Title TAX2 Reyes Value Added Tax Value Added Public Finance Taxes Payments 469.5 KB 9
##### Document Text Contents
Page 6

5-6.
F Co. purchases in March 2013, fixed assets, as follows:

Asset No. 1 (useful life of 5 years) 550,000

Asset No. 2 (useful life of 2 years) 400,000

How much is the input tax of March 2013?

SOLUTION:
(500,000 + 400,000 + 950,000) x 12% = 114,000

5-7
G Co. purchased several fixed assets in a month, as follows:

Asset No. 1 (useful life of 8 years) 900,000

Asset No. 2 (useful life of 3 years) 720,000

Asset No. 3 (useful life of 10 months) 200,000

Asset No. 4 (useful life of 2 years) 400,000

How much is the input tax for the month?

SOLUTION:

900,000 x 12% x 1/60 1,800
720,000 x 12% x 1/36 2,400
2,000,000 x 12% x 1/1 24,000
400,000 x 12% x 1/24 2,000

Input tax 30,200

5-8
H Co. has, in its books of accounts the following:
March 1, 2013, acquistion of a fixed asset with a useful life of 6 years 1,500,000
May 5, 2013, acquistion of a fixed asset with a useful life of 2 years 600,000
May 8, 2013, acquistion of a fixed asset with a useful life of 4 years 500,000
The fixed asset acquired on March 1, 2013 was retured on may 2, 2013
How much is the available input taxes for May 2013?

SOLUTION:

1,500,000 x 12% x 58/60* 174,000
600,000 x 12% x 1/24 3,000
5,000,000 x 12% x 1/48 1,250

Input tax 178,250

*2 months expired March 1- May 2
60-2 = 58

5-9.

Page 7

I Co. is having its factory building constructed by building contractor. Progress billings paid under the
construction were:

In the month of July 2013 2,000,000

In the month of August 2013 3,000,000

How much is the input tax of July and August 2013?

SOLUTION:

July (2M x 12%) 240,000
August (3M x 12%) 360,000

5-10.
Mr. J. was a nonVAT taxpayer in 2012. He registered for and became a VAT taxpayer beginning January
1, 2013. On December 31, 2012, he had the following data on600,000 his business:

Inventory purchased from VAT taxpayers 600,000

Supplies purchased from VAT taxpayers 100,000

Fixed asset purchased from VAT taxpayers 1,100,000

What are the Transitional input Tax for inventory, supplies and fixed asset?

SOLUTION:

Inventory (600k x 12%) 72,000
Supplies (100k x 12%) 12,000

*USUALLY UNDER 12% IS HIGHER

5-11.
Mr. K started his business in 2012 as a non-VAT taxpayer. For 2012 his sales amounted to 2,500,000 and
he registerd as a VAT taxpayer for 2013.

On December 31, 2012, he had the ff:
Inventory of goods for sale (purchased from VA supplier, VAT not
included)

Cost 140,000
Net Realizable Value 100,000

Supplies purchased from VAT suppliers, VAT not included 5,000

For January 2013 he had ( VAT not included):
Sales 500,000
Purchases from VAT suppliers

160,000

What is the Transitional Input tax and the VAT for January 2013?

Output tax (500k x 12%)

60,000.00

Input tax (160k x 12%)

(19,200.00)

Transitional input tax

Page 8

SOLUTION:
Transitional input tax:
Inventories

140,000 x 12%  16,800
100,000 x 2% 2,000

Supplies

5,000 x 12%  600
5,000 x 2% 100

5-12.
A VAT taxpayer had the following data on sales and purchases of a month, a value-added tax not
included:

Sales, exports 4,000,000

Purchases from VAT taxpayers 1,200,000

SOLUTION:
1,200,000 x 12%= 144,000

5-13.
Mr. L is a VAT taxpayer. In the month of April 2013, he had the ff data on sales/purchases, value added
tax not included, and income tax due for 2012:

Sales, exports 2,000,00

Purchases from VAT taxpayers 800,000

Income tax due for 2012 160,000

The vat refundable/ income tax payable if input taxes attributable to export sales are taken as credit
against other internal revenue taxes?

SOLUTION:

Income tax due 160,000
Vat refund ( 800k x 12%) 96,000

Still Due 64,000

5-14
M Co. is in the business of exporting goods produced in the Philippines. He had the ff data in a VAT
taxable period:

Sales, exports 10,000,000

Purchases from VAT suppliers 3,000,000

Purchases from non-VAT suppliers 500,000

Output taxes for the period?
Input taxes for the period?
Tax refundable or creditable against internal revenue taxes?

SOLUTION:
3,000,000 x 12% = 360,000

(17,400.00)

Vat payable

23,400.00