CHAPTER 16 T/F

Question 1

Business taxes are imposed only on people who are officially registered as businesses.

Answer 1

Answer: False

Question 2

A person not engaged in business can still be liable for VAT on imported goods.

Answer 2

Answer: True

Question 3

The seller is legally responsible for paying VAT to the government, but the cost may be passed to the buyer.

Answer 3

Answer: True

Question 4

Excise taxes apply to all imported goods regardless of type.

Answer 4

Answer: False

Question 5

Value-added tax and excise tax can both apply to the same transaction, such as importation or manufacture.

Answer 5

Answer: True

Question 6

Percentage tax is only applicable if the transaction is also subject to VAT.

Answer 6

Answer: False

Question 7

The BIR allows both VAT and percentage tax to be applied simultaneously to one sale.

Answer 7

Answer: False

Question 8

VAT is considered a direct tax on the buyer.

Answer 8

Answer: False

Question 9

The act of repeatedly engaging in commercial transactions indicates a person is engaged in business.

Answer 9

Answer: True

Question 10

Value-added tax is not applicable on lease of goods and properties.

Answer 10

Answer: False