237071263-Chapter-12-Input-Vat2013 - BUSINESS AND TRANSFER...

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BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 89SUGGESTED ANSWERSChapter 12: Input VAT Credits and RefundsCHAPTER 12INPUT VAT CREDITS AND REFUNDSProblem 1211.True 2.False should not be subjected to the same tax. 3.False VAT refund. 4.False excess of input VAT over output VAT. 5.False VAT sales invoice or VAT official receipt. 6.True 7.True for as long as the buyer is VAT-registered. 8.False importation is subject to VAT whether for business or personal use. 9.True 10.True 11.False goods for sale is not covered by the P1,000,000 threshold. The goods must depreciated/amortized as a result of use in business. 12.False only zero-rated/ effectively zero-rated sales and cancellation of VAT registration can apply for TCC issuance. 13.True 14.False the resident lessee or licensee must file the VAT return in the name of nonresident foreign entity. 15.True Problem 1221.True 2.False not creditable. 3.True 4.False TIV is granted only once when a non-VAT taxpayer shifts to VAT. 5.False PIV is intended only the primary raw materials used in the processing of sardines, mackerel, milk, refined sugar, cooking oil, packed noodles based instant meals. 6.True 7.True 8.True 9.False within 2 years. 10.True 11.True 12.True 13.True 14.False input VAT related to zero-rated or effectively zero-rated sales and input VAT of VAT-registered person cancelling to non-VAT. 15.True Problem 1231.B 2.C 3.D 4.C 5.D 6.B sugar only 7.D 8.A 9.C 10.A
BUSINESS AND TRANSFER TAXATION 6th Edition (BY: VALENCIA & ROXAS) 90SUGGESTED ANSWERSChapter 12: Input VAT Credits and RefundsProblem 12 4AZero. The business is non-VAT; hence, no input VAT is allowed.Problem 12 5AOutput VAT (P425,600/9.3333)P45,600Less: Input VAT (P448,000/9.3333)48,000Input VAT carry-overP 2,400VAT-registered buyers of non-VAT business that collects VAT is allowed to deduct input VAT.Problem 12 6DInput VAT from:VAT invoice in the name of Capoy Enterprises (P224,000/9.333)P 24,000NonVAT invoice with VAT charges (P168,000/9.333)18,000Total creditable input VATP42,000The VAT invoice in the name of Capuypoy Trading is not allowed because it does not bear the name of Capoy Enterprises.Problem 12 7BInput VAT from VAT purchased invoice (P1,792,000/9.333)P192,000Non-VAT purchase invoice (P313,600/9.333)33,600Transitional input VAT5,800Total input VAT from purchasesP231,400Less: Proportionate input VAT for sales to the government(P192,000 + P33,600) x 500/2,00056,400Input VAT balanceP175,000Add: Standard input VAT on sales to government (P560,000/9.333) x 7%35,000Total creditable input VATP210,000Problem 12 8APurchases per VAT invoice amount (P140,000/9.3333)P 15,000Payments for VAT person’s services inclusive of VAT (P1,232/9.3333)132Payment for services of VAT person, net of VAT (P917 x 12%)110Total available input VATP 15,242Problem 12 9CInput VAT from:Machine 1 inventory (P1,680,000/9.333)P180,000Amortization of input VAT from:Machines 2 and 3 [(P672,000 + P560,000)/9.333]/60 months2,200

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