S.A 2020/21 B.E TAXATION LAW | Question #16
| SUGGESTED ANSWERS TO THE 2020/21 BAR EXAMINATIONS IN TAXATION LAW #TaxationLaw #PreviousBarQuestions Code: S.A 2020/21 B.E TAXATION LAW | Question #16 |
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The receipt for your purchase of a mobile phone charger shows that you just bought it for PHP2,100.00.
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| SHOP HERE VOL. I VOL. II The receipt shows that the total amount is broken down between the selling price of the changer, which is PHP2,050.00, and the value-added tax, which is PHP50.00. |
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Is the amount of value-added tax correct? Explain briefly.
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SUGGESTED ANSWER |
No, the amount of value-added tax is incorrect.
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The value-added tax is equivalent to twelve percent (12%) of the gross selling price or gross value in money of the goods or properties sold.
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Since the gross selling price of the charger is Php 2,050.00, the 12% value-added tax should be Php 246.00 and not Php 50.00.
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