Question: 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

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?

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