exercises_compiled CHAPTER 2 for LAW 107.

CHAPTER 2

,False 1. The Vat on importation is a business tax.
False 2. The final withholding VAT is a business tax.
False 3. The VAT on importation is 12% of the value added on importation.
False 4. The VAT on importation is 12% of the receipts from the sale of services abroad.
False 5. Importation is subject to either VAT or percentage tax.
False 6. The final withholding VAT is 12% of the contract price of purchased services from within the
Philippines.
False 7. The sale of services abroad is subject to 12% final withholding VAT.
False 8. The VAT on importation is paid to the BIR.
True 9. The final withholding VAT on services is paid to the BIR.
False 10. The importation of any agricultural or marine products is VAT exempt.
True 11. The importation of professional instruments and implements is exempt from VAT.
False 12. The importation of any product intended for human consumption is VAT exempt.
False 13. Importation is subject to either VAT or percentage tax.
False 14. The importation of professional instruments and implements in commercial quantities
is VAT-exempt.
True 15. The importation of equipment, machinery and spare parts for marine vessels is VAT-
exempt.




False 1. Resident foreigners are not subject to the VAT on importation.
True 2. All agricultural or aquaculture inputs are VAT exempt.
True 3. The sale of processed agricultural products is vatable.
True 4. The importation of books and newspapers is VAT-exempt.
True 5. The importation of life-saving equipment is VAT-exempt.
True 6. The lease of aircrafts or vessels from non-residents is exempt from final withholding VAT.
True 7. The purchase of services from foreign consultants is exempt from final withholding VAT.
True 8. The importation of fuel, goods, and supplies by international carriers is VAT-exempt.
False 9. The importation of agricultural machineries by farmers is VAT-exempt.
True 10. The importation of agricultural machineries by agricultural cooperatives is VAT-exempt.
False 11. The VAT on importation is payable only by those engaged in business.
True 12. The final withholding VAT on importation of services is payable even by those not engaged
in business.
True 13. The VAT on importation and final withholding VAT can be claimed as Input VAT creditable
against Output VAT.
False 14. In economic reality, the VAT on importation and final withholding VAT are taxes to be paid
by non-resident sellers.
True 15. Qualified exempt importation is exempt from VAT only if made by an exempt person.

,1. Which is subject to VAT?

- Sheep, Sheep Wool, Cut sheep meat

2. Which agricultural products is VAT-exempt on importation?

- Wood

3. Which importation is subject to VAT?

-NEITHER importation from abroad, Purchase of goods from economic zones in the Phil

4. Which is not subject to VAT on importation?

- Importation of goods for business use.

5. Which of the following is subject to the VAT on importation when imported?

- Books

6. Which non-food agricultural products is exempt from VAT on importation?

- Live hogs

7. Which of the following is not exempt from
VAT?

- Orchids

8. Which seedling is vatable?

- Narra seedlings

9. Which agricultural produce is exempt from
VAT?

- Firewood

10. Which is vatable?

- Bamboo poles

11. Which is VAT-exempt?

- Cotton seeds

12. Which is VAT-exempt?

- Coconut lumber

, 13. Which is subject to VAT on importation?

- Cocoa

14. Which agricultural product is subject to VAT?

- Rattan Cane

15. Which is subject to VAT on importation?

- Cocoon silk, Pineapple Silk, Furniture

16. Seedlings of this tree are exempt from VAT on importation.

- Palm oil tree

17. Which of the following when imported is subject to VAT?

- Rubber

18. Which of these seeds is not VAT-exempt?

- Flower seeds

19. Which of the following feed is subject to VAT on importation?

- Swine feeds

20. Feeds of the following animals are considered as specialty feeds, except for,

- Zoo animals