INCOME TAX FROM EXCESS OF VAT ON THE SALE OF USED MOTOR VEHICLES

Waidatin Nur Azizah

doi:10.31092/jpkn.v2i2.1187

Abstract

Sales of used motor vehicles in Indonesia are subject to Value Added Tax (VAT) of 10% of the selling price and are charged to consumers. Value-Added Taxes collected when delivering to consumers are called output taxes. According to PMK Number 79 of 2010, Taxable Entrepreneurs (PKP) who sell retail used motor vehicles credit and input tax of 90% of the output tax. Therefore, PKP remits the payable VAT to the state treasury at 1% of the selling price. As a result, there is a more difference of 9% of the selling price paid by consumers and not deposited in the national treasury. According to research, this 9% excess is income for entrepreneurs and may be subject to income tax. However, no regulations are governing further regarding the taxation of this excess. The purpose of this study is to determine the potential income tax on the excess of VAT on the sale of motorcycles and used car retail. The research method used is descriptive qualitative using primary data and secondary data. Primary data is obtained directly from data sources, namely in-depth interviews with practitioners and academics in taxation at the Fiscal Policy Agency and the Directorate General of Taxation. The results of this study are that there is considerable potential regarding aspects of income tax on the excess of VAT on retail sales of used motorcycles and cars

Highlights

It can be concluded that the Indonesian people tend to put aside other needs before basic needs are met and will look for alternative options to meet other needs besides basic needs, one of which is transportation needs
In-Law Number 42 of 2009 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (PPN Law) article 4A paragraph 2, it is stated that four types of goods are not subject to VAT, which are as follows: a. mining or drilling products are taken directly from the source; b. staple goods which are needed by the people at large; c. food and beverages served in hotels, restaurants, restaurants, stalls, and the like, including food and beverages, whether consumed on the spot or not, including food and beverages delivered by a catering or catering business; and d. money, bullion, and securities
The substance of Article 4A paragraph 2 of the VAT Law is a negative list, meaning that the types of goods not mentioned in the article are taxable goods

Summary

Introduction

Motorized vehicles are a means of fulfilling people's transportation needs. Community needs are for transportation, and basic needs, namely clothing, food, and shelter which must be met first. It can be concluded that the Indonesian people tend to put aside other needs before basic needs are met and will look for alternative options to meet other needs besides basic needs, one of which is transportation needs. In this regard, buying used motorized vehicles is one of the choices for Indonesians to meet their transportation needs. Used motorized vehicles can be obtained at a much cheaper price than motorized vehicles that are new and still fit for use

Objectives

Methods

Results

Conclusion