MULTIPLE CHOICE QUESTIONS: For each question, choose the correct answer and

circle the letter of your answer

1. The value-added tax has the following characteristics, except.

a. It is an indirect tax where tax shifting is always presumed.

b. It is consumption-based.

c. It is imposed on the value-added in each stage of distribution.

d. It is a cascading tax.

2. Who are liable for the payment of Value-Added Tax?

a. Sellers of goods and properties in the course of trade or business.

b. Sellers of services in the course of trade or business, including lessors of goods and properties.

c. Importers of taxable goods, whether in the course of business or not.

d. Exporters of taxable goods, whether in the course of business or not.

3. The public market vendor below, who is not a VAT-registered person is liable to VAT in
2018, if:

a. She sells raw chicken and meats and her gross sales during the year is P3 Million;

b. She sells vegetables and a fruit in her stall and her gross sales during the year is P3 Million.

c. She sells canned goods, processed coconut oils, and iodized salt in her stall and her gross
sales during the year is P3.1 Million.

d. She sells live fish, shrimps, and crabs and her gross sale during the year is P5 Million.

4. Which transaction below is subject to VAT?

a. Sale of vegetables by a farmer in Naga City to a vegetable dealer

b. Sale of vegetables by a vegetable dealer in Naga City to another vegetable dealer in Legazpi
City

c. Sale of vegetables by the Naga vegetable dealer to a restaurant in Legazpi

d. Sale of vegetables by the restaurant operator to its customers.

5. Which importation is subject to VAT?

a. Importation of fuels by a person engaged in international shipping worth P20 Million.

b. Importation of raw, unprocessed, refrigerated jerky beef from Japan by a beef dealer for sale
to hotels in Naga City with a fair market value of P10 Million

c. Importation of wines by a wine dealer with a fair market value of P2 million for sale to hotels
in Naga City.

d. Importation of books P1.2 million.

6. Which of the following transactions is exempt from value-added-tax?

a. Medical services such as dental and veterinary services rendered by professionals.

b. Legal services.

c. Services arising from employee-employer relationship.

d. Services rendered by domestic air transport companies.

7. Which of the following transactions is subject to zero-rated value-added-tax?

a. Services rendered to persons engaged in international shipping or air transport operations.

b. Services rendered by persons engaged in milling.

c. Services rendered by proprietors or operators of restaurant.

d. Services rendered by professionals Lawyers.

9. 12% VAT on sale or exchange of services, of all kinds of services in the Philippines for others
for a fee, remuneration or consideration, whether in kind or in cash, including those performed or
rendered by the following, except.

a. Construction and service contractors;

b. Stock, real estate, commercial, customs and immigration brokers;

c. Lessors of property, whether personal or real.

d. Transport of passengers by international carriers.

10. The term export sales means;

a. The sale and actual shipment of goods from the Philippines to a foreign country.
b. Sale of raw materials or packaging materials by a VAT-registered entity to a Non-resident
buyer. For delivery to a resident local export-oriented enterprise.

c. The sale of goods, supplies, equipment and fuel to persons engaged in domestic shipping or air
transport operations.

d. Sale of gold to BSP