Reference no: EM133119767
Question - TOPIC: BUSINESS TAX - VAT - Huxly Corporation was a contractor. It entered into a contract on December 31, 2019 with contract price of 6,000,000, which was completed on March 15, 2022. Huxly Corporation received a total value including materials charged with the services amounting to P5,500,000 on April 25, 2022.
Huxly Corporation spent for the materials used in the contract which it acquired from value-added tax registered suppliers costing 1,500,000 in Jan 2022. During the month of January 2022, it purchased an equipment with a contract price of P2,500,000 and paid P 500,000 as down payment. The estimated life of the equipment is 4 years.
How much was the value-added tax payable (excess VAT input) for the quarter ending March 31, 2022 using 12% VAT rate assuming all the data were exclusive of VAT?
Hirosho, VAT registered taxpayer, had the following data on importation in 2022:
Invoice cost (exchange rate $1: P46), $56,500
Custom duties, 12%
Freight, P200,000
Insurance, P280,000
Other charges before release from customs house, P70,000
Facilitation fee, P100,000
Freight from customs house to warehouse (net of VAT), P120,000
The imported goods were sold for P6,650,000 (inclusive of VAT) 10 days after its delivery to the warehouse.
How much is the VAT Payable?