taxpayer registered under the VAT system on January 1, 2019. Value of inventory as of December 31,2018 purchased from VAT – registered persons, P 112,000; VAT paid on inventory as of December 31,2018, P 12,000; Value of inventory as of December 31, 2018 purchased, from non-VAT persons, P518,000; Sales, net of VAT, P 240,000; Sales, gross of VAT, P 45,920; Purchases, net of VAT, P 70,000;Purchases of VAT exempt goods, P 50,000.VAT PAYABLE

taxpayer registered under the VAT system on January 1, 2019. Value of inventory as of December 31,2018 purchased from VAT – registered persons, P 112,000; VAT paid on inventory as of December 31,2018, P 12,000; Value of inventory as of December 31, 2018 purchased, from non-VAT persons, P518,000; Sales, net of VAT, P 240,000; Sales, gross of VAT, P 45,920; Purchases, net of VAT, P 70,000;Purchases of VAT exempt goods, P 50,000.VAT PAYABLE

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 8DQ

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Galileo Lantanas, sole proprietor of GALLANT Enterprises, started business operations in 2019 as a non-VAT taxpayer. By the end of the year his sales exceeded P3,000,000 prompting him to register as a VAT taxpayer starting January 2020. The following information appeared in his records as of December 31, 2019: Goods for sale (purchased from VAT suppliers) Inventory value P 120,000 Actual input tax paid 3,500 Supplies used in business (purchased from VAT suppliers) Inventory value P 65,000 Actual input tax paid 1,100 Goods and supplies (purchased from non-VAT suppliers) Inventory value P 35,000 Cost 30,000 For the month of January 2020, sales and purchases amounted to P650,000 and P330,000, respectively, VAT not yet included. How much is the VAT payable as at January 31, 2020?