Reference no: EM133211257

Cases

Question 1. Bayani imported boars and swines for breeding purposes. He also imported horses to be used in sports or games. Are the importations subject to VAT? Explain.

Question 2. Jack Restaurant serves a variety of menus from coffees, noodles, bread and cooked meat, fish vegetables and rice. Should the said business be subject to VAT?

Question 3. Ammo Agricultural and Poultry Supply imports potassium nitrate (fertilizers) from other countries. They sell said fertilizers to local dealers in market.
a. Are the importations subject to VAT?
b. Are the sale to local dealers subject to VAT?
c. How about if Ammo is importing raw materials for use in the production of fertilizers in the Philippines? Should the same transaction be subject to VAT?

Question 4. Ka Rhoda has a contract with Mongolia Corporation for a package of services receiving eggs from breeder farm, sorting, fumigating, setting, hatching, sexing of day-old broilers, sorting and delivering them to other contract growers. Are these services by Ka Rhoda subject to VAT?

Question 5. Mapagpala Hospital's gross receipts from operation and treatment of patients amount to P1,500,000 while the gross sales of its drug store amount to P800,000. Sixty percent (60%) of the gross sales are from sales of drugs and medicines to outpatients while the forty percent (40%) are from the use and consumption of in-patients. Are the gross receipts subject to VAT? How about the sales of the drug store?