Theory

• MP Promotions and Mayweather Corporation are not subject to VAT
• A lessor of residential units is exempt from VAT when:

  • Annual gross receipts do not exceed P3,000
  • Monthly rental per unit does not exceed P15,000
• A lessor of commercial units is exempt from VAT when:

  • Annual gross receipts do not exceed P3,000
  • Monthly rental per unit does not exceed P15,000
• Sale of olive oil is subject to VAT
• Refined brown sugar is not in its original state
• Fighting cock is not considered a poultry for VAT purposes
• Race horse is not considered livestock for VAT purposes
• JJ, who sold ripe mangoes to Paul, is subject to VAT
• Sale of paintings is subject to VAT
• Services arising from employee-employer relationship are exempt from VAT
• Franchise grantees of radio broadcasting with gross receipts of P9,000 are not subject to VAT
• Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes
• Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad are not subject to VAT
• Value-added tax is not included in gross selling price
• Villamin Grill's VAT payable due for the third quarter is P265
• Export sale of a person who is VAT registered is a zero-rated sale under the TRAIN Law
• Prepaid rental in a lease contract is subject to output VAT
• Sale of commercial property by a real estate dealer for P1,500 is subject to VAT
• Sale of residential house and lot, private car, and commercial property by a real estate dealer are subject to VAT
• Purchase of a condominium unit by Pedro from Maxima Realty Corporation is subject to VAT
• Purchase of a condominium unit including a parking space by Pedro from Maxima Realty Corporation is subject to VAT
• Goods brought into the Philippines in the course of trade or business by a VAT registered person are subject to VAT
• Export sale of a person who is VAT registered is not zero-rated under the TRAIN Law
• Goods brought into the Philippines in the course of trade and business by a VAT registered person are subject to VAT
• Which of the following shall not be subject to VAT?

  • MP Promotions, VAT registered, but gross sales for the year do not exceed P3,000
  • Mayweather Corporation, a foreign licensor or nonresident lessor who is not VAT registered
  • Mailag Company, a domestic corporation, required to register under VAT system but failed to register
• A lessor of residential units shall be exempt from VAT when:

  • Annual gross receipts do not exceed P3,000
  • Monthly rental per unit does not exceed P15
• A lessor of commercial units shall be exempt from VAT when:

  • Annual gross receipts do not exceed P3,000
  • Monthly rental per unit does not exceed P15
• Which of the following is subject to VAT?

  • Sale of olive oil
• One of the following goods is not in its original state:

  • Refined brown sugar
• One of the following is not a poultry for VAT purposes:

  • Fighting cock
• One of the following is not a livestock for VAT purposes:

  • Race horse
• JJ owns a mango plantation. He sold his ripe mangoes to Paul, a fresh fruit vendor. Paul sold the ripe mangoes he bought from JJ to Francis. Who shall be subject to VAT?

  • JJ
• The sale of flowers by Leo to Raymund shall be:

  • None of the above
• Which of the following transactions is exempt from VAT?

  • Services arising from employee-employer relationship
• Which of the following is not subject to VAT?

  • Franchise grantees of radio broadcasting whose gross receipt for the preceding year was P9,000
• One of the following is not subject to VAT on importation:

  • Goods exempt from customs duties classified as personal and household effects belonging to residents of the Philippines returning from abroad
• Gross selling price includes all of the following, except:

  • Value-added tax
• The VAT payable due for the third quarter is:

  • P265
• One of the following is a zero-rated sale under the TRAIN Law:

  • Sale of nonfood agricultural products
• Under the TRAIN law, which of the following sales is not be zero-rated?

  • Foreign currency denominated sales