Mr. John a taxpayer, was not subject to the value-added tax (VAT) prior to the year The
Question:
Mr. John a taxpayer, was not subject to the value-added tax ("VAT") prior to the year The following are the data he has on his sales, purchases, and inventory.
Sales in 2019:
Php3,120,000.00
Sales in January 2020
Php120,000.00
Inventory, VAT of Php600 included, beginning 01/2020:
Php5,000.00
Purchases, January 2020
Php40,000.00
Input taxes on the purchases of January, 2020.
Php4,800.00
1.How much is the transitional input tax of Mr. John, if any?
2.How much is the value-added tax payable in January 2020, if any?
3.What is the journal entry on the recognition of the transitional input tax?
4.Compute for the VAT Payable of Mr. John based on the following information:
Sales, VAT business
Php600,000.00
Sales, Non-VAT business
Php300,000.00
Purchases of goods to be sold, VAT business
Php200,000.00
Purchases of goods to be sold, non-VAT business
Php100,000.00
Purchases of supplies for VAT and non-VAT businesses
Php30,000
5.Compute for the VAT Payable (if any) of Mr. John relative to his importation for
the month of January 2020, based on the following information:
Invoice cost
Php4,500,000.00
Freight cost
Php400,000.00
Marine insurance
Php100,000.00
Legitimate expenses on the importation prior to removal
from the customs custody
Php500,000.00
6.Compute for the VAT payable of Cebu Pacific, Inc. - a VAT registered common
carrier based on the following information:
Revenue from Domestic carriage of passengers
Php20,000,000.00
Revenue from Domestic carriage of cargoes
Php30,000,000.00
Revenue from International
carriage of passengers & cargoes:
Php50,000,000.00
Input tax from all purchases:
Php5,000,000.00
7.Leslie Burgers Inc. - a non-VAT corporation engaged in buying and selling of
burgers. After one year of operation, the corporation decided to register under
the VAT system. The records of the corporation revealed the following:
Beginning Inventory:
Php250,000.00
Input Tax on the Inventory:
Php4,000.00
How much is the transitional input tax that Leslie Burgers, Inc. can avail of?
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse