CHAPTER 18-20 IDENTIFICATION 3

Question 1

Organizations providing prepaid health care services through a network of doctors and hospitals.

Answer 1

Health Maintenance Organizations (HMO)

Question 2

The total amount received for services rendered or sales made, excluding VAT.

Answer 2

Gross Receipts

Question 3

Income is considered earned and taxable when it is made available to the taxpayer, regardless of actual receipt.

Answer 3

Constructive Receipt

Question 4

Sale of services subject to 0% VAT, usually involving export services or PEZA-registered activities.

Answer 4

Zero-Rated Sales of Services

Question 5

Government agency promoting investments in economic zones with tax incentives.

Answer 5

Philippine Economic Zone Authority (PEZA)

Question 6

Bringing goods into the Philippines from abroad, subject to customs duties and VAT.

Answer 6

Importation of Goods

Question 7

The VAT paid on purchases of goods or services by a VAT-registered person.

Answer 7

Input Tax

Question 8

The VAT collected on sales or services rendered by a VAT-registered person.

Answer 8

Output Tax

Question 9

A transaction treated as a sale for VAT purposes even if no actual sale occurred (e.g., retirement of business).

Answer 9

Deemed Sale

Question 10

An account showing ongoing costs of construction not yet completed or capitalized.

Answer 10

Construction in Progress

Question 11

Input tax allowed when a person becomes VAT-registered and holds inventory or capital goods.

Answer 11

Transitional Input Tax

Question 12

A fixed rate input tax granted under certain conditions (e.g., to millers or public markets).

Answer 12

Presumptive Input Tax

Question 13

The portion of input tax that can be applied against output tax liability.

Answer 13

Creditable Input Tax

Question 14

The excess of output tax over input tax; the amount due to the BIR.

Answer 14

Value-Added Tax (VAT) Payable