In January 2020, Magtanggol Corporation, a vat-seller, purchased Furniture and Fixtures for a total price of P2,240,000 from Mabait, a vat-supplier. It paid P560,000 in the month of January 2020 and the balance, yearly, thereafter. The Furniture and Fixtures have an estimated useful life of five (5) years.

1. How much input tax shall be recognized by Magtanggol Corporation in January 2020? ans: 60,000

2. Using the same information, how much vat credit can be used by Magtanggol Corporation from the transaction for the month of January 2020? ans: 1,000

3. Assuming the purchase was done on January 2022, how much input tax shall be recognized by Magtanggol Corporation? ans: 60,000

4. Assuming the purchase was done on January 2022, how much vat credit can be used from the transaction for the month of January 2022?

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VAT Calculations for Magtanggol Corporation Scenario 1 Purchase in January 2020 Input Tax ... View the full answer