Written by Avelia Zahara on 15/07/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
VAT restitution is a method to reclaim overpaid Value Added Tax/Pajak Pertambahan Nilai (VAT/PPN). This reclaiming of VAT plays a significant role in a cash flow of a company and operational efficiency, Understanding and applying VAT restitution processes can lead to effective and efficient refunds.
Tax Restitution is the refund of tax overpayments filed by the taxpayer to the state. Tax Restitution is closely related to VAT because VAT is one of the taxes that often indicates overpayment. Thus, VAT restitution is a condition in the Tax Period that is caused by the Input Tax greater than the Output Tax. The legal basis for tax restitution payments is based on Law Number 7 Year 2021, concerning harmonising tax regulations (hereinafter called UU 7/2021).
The importance and benefits of VAT restitution include:
The ideal timing for initiating the VAT restitution process is crucial for its success. Applications should be submitted at the end of the financial year, specifically in December. This timing ensures that taxpayers can efficiently engage with the Directorate General of Taxation (DGT) to process their refunds in alignment with fiscal schedules and compliance requirements.
The process of VAT restitution involves several steps, guided by the legal framework provided in UU 7/2021 and PMK 209/2021. It includes:
At Putranto Alliance, we understand the complexities of VAT and STLG compliance and the unique challenges businesses face in navigating these tax obligations. Our comprehensive suite of services is designed to provide tailored solutions that ensure your business aligns seamlessly with current regulations, minimizing the risk of fines and penalties. Our offerings include:
By partnering with Putranto Alliance, businesses can navigate the intricacies of VAT and STLG with confidence, ensuring compliance, and focusing on their core operations without the administrative burden of tax management.
A response to the inquiry will be sent to the provided email within 2 working days.
putranto@putranto-alliance.com
Jl. Denpasar Raya Blok C4/24
Kompleks Menteri, Kuningan
Jakarta Selatan, 12950, Indonesia
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