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Problem Set 1 - Consumption and Business Tax

The document outlines a problem set focused on consumption and business taxes, including various scenarios for calculating tax liabilities for different types of taxpayers. It includes problems related to consumption tax, value-added tax, importation, casual sales, and business tax reporting. Each problem provides specific financial figures and asks for computations based on taxpayer registration status.

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31 views3 pages

Problem Set 1 - Consumption and Business Tax

The document outlines a problem set focused on consumption and business taxes, including various scenarios for calculating tax liabilities for different types of taxpayers. It includes problems related to consumption tax, value-added tax, importation, casual sales, and business tax reporting. Each problem provides specific financial figures and asks for computations based on taxpayer registration status.

Uploaded by

lola.rain.cassey.s
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CT PT VAT EsT DT DST ExT

PROBLEM SET NO. 1


Consumption and Business Tax
BABUSTAX
Business and Transfer Taxation

Problem 1.1 CONSUMPTION TAX


A taxpayer had the following purchases and receipts:
Import of goods and services 190,000
Domestic purchase of goods or services 100,000
Domestic sales of goods or services 150,000
Export sales of goods or services 50,000
Compute the amount the taxpayer is liable to consumption tax should it be:
a. Engaged in business
b. Not engaged in business

Problem 1.2 BASIC PROBLEM FOR VALUE-ADDED TAX


A taxpayer engaged in business recorded the following sales and purchases during the month:
Sales 300,000
Purchases 200,000
All amounts above are exclusive of any VAT.
Compute the business tax payable should it be registered as:
a. VAT taxpayer
b. Non-VAT taxpayer

Problem 1.3 DOMESTIC AND FOREIGN CONSUMPTION


A taxpayer engaged in business recorded the following sales and purchases during the month:
Philippines Abroad Total
Sales 350,000 200,000 550,000
Purchases 150,000 100,000 250,000
Value-Added 200,000 100,000 300,000
Compute the business tax payable and VAT on importation should it be registered as:
a. VAT taxpayer
b. Non-VAT taxpayer

Problem 1.4 PERCENTAGE TAX – INVOICING


A person engaged in business is subject to 3% percentage tax.
Scenario 1 He has inventories of goods in possession costing P77,600 which he intends
to sell to earn a markup of 25% of cost net of the 3% business tax.
Scenario 2 He wants to make a P10,000 profit from the sale of an inventory costing
P30,000.
Compute the invoice price for both scenarios.

page 1
CT PT VAT EsT DT DST ExT

PROBLEM SET NO. 1


Consumption and Business Tax
BABUSTAX
Business and Transfer Taxation

Problem 1.5 BASIC ON IMPORTATION


A taxpayer imported P300,000 equipment for business use and a P1,200,000 car for personal use.
Compute the amount subject to VAT on importation.

Problem 1.6 CASUAL SALE


A person who is not regularly engaged in trade or business made a casual sale of a property for P100,000.
What will be the invoice price of the sale?

Problem 1.7 COMPREHENSIVE


A business taxpayer purchased goods worth P120,000 from non-residents and sold goods worth P140,000 for
P180,000.
1. Compute the “value-added” for VAT purposes.
2. Compute the business tax payable should the taxpayer be:
a. VAT-registered
b. non-VAT-registered

Problem 1.8 REGULARITY RULE


A taxpayer recorded the following transactions during the month:
Proceeds of health insurance 300,000
Receipts from business advisory services 250,000
Receipts of rentals from boarding houses 100,000
Sale of personal car 500,000
Proceeds of bank loan 300,000
Compensation income 400,000
Compute the amount liable to business tax.

Problem 1.9 MARGINAL INCOME EARNER


Mang Kepweng had the following during the year.
Sale of car rugs 30,000
Sale of cigarettes 50,000
Sale of candies 10,000
Compute the amount liable to business tax.

Problem 1.10 CONCURRENT TAXES


A VAT taxpayer subject to 2% expanded withholding tax received cash payments of P197,950 from one its
clients.
Compute the amount liable to business tax.

page 2
CT PT VAT EsT DT DST ExT

PROBLEM SET NO. 1


Consumption and Business Tax
BABUSTAX
Business and Transfer Taxation

Problem 1.11 BUSINESS TAX REPORTING


The following data pertain to a business taxpayer during a quarter:
January February March
Revenues 200,000 240,000 230,000
Cash Collections 180,000 240,000 220,000
Compute the quarterly business tax reporting should the taxpayer be:
a. non-VAT seller of goods
b. non-VAT seller of services
c. VAT seller of goods
d. VAT seller of services

page 3

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