Double VAT Collection from B2G Transaction in Indonesia. Case Study: PT X

DOI

10.2991/aebmr.k.220304.038How to use a DOI?

Keywords

Tax Management; Reverse Charge Mechanism; Double VAT Collection; VAT Receivable

Abstract

This study aims to provide solutions to the problem of excess VAT collection faced by government goods and service providers. This study uses a qualitative research approach with a case study research strategy. The object of research in this study is PT X, which is experiencing an excess of VAT collection of 252 billion Rupiah in 2020. This situation occurs because the VAT collection scheme by government agencies in the procurement of goods and services has led to an excess amount of VAT collection, which tends to harm taxpayers. This kind of situation causes taxpayers to have the potential to experience a cash flow shortage. As a result, taxpayers are forced to take financing options for their operational activities and have to bear the cost of funds, which reduces profits and threatens business continuity. In 2020, PT X has a debt of 208 billion Rupiah and is subject to interest costs of 13.2 billion. This debt is used to cover the cash flow deficit caused by the collection of VAT by government agencies. This study provides three recommended solutions to PT X in dealing with VAT collection by government agencies.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Isnu Rahadi Wiratama
AU  - Siti Nuryanah
PY  - 2022
DA  - 2022/03/08
TI  - Double VAT Collection from B2G Transaction in Indonesia. Case Study: PT X
BT  - Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021)
PB  - Atlantis Press
SP  - 290
EP  - 297
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220304.038
DO  - 10.2991/aebmr.k.220304.038
ID  - Wiratama2022
ER  -