Problem 1

Mr. Doydoy imported supplies for his resort. The following data are available for 2024.

Sea Shells and Coral Decors 320,000

Tuna and Salmon 120,000
Total 440,000
How much is the taxable importation?

Problem 2

On January 16, 2024, Mr. Adre imported various personal and household effects with a value
aggregating P400,000. P320,000 of these was subjected to 8% customs duties by the Bureau of
Customs. Compute for the VAT on importation?

Problem 3

Hanape Bookstore imported the following items:

Landed Cost
Books P350,000
Professional Instruments 200,000
School Supplies 350,000
Total P900,000
Compute for the VAT on importation.

Problem 4

Mr. Silver, a vat-registered food retailer, imported the following from China:

Landed Cost
Fruits P200,000
Vegetables 300,000
Frozen Meat 800,000
Marinated Milkfish 100,000
Total P1,400,000
Compute for the VAT on importation.
Problem 5

Kino Furnitures, a percentage taxpayer, imported the following household equipment.

Landed Cost
Machineries, for business use P1,150,000
Heating system, for home use 250,000
Total P1,400,000
Compute for the VAT on importation.

Problem 6

Dew AgriCorp imported the following:

Landed Cost
Seeds P400,000
Fertilizers 750,000
Farming Equipment 450,000
Herbicides and pesticides 250,000
Total P1,850,000
Compute for the VAT on importation.

Problem 7

Mrs. Machi, self-employed, generated the following receipts during the year:

Proceeds from health insurance P400,000

Receipts from business advisory services 250,000
Receipts of rentals from boarding house 150,000
What is the total amount subject to business tax?

Problem 8

Mr. Tomas, a person engaged in business sold the following properties:

Sales of goods held for sale P200,000

Sale of personal residence 2,000,000
Sale of personal car 500,000
What is the total amount subject to business tax?
Problem 9

Mr. Dada, employed received the following from his employer:

Proceeds of property insurance P200,000

Proceeds of bank loan 300,000
Compensation income 500,000
What is the total amount subject to business tax?

Problem 10

Mr. Allan Peter, a security broker effected the sales of sale of several securities in the following
commissions:

Sales Commission
Sale of stocks P120,000 P1,200
Sale of bonds 280,000 2,800
Total P400,000 P4,000
What is the total amount subject to business tax?

Problem 11

Baban Company, a non-vat taxpayer paying 3% percentage tax, exceeded the VAT threshold on
September 2024. Baban generated P300,000 and P400,000 sales in October and November and
paid P12,000 and P28,000 input VAT in these months, respectively. Baban immediately
registered to the VAT system at the start of November 2024.

Requirements:

1. Compute for the business tax payable in October, assuming no claim for tax credit was filed.
2. Compute for the business tax payable in October, assuming Baban filed for a claim for tax refund.
3. Compute for the business tax payable in November.

Problem 12

Ms. Dayday, a seller of goods had the following detail of sales and collection during the month:

Receivables, beginning P200,000

Gross sales 400,000
Less: collection (500,000)
Receivable, end P100,000

What is the amount subject to business tax?

Problem 13

Mr. Ponpo, a farm supply dealer made the following sales during the month:

Fertilizer P45,000
Hybrid Corn and Seeds 65,000
Pesticides 120,000
Water pumps and hand tractors 240,000
Total P470,000
Compute for the sales subject to business tax?

Problem 14

Mr. Akai, a farmer sold the following goods during March:

20 sack rice P45,000

100 sack corn 90,000
Total P135,000
Determine the gross selling price subject to business tax?

Problem 15

Fredrinn Restaurant reported the following revenues and receipt in May 2025:

Rice and viands P120,000

Soft drink 10,000
Snacks 30,000
Total P160,000
Compute for the exempt sales.

Problem 16

888 Canning Company produces canned sardines but sells raw excess fish during peak fishing
seasons or preserve them by sun-drying and sell them to the local market.

The following were the sales during January 2025:

Canned sardines P850,000

Excess fresh sardines 130,000
Dried fish 40,000
Total sales P1,020,000
What is the amount of vatable sales?
Problem 17

Mr. Gusion had a small sari-sari store has annual receipts of P80,000 on the average. It had sales
of P3,000 from sales of candies and P5,000 from the sales of cigarettes. How much is the taxable
amount of sales?

Problem 18

Aurora sari-sari store registered as VAT taxpayer had the following sales:

Sales of newspaper P20,000

Sales of fish and meat 30,000
Sales of fruits and vegetables 10,000
Sales from snacks and sofdrinks 15,000
Sales from general merchandise 80,000
Total P155,000
The total vatable sales is?

Problem 19

Roger store made the following sales during the month:

Frozen Meat P30,000

Frozen Fish 20,000
Processed Food 220,000
Household appliances and furniture 250,000
Total P520,000
Determine the vatable sales.

Problem 20

Rafaela Hospital reported P20,000,000 gross receipts from patient service revenue and additional
P10,000,000 from accessory hospital services which includes P5,000,000 sales of medicine. What
is the amount subject to business tax?
Problem 21

Estes printing press had the following revenues and collections during the month:

Revenue Collection
Books P200,000 P180,000
Advertising Magazines 250,000 150,000
Election campaign material 700,000 400,000
Tarp 80,000 80,000
Total P1,230,000 P810,000
Determine the vatable amount.

Problem 22

Mr. Zilong is both employed and self-employed. He had the following income receipts 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.

Problem 23

Mr. Johnson, an insurance agent had the following receipts during the month

Commission income P90,000

Loan 120,000
Total P210,000
Determine the gross receipt to be subjected to business tax.

Problem 24

Mrs. Layla, a realty trader sold the following properties:

Residential lot and dwelling P1,200,000

Residential socialized housing 2,000,000
Commercial lot 800,000
What is the vatable sales?
Problem 25

Mr. Diggie has a pet shop. During April 2025, he made sales of P300,000 from sales of pets,
P120,000 form sales of pet feeds, and P20,000 from sale of pet toys. Mr. Diggie is also a practicing
veterinarian. He derived additional P80,000 professional fees. Compute the exempt sales.

Problem 26

Bruno, a VAT-registered taxpayer, reported P200,000 sales in the month of May. Bruno's annual
sales never exceeded ₱2,800,000. Compute Bruno's percentage tax.

Problem 27

Granger, a non-VAT-registered operator of jeepney, reported a total receipt of P200,000 during a

month, including P20,000 rentals for cargo transport. Compute for the common carriers tax.

Problem 28

Mr. Terizla owns and operates a taxi unit. He also teaches as an accounting professor in the
University of Bukidnon and renders taxation advisory services to various clients. Mr. Terizla is
registered as a VAT-taxpayer. In March 2015, He had the following receipts:

Compensation income - teaching 200,000

Receipts from taxi 50,000
Receipts from professional practice 350,000
Compute the percentage tax payable of Mr. Terizla for March 2025.

Problem 29

Ms. Lesley is an operator of a fleet of 10 taxis operated under the "boundary system". A total of
P150,000 "boundary" payments from chauffeurs were received in July 2025. A total of P20,000 is
still receivable from chauffeurs for family advances. The percentage tax for the month is?

Problem 30

Mr. Franco, a VAT-registered individual, owns a cargo truck for rent. During the month, it
generated a total receipt of P40,000 from various clients. The percentage tax is?
Problem 31

Kadita Ferry Boats transport passengers and cargoes between the Philippine islands of Palau and
Sta. Ana. It earned a total of ₱120,000 on March 2025 excluding ₱10,000 freight for earned cargoes.

What is the percentage tax of Kadita Ferry Boat if registered as a non-VAT taxpayer and a VAT-
taxpayer, respectively?

Problem 32

Juan Dela Cruz, non-VAT registered lessor of residential and commercial units, had the following
date for the 1st and 2nd quarters of 2021:

Gross Receipts
1st Quarter 2nd Quarter
Lease of Residential Units
• Monthly rental of P13,000/unit P2,500,000 P2,300,000
• Monthly rental of P18,000/unit 1,000,000 1,200,000
Lease of commercial units 2,300,000 2,400,000
Input vat from vat suppliers 150,000 120,000

Requirements:

1. How much is the business tax due for the 1st quarter of Mr. Dela Cruz?
2. How much is the business tax due for the 2nd quarter of Mr. Dela Cruz?
3. How much is the business tax due for the 2nd quarter of Mr. Dela Cruz assuming he registered as
a VAT taxpayer at the start of 2nd quarter?
4. Assuming Mr. Dela Cruz is vat registered taxpayer instead of non-vat registered, how much is his
business tax due for the 1st quarter?

Problem 33

In 2022, Cliford purchased a condominium unit from his friend, Ronald (condo unit owner), for
P3,000,000 and a parking lot from the subdivision developer for P800,000. The correct amount of
vat is:

Problem 34

In 2021, Clifford purchased a condominium unit from Central Realty Corporation P2,500,000
including a parking space for P800,000. The correct amount of vat is:
Problem 35

On January 5, 2021, Pinoy Food Corporation, vat registered, sold on account goods for P112,000
inclusive of vat. The term was: 2/10, n/30. Payment was made on January 10, 2021. The total
amount due is:

Problem 36

Mr. Andres, VAT-registered real estate dealer, transferred a parcel of land held for sale to Camella
Realty Corporation sold the following real properties during 2021 the taxable year:

3 units of residential house and lot at P2,500,000 each P7,500,000

8 residential lots at P1,000,000 each 8,000,000
1 commercial lot at P3,000,000 3,000,000

How much is the total transactions subject to VAT?

Problem 37

ABC Corporation (vat reg.,) has the following data for the month of March:

Gross Sales (vat exclusive) P8,000,000

Sales Returns 400,000

Goods shipped on consignment (net)

Units Unit Price

March 25 40 P10,000
February 14 30 10,000
January 8 20 10,000

Goods withdrawn for use by the company P50,000

Goods taken as payment to creditor 30,000
Purchases for the month of (net of vat):
Goods P600,000
Supplies 75,000
Capital goods (Life:4 yrs.) 1,100,000
Freight and insurance 8,500
Salaries of employees 385,000

Additional information:

• Received cash representing payment for ten (10) units delivered on February 14. The
amount received was net of ten percent (10%) commission.
 • A consignee reported and remitted P200,000 (gross of 10% commission) representing 20
units sold from goods consigned in March.

Compute for the VAT payable for the month of March.

Problem 38

The following are the data of Davao International for the last quarter of 2020:

Sales up to Dec. 15 (invoice value) P380,800

Purchases up to Dec. 15 (net) 150,000

Additional information:

On December 16, 2020, the Company retired from its business and the inventory valued at
P190,000 remained unsold. There is a deferred input tax from the third quarter of P3,500.

How much is the total value-added taxes payable of Davao International?

Problem 39

Genson Distribution Inc., a vat taxpayer, had the following data in a month:

Cash sales P200,000

Open account sales 500,000
Consignment:
0 to 30 days old (on which there were remittances from consignees of P200,000) 600,000
31 to 60 days old 700,000
61 days old and above 900,000

How much is the output tax?

Problem 40

Ana, a vat registered lessor of commercial spaces received P1,337,500 rentals during 2021 from
various clients, net of the 5% creditable withholding tax on rental income. How much is the
correct output vat?

Problem 41

Assume that in the preceding number, Ana is a non-vat registered lessor, how much is her correct
business tax?
Problem 42

Pacman imported brand new luxury car from the USA for personal use of Jinkee. Total landed
costs were P15,000,000 exclusive of customs duties of P3,000,000, excise tax of P2,000,000, and
facilitation cost of P1,000,000. The VAT payable should be:

Problem 43

World Power Corp. imported an article from Japan. The invoice value of the imported articles
was $7,000 ($1-P50); however, customs officials valued the imported article for P500,000. The
following additional costs were incurred in connection with the importation:

Insurance P15,000
Freight 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
likewise spent P50,000 for trucking fee from the customs warehouse to its warehouse in Quezon
City. The carrier is a vat-registered entity.

Requirement:

1. Compute for the VAT on importation.

2. Based on your answer in number 1. If the imported article was sold for P800,000 (exclusive of
VAT), the VAT payable is?
3. Assume the BOC did not provide the valuation for the imported article, the VAT on importation
is?
4. Based on your answer in number 3. If the imported article was sold for P800,000 (exclusive of
VAT), the VAT payable is?

Problem 44

Taxpayer is a VAT registered person. Importation were for: (amounts are vat exclusive)

For Sale For Own Use

Invoice cost (exchange rate is $1:P45) $100,000 $5,000
Expenses based on cost:
Freight and insurance 6% 6%
Other expenses up to the point of removal from customs house 4% 4%
Transfer expense from customs house to warehouse in Makati, net of VAT 2% 2%

Selling price of goods imported for sale was P8,000,000.

Requirements:

1. Compute for the VAT payable on importation.

2. Compute for the VAT payable on sale.

Problem 45

Mantika Corp., a VAT-registered Corp., is a producer of cooking oil from coconut and corn. It
had the following data for the month of January 2021:

Sales, gross of VAT P784,000

Corn and Coconut, Dec. 31,2020 50,000
Purchases of Corn and Coconut on January 2021 330,000
Corn and Coconut, Jan., 31, 2021 20,000
Purchases from VAT suppliers, vat inclusive:
Packaging Materials 56,000
Supplies 16,800

Compute for the VAT payable for January 2021.

Problem 46

An owner of warehouse, which used to be vat exempt, because its annual receipts never exceeded
P3,000,000, decided to register under the vat system on January 2, 2021. The following data were
from the 1st quarter ending March 31, 2021:

Rental from warehousing services, net of vat P336,000

Purchases of supplies in February, gross of vat 112,000
Inventory of supplies, January 1, 2021 100,000
Vat on inventory of supplies, January 1, 2021 10,000

How much was the vat payable for the quarter ending March 2021?

Problem 47

A taxpayer registered under the VAT system on January 1, 2021. His records during the month
show:

Value of inventory as of December 31, 2020 purchased from VAT-registered persons P112,000
VAT. paid on inventory as of December 31, 2020 12,000
Value of inventory as of December 31, 2020 purchased, from non-VAT persons 518,000
Sales, net of VAT 281,000
Purchases during the month, net of VAT 70,000
Purchases during the month of vat exempt goods 50,000
The VAT payable should be:
Problem 48

Gallaxy Corporation, a manufacturer, had the following data for the first month of 2021:

(First year as a VAT Taxpayer)

Sales:
Export sale P2,000,000
Domestic sales (net) 1,000,000
Purchases:
Raw materials 300,000
Services 100,000
Machinery (useful life is 2 years) 400,000

On January 1, 2021, the company had inventories and taxes paid thereon as follows:

Cost Vat Paid

Raw materials P120,000 P2,000
Supplies 40,000 4,000

During the month, additional raw materials were purchased from another enterprise with a total
invoice value of P61,600, not included above. The VAT payable of Gallaxy is.:

Problem 49

Olive is a producer of cooking oil from coconut and corn. Previously exempt from value added
tax, he became subject to value added tax on January 1, 2020. For January 2020, sales, vat not
included, amounted to P700,000. Olive had the following other data,inclusive of vat if applicable,
for the month of January:

Cost
Inventory, January 1, 2020:
Packaging materials purchased from vat suppliers 22,400
Supplies purchased from vat suppliers 11,200
Purchases during the month:
Purchases during the month from coconut and corn farmers 330,000
Purchases during the month from vat suppliers:
Packaging materials P56,000
Supplies 16,800

Requirements:

1. Compute for the transitional input tax

2. Compute for the presumptive input tax
3. Compute for the total creditable input taxes
4. Compute for the VAT payable
Problem 50

A VAT-registered trader has the following transactions during 2021:

Sale of goods to private entities, net of VAT P2,500,000

Purchases of goods sold to private entities, gross of 12% VAT 896,000
Sale to a government owned corporation (GOCC), net of VAT 1,000,000
Purchases of goods sold to GOCC, net of 12% VAT 700,000

Requirements:

1. How much is the output tax?

2. How much is the standard input tax?
3. How much is the creditable input vat?
4. How much the VAT payable to the BIR?