Chapter 2- Tbt

Multiple Choice – Problems 1 1.

Oceanizers, Inc. Purchased the following from abroad: Sea shells and coral decors Tuna and salmon Total

₱ ₱

320,000 120,000 440,000

What is amount of taxable importation? a. ₱0 c. ₱200,000 b. ₱120,000 d. ₱320,000 2.

Mr. A imported various personal and household effects with a value aggregating ₱400,000. ₱320,000 of these was subjected to a 8% customs duty by the BOC What is the VAT on importation?. a. ₱ 0 c. ₱42,240 b. ₱ 41,472 d. ₱48,000

3.

A bookstore company imported the following items:

Books Professional instruments School supplies Total

Landed cost ₱ 350,000 200,000 350,000 ₱ 900,000

What is the total VAT on importation? a. ₱ 0 c. ₱72,000 b. ₱ 60,000 d. ₱100,000 4.

Mr. C a VAT-registered food retailer, imported the following from China:

Fruits Vegetables Frozen meat Marinated milkfish Total Compute the Vat on importation a. ₱ 0 c. ₱ 51,600 b. ₱ 12,000 d. ₱ 69,600

Landed cost ₱ 250,000 180,000 50,000 100,000 ₱ 580,000

5.

Alexis Furnitures a percentage taxpayer, imported the following household equipment: Landed cost Machineries, for business use ₱ 1,150,000 Heating system, for home use 250,000 Total ₱ 1,400,000 Compute the VAT on importation. a. ₱ 0 c. ₱ 150,000 b. ₱ 27,000 d. ₱ 168,000

6.

Danes AgriCorp imported the following:

Seeds Fertilizers Farming equipment Herbicides and pesticides Total

Landed cost ₱ 400,000 750,000 450,000 250,000 ₱ 1,850,000

Compute the VAT on importation. a. ₱ 0 c. ₱ 72,000 b. ₱ 42,000 d. ₱ 84,000 7.

Home Appliance Company imported the following for personal use: Furniture Rattan Lumber

₱

600,000 250,000 450,000

Compute the VAT on importation. a. ₱ 30,000 c. ₱ 156,000 b. ₱ 72,000 d. ₱ 204,000 8.

Mr. Huligan imported rice from Vietnam. Details of his importation show the following: Total invoice value Freight and insurance in transit BOC and other charges Compute the VAT on importation.

₱ 1,000,000 50,000 20,000

a. b. 9.

₱0 ₱ 120,000

c. ₱ 126,000 d. ₱ 128,400

An agricultural supply dealer imported the following: Corn grits Hog feeds Specialty feeds

₱ 200,000 350,000 300,000

Compute the VAT on importation. a. ₱ 0 c. ₱ 42,000 b. ₱ 36,000 d. ₱ 102,000 10.

The following data relates to the importation to the importation of cigarettes by Mr. Shinto: Total invoice value BOC charges Customs duties Excise taxes

₱ 1,000,000 300,000 200,000 300,000

Compute the VAT on importation. a. ₱ 120,000 c. ₱ 180,000 b. ₱ 156,000 d. ₱ 216,000 Multiple Choice-Problems 2 1.

Don Pepito imported a harvester from the United States with a total cost of ₱ 1,100,000 before Customs duties. The importation is subject to 10% Customs duties. What is the VAT on importation? a. ₱ 158,400 c. ₱ 129,600 b. ₱ 145,200 d. ₱ 0

2.

In the immediately preceding problem, assuming that the importation is made by an agricultural cooperative. What is the VAT on importation? a. ₱ 158,400 c. ₱ 129,600 b. ₱ 144,000 d. ₱ 0

3.

Mr. Smile a professional practitioner imported the following: Calculators and computers for his firm Books Total

₱

900,000 600,000 1,500,000

How much is a subject to VAT on importation? a. ₱ 0 c. ₱ 1,200,000 b. ₱ 900,000 d. ₱ 1,500,000 4.

Mr. Juan Manuel Marquez arrives in the Philippines with an immigration visa. He had with him the following: Clothing, shoes and apparels Professional instruments and implements Personal car Total costs of personal belongings

₱ ₱

100,000 150,000 300,000 550,000

Compute the total amount subject to the VAT on importation? a. ₱ 0 c. ₱ 300,000 b. ₱ 200,000 d. ₱ 550,000 5.

Mr. Xhi, a non-VAT taxpayer, made the following domestic Purchases of goods: Purchase of scrap metals from PEZA- locator Purchase of machine from a VAT supplier

₱

200,000 800,000

What is the impossible VAT on importation? a. ₱ 0 c. ₱ 96,000 b. ₱ 24,000 d. ₱ 120,000 6.

Atlantis Shipping Company imported ₱ 3,000,000 worth of vessel fuels and supplies for domestic use. The company earmarked 60% of this for domestic use while 40% is reserved for its international operations. What is the VAT on importation? a. ₱ 0 c. ₱ 216,000 b. ₱ 144,000 d. ₱ 360,000

7.

Mr. Beer, a VAT-registered trader, imported an equipment with a dutiable value of $40,000 from abroad. The importation is subject to ₱ 100,000 BOC charges before 10% customs duties on dutiable value. The exchange rate to the Peso was ₱43.00:$1. Compute the VAT on importation? a. ₱ 218,400 c. ₱ 232,400 b. ₱ 227,040 d. ₱ 239,040

8.

If an importer paid 15% custom duties in the amount of ₱24,000 plus ₱134,000 charges in the Bureau of Customs, what is the VAT on importation? a. ₱ 0 c. ₱ 35,280 b. ₱ 18,960 d. ₱ 38,160

9.

Shanum Company had the following data regarding its importation: Invoice price in US Dollars $ 12,000 Other costs to bring goods to the Philippines ₱ 145,000 BOC charges 100,000 Customs duties is 10% of dutiable value Peso-Dollar Exchange rate ₱ 42.80: $1 Compute the VAT on importation? a. ₱ 0 c. ₱ 91,032.00 b. ₱ 81,643.20 d. ₱ 98,935.20

10.

Mr. Dolinger imported various merchandise from abroad. The importation was invoiced at $5,000. Mr. Dolinger also incurred the following costs of of importation: Insurance Freight Wharfage fee Arrastre charge Brokerage fee Facilitation fee

₱ 4,000 15,000 4,000 7,000 8,000 5,000

Mr. Dolinger was also assessed ₱ 24,000 and ₱ 18,000 customs duties and excise tax, respectively. The applicable exchange rate was ₱42.50:$1 What is the VAT on importation? a. ₱ 25,500 c. ₱ 35,100 b. ₱ 30,540 d. ₱ 35,700