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    Tax 2 Sample Problem Solving

    Uploaded by

    Alberto Nichols
    The document discusses various business transactions and calculates the tax liability in each case. It provides examples of: 1) Regular transactions with tax liability of PHP 392,640 consisting of VAT on purchases and sales. 2) An export sale that is VAT zero-rated. 3) A sale of a car subject to 12% VAT but a sale of a van is VAT exempt. 4) Tax liability of PHP 102,000 from export and local sales along with input VAT. 5) Calculation of input VAT, standard input VAT, and VAT payable for sales to private and government entities. 6) Breakdown of input tax attributable to different taxed sales.

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    © All Rights Reserved
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    Tax 2 Sample Problem Solving

    Uploaded by

    Alberto Nichols
    173 views2 pages
    The document discusses various business transactions and calculates the tax liability in each case. It provides examples of: 1) Regular transactions with tax liability of PHP 392,640 consisting of VAT on purchases and sales. 2) An export sale that is VAT zero-rated. 3) A sale of a car subject to 12% VAT but a sale of a van is VAT exempt. 4) Tax liability of PHP 102,000 from export and local sales along with input VAT. 5) Calculation of input VAT, standard input VAT, and VAT payable for sales to private and government entities. 6) Breakdown of input tax attributable to different taxed sales.

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    Tax 2 Sample problem solving cases

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    Tax 2 Sample problem solving

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    The document discusses various business transactions and calculates the tax liability in each case. It provides examples of: 1) Regular transactions with tax liability of PHP 392,640 consisting of VAT on purchases and sales. 2) An export sale that is VAT zero-rated. 3) A sale of a car subject to 12% VAT but a sale of a van is VAT exempt. 4) Tax liability of PHP 102,000 from export and local sales along with input VAT. 5) Calculation of input VAT, standard input VAT, and VAT payable for sales to private and government entities. 6) Breakdown of input tax attributable to different taxed sales.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    173 views2 pages

    Tax 2 Sample Problem Solving

    Uploaded by

    Alberto Nichols
    The document discusses various business transactions and calculates the tax liability in each case. It provides examples of: 1) Regular transactions with tax liability of PHP 392,640 consisting of VAT on purchases and sales. 2) An export sale that is VAT zero-rated. 3) A sale of a car subject to 12% VAT but a sale of a van is VAT exempt. 4) Tax liability of PHP 102,000 from export and local sales along with input VAT. 5) Calculation of input VAT, standard input VAT, and VAT payable for sales to private and government entities. 6) Breakdown of input tax attributable to different taxed sales.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    PROBLEM SOLVING ON BUSINESS TRANSACTIONS

    1 Amount of tax liability Tax liability


    Regular transactions subject to and exclusive of
    VAT 168,000.00 1400000x0.12
    (1344000/1.12)x0.1
    Purchases inclusive of VAT (on regular sale) 144,000.00 2
    Purchases inclusive of VAT (on zero-rated sales) 80,640.00 672000x0.12
    Total amount of tax liability 392,640.00

    2 VAT for Stormy Company is zero since it is a foreign denominated sale like an export
    sale when the TV and refrigerator is sold to an OFW, a nonresident.

    3 The VAT is P72,0000 from the sale of 1-unit of 4-door sedan car (P600,00x12%). The 1
    unit of 15-seater van is not VATable since it is a foreign currency denominated sale.

    4 Data Tax liability


    Since it is VAT-exempt
    Export Sale 0.00 transaction
    Local Sales 60,000.00 It is taxable P60,000x12%
    Purchases related to sales, inclusive of VAT
    Cannot claim since it is VAT-
    On export sale 0.00 exempt
    On local sale 42,000.00 (392,000/1.12)x0.12
    Total Tax Liability 102,000.00

    5
    Sale to private entities subject to 12%
    VAT 1,000,000.00
    Sale to government 500,000.00
    Purchases during the quarter applied to
    all sales 300,000.00
    Purchases from VAT-registered persons applicable
    to sale to government/quarter 200,000.00
    Purchase during the quarter applied to sales to
    private entities 400,000.00

    a. Standard input VAT 120,000.00 1000000x12%


    b. Actual Input tax on sale on government 25,000.00 500000x5%
    c. Input tax chargeable to cost or expense 35,000.00 300,000x12%+200,000/1112%x12%
    d. VAT payable for the quarter 48,000.00 400000x12%

    6
    1. Input tax attributable to sales subject to
    12% 25,000.00 5000+20000
    2. Input tax attributable to zero-rated sales 3,000.00
    3. Input tax attributable to VAT-exempt sales 2,000.00
    4. Input tax attributable to government sales 4,000.00

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