The regulations provide that a vat invoice or a vat

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South-Western Federal Taxation 2020: Comprehensive
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Chapter 6 / Exercise 13
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
15.The regulations provide that a VAT invoice or a VAT official receipt must contain the following information for it to be valid, except:a.Statement that the Seller is a VAT-registered person followed by his TINb.Statement that the Buyer is a VAT-registered person followed by his TINc.Name of the Buyerd.Business Style of Buyer
II.True or False: Write True if the statement is correct and False, if otherwise. (15 pts)1.One of the conditions for sales returns and allowances to be deducted from the gross selling price is that there must be a proper credit or refund during the month or quarter when the sale was previously made. 2.Consigned goods not sold within thirty (30) days after consignment is a deemed sale transaction. 3.In sale of real property, VAT is deemed included in the contract price of the real property when such price is higher than the zonal value or fair market value provided by the Provincial or City Assessor. 4.Transfer of assets as a result of merger or consolidation is considered as a deemed sale transaction. 5.The final withholding VAT of 5% on sales to the government is considered as an advance on the 12% output taxto be remitted to the government. 6.A VAT Acknowledgment Receipt is not a source of input vat. 7.Input vat from all sources are allowed for input VAT refund or issuance of TCC, provided that they are applied within two years after the close of the taxable quarter when the sales were made. 8.Input vat related to VAT-exempt sales of a VAT registered taxpayer is not a creditable VAT. 9.Excise tax on imported goods is included in the VAT base for purposes of determining 12% input VAT on importation.10.Input tax credit related to construction in progress is recognized in full if initial payment exceeds 25% on the contract price.11.All importations are subject to the 12% VAT, but not all input VAT paid on importations are creditable against output VAT.12.A VAT-registered person whose sales are subject to 12% VAT cannot apply its excess input tax credit for cash refund even in the case of cessation of business.13.Input VAT not duly substantiated with VAT invoice or VAT official receipt cannot be claimed as input VAT credit. However, the same can be considered as a deductible expense for income tax purposes.14.If the actual input VAT attributable to sale to government is more than 7% of gross payments, the excess may form part of the seller’s income.15.If a VAT-registered person paid VAT to a non-VAT seller, the VAT paid by the purchaser shall be recognized as an input tax credit provided that the requisite information regarding the payment of VAT is shown in on the invoice or receipt.2
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South-Western Federal Taxation 2020: Comprehensive
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Chapter 6 / Exercise 13
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
Expert Verified
PROBLEMSRead the problem in its entirety. Answer the requirements stated by showing all necessary computations.

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