Question

UCCC is a VAT registered business. It sells brownies at retail price of Php 20.00 per box exclusive of VAT. It acquired the brownies available for sale at Php 16.50 per box inclusive of VAT.What would be the amount of sales inclusive of VAT for 10 boxes sold?What would be the amount of VAT Output for the 10 boxes sold?If during a whole month UCCC sold 100 boxes of brownies how much is its VAT payable?

Answer 1

Since tax rate is not given, assumed the rate to be "12%" (Standard for Phillipines)

1) Sales value inclusive of VAT

Sale price exclusive of VAT = 10 x Php20 = Php200

VAT @12% = Php200 x 12% = Php24

Sales inclusive of VAT = Php224

2) VAT output

VAT output = Php24

3) VAT Payable

Units sold = 100 boxes

VAT Output = 100 x Php20 x 12% = Php240

VAT Input = Php176.79

VAT Payable = Php63.21

Workings :

VAT Input on 100 boxes = 100 boxes x (Php16.5/112 x 12)

= Php176.79

Note :

100 units are sold, so taken that these 100 units are purchased at given price of Php16.5(inclusive of VAT)