The taxpayer started operating a grocery store during 2015. He submits the following data: Merchandise Inventory P 469,000 Gross sales 2,814,000 Purchases from VAT registered entities (net) 1,563,000 Purchases from non-VAT registered entities   312,000

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter1: An Introduction To Taxation And Understanding The Federal Tax Law
Section: Chapter Questions
Problem 26DQ
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The taxpayer started operating a grocery store during 2015. He submits the following data:

Merchandise Inventory P 469,000

Gross sales 2,814,000

Purchases from VAT registered entities (net) 1,563,000

Purchases from non-VAT registered entities   312,000

 

Determine the following:

  1. What is the applicable business tax for the taxpayer?
  2. How much is the correct business tax due?
  3. Assume the taxpayer is non-VAT registered, how much is the VAT payable for the year?
  4. Assume the taxpayer is VAT registered, how much is the VAT payable for the year? 

 

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