Can Input Tax of That Discovered on The Audit Process Be Treated as Value Added Tax (VAT) Credit? A Legal Perspective Analysis

DOI

10.2991/aebmr.k.200513.001How to use a DOI?

Keywords

VAT Input Tax, Legal Analysis, Tax Credit

Abstract

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.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - 10.2991/aebmr.k.200513.001
ID  - Basir2020
ER  -