Input Tax Research Articles

Tax Planning Value Added Tax (Vat) and Article 4 (2) Tax on Income In Indonesia

As the largest source of state budget revenue, the government continually increases tax revenues, one of which is by providing comprehensive tax reforms to the public. The government's goal to maximize revenue in the taxation sector is contrary to the company's goal as a taxpayer, namely, trying to reduce the tax burden to obtain greater profits while still complying with government tax regulations. Hence, companies need to prepare a tax plan. This study aimed to identify the application of tax planning to minimize the payment of Value Added Tax (VAT) and PPh Article 4 Paragraph (2) at PT. BAP in 2013–2017 using qualitative research methods with a case study approach. This study uses a positive qualitative paradigm as a science-based on strict procedures and rules, deductive, nomothetic, relying on sense capture, and value-free. The results of the study showed the application of VAT and Income Tax Planning tax article 4 (2) transfer of land, buildings, and land and buildings in PT. BAP is tax planning by avoiding tax violations, tax planing with delays in crediting input taxes and tax planning through the purchase of bkp with VAT, but the implementation of this tax planning is unsuccessful and inefficient due to lack of knowledge and awareness of paying taxes so as to cause losses to PT. BAP Amounting to IDR 3,340,314,823. Therefore, taxpayers need to have the knowledge and awareness to fulfill their tax obligations in order to carry out tax planning properly.

Exploring a Design of Carbon Tax for Coal- and Lignite-Based Thermal Power Sector in India

According to India’s ‘Third Biennial Update Report to the United Nations Framework Convention on Climate Change’, electricity production contributes half of India’s total carbon dioxide (CO2) emission (without land use, land-use change and forestry [LULUCF]) and 40% of CO2e (CO2 equivalent) emission in 2016. Coal- and lignite-based thermal power sector is the predominant source of electricity generation in India, and it contributes 74% in 2019–2020. In the 26th Conference of the Parties (COP26), India has committed to achieve net zero (in CO2e emission) target by 2070. Therefore, any strategy to reduce the total CO2e emission in India cannot spare emission reductions from coal- and lignite-based thermal power plants (TPPs). To accelerate achieving India’s emission intensity reduction target to 45%, we explore a design of carbon tax for coal- and lignite-based TPPs. Given the constraints involved in designing carbon tax based on cost-benefit analysis as well as integrated assessment models, we estimate a revenue neutral rate of tax on CO2e emission by converting taxes on coal and lignite. Our carbon tax proposal sets the floor (minimum) rate, and it requires regular upward revisions to induce TPPs to take action. To reduce disruptions in tax administrations, we propose adjustments of input tax credits with carbon tax liability. JEL Classification: H23, Q54, Q4, P43

Case Law Trends: Just a Formality!: Substance over Form in EU VAT and the Right to Deduct Input VAT

When it comes to the right to deduct input tax, substance in principle takes precedence over form. The CJEU has already ruled several times that the fundamental principle of the neutrality of VAT requires that if the substantive conditions for the right of deduction are met, this right can be exercised even when certain formal conditions are not met. In this article the author addresses recent case law of the CJEU on the distinction between formal and substantive conditions for the exercise of the right of deduction and the right to refund. The following topics are addressed: (1) Incorrect or incomplete invoices, (2) mistakes and refunds under Directive 2008/9/EC, (3) including an asset in the business assets and (4) VAT deduction in the event of late filing of intra-Community acquisitions. The recent CJEU cases will be analysed in the light of previous and pending case law providing the reader with an overview of the current situation. formality, substantive condition, deduction, refund, invoice, VAT fraud, business assets, intracommunity acquisition, neutrality principle, principle of proportionality

Analytical Study of the Continuous Increase in Tax Collection Due to GST Recovery in the Indian Economy

Abstract: The present research paper is based on in-depth research analysis of the continuous growth in tax collection due to GST collection in the Indian economy. GST was implemented on 01 July 2017 across the country under a single tax in the Indian economy. In April 2020 Till now the minimum GST collection was INR32172 crore whereas the highest ever GST collection was done. 141384 crores have happened in April 2021 (despite the second wave of the corona). GST compensation by the Center In the form of 23 states and 3 centers by taking loans on behalf of the states and union territories having legislative assemblies. Estimated compensation of INR 110000 crore in 20 installments between 23 October 2020 to 15 March 2021 in the governed territories. More than 100% of INR110208 crore was distributed. Apart from this, by 15 March 2021, all a loan of INR 106830 crore was raised by 28 states from the open market. Tax evasion in the GST regime Fake Input Tax Credit (ITC) has been a big problem since its inception. Even today not only normal Trade INR but also star exporting are evading tax by using fake ITC and defrauding the government. are putting In the last 02 financial year, the GST Council, in its many meetings, discussed many important issues like H. SN Code, Changes in the current structure of GST, Compulsory E-bill, a Cash deposit of GAT, GST Physical verification of registrations, action against CAs involved in fake invoices, GST refund, on receipt of bills Decisions were taken on reward, reduction in GST on electric vehicles, etc. Keywords: GST Collection, Indian economy, estimated compensation, Input Tax Credit, GST Council, GST refund.

Mechanism of Input Tax Calculation on Medical Service at PT BEC

PT BEC is a taxable entrepreneur engaged in eye health. Every month PT BEC credits all Input Taxes with Output Tax. This cannot be made because there are elements of Input Tax that cannot be credited, so it is necessary to calculate Input Tax by referring to the Regulation of the Minister of Finance Number 135/PMK.11/2014 to know for sure the amount of Input Tax that can be credited. The main purpose of this research is to find out the calculation of the creditable Input Tax which is more efficient to be carried out by PT BEC in terms of the amount of expenditure used by PT BEC to pay the VAT owed, by calculating the Creditable Input Tax every month and only once at the end of the year. This research is a qualitative research with a case study approach. The analysis technique in this research is descriptive qualitative analysis using secondary data and data collection is done through unstructured interviews, documentation, and observation. The results showed that the calculation of the creditable Input Tax which was carried out only once at the end of the year was more effective for PT BEC because there was a savings of Rp1.458.490.

GROWTH OF REVENUE OF GOODS AND SERVICES TAX IN INDIA

Government of India has implemented Goods & Services Tax (GST) in India on 1 July, 2017. The obective of this research paper is to explain the mechanism of GST and its effects on Indian economy. The Kelkar Committee was convinced that a dual GST system shall be able to tax almost all the goods and services and the Indian economy shall be able to have wider market of tax base, improve revenue collection through levying and collection of indirect tax and more pragmatic approach of efficient resource allocation. Under the Goods and Service Tax mechanism, every person is be liable to pay tax on output and shall be entitled to enjoy credit on input tax paid and tax shall be only on the amount of value added. The historic GST or goods and services tax has become a reality. GST is going to consolidate these multiple taxes into one as ‘One Nation, One Market, and One Tax’. Integration of goods and services tax would definitely lead to ease of doing business and simplifies tax compliance. GST bill will be a form for economic integration of India. Government of India, this surplus revenue may contribute to the growth of economy by way of investment in various infrastructural & development projects by Government of India. GST may have positive impact on economy, four tier structure of tax rate under GST may result into massive price hike of luxurious Goods & Services as well Government has taken efforts to put Goods & Services of necessity under lowest slab of tax rate. This is the major indirect tax reform in the history of India, outcome of which various Central & State taxes subsumed under GST viz. Central Excise Duty, Service Tax, Additional Duty of Excise, Surcharges, Cess, Countervailing Duty, Special Additional Duty, Sales Tax, VAT, Purchase Tax, Luxury Tax, Entry Tax etc. KEYWORDS:-Economy, GST, Negative Impact, Positive Impact, Transparency.

IMPLEMENTASI PENERAPAN PENGKREDITAN PAJAK MASUKAN BAGI PENGUSAHA JASA PENYEDIA JALAN TOL UNTUK MEWUJUDKAN KEPASTIAN HUKUM

<div>Value Added Tax is a tax that can be categorized as an objective tax. Value Added Tax is also called Indirect Tax, this is because the burden of the tax can be delegated to other parties. Value Added Tax is regulated in Law no. 42 of 2009 concerning Value Added Tax, the Law regulates the existing policies in each Value Added Tax Object. The research objectives in writing this are to analyze and develop the rules and implementation of toll road VAT collection in Indonesia and to analyze the legal certainty of crediting input tax on toll roads for toll road service entrepreneurs in Indonesia. The research uses a normative juridical approach that emphasizes library research. In this study, the legislation approach, conceptual approach, comparative approach, case approach, and historical approach are used.</div><div>Based on the results of the study, it shows that the VAT regulation is regulated in</div><div>Law Number 8 of 1983 concerning Value Added Tax of Goods and Services and Sales Tax on Luxury Goods as amended by Law Number 18 of 2000 (hereinafter referred to as the VAT Law) stipulating that: Article 1 number 25: Output Tax is a Value Added Tax payable that must be collected by a Taxable Entrepreneur who delivers Taxable Goods, delivers Taxable Services or exports Taxable Goods. Article 4A paragraph (3) along with its explanation, toll road provision services are not included in the group that is not subject to Value Added Tax. Article 9 paragraph (2) Input Tax in a Tax Period is credited with Output Tax for the same Tax Period. Article 16B paragraph (2) Input Tax that is paid for the acquisition of Taxable Goods and or the acquisition of Taxable Services for which Value Added Tax is not collected can be credited</div>

Determinants of Value Added Tax in Oman

Value Added Tax (VAT) system started to implement only in the year 2018 in Gulf Corporation Councils countries. The main purpose of this study is to understand to a great extent the determinants of VAT in Oman by using a qualitative approach. The research survey has used purposive sampling techniques to select a group of individual accountants who are working in a small and medium sized business. The study has considered respondents’ basic knowledge in accounting and experience by adopting a qualitative approach and selected 26 respondents as sample size involving semi-structured interviews. The findings suggested that there is a positive impact on determinants of VAT (VAT law, VAT awareness, and VAT impacts) with the implementation of VAT in Oman. The study highlights the broad scope of VAT in Oman specially to remove VAT ambiguity among citizens. The study identified not only citizens believes on VAT but also each set of interviewees’ responses can be understood in different ways. The paper provides a path for strategic insights and practical thinking by software providers, accountants, managers, governments, and the general public. The study has shown that the majority of the respondents did not exactly know about the overall scope of VAT, intra sales and purchase between countries, input tax, output tax, and zero tax. Determinants of VAT law, VAT awareness and VAT impacts are not well understood, especially by micro, small and medium enterprises. But the majority of the respondents were ready to accept and agree that VAT impacts Oman’s GDP significantly.

ANALISIS PENERAPAN TAX PLANNING PAJAK PERTAMBAHAN NILAI (PPN) TERHUTANG

CV Arya has an uneven amount of VAT Payable in 2020, where each tax period tends to increase quite drastically. This is because the company has not been optimized in maximizing the input tax that can be credited so that the tax to be paid is quite large. This research is expected to be able to determine the factors that cause the company's VAT payable to fluctuate every month, to find out the strategies that can still be optimized in tax planning for VAT, as well as strategy tax planning the right so that VAT efficiency can be realized. The analytical method used is described using a quantitative approach. The types of data used are primary and secondary data. The results of the study indicate that the factors that cause VAT payable are very volatile because the company has not been optimized in maximizing its input tax. In addition, several strategies that are not optimized by companies for VAT are not yet optimal in Output Tax Efficiency Invoices, Lack of efficiency by Delaying Tax planning Input Taxes with Delaying Crediting Input Taxes and still making purchase of BKP/JKP to Non PKP. As for strategy tax planning the right so that the efficiency of Value Added Tax can be realized by purchasing BKP/JKP to PKP only.

Case Law Note: Protection of Taxpayers’ Personal Data and National Tax Interest: A Misstep by the European Court of Human Rights?

The relationship between taxpayers’ privacy, tax law, and tax assessments carried out by national financial administrations is extremely debated. It is because, at the base of every possible consideration, there would seem to be essentially one question: What is the limit to the achievement of the national tax interest? It is possible to imagine, in the era of digitization, that the disclosure of taxpayers’ personal data does not represent a limit to the taxation interest of the state both when this has the purpose of prevention of tax evasion or whether it involves the protection of commercial relations between economic operators? These are some of the questions that emerge from reading the Case of L.B. v. Hungary issued by the European Court of Human Rights (ECHR) on 12 January 2021. Here, in fact, the court considered the conduct of the Hungarian tax authorities that has materialized in the publication on its website of the personal data of Hungarian tax evaders compatible with the European Convention on Human Rights, and specifically with Article 8. VAT, deductions, input tax, expenditure, third parties, discontinued investments, case Mitteldeutsche, case Vos Aannemingen, case Sonaecom.

Case Law Note: Recent Trends In The Jurisprudence Of The Cjeu Regarding The Right To Deduct Input Tax

The Court of Justice of the European Union has recently delivered interesting judgements on the right to deduct input tax in relation to taxable persons’ investments. In those judgements, the court raises insightful arguments that may serve as guidance in determining whether a taxable person is entitled to an input VAT deduction in relation to construction work (consisting of an extension of a municipal road which was the condition to allow for mining activities) regarding services from which third parties would also benefit and concerning consultancy services relating to an intended, although unrealized, acquisition of shares. VAT, deductions, input tax, expenditure, third parties, discontinued investments, case Mitteldeutsche, case Vos Aannemingen, case Sonaecom.

The Impact of GST on Indian Economy

Abstract: In India, the idea of GST was contemplated in 2004 by the Task Force on implementation of the Fiscal Responsibility and Budget Management Act, 2003, named Kelkar Committee. The Kelkar Committee was convinced that a dual GST system shall be able to tax almost all the goods and services and the Indian economy shall be able to have wider market of tax base, improve revenue collection through levying and collection of indirect tax and more pragmatic approach of efficient resource allocation. Under the Goods and Service Tax , every person is be liable to pay tax on output and shall be entitled to enjoy credit on input tax paid and tax shall be only on the amount of value added. GST is a single national uniform tax levied across India on all goods and services. In GST, all Indirect taxes such as excise duty, central sales tax (CST)and value- added tax (VAT) etc. will be subsumed under a single regime. Introduction of The Goods and Services Tax (GST) expected as a significant step towards a comprehensive indirect tax reform in the country, which would lead India for its economic growth. The Proposed study is designed to know the impact on GST on Indian Economy with the Help of Its individual effect on different sectors. Under GST, goods and services fall under five tax categories: 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent. For corporates, the elimination of multiple taxes will improve the ease of doing business. And for consumers, the biggest advantage would be in terms of a reduction in the overall tax burden on goods. "Inflation will come down, tax avoidance will be difficult, India's GDP will be benefitted and extra resources will be used for welfare of poor and weaker section. The Lok Sabha has finally Passed the Goods and Services Tax Bill and it is expected to have a significant impact on every industry and every consumer. Apart from filling the loopholes of the current system, it is also aimed at boosting the Indian economy. Keywords: GST, Indian Economy, Positive Impact , Negative Impact, Central Government, State Government

Blocked Credit Under Section 17 (5) of CGST ACT, 2017: Is it Really Blocked?

Goods and Services Tax (GST) has successfully completed four years but still, it has many areas to be consolidated. Many frauds pertaining to input tax credit (ITC) under GST are being committed every year since 1st July 2017. We need to have comprehensive provisions under GST for making it flawless. One of the preventive measures is ‘blocked credit’ under section 17(5) of CGST Act, 2017. Indeed, blocked credit has been beneficial to the business concerns as it is being routed to direct tax for claiming deduction. This article explains the loopholes of blocked credit through accounting entries and discusses how blocked credit is not effective.

IMPLEMENTASI PERHITUNGAN PAJAK PERTAMBAHAN NILAI ATAS TRANSAKSI REKANAN PADA COFFEE 36 KAB. GOWA

The purpose of this study was to determine how the implementation of value added tax calculations on counterparty transactions at Coffee 36 Kab. Gowa. This type of research is descriptive quantitative research. Data collection techniques using literature study, observation, interviews and documentation. Data analysis techniques used data reduction, data presentation, and drawing conclusions. The results showed that the Implementation of VAT Calculation on Partner Transactions at Coffee 36 Kab. Gowa is only subject to VAT, namely Input Tax on the purchase of raw materials from its partners and the VAT collected should not be tax but service charge or commonly called service fee.

Analysis of Value-Added Tax Restitution on Exports at PT Rama global in 2019

PT Rama Global is a trading company that carries out preliminary restitution under certain conditions. The purpose of this paper is to find out how the preliminary restitution with certain requirements in the context of tax planning is carried out by PT. Rama Global, how are the obstacles faced in making tax refunds, and what efforts are being made to deal with these obstacles. The method used is a qualitative method with data collection techniques, namely interviews, observation, documentation, and triangulation. Based on observations, PT Rama Global is an export company that input tax is greater than the output tax. PT Rama Global chose to restitute the tax with preliminary restitution, but there will be some refunds that cannot be withdrawn, so PT Rama Global confirms the transaction with the counterparty.

Relations Between the Principle of Neutrality and Elements of Value Added Tax Structure

Abstract The principal of neutrality is a key principle of the European Union (EU) Value Added Tax (VAT) system. The concept of tax neutrality has a number of dimensions and meanings. The purpose of the article is to examine whether the principle of neutrality shapes the main elements of VAT structure, what concepts of tax neutrality are proper to shape each of those elements, and how the principle of neutrality affects each of those elements. The method adopted for the examination is a doctrinal method – analysis of the VAT Directive provisions (using a formal-dogmatic approach supported by analysing selected judgements of the Court of Justice of the EU) but without those that concern special rules. The study showed that the basic elements of the VAT structure such as the subject of taxation, object of taxation, tax basis, tax rates, exemptions, and conditions of payment are shaped in different manner and extent by the principle of neutrality. Tax neutrality in its basic sense (marked N1) has the strongest influence on basis of taxation (improper amount of the basis disallows shifting the tax forward onto the customer and regaining output tax to relieve the taxable person entirely from the burden of the VAT) and obviously it influences the right to deduct input tax likewise in the tax period (term of refund). Tax neutrality in another sense (marked N2) by demanding equal treatment, affects such VAT elements as subject and object of taxation, exemptions and rates. Tax neutrality in the broadest sense (N3), as a term consisting of N1 and N2, concerns all the elements of VAT.

Prawo do odliczenia podatku naliczonego w przypadku usług noclegowych i gastronomicznych po 1 stycznia 2021 r.

This article deals with an issue of a possibility of deducting VAT on the overnight accommodation and catering services. The right to deduct an input tax is undoubtedly a basic right of a VAT taxpayer. However, in case of these types of services, this right is significantly limited. In this context, the legal solutions adopted by the Polish legislator have been arising numerous controversies. This article presents and analyzes the current structure of the right to deduct an input tax on the overnight accommodation and catering services, taking into account the ruling issued by the Court of Justice of the European Union in this respect and the legislative changes introduced on 1 January 2021.

Goods and Services Tax: Benefits and its Impact on Indian Economy

The Goods and Services Tax, or GST, took effect on July 1, 2017. The new tax system was designed to replace all current indirect taxes with a single, comprehensive tax. The Products and Services Tax (GST) is a consumption tax imposed on goods and services depending on their final destination (Bhushan Satya). Simply said, GST is a single tax that applies to the delivery of goods and services from the producer to the end user. In a nutshell, it's a tax imposed solely on value addition, with input tax credits transferred to successive stages of value addition, implying that the ultimate tax burden would fall on the end user of products or services. The anticipated advantages of implementing the GST are that it would decrease the cascading impact of taxes, i.e. it will eliminate tax on tax. It was also anticipated to stimulate demand for products and the elimination of a number of indirect taxes such as VAT, CST, Service tax, CAD, SAD, and Excise, among others, which would help to improve the Indian economy in the long term. This paper tries to highlight the cost and benefits bear by the economy due to implementation of the GST. The paper also tries to find out the expected rate of growth of economy after the GST. Finally, the study tries to conclude that how it would be disrupted and benefits the economy in the long run.

Practical Issues in Input Tax Credit

Practical Issues in Input Tax Credit

Public input and business tax competition in local communities in Brazil

Public input and business tax competition in local communities in Brazil