Answered: Operating the "kalesa" is subject to…

Operating the "kalesa" is subject to percentage tax on business. B. Operating the "Kalesa" is subject to VAT if the gross annual receipts exceed P3M. C. The transaction is exempt from business tax.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Juan is the owner of a "kalesa". He charges fees to customers who would want to ride on his "kalesa" and take a tour around the area. What is the tax implication of this to Juan?

A. Operating the "kalesa" is subject to percentage tax on business.

B. Operating the "Kalesa" is subject to VAT if the gross annual receipts exceed P3M.

C. The transaction is exempt from business tax.

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