Taxation, 2012 Bar — Question 28

MULTIPLE CHOICE

A VAT-registered contractor performed services for his customer in 2010 and billed him P11.2 Million, broken down as follows: P10 Million - cost of services, plus P1.2 Million, 12% VAT. Of the contract price of P10 Million, only P8 Million plus VAT thereon was received from the customer in 2010, and the balance of P4 Million plus VAT was received by the contractor in 2011. How much is the taxable gross receipts of the contractor for 2010, for VAT purposes? a) P10 Million, the total cost of services performed in 2010; b) P8 Million, the amount received from the customer in 2010; c) P8 Million plus VAT received from the customer in 2010; d) P11.2 Million, the total cost of services performed plus 12% VAT.

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