Test I. On the blank before each number, write True if the statement is correct: otherwise, write False 1. To engage in business means to begin and carry on a business, but a single act cannot be considered a transaction in business 2. Value-added tax is percentage tax imposed at every stage of the distribution process on the salo excluding importation of goods 3. There is only one VAT rate on sales or services which is 12% 4. A VAT-registered person is entitled to credit input taxes against the output tax payable 5. Retirement from or cessation of business or death of an individual with respect to all goods on hand is deemed sale 6. Salos discounts of sales returns and allowances are not alowable deductions from gross selling price in computing VAT 7 VAT does not apply to exempt importations to goods to be used by the importer himself in the manufacture of petroleum products. 8. Sale or importation of fertizem, peticides and herbicides is subject to VAT Where the input tax exceeds the output to the excess cannot be considered for tax credit 10. At present, VAT is payable monthly and no longer quarterly 11. Small business enterprises are those whose annual gross sales or receipts do not exceed P 1,500,000 12 Owners of bancas or animal-drawn two-wheeled vehicles are not exempt from 3% percentage tax. 13. Locally manufactured articles which are actually exponed in the original state in exempt from excise taxe 14. Locally manufactured cigarettes bearing a foreign brand or local brand are subject to the same rate of ad valorem tak 15. Cinematographic fins are not subject to ad valorem tax