Can Input Tax of That Discovered on The Audit Process Be Treated as Value Added Tax (VAT) Credit? A Legal Perspective Analysis
Abdul Basir, Adi Barata
Available Online 20 May 2020.
- https://doi.org/10.2991/aebmr.k.200513.001How to use a DOI?
- VAT Input Tax, Legal Analysis, Tax Credit
- Conceptually, Value Added Tax (VAT) Input Tax on purchase of taxable goods or services that have been paid and collected by VAT Enterpreuner is considered as VAT credit and can be credited with Output Tax in computing the VAT payable on the respective VAT Return period.It is worth noting that Article 9 Paragraph 8 Letter i of Indonesian VAT Law stipulated that the Input Tax which is not disclosed in the respective VAT Return and discovered on audit process cannot be credited or deducted from the accrued Output Tax. This has trigerred issues and is detrimental for taxpayers due to the respective Input Tax has been substantially deposited to the state through collection carried out by VAT Operator. This research is conducted by adopting juridicial normative approaches and examining the legal theories and principles to formulate and submit the justice and legal protection for taxpayers who have deposited Input Tax through the collection carried out by VAT Operator.The provision of Article 9 paragraph 8 letter i of The Indonesian VAT Law which governing that Input Taxes that are not disclosed in the VAT Return and discovered at the time of audit processes cannot be credited is contradictory with the fairness principle and legal protection for taxpayers who have pay or collect VAT.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Abdul Basir AU - Adi Barata PY - 2020 DA - 2020/05/20 TI - Can Input Tax of That Discovered on The Audit Process Be Treated as Value Added Tax (VAT) Credit? A Legal Perspective Analysis BT - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020) PB - Atlantis Press SP - 1 EP - 6 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200513.001 DO - https://doi.org/10.2991/aebmr.k.200513.001 ID - Basir2020 ER -