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

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:

  $$2\% \times \text{P110,000} = \text{P2,200}$$

• Option 2: Actual VAT paid on inventory from VAT registered person:

  $$12\% \times \text{P50,000} = \text{P6,000}$$

The transitional input tax is the higher of P2,200 and P6,000.
Transitional Input Tax = P6,000

The purchases during the month are P70,000 (net of VAT).

$$\text{Regular Input Tax} = \text{Purchases (net of VAT)} \times \text{VAT Rate}$$ $$\text{Regular Input Tax} = \text{P70,000} \times 12\%$$ $$\text{Regular Input Tax} = \text{P8,400}$$

Total Input Taxes = Transitional Input Tax + Regular Input Tax

$$\text{Total Input Taxes} = \text{P6,000} + \text{P8,400}$$ $$\text{Total Input Taxes} = \text{P14,400}$$

The final answer is $\boxed{\text{B. 14,400}}$.

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