1. An individual taxpayer operates a Grocery Store and is not VAT-registered. His annual
1. An individual taxpayer operates a Grocery Store and is not VAT-registered. His annual
gross sales amounted to P2,900,000 for the year although his operations resulted to a net
loss for the year 2018. He is subject to
a. 3% OPT
b. VAT
c. MCIT – 2%
d. None, because operation resulted in a loss.
If he was qualified and chose to be taxed under the 8% income tax rate, he shall be
subject to:
a. 3% OPT
b. VAT
c. MCIT – 2%
d. None of the above.
2. A PEZA-registered enterprise is paying the 5% preferential tax in lieu of all other taxes. It is not VAT-registered. Can the same enterprise claim a TCC or refund from any VAT that it pays on its purchases?
a. Yes, because it should not be paying the VAT as it is exempt from all taxes whether direct or indirect.
b. No. Since it is VAT-exempt, it is not allowed to claim a refund of input tax paid.
c. Yes, because the issuance of a VAT invoice to the PEZA-registered enterprise was erroneous.
d. None of the above.
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