Mr M, a taxpayer started operating a grocery store during 2018. He submits the following data:

Merchandise Inventory                         P 469,000

Gross sales                                          2,814,000

Purchases from VAT registered entities (net) 1,563,000

Purchases from non-VAT registered entities   312,000

Determine the following:

1. What is the applicable business tax for the taxpayer? vat on sale of goods
2. How much is the correct business tax due?
3. Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year?
4. Assume the taxpayer is VAT registered, how much is the VAT payable for the year?

Answer rating: 100% (QA)

Solution a The applicable business tax for the taxpayer is Value Added Tax VAT b The correct busines... View the full answer