CHAPTER 17 T/F 2

Question 1

A business with gross sales not exceeding P100,000 in a 12-month period is not considered in the course of business.

Answer 1

(True)

Question 2

Services rendered in the Philippines by a non-resident foreign person are always VAT-exempt.

Answer 2

(False)

Question 3

VAT on sales of goods is calculated based on the net selling price.

Answer 3

(False)

Question 4

The TRAIN Law removed the term “deemed sale” from the VAT provisions.

Answer 4

(True)

Question 5

The standard VAT rate in the Philippines is 10%.

Answer 5

(False)

Question 6

The VAT on taxable sales is paid by the buyer of goods or services.

Answer 6

(False)

Question 7

Export sales by VAT-registered persons are subject to zero-rated VAT.

Answer 7

(True)

Question 8

Before the TRAIN Law, foreign currency denominated sales were subject to zero-rated VAT.

Answer 8

(True)

Question 9

VAT zero-rating on local purchases requires a certification from the concerned Investment Promotion Agency (IPA).

Answer 9

(True)

Question 10

a Bonafide transfer of property in the ordinary course of business is considered as made for an adequate and full consideration in money or money’s worth.

Answer 10

True