16 Flashcards
(20 cards)
A tax on consumption levied on the sale, barter, exchange or lease of goods, properties, and services in the Philippines.
Answer: Value-added tax (VAT)
The kind of business tax imposed on persons or entities not subject to VAT, usually based on gross sales or receipts.
Answer: Percentage tax
A business tax imposed on the production, manufacture, sale, or importation of certain goods such as alcohol, tobacco, and petroleum.
Answer: Excise tax
The person liable to pay VAT in case of importation of goods into the Philippines.
Answer: Importer
This type of transaction is subject to business tax due to its nature as an onerous transfer.
Answer: Sale, barter, or exchange
The government agency primarily responsible for collecting internal revenue taxes in the Philippines.
Answer: Bureau of Internal Revenue (BIR)
A mistaken belief about VAT is that the seller is merely an ___________ of the BIR in collecting the tax from the buyer.
Answer: Agent
The concept that VAT can be shifted or passed on to the buyer.
Answer: Tax shifting
Under the Tax Code, engaging in this kind of activity habitually and for profit classifies one as doing business.
Answer: Commercial activity
This regulation clarifies the VAT liability of importers and sellers in the Philippines.
Answer: Revenue Regulations 16-2005
True or False
Business taxes are imposed only on people who are officially registered as businesses.
False
True or False
A person not engaged in business can still be liable for VAT on imported goods.
True
True or False
The seller is legally responsible for paying VAT to the government, but the cost may be passed to the buyer.
True
True or False
Excise taxes apply to all imported goods regardless of type.
False
True or False
Value-added tax and excise tax can both apply to the same transaction, such as importation or manufacture.
True
True or False
Percentage tax is only applicable if the transaction is also subject to VAT.
False
True or False
The BIR allows both VAT and percentage tax to be applied simultaneously to one sale.
False
True or False
VAT is considered a direct tax on the buyer.
False
True or False
The act of repeatedly engaging in commercial transactions indicates a person is engaged in business.
True
True or False
Value-added tax is not applicable on lease of goods and properties.
False
