BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The taxpayer is a trader of poultry feeds. Determine his applicable business tax.
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Subject to 12% vat
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Vat exempt but subject to 3% OPT under Section 116
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12% vat or 3% OPT, at his option
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Exempt from 12% Vat and OPT
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Explanation:
Detailed explanation-1: -For example, a doctor’s surgery won’t be able to reclaim VAT on its accountancy fees, because services provided by a doctor are exempt from VAT. If your business only makes VAT exempt sales, it’s not allowed to register for VAT. Don’t get confused between zero-rated VAT and VAT exempt sales.
Detailed explanation-2: -Vatable Sales = Total Sales/ 1.12. VAT = Vatable Sales x 1.12.
Detailed explanation-3: -109. Exempt Transactions of Bureau of Internal Revenue. You can check their website at https://www.bir.gov.ph. The Sale or importation of agricultural and marine food products, livestock and poultry for general use and human consumption and breeding stock and genetic materials.
There is 1 question to complete.