing is subject to business ax a. Value added tax only
d. XG Manufacturing shall pay the VAT on b. Percentage tax only
importation c. Either A or B
d. Neither A nor B
8. Mr. Cavite produces an excisable article for
sale in the Philippine market. Which is incorrect 14. Mr. Ventura is subject to 3% percentage tax.
with respect to Mr. Cavite’s business taxation? He made total collection of P206,000 during a
a. Mr. Cavite is subject to either VAT or month and paid P103,000 in his purchases.
percentage tax Compute his percentage tax.
b. Mr. Cavite pays excise tax in addition to VAT a. P0
or percentage tax b. P3,000
c. Mr. Cavite pays excise tax in addition to VAT c. P6,180
and percentage tax d. P12,000
d. Mr. Cavite will pay excise tax without regard Solution: 206,000 x 3% = 6,180
to whether he is a VAT or non-VAT taxpayer
15. A business taxpayer purchased goods worth
9. A person engaged in business is subject to 3% P120,000 from non-residents and sold worth
business tax. He has inventories of goods in his P140,000 for P180,000. What is the concept of
possession costing P77,600 which he intends to “value added” for VAT purposes?
sell to earn a mark-up of 25% of cost net of the a. P200,000
3% business tax. He shall invoice the sale of b. P140,000
P77,600 goods at c. P80,000
a. P100,000 d. P60,000
b. P103,000 Solution: 140,000 – 120,000 = 20,000 + 40,000
c. P97,000 (180,000-140,000) = 60,000
d. P110,000
Solution: 77,600 x 125% = 97,000/97% = 16. In the immediately preceding problem, what
100,000 is the basis of percentage tax?
a. P200,000
10. A business wants to make a P10,000 profit b. P140,000
from the sale of an inventory costing P30,000. c. P120,000
The business is subject to 3% percentage tax. At d. P180,000
what amount shall the business invoice the
sale? 17. Assuming the same data in the above
a. P41,237 problem, what is the basis of the VAT on
b. P41,200 importation?
c. P40,000 a. P200,000
d. P38,800 b. P140,000
Solution: 10,000 + 30,000 = 40,000/97% = c. P120,000
41,237 d. P80,000
18. Mr. Coroneti imported P300,000 equipment b. P24,000
for business use and a P1,200,000 car for c. P12,000
personal use. What is the amount subject to the d. P0
VAT on importation? Solution: 36,000-24,000=12,000
a. P0
b. P300,000 6. Assuming the taxpayer is a non-VAT taxpayer
c. P1,200,000 paying 3% percentage tax, the percentage tax
d. P1,500,000 will be
a. P12,000
b. 9,000
c. P6,000
d. P3,000
Solution: 300,000-200,000=100,000x3%=3,000
Multiple Choice – Problem 2
A business taxpayer recorded the following
1. A business taxpayer had the following transactions during the month:
purchases and receipts: Philippin Abroad Total
Imports of goods or services es
P190,000 Sales P350,000 P200,000 P550,000
Domestic purchase of goods or service 100,000 Purchases 150,000 100,000 250,000
Domestic sales of goods or services 150,000 Total P500,000 P300,000 P800,000
Export sales of good or services 50,000 Assuming the taxpayer is a VAT-registered
Compute the total amount subject to taxpayer
consumption tax to the business. 7. Compute the output VAT
a. P500,000 a. P0
b. P400,000 b. 24,000
c. P350,000 c. P36,000
d. P340,000 d. P42,000
Solution: 190,000+150,000=340,000 Solution: 350,000x12%=42,000

2. In the preceding problem, determine the 8. Compute the VAT on importation

amount subject to consumption tax if the a. P0
taxpayer is not engaged in business b. P12,000
a. P490,000 c. P18,000
b. P390,000 d. P32,000
c. P200,000 Solution: 100,000x12%=12,000
d. P190,000 Assuming the taxpayer is a non-VAT taxpayer
9. Compute the percentage tax
3. A VAT-registered taxpayer recorded the a. P0
following sales and purchases, exclusive of VAT, b. P6,000
during the month: c. P9, 000
Sales P300,000 d. P10,500
Purchases 200,000 Solution: 350,000x3%=10,500
What would be the output VAT?
a. P48,000 10. Compute the VAT on importation.
b. P36,000 a. P0
c. P24,000 b. P 3,000
d. P12,000 c. P12,000
Solution: 300,000x12%=36,000 d. P18,000
Solution: 100,00x12%=12,000
4. What is the input VAT?
a. P48,000 Sindangan Company, a VAT-registered taxpayer,
b. P36,000 purchased P400,000 worth of goods and sold
c. P24,000 the same for P800,000.
d. P12,000 11. Assuming that the business operation of
Solution: 200,000x12%=24,000 Sindangan Company is limited to Philippine
residents, what is the total business tax it will
5. What is the VAT payable? report on its sales?
a. P36,000 a. P 96,000
b. P 48,000 c. Sale of real property by a dealer
c. P 24,000 d. Sale of equipment by a business
d. P0
Solution: 800,000x12%=96,000 2. Which of these pay business taxes?
a. Vegetable dealers
12. Assuming that the purchases were imports b. Fruit dealers
and the sales were exports, compute c. Gold trader
respectively the business tax and total d. Fisherman
consumption tax.
a. P 96,000; P144,000 3. Which is taxable with VAT?
b. P 24,000; P144,000 a. Sale of cotton in original state
c. P 24,000; P72,000 b. Sale of milkfish in original sate
d. P0; P48,000 c. Sale of muscovado sugar
Solution: P0 No business tax because of d. Sale of mustard seeds
destination principle; 400,000x12%= 48,000
4. Which is exempt from business tax?
CHAPTER 2: VALUE ADDED TAX ON a. Bakery
IMPORTATION b. Manufacturer of canned fruits
c. Manufacturer of noodles
Multiple Choice - Part 1 d. Meat vendor
1. Which is subject to value added tax?
a. Sheep 5. Exempt sales are not subject to
b. Sheep wool a. VAT
c. Cut sheep meat b. Percentage tax
d. All of these c. Both A and B
d. Neither A nor B
2. Which agricultural product is VAT exempt on
importation? 6. All of the following are exempt agricultural
a. Charcoal produce, except
b. Wood a. Palay
c. Lumber b. Corn
d. Corn c. Garlic
d. Tobacco
3. Which importation is subject to VAT?
a. Importation from abroad 7. Which of the following is considered as not in
b. Purchase of goods from economic zones in its original state?
the Philippines a. Frozen fish
c. Both A and B b. Dried fish
d. Either A or B c. Marinated fish
d. None
4. Which is not subject to VAT on importation?
a. Importation of goods for personal use 8. Which is exempt from business tax?
b. Importation of goods for business use a. Sale of boiled peanuts
c. Purchase of goods from eco zone entities b. Sale of peanut brittle
d. Purchase of goods from other domestic c. Sale of coco lumber
sellers d. Sale of flowers

5. Which of the following is subject to the VAT 9. Which of the following sale is exempt from
on importation when imported? business tax?
a. Sale of Palay
b. Sale of Furniture
CHAPTER 4: EXEMPT SALE OF GOODS, c. Sale of pottery
PROPERTIES AND SERVICES d. Sale of textile

Multiple Choice – Theory Part 1 10. The sale of this agricultural or marine
1. Which of the following sale is not subject to product is exempt from business tax
business tax? a. Mackerel
a. Sale of a car by dealer b. Silk
b. Casual sale of a car by non-dealer c. Leather
d. Pearl c. Race horse
d. Aquarium fish
11. Which of the following establishments may
qualify for exemption from business tax? 20. Which of the following sales is not exempt
a. Hotel from business tax?
b. Inn a. Sale of pets
c. Boarding house b. Sale of unprocessed agricultural food
d. Resort products
c. Sale of processed marine foods
12. Which of the following is least likely subject d. Sale of unprocessed non-food agricultural
to VAT? products
a. Banana cake
b. Cassava chips Multiple Choice – Theory Part 2
c. Chocolate 1. Which is subject to business tax?
d. Corn grits a. A private hospital
b. A non-profit hospital
13. The sale of which of the following is exempt c. A government hospital
from business tax? d. None of these
a. Wine
b. Vinegar 2. Which is not subject to business tax?
c. Fish sauce a. A purely employed professional
d. Boiled eggs b. A professional practitioner
c. A self-employed individual
14. The sale of this agricultural supply is exempt d. All of these
from business tax
a. Fertilizers 3. All of these pay business tax, except
b. Farm machineries a. Stock broker
c. Tools b. Insurance agent
d. All of these c. Consultant
d. Employee
15. Which is subject to VAT when sold?
a. Seeds 4. Which of the following pays business tax?
b. Fingerlings a. Regional operating headquarters
c. Feeds b. Regional administrative headquarters
d. None of these c. Both A and B
d. Neither A nor B
16. Which is not exempt from business tax?
a. Miller of palay into rice 5. Which is exempt from business tax?
b. Miller of corn into corn grits a. Receipts from rental of aircraft
c. Miller of sugar cane into refine sugar b. Receipts from rental of vessels
d. Miller of sugar cane into raw sugar c. Sale of aircraft or vessels
d. None of these
17. Which is exempt from business tax?
a. Agricultural contract growers 6. Which is an exempt medical service?
b. Food processor a. Services of surgical doctors
c. Paper manufacturer b. Services of dentists
d. All of these c. Services of pediatricians
d. Hospital services
18. Which of the following transaction is not
subject to business tax? 7. The gross receipts or sales of the hospital
a. Sale of game fowl from which of the following sources is not
b. Sale of specialty feeds exempt from business tax
c. Sale of genetic materials for poultry a. Medicines
d. Sale of aquarium fish b. Medical services
c. Dental services
19. Which of the following animals is not d. Veterinary services
considered as pet?
a. Domestic animal 8. Which of these is exempt from business tax?
b. Livestock a. Sale of aircraft for domestic transport
b. Sale of aircraft for international transport 16. The sale of real property by a person not
c. Both A and B engaged in business is
d. Neither A nor B a. Subject to business tax
b. Exempt from business tax
9. Which of these is subject to business tax? c. Partially subject to business tax
a. Sale or lease of sea vessels for domestic d. Automatically subject to VAT
transport
b. Sale or lease of sea vessels for international 17. Which of the following may not be subject
transport to business tax when sold?
c. Both A and B a. Property held for sale
d. Neither A nor B b. Property held for lease
c. Property held for use
10. Which is exempt from business tax? d. Property held as investment
a. A private hospital
b. A non-profit hospital 18. What is the price limit for the exemption of
c. A government hospital residential lot?
d. All of these a. P1, 000,000
b. P1., 500,000
11. Which of these receipts by a school is more c. P1, 919, 500
likely to be subject to business tax? d. P3, 199,200
a. Tuition fee
b. Miscellaneous fee 19. What is the price limit for the exemption of
c. Computer fee residential dwellings?
d. Rent income a. P1, 000,000
b. P1., 500,000
12. Which of the following item is not exempt c. P1, 919, 500
from business tax? d. P3, 199,200
a. Sale of books
b. Sale of newspapers 20. The lease of residential units is exempt from
c. Sale of ballpen and notebooks business tax provided that rent per month per
d. Sale of magazines unit is
a. More than P12, 800
13. Which is not an accrediting agency for a b. Less than P15, 000
school to be exempt from business tax? c. Not more than P12, 800
a. Department of Education d. Not less than 15, 000
b. Department of Health
c. Technical Education and Skill Development Multiple Choice – Theory Part 3
Authority 1. Realty dealers, developers or lessors are
d. Commission on Higher Education usually registered as
a. Excise taxpayers
14. Which of the following activities related to b. Percentage taxpayers
books is exempt from business tax? c. VAT taxpayers
a. Printing d. Any of these
b. Sale
c. Publication 2. Which of these is vatable?
d. All of these a. Properties classified as ordinary assets
b. Properties classified as capital assets
15. Which of the following statements is c. Both A and B
correct? d. Neither A nor B
a. The sale of real property by any person is
subject to business tax 3. Which is exempt under certain price
b. The sale of real property is vatable only when condition?
the seller is a realty dealer a. Residential lot
c. The sale of property held for sale, lease or use b. Residential dwellings
in the course of business is subject to tax c. Low-cost housing unit
d. The casual sale of real property used in d. All of these
business is subject to business tax.
4. The rental limit on residential dwellings does
not apply to
a. An apartment
b. A house for rent 12. The sale by non-VAT registered persons to
c. A dormitory entities in the Philippines with indirect tax
d. motels exemption is considered
a. A domestic consumption subject to VAT
5. Which carrier has an exemption from b. A domestic consumption subject to
business tax? percentage tax
a. Domestic carrier c. A foreign consumption exempt from business
b. International carrier tax
c. Both A and B d. A foreign consumption subject to zero-rated
d. Neither A nor B VAT

6. An international carrier is not involved in 13. As a rule, all cooperatives are exempt from
a. Land transport business tax, except
b. Sea transport a. Agricultural cooperatives
c. Air transport b. Electric cooperatives
d. Any of these c. Credit cooperatives
d. None of these
7. An international carrier is owned by a
a. Domestic corporation 14. Which of the entities do not have indirect
b. Foreign corporation tax exemption?
c. Either A or B a. Philippine Amusement and Gaming
d. Neither A nor B Corporation (PAGCOR)
b. Development Bank of the Philippines (DBP)
8. Which of the following activities by any c. International Rice Research Institute (IRRI)
carrier is a foreign consumption exempt from d. Embasies
Philippine business tax for being rendered
outside the Philippines? 15. The export sales of non-VAT taxpayers are
a. Inbound transport of passengers and a. Exempt
baggages to the Philippines b. Subject to percentage tax
b. Outbound transport of passengers and c. Subject to 12% VAT
baggage or cargoes for abroad d. Subject to 0% VAT
c. A and B
d. None of these Multiple Choice – Problems Part 1
1. A seller of goods had the following details of
9. The receipts from outgoing transport of sales and collection during the month:
domestic carrier is Receivables, beginning P200, 000
a. Subject to zero percent tax Gross sales 400, 000
b. Subject to zero percent VAT Less: Collection 500, 000
c. Exempt from business tax Receivables, end P100, 000
d. Subject to excise tax What is the amount subject to business tax?
a. P500, 000
10. To an international carrier, the receipts from b. P400, 000
inbound flights is c. P300, 000
a. Subject to percentage tax d. P200, 000
b. Subject to VAT
c. subject to VAT for passenger and percentage 2. In the immediately preceding problem,
tax for cargoes. determine the amount subject to business tax if
d. Exempt the taxpayer is a seller of services
a. P500, 000
11. Statement 1: Cooperatives are generally b. P400, 000
subject to VAT c. P300, 000
Statement 2: Cooperatives are generally subject d. P200, 000
to percentage tax.
Which is correct? 3. A farm supply dealer made the following
a. Statement 1 sales during the month:
b. Statement 2 Fertilizer P45, 000
c. Both statements Hybrid corn and rice seeds 65, 000
d. Neither statement Pesticides 120, 000
Water pumps and hand tractors 240, 000 b. P130, 000
Total P470, 000 c. P820, 000
Compute the sales subject to business tax. d. P850, 000
a. P110, 000
b. P120, 000 8. Rodel Masipag is a vegetable dealer. He buys
c. P230, 000 raw vegetable from farmers and sells them to
d. P360, 000 consumers.
Which statement is correct?
4. Mang Andrew is a meat vendor. He a. Rodel shall pay business tax as he is engaged
purchases live hogs from piggery operators, in business.
butchers the hogs and sells their meat in a b. Rodel shall not pay business tax on the sale of
public market. In January 2020, Mang Andrew vegetables.
purchased 12 live hogs for P180, 000 from c. Rodel shall not pay business tax as he is not
Mang Manso and sold these to customers for engaged in farming business.
P320, 000. d. Rodel shall pay business tax since he is a
Which is statement is correct? trader rather than a farmer.
a. Mang Manso shall not pay business tax, but
Mang Andrew shall pay business tax. 9. A small “sari-sari” store has annual receipts
b. Mang Manso shall pay business tax, but of P80, 000 on the average. It had a sales of P3,
Mang Andrew shall not pay business tax. 000 from sales of candies and P5, 000 from the
c. Both Mang Manso and Mang Andrew shall sales of cigarettes.
pay business tax. What is the taxable amount of sales?
d. Neither Mang Manso nor Mang Andrew shall a. P0
pay business tax. b. P3, 000
c. P5, 000
5. A farmer old the following goods in March: d. P8, 000
20 sacks rice P45, 000
100 sacks corn 90, 000 10. A "sari-sari" store registered as a VAT-
Total P135, 000 taxpayer had he following sales:
Determine the gross selling price subject to Sales of newspaper P20, 000
business tax. Sales of fish and meat 30, 000
a. P0 Sales of fruits and vegetables 10, 000
b. P45, 000 Sales from snacks and soft drinks 15, 000
c. P90, 000 Sales from general merchandise 80, 000
d. P135, 000 Total P155, 000
The total viable sales is
6. A restaurant reported the following revenues a. P0
and receipt in May 2020: b. P95, 000
Rice and viands P120, 000 c. P115, 000
Soft drinks 10, 000 d. P155, 000
Snacks 30, 000
Total P160, 000 11. Rovin Store made the following sale during
Compute the exempt sales. the month:
a. P0 Frozen meat P30, 000
b. P120, 000 Frozen fish 20, 000
c. P150, 000 Processed foods 220, 000
d. P160, 000 Household appliances and furnitures 250, 000
Total P520, 000
7. 888 Canning Company procedures canned Determine the vatable sales
sardines but sells raw excess fish during peak a. P0
fishing season or preserves them by sun-drying b. P220, 000
and sells them to the local market. c. P470, 000
The following were the sales in January 2020: d. P520, 000
Canned sardines P850, 000
Excess fresh sardines 130, 000 12. Mr. Kwon imports Korean vegetables and
Dried fish 40,000 sells them in the domestic market for Korean
Total P1, 020,000 residents in the Philippines. The following data
What is the amount of taxable sales? relates to his operation during the period.
a. P0
Total landed cost of importation P800, Total P210, 000
000 Determine the gross receipts to be subjected to
Total sales P1, business tax.
200,000 a. P0
What is the VAT on importation? b. P90, 000
a. P0 c. P120, 000
b. P24, 000 d. P210, 000
c. P96, 000
d. P144, 000 18. A realty trader sold the following properties:
Residential Lot P1, 200,000
13. In the immediately preceding problem, what Residential dwelling 2, 000,000
is the VAT on sales? Commercial lot 800, 000
a. P0 What is the vatable sale?
b. P24, 000 a. P0
c. P96, 000 b. P800, 000
d. P144, 000 c. P2, 000,000
d. P4, 000,000
14. Mr. Louisville, an Australian foreign student, Price limit: Residential lot 1, 919,500
sold his cellphone for P50, 000. What is the Residential dwelling 3, 199, 200
business tax payable?
a. None 19. Mr. Dobbie has a pet shop. In April 2020, he
b. P1, 500 percentage tax made a sale of P300, 000 from sale of pets,
c. P6, 000 VAT P120, 000 for pet feeds and P20, 000 for pet
d. Excise tax plus P6, 000 VAT toys. Mr. Dobbie is also practicing veterinarian.
He derived additional P80, 000 professional
15. A printing press had the following revenues fees.
and collections during the month: Compute the exempt sales.
Revenue Collection a. P0
Books P200, 000 P180, 000 b. P80, 000
Advertising magazines 250, 000 150, 000 c. P440, 000
Election campaign materials 700, 000 400, 000 d. P520, 000
Tarp 80, 000 80, 000
Total P1, 230,000 P810, 20. Don Chicken is a food franchise with most
000 food menus offering chicken as an ingredient.
Determine the vatable amount. Don Chicken contracted Mr. Barako to produce
a. P480, 000 the chicken needs of its entire franchise. To
b. P630, 000 control quality, Don Chicken give Mr. Barako
c. P780, 000 the chicks Mr. Barako. Mr. Barako raises the
d. P1, 030,000 chicks for 40 days, then delivers them to Don
Chicken. Don Chicken paid Mr. Barako P400,
16. Mr. Panzer is both employed and self- 000 for the first delivery of chicken.
employed. He had the following income receipt
during the month:
Gross compensation income P120, 000
Director's fees 80, 000
Professional fees 200,
000
Total gross income P400,
000
The total amount subject to business tax is
a. P120, 000
b. P200, 000
c. P280, 000
d. P400, 000

17. An insurance agent had the following

receipts during the month:
Commission income P90, 000
Loan 120, 000