CHAPTER 16 IDENTIFICATION Flashcards
(10 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
