Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)

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

Authors
Abdul Basir, Adi Barata
Corresponding Author
Abdul Basir
Available Online 20 May 2020.
DOI
https://doi.org/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.
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Volume Title
Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
20 May 2020
ISBN
978-94-6252-969-4
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.200513.001How to use a DOI?
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  -