The Bonchon Construction Corporation, a VAT-registered taxpayer, had the following data on its construction projects, VAT not yet included, for the last quarter of 2019: Hallmark Building – 100% complete Contract price P20,000,000 Collections in October and November 2019 10,000,000 Partial collection of retention receivable in December 2019 2,000,000 Summit Business Center – to be started in January 2020 Contract price 15,000,000 Cash advances received for mobilization 300,000 Deposits received in 2019 for materials 2,000,000 Purchase of materials from VAT suppliers (of which 70% was paid) 6,000,000 Subcontracting services to VAT service providers during the quarter (of which 80% was paid) 2,250,000 How much is the VAT payable at the end of the quarter?
35
The Bonchon Construction Corporation, a VAT-registered taxpayer, had the following data on its construction projects, VAT not yet included, for the last quarter of 2019:
Hallmark Building – 100% complete |
|
|
Contract price |
|
P20,000,000 |
Collections in October and November 2019 |
|
10,000,000 |
Partial collection of retention receivable in December 2019 |
|
2,000,000 |
Summit Business Center – to be started in January 2020 |
|
|
Contract price |
|
15,000,000 |
Cash advances received for mobilization |
|
300,000 |
Deposits received in 2019 for materials |
|
2,000,000 |
Purchase of materials from VAT suppliers (of which 70% was paid) |
|
6,000,000 |
Subcontracting services to VAT service providers during the quarter (of which 80% was paid) |
|
2,250,000 |
How much is the VAT payable at the end of the quarter?
Step by step
Solved in 3 steps with 4 images