Question

Sales Amount

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 the following and explain
(Taxation in Philippines)

Answer 1

ASSUMPTION

(As the question is lacking data of rate of VAT,I have taken the VAT rate as per the Philippines Law at 12% for goods and services.)

SOLUTION

WORKING NOTE

COMPUTATION OF VAT PAID AT THE TIME OF MAKING PURCASES

Cost of single browine box acquired (inclusive of vat)=16.5, rate of VAT =12%(refer assumption)

Cost of single brownie box acquired (exclusive of vat)=16.5*100/112=14.73

Therefore Input Vat Credit availed per brownie box=(16.5-14.73)=1.77

1. Amount of sale for single box( exclusive of vat)=20

amount generated from sale of 10 boxes=20*10=200

VAT payable on the above sale 200*12%=24

therefore,total sale value of 10 boxes(inclusive of vat)=200+24=php224

2) amount of VAT Output For 10 boxes sold=php24

3)VAT PAYABLE FOR 100 BOXES

vat payable on sale of 100 boxes=(100*20)*12%=240

Vat credit availed for 100 boxes:(100*14.73)*12%=176.76

therefore,Vat payable for entire month=php63.24