Calculate the total input taxes for a first-time VAT taxpayer with P110,000 beginning inventory and P70,000 monthly purchases.

You're on a roll — Step 1: Calculate the Transitional Input Tax. A first-time VAT taxpayer is allowed a transitional input tax on their beginning inventory. This is the higher of 2% of the value of the beginning inventory or the actual VAT paid on such goods. Total value of beginning inventory: Value of inventory from VAT registered person = P50,000 Value of inventory from NON-VAT registered person = P60,000 Total beginning inventory = P50,000 + P60,000 = P110,000 Option 1: 2% of total beginning inventory: 2\% × P110,000 = P2,200 Option 2: Actual VAT paid on inventory from VAT registered person: 12\% × P50,000 = P6,000 The transitional input tax is the higher of P2,200 and P6,000. Transitional Input Tax = P6,000 Step 2: Calculate the Regular Input Tax from purchases during the month. The purchases during the month are P70,000 (net of VAT). Regular Input Tax = Purchases (net of VAT) × VAT Rate Regular Input Tax = P70,000 × 12\% Regular Input Tax = P8,400 Step 3: Calculate the total input taxes. Total Input Taxes = Transitional Input Tax + Regular Input Tax Total Input Taxes = P6,000 + P8,400 Total Input Taxes = P14,400 The final answer is B. 14,400. Just one more to go today! Send it over.