Chapter 9 - Input VAT

True or False 1
1. True
2. True
3. True
4. False (Registrable persons are subject to output VAT but they cannot claim input VAT.)
5. True
6. False (The option to credit or refund Input VAT is allowed only on zero - rated sales.)
7. True
8. False (They cannot claim input VAT but because of the invoicing, they are subjected to output VAT)
9. False (12% of the selling price)
10. True
11. True
12. True
13. False (Input VAT is creditable only when the purchase is made in the course of business)
14. True
15. True

True or False 2
1. False (2% of vatable beg. inventory OR actual VAT paid thereon, whichever is HIGHER)
2. True
3. False (Input VAT on purchase of goods is deductible upon PURCHASE of goods)
4. False (Input VAT on services is deductible upon PAYMENT)
5. True
6. True
7. False (If monthly aggregation cost does not exceed one million, it should not be amortized)
8. False (Over a period of 60 months OR the useful life of that asset, whichever is SHORTER)
9. True
10. False (Only on primary agricultural inputs only, marine products are excluded.)
11. False (Only MANUFACTURERS and PROCESSORS)
12. False (7% of the sales to government)
13. False (7% of the SALES not of the cost)
14. True
15. True
16. True
17. True
18. True
19. False (No rule pertaining to the limit of input VAT- carry over)
20. True
21. False
Multiple Choice - Theory: Part 1 Multiple Choice - Problem: Part 1
1. D 1. A. (Purchases should be in the course of business)
2. C 2. A. (Purchases to non-vat taxpayers are not creditable)
3. A 3. C
4. D Total Landed Cost P150,000
5. C Input VAT 12% P18,000
6. D
7. B 4. A. (Non-VAT taxpayers cannot claim input VAT)
8. C 5. D
9. B Consultancy Fees P700,000
10. C Purchase of Supplies 250,000
11. D Purchase of Equipment 400,000
12. C Total vatable purchases P1, 350, 000
13. D Input VAT 12% P162, 000
14. A
15. A 6. C
Multiple Choice - Theory: Part 2 Invoice Price (Incorrect) P220, 000
1. B Multiply by: 12/112
2. B Input VAT P23, 571
3. B
4. B 7. C
5. D Purchase of goods (ex) P50,000
6. A Input VAT 12% P6,000
7. B Purchase of goods (inc) P44,800
8. A Purchase of services (inc) 23, 520
9. C Total purch. vat inclusive P68, 320
10. B Multiply by: 12/112
11. C Input VAT P7,320
12. C TOTAL Input VAT P13, 320
13. D
8. A. (Percentage taxpayer cannot claim input VAT)
9. C
Input VAT on August P32,000
Input VAT on September 40,000
Input VAT for 3rd quarter P72,000

10. C
Vatable goods (invoiced) P40,000
Multiply by: 12/112
Input VAT P4,286
11. C Multiple Choice - Problem: Part 2
Purchase from VAT Taxpayers P250,000 1. B
Input VAT 12% P30,000 Purchases from Non- VAT P210,000
Purchases for VAT suppliers
12. C P22,400
Purchase from VAT Taxpayers P250,000 Divided by: 112% 20,000
Multiply by: 12/112 Total Beg. Inventory (Vat exclusive) P230,000
Input VAT P26,786 Transitional Input VAT 2% P4,600

13. B 2. C
Purchase of goods in January P50,000 Inventory of processed goods P170,000
Input VAT 12% P6,000 Inventory of non-food goods 210,000
Total vatable beginning inventory P380,000
14. A Transitional Input VAT 2% P7,600
Purchases of services in Jan.
but paid in February P80,000 3. C
Input VAT 12% P9,600 Total vatable beginning inventory P250,000
Transitional Input VAT 2% P5,000
15. D Actual input VAT paid P220,000
Input VAT on January P6,000 12% P26,400
Input VAT on February P9,600 Transitional Input VAT (Higher) P26,400
Input VAT on March P250,000
Multiply by: 12% P30,000 4. A
Input VAT for 1st quarter P45,600 Pesticides P18,000
Multiply by: 12/112
16. C Actual input VAT paid P1,928.57
Mr. Sikorsky is Non-VAT 0 Transitional Input VAT P18,000
Mrs. Sikorsky is a VAT-taxpayer 2% P360
Input VAT on goods P12,000 Transitional Input VAT (Higher) P1,928.57
Input VAT on services 8,000
Mrs. Sikorsky's Input VAT P20,000 5. B
Raw Land contributed P11,200,000
17.B Transitional Input VAT 2% P224,000
Input VAT on regular sales P174,000
Input VAT in export sales 150,000 6. C (Aggregate cost does not exceed one million)
Total creditable input VAT P324,000 Purchase price of equipment P1,000,000
Input VAT 12% P120,000

7. A
Goods (vat exclusive) P800,000
Capital goods (vat exclusive) 700,000
Total P1,500,000
 Input VAT 12% P180,000

8. A 16. C
Total of Lot and Building P1,600,000 Amortization of input VAT P3,000
Input VAT 12% P192,000
Purchase of Eqp. in August P1,232,000
9. A (Purchase should be for business) Multiply by: 12/112
10. B (Purchase from non-vat supplier has Input VAT P132,000
no input VAT) Divided by: 48mos.
Machineries from VAT-reg P800,000 Creditable Input VAT P2,750
Input VAT 12% P96,000 Total creditable input VAT for Aug. P5,750
Creditable Input VAT (60mos.) P1,600
17. C
11. C Creditable input vat - Machine P3,000
Although non vat purchases do not have Multiply by: (July - Sept.) 3
input vat, the amount still forms part of the Total creditable input vat - machine P9,000
total aggregate cost.
Creditable input VAT - Nov. P1,600 Creditable input VAT - equipment P2,750
Creditable input VAT - Dec. 1,600 Multiply by: (Aug. - Sept.) 2
Total input VAT for quarter P3,200 Total creditable input vat - eqp P5,500

12. C Total creditable input vat for quarter P14,500

Truck P700,000
Input VAT 12% P84,000 18. Input VAT on February P24,000
Divided by: 60mos. P1,400 Input VAT on March 24,000
Office equipment P500,000 Total creditable input vat for quarter P48,000
Input VAT 12% P60,000
Divided by: 48mos. 1,250 19. C
Total creditable input VAT P2,650 Machinery P1,200,000
Input VAT 12% P144,000
13. D (Same as above) Amortized for 60mos. P2,400
14. A
Amortization of Input VAT P2,650 20. B
Multiply by: 3mos. Input VAT for equipment (400k x 12%) P48,000
Total amortized input VAT P7,950 Input VAT for machinery (600k x 12%) P72,000
Purchased on August P600,000 Amortization of input VAT P2,400
Input VAT 12% P72,000 Total creditable input vat - MAY P122,400
Total creditable input VAT P79,950
21. Creditable input VAT - Apr. P2,400
15. B Creditable input VAT - May P122,400
Machine P1,680,000 Creditable input VAT- June P200,000
Multiply by: 12/112 Multiply by: 12% P24,000
Input VAT P180,000 Amortization of input VAT 2,400
Amortized for 60 mos. P3,000 Total creditable input vat for quarter P151, 200

22. B 3. A (Only manufacturers and processors

Equipment P2,000,000 can claim presumptive input VAT)
Input VAT 12% P240,000 4. C
Monthly amortization (60mos) P4,000 Sugar Cane P500,000
Multiply by: 31mos. Presumptive input VAT 4% P20,000
Claimed input VAT P124,000
Unutilized input VAT P116,000 5. A
A processor of sugars for others is not allowed
23. A to claim presumptive input VAT
Input VAT for Apr. P4,000 6. C
Input VAT for May 116,000 Raw Coconuts P300,000
Total input vat for quarter P120,000 Copra from Farmers 450,000
Total P750,000
24. C Presumptive input VAT 4% P30,000
Payment for January P1,120,000
Multiply by: 12/112 7. B
Creditable input VAT P120,000 Flour and coconut oil are both processed
Presumptive input VAT (20,000 x 4%) P800
Payment for February P952,000
Multiply by: 12/112 8. C
Creditable input VAT P102,000 Wheat Flour P200,000
Coconut Oil 40,000
25. C Other seasonings 40,000
Creditable Input VAT - Jan. P120,000 Total P280,000
Creditable input VAT - Feb. P102,000 Input VAT 12% P33,600
Creditable input VAT - Mar. P144,000 Presumptive input VAT 800
Total creditable input VAT P366,000 Total creditable input VAT P34,400

Multiple Choice - Problems: Part 3 9. A

1. B Sale to government P500,000
Tomatoes P150,000 Standard input VAT 7% P38,500
Presumptive Input VAT 4% P6,000
10. Standard input VAT P38,500
2. D Actual input VAT paid (400k x 12%) P48,000
Tin Cans P80,000 Loss or Expense P9,500
Labels 20,000
Total P100,000 11. A
Input VAT 12% P12,000 Construction Supplies P2,500,000
Presumptive Input VAT 6,000 Actual input VAT paid 12% P300,000
Total creditable input VAT
for the month P18,000

12. C
Bill to Government P4,000,000
Final withholding VAT 5% P200,000

13. C
Bill to Government P4,000,000
Standard input VAT 7% P280,000

14. C
Actual input VAT paid P300,000
Standard input VAT 280,000
Loss P20,000

15. C
Input VAT carry over - 1st Q P40,000
Input VAT carry over - Apr. 20,000
Total P60,000

16. A
Input VAT carry over - 1st Q P40,000
Input VAT on April 320,000
Total creditable input VAT P360,000

17. C
June is the end of the quarter.
Hence, the carry over to June is the same
as with the carry over in 1st Q P40,000

18. D
Ouput VAT P280,000
Less: Input VAT Carry over -
PRIOR quarter 20,000
Input VAT CURRENT quarter 310,000
VAT paid during the quarter 10,000
Input VAT carry over at the
end of the quarter P60,000

19. A
Output VAT P340,000
Input VAT on regular sales 300,000
Input VAT on zero rated
(120,000 - 50,000) 70,000
Input VAT carry over at the end
of the month P30,000
Chapter 10 - VAT still due and Miscellaneous Requirements
True or False
1. False (Only flour millers are subjected to pay advanced VAT)
2. False (Sugar cane is an agricultural product in its original state, hence, no input VAT)
3. True
4. True
5. True
6. False (Only millers are subject to advanced vat, not traders)
7. True
8. True
9. True
10. False (Tax refund is only available for export sales and cessation of being a VAT taxpayer)
11. False (As said, if business retires, he can claim it as tax refund)
12. True
13. True
14. False (Advanced VAT is merely an advance payment, not an input vat)
15. False (Within 25 days)

Multiple Choice - Theory

1. A
2. C
3. D
4. A
5. A
6. C
7. C
8. D
9. D
10. C