Reference no: EM132915781
Question - A VAT taxpayer had the following data on its operations for the month of January 2018:
Sales, total invoice price P592,480
Purchases of goods, VAT not included:
From VAT registered persons 100,000
From non VAT registered persons 8,000
From persons subject to percentage taxes 10,000
Salaries of employees 60,000
Other operating expenses 12,000
This is the first month of being liable to value added tax. Data in inventories at the beginning of the period bought from VAT registered persons follow:
Inventory at cost P44,800
Inventory at realizable value 49,000
Value added tax paid on beginning inventory 4,800
1. How much is the input tax?
2. How much is the value added tax payable?