CHAPTER 17 MC AND T/F 1

Question 1

Which is not a major business internal revenue tax?
a. percentage tax
b. excise tax
c. donor’s tax
d. value-added tax

Answer 1

c. donor’s tax

Question 2

Who is not engaged in business?
a. a trader
b. a seller of his residential house
c. a person employed by a corporation
d. a partner in a professional partnership

Answer 2

b. a seller of his residential house

Question 3

Which is not an onerous transfer?
a. barter
b. exchange
c. succession
d. sale

Answer 3

c. succession

Question 4

Which of the following sale of goods or property is not subject to VAT?
a. Real property held as capital asset.
b. Real property held primarily for sale to customers.
c. Right to use in the Philippines of any industrial equipment.
d. Right to use in the Philippines of any scientific equipment.

Answer 4

a. Real property held as capital asset.

Question 5

Of the following sales by a VAT-registered person, which is not a zero-rated sale?
A. Sale of consigned goods within 60 days
B. Export sales
C. Foreign currency denominated sale
d. Sales as provided under special law or international agreement to which the Philippines is a signatory

Answer 5

A. Sale of consigned goods within 60 days

Question 6

TRUE OR FALSE

Value-added tax (VAT) is a direct tax imposed on consumers.

Answer 6

(False)

Question 7

TRUE OR FALSE

VAT is applicable to the value added at each stage of distribution.

Answer 7

(True)

Question 8

TRUE OR FALSE

VAT is an indirect tax that can be passed on to the buyer.

Answer 8

(True)

Question 9

TRUE OR FALSE

As per Republic Act 9337, the VAT threshold is currently set at P1,500,000.

Answer 9

(False)

Question 10

TRUE OR FALSE

Any person who imports goods is subject to VAT.

Answer 10

(True)

Question 11

TRUE OR FALSE

Transactions by non-stock, non-profit organizations are always exempt from VAT.

Answer 11

(False)