Answered: Statement1: The sale of a residential…

Statement1: The sale of a residential dwilling by a non-dealer is subject to VAT if the selling price per unit does not exceed P3,199,200

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 40P

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Concept explainers

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.

Question

Statement1: The sale of a residential dwilling by a non-dealer is subject to VAT if the selling price per unit does not exceed P3,199,200

Statement2: The leasing ot residential units is exempt from VAT if the annual rentals do not exceed P15,000 per unit

a. Both Statements are false

b. Both Statements are true

c. Statement 1 is true while Statement 2 is false

d. Statement 1 is false while Statement 2 is true

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