Input Tax Research Articles

Effect of Electronic Tax Invoice Management System on Value Added Tax Compliance Among Tented Camps in Narok County, Kenya

Purpose: Value Added Tax (VAT) compliance is a critical aspect of revenue collection for governments worldwide; however, it has encountered various challenges, the most prevalent being verifying input tax claimed by taxpayers when filing VAT returns. The main objective was to examine the effect of electronic Tax Invoice Management System on Value added tax compliance among tented camps in Narok County. The theory that supports the study was Diffusion of Innovations Theory. Methodology: The study employed explanatory research design, with a target population of 150 tented camps in the Masai Mara National Reserve, out of these, 122 respondents successfully completed and returned the questionnaires, resulting in a response rate of 81.3%. The data was collected through a structured questionnaire. Results: The study found that ETIMs positively and significantly affect VAT compliance β =0.236 p-value =0.012<0.05. Conclusion: The study recommended that The KRA should enhance the Electronic Tax Invoice Management System (ETIMS) to improve VAT compliance among tented camps in Narok County. Future research should be conducted on the effects of taxpayer behavioural factors on VAT compliance.

Navigating the Intersection of Input Tax Credit Restrictions and Corporate Social Responsibility in India

CSR is an important dimension of ethical and sustainable business practices, recent restrictions in the input tax credit under the GST regime pose important issues in the implementation of CSR. The article estimates the financial, operational, and reputational implications of the restrictions on ITC for the CSRs, calling on firms to adapt and innovate. They are strategies crucial for dealing with challenges concerning financial planning, prioritizing of only those initiatives with the best impact, collaboration, and advocacy can be done. Several strategic approaches can be applied by business to operate with the ITC provision on restrictions for CSR spending such as, enhanced financial planning, collaborative efforts, Innovating on CSR Approaches, Advocacy and Policy Engagement, Stakeholder Engagement and Communication, Business Strategy Integration with CSR, Diversification of Alternative Revenue Streams. Despite constraints in the regulatory environment, the commitment to CSR is very high, and it therefore brings about a positive influence on Indian society and sustainable development. The finding demonstrates that business implementing strategies for navigating ITC restrictions not only mitigate the financial strain due to ITC restrictions but also enhance operational efficacy to maintain competitive edge, improve financial health and strategic position.

Eligibility of Litigation on Re-assessment for Separate ‘Tax Amount’ Reducing the Tax Amount to be Paid and Related Issues ― Focusing on Deduction of Input Tax under the Value-Added Tax Act and Loss Carryover under the Corporate Tax Act ―

Eligibility of Litigation on Re-assessment for Separate ‘Tax Amount’ Reducing the Tax Amount to be Paid and Related Issues ― Focusing on Deduction of Input Tax under the Value-Added Tax Act and Loss Carryover under the Corporate Tax Act ―

ANALYSIS OF ADDITIONAL TAX CALCULATION AND REPORTING VALUE ADDED TAX (VAT) AND ITS IMPACT ON REPORT PRESENTATION FINANCE

This research aims to determine whether the Value Added Tax (VAT) Calculation and Reporting is by the provisions of the applicable Tax Law and financial accounting standards and to analyze its effect on the Financial Reports at PT. Kalaborang Residence. The findings of this research are significant as they provide insights into the compliance of PT. Kalaborang Residence with the tax laws and financial accounting standards, and the practical implications of VAT on the company's financial statements. Kalaborang Residence. Samples and indicators are taken from the company's profit and loss report and balance sheet. The research method used in this research is the qualitative approach. Data was obtained from interviews, observations, and documentation related to the problems studied. The data obtained was then analyzed using interactive methods. Based on the research results of VAT Calculation and Reporting. PT Kalaborang Residence is by Law Number 42 of 2009 and Harmonization of Taxation Regulations Law Number 7 of 2021, using rates of 10% and 11% by calculating output tax minus input tax; there is no delay in depositing and reporting the company has used e-Annual Tax Returns so that you are not late in reporting every VAT period—the impact of Value Added Tax on the presentation of PT's financial statements. Kalaborang Residence has no impact because its End User is only an intermediary for its financial reports. If seen theoretically, PT. Kalaborang Residence, as a Taxable Entrepreneur, is required to report its taxes in the financial reports contained in the Profit and Loss Report and Balance Sheet Report. From the results of observations made by researchers in the field during that period, there was no VAT that could not be credited to the PT's Profit and Loss Report.

Application Of Vat Calculations, PPh Article 22, and PPh Article 23 On the Procurement of Goods/Services

The Lagadar Village Office still uses a manual approach to calculate taxes on acquiring goods and services. This condition involves using a calculator and recording the calculations in a notebook. Consequently, the Treasurer frequently made errors while performing computations, whether misclassifying the tax type or inaccurately incorporating the tax rate. Moreover, the requirement to input tax computation data again before printing creates a challenge for the Treasurer in locating the necessary information in the notebook for monthly reporting to the leadership. Hence, there is a requirement for a system that can simplify the Treasurer's task of calculating and summarizing the tax data. This project aims to develop apps that can accurately compute value-added tax, income tax 22, and income tax 23 for the acquisition of goods and services. The employed research methodology is the descriptive research method. The system development method employed is the Object-Oriented Analysis and Design (OOAD) model system development method. The system design employs a web programming language integrated with the Codeigniter framework, utilizes a MySQL database, and employs the Visual Studio Code text editor for development purposes. A research study has led to developing an application at the Lagadar Village Office. This application, designed to calculate Value Added Tax, Article 22 Income Tax, and Article 23 Income Tax for procuring goods and services, is a significant step towards more efficient tax calculations. Its purpose is to assist the Treasurer in efficiently calculating, collecting, recording, and reporting tax calculation data, ensuring accurate and organized records in the system. Research-based recommendations for further development of the application include the creation of an application landing page that provides information on taxation. This will enable application users to stay updated on the latest government regulations pertaining to taxation, particularly for Village Offices. This application not only simplifies the Treasurer's tasks but also ensures accurate and up-to-date tax calculations, instilling a sense of optimism for the future of tax management at the Lagadar Village Office.

SMOOTHER OR BUMPIER RIDE? A STUDY ON TAXPAYER EXPERIENCES WITH COST OF SERVICE AFTER THE GST ROLLOUT

This study explores taxpayers perceptions of the costs of service within the logistics industry after the implementation of Goods and Services Tax (GST). The study showed a significant difference in taxpayers perceptions of service costs across geographical locations and annual turnover. The researchers employed a descriptive research design to examine taxpayers perceptions of service costs post-GST implementation. Convenient random sampling was utilized to ensure a representative sample across various demographic segments. Quantitative data was collected and analyzed using statistical techniques, notably ANOVA, with SPSS software facilitating efficient analysis. While rural areas tend to perceive an increase in service costs, urban areas generally report a reduction. Factors contributing to changes in service costs were analyzed, with increased compliance costs identified as a significant driver of elevated expenses. Conversely, simplifying the input tax credit process effectively reduced service costs. The study aims to offer valuable insights into the impact of GST on the logistics sector by examining taxpayers perceptions of service costs. KEYWORDS: Goods and Services tax, taxpayer perception, cost of services, logistics industry.

Deductibility of input tax on share issue costs in the context of the broad taxation principles

Purpose: The purpose of this article is to determine whether input tax on share issue costs incurred should be deductible, in consideration of the broad taxation principles of neutrality, efficiency, flexibility, certainty and simplicity and effectiveness and fairness. Motivation: Share issue costs incurred by companies to raise capital may be large amounts. The denial of input tax deductions on share issue costs incurred adds an additional 15% to taxpayers’ cost to raise capital. Design/Methodology/Approach: A doctrinal research methodology was employed to evaluate the deductibility of input tax on share issue costs incurred in the context of the broad taxation principles. Main findings: This article found that the current denial of input tax on share issue costs incurred does not enhance the broad taxation principles of neutrality, efficiency, certainty and simplicity and effectiveness and fairness. Practical implications: It is suggested that SARS and National Treasury consider a specific deduction for input tax on share issue costs incurred. Novelty/Contribution: This article considers the denial of input tax on share issue costs incurred and whether it enhances or detracts from the broad taxation principles. It is the first study to consider the broad taxation principles in the context of share issue costs.

A Brief Analysis of the Practical Issues on Input Tax Irrecoverable in Mainland China

A Brief Analysis of the Practical Issues on Input Tax Irrecoverable in Mainland China

금사업자, 스크랩등사업자에 대한 조세특례 제도의 일몰(日沒) 종료에 따른 시사점과 법적 문제

The Act On Restriction On Special Cases Concerning Taxation has established the ‘Special Taxation for Payment of Value-Added Tax by Purchasers of Gold-Related Products, Scraps’ to fundamentally prevent tax evasion and disrupt the market's trading order, and also created a ‘Deduction of an input tax amount for scraps, etc.’ to expedite the settlement of the Special Taxation for Payment of Value-Added Tax by Purchasers. This entails deducting the tax amount for the increase in import amounts, etc. Although this Deduction of an input tax amount for scraps, etc. sunsetted on December 31, 2023, after termination by the sunset clause, it is considered necessary to improve the ‘Special Taxation for Payment of Value-Added Tax by Purchasers of Gold-Related Products, Scraps’ itself to ensure the continued promotion and maintenance of trade activation in the gold and scrap markets through value-added tax payer payments. It is necessary to induce smooth taxpayer cooperation by improving the system in the direction of reducing taxpayer cooperation costs. As specific improvement measures, suggestions include: ① reducing the difficulty of account management by assigning dedicated accounts by target business rather than item-specific accounts as current practice, ② limiting the compulsory use of dedicated transaction accounts to pay the value-added tax amount, without forcing the deposit of product values, and ③ proposing flexibility in the value-added tax payment date by not mandating the deposit of the value-added tax amount until the day after the date of supply.

Economic Implications of the Nationally Determined Contribution (NDC) of Vietnam: A CGE Analysis with Capital-Energy Substitution Elasticities Estimated Using Firm-level Data

Purpose - The purpose of this paper is to assess the economic implications of Vietnamese Nationally Determined Contribution (NDC) targets towards emission reduction. Design/Methodology/Approach - We devised four scenarios corresponding to economy-wide emission reduction targets and sector targets specified in the most up to date NDC of Vietnam and the NDC technical report. The scenarios were then simulated in a CGE framework to reveal how important economic indicators and welfare change relative to baseline scenarios in 2030. The capital-energy substitution elasticities of 24 Vietnamese sectors were also estimated using a nested CES production function and used for model calibration. Findings - The results indicate that the coal mining sector undergoes a significant decline in output in response to the imposition of emission reduction schemes. Outputs of sectors with high capital-energy substitution elasticities such as non-metallic mineral, metal, and agriculture are more resilient to mild restriction policies compared with sectors with low elasticities. Imposing a moderate economy-wide restriction might lead to slight improvements in GDP and welfare. Under aggressive emission policies, the CGE model predicts major trade shifts in key export sectors, including electronics, electrical equipment, and machinery, and losses in allocative efficiency due to reduced input tax revenue. Research Implications - We recommend excluding the coal mining sector from NDC, providing short-term tax cuts or cost subsidies for exporting industries under aggressive sector-specific emission policies, and imposing a carbon tax on sectors insensitive to emission restrictions to offset the loss in tax revenue.

Analysis of the Application of Value Added Tax Calculation and Reporting at PT. Darpadina Sumber Abadi (DSA) in 2022

This research aims to analyze the implementation of VAT calculations, deposits, reporting and recording at PT. Darpadina Sumber Abadi 2022 and its conformity with the Law on Harmonization of Tax Regulations (UU No.7 of 2021), Minister of Finance Regulation number 63/PMK.03/2021, and Minister of Finance Regulation number 63/PMK.03/2021 and also the principles applicable accounting. The analysis in this research uses qualitative methods with descriptive observations that collect and analyze the condition of subjects or objects in the form of institutions based on evidence and facts from research subjects. The data used consists of the 2022 Period VAT SPT, 2022 Input and Output Tax Invoices, and the 2022 Recording Journal. Calculation and reporting of PT Value Added Tax. Darpadina Sumber Abadi is in accordance with applicable laws. From the calculation results, PT Darpadina Sumber Abadi experienced an underpayment because the Output Tax was greater than the Input Tax. If there is an underpayment, PT Darpadina Sumber Abadi will make a deposit at the end of the following month

Correction of Input Tax Deduction Method in Business Tax for Dual-Status Business Entities: Comment for Supreme Administrative Court Judgment Pan No.550 (2018)

Correction of Input Tax Deduction Method in Business Tax for Dual-Status Business Entities: Comment for Supreme Administrative Court Judgment Pan No.550 (2018)

CORPORATE TAXATION THROUGH THE INDIAN PRISM: CONSEQUENCES OF GST AND DTC

The Indian taxation landscape has witnessed significant reforms in recent years, with the introduction of the Goods and Services Tax (GST) and proposed changes in the form of the Direct Tax Code (DTC). This comprehensive analysis explores the dual facets of these reforms and their consequential impact on corporate taxation in India. The study encompasses a detailed examination of the implications of GST implementation and the potential effects of the impending Direct Tax Code on corporate entities. The Goods and Services Tax (GST) was introduced in India in July 2017, heralding a paradigm shift in the taxation system by replacing multiple indirect taxes. Simultaneously, the Direct Tax Code (DTC) has been proposed as a comprehensive reform of direct taxes, aiming to simplify and rationalize the existing tax structure. This analysis delves into the impact of these reforms on corporate taxation, considering the intricate interplay between indirect and direct taxes. The implementation of GST streamlined the indirect tax system, reducing cascading effects and enhancing overall tax efficiency. This, in turn, has had a direct impact on corporate taxation by simplifying compliance procedures and reducing the burden of multiple taxes on businesses. The analysis explores how these changes have contributed to increased tax compliance among corporate entities. GST introduced the concept of Input Tax Credit (ITC), allowing businesses to offset taxes paid on inputs against their final tax liability. This section assesses how the availability of ITC has influenced cost management for corporations, promoting a more transparent and efficient taxation system. The GST regime prompted corporations to reevaluate their supply chain structures to optimize taximplications. The analysis investigates how companies have adjusted their operations to align with the GST framework, leading to improved logistics, reduced lead times, and cost savings. The proposed Direct Tax Code envisions revisiting tax slabs and rates, potentially altering the corporate tax landscape. This section examines the anticipated impact of changes in tax rates on corporate entities, exploring the implications for businesses of varying sizes and sectors. The DTC proposes a reevaluation of existing tax incentives and deductions. The study analyzes the potential impact on corporate decision-making, investment patterns, and overall economic growth. It delves into the implications for sectors currently benefiting from specific incentives. The DTC aims to align international taxation principles with global standards, impacting the taxation of multinational corporations operating in India. The analysis assesses the potential challenges and opportunities for such entities, considering the implications for transfer pricing and cross-border transactions.

ANALISIS PERHITUNGAN, PENYETORAN DAN PELAPORAN PAJAK PERTAMBAHAN NILAI PADA PERUM BULOG KANTOR WILAYAH SUMATERA SELATAN DAN BANGKA BELITUNG

The purpose of this study is to find out how the calculation, deposit, and value added tax report at Perum BULOG South Sumatra and Bangka Belitung regional offices and their compliance with Law No. 42 of 2009 and generally applicable tax accounting principles. The writer used descriptive method. The research was conducted at Perum BULOG South Sumatra and Bangka Belitung regional offices as a taxable company. Data obtained were data of value added tax, output tax invoice, input tax invoice of 2021. The research result showed that Perum BULOG South Sumatra and Bangka Belitung regional offices had cconducted the calculation procedure, deposit, and value added tax report according to UU No. 42 of 2009. Nevertheless, there was a difference because of the rounding using government’s system. The recording was in accordance with generally accepted accounting requirements.

Dampak UU Harmonisasi Peraturan Perpajakan Terkait Perlakuan PPN Perusahaan Pertambangan

Regulations regarding Value Added Tax (VAT) have undergone changes with the enactment of Law No. 7 of 2021 on Tax Regulation Harmonization. One of the changes in the Tax Regulation Harmonization Law is the change of coal from non-taxable goods to taxable goods. This change will have an impact on the additional reporting obligations and the burden of collecting VAT on coal companies. In terms of input tax credit, companies can choose either to be credited to reduce output tax or to be charged, thus reducing the company's profits. PT XYZ is a private company engaged in the coal mining sector. The data used in this study are primary data in the form of interview results and secondary data in the form of documentation related to the imposition of coal as a taxable good. This study provides an overview that changes in the treatment of coal from non-taxable goods to taxable goods have an impact on the company's financial performance. With the inclusion of coal as taxable goods, companies must adjust their tax management whether to credit input tax or finance their input tax.

GOODS & SERVICES TAX (GST) AND ITS IMPLICATIONS FOR SMALL BUSINESSES: A DHULE DISTRICT PERSPECTIVE

The present study examines the implications of the Goods and Services Tax (GST) on small businesses in Dhule district, with a focus on comparing businesses with turnovers up to 1 Crore and those between 1 to 5 Crores. The primary objective is to explore whether there are significant differences in perceptions of GST's impact across various business aspects. A structured questionnaire based on a 7- point Likert scale was used to collect primary data from 100 small businesses. The responses were analyzed using independent samples t-tests to test the hypothesis that businesses with different turnover levels perceive the impact of GST differently. The results showed no significant differences in the perceptions of GST between the two groups for any of the variables. Key business aspects assessed included the simplification of the tax process, administrative burden, cash flow, input tax credits, and overall costs. The findings suggest that small businesses, irrespective of their turnover size, share similar views on GST's effects on their operations. Consequently, the study concludes that GST has a uniform impact on small businesses within the turnover categories analyzed.

Impact of GST on MSMEs: A Critical Assessment of Rajasthan State

Goods and Services Tax (GST) 2017 implement in India with the vision of simple indirect tax structure and enhance economic growth. However, its impact on micro, small and medium enterprises (MSMEs) has been a topic of concern. This critical assessment study focuses on the impact of GST on MSMEs in Rajasthan State (Pareek & Sharma, 2019). The study adopts a mixed-method approach, including a survey of 200 MSMEs and in-depth interviews with 20 industry experts and government officials. The study found that the implementation of GST has resulted in several benefits for MSMEs, such as simplification of tax procedures, increased efficiency in logistics and reduced corruption. However, MSMEs have also faced several challenges such as increased compliance costs, a lack of awareness about GST and issues related to the availability of input tax credit. Indian government must take proactive measures to educate MSMEs about the GST and simplify compliance procedures (Antonyraj & Kumar, 2023). It also recommends that policymakers should revisit the GST structure to make it more MSME-friendly. Overall, this study provides insights into the impact of GST on MSMEs and highlights the need for ongoing assessment and policy reform to ensure the long-term sustainability of these enterprises (Choudhary, 2019).

A Digital World: Role of Electronic Invoice for Personal Taxpayer Compliance

The digital world has inevitably entered various fields of human life in carrying out their duties as world leaders. Technology is an important tool to ease the human workload, including in this discourse is human resource management. This study aims to reveal the perceptions of Taxable Entrepreneurs (PKP) and the Tax Service Office (KPP) on the implementation of e-invoicing and the impact of e-invoicing on taxpayer compliance. The focus of this research is to reveal PKP's perception of the implementation of e-invoicing from the aspects of inputting, data processing, and output. KPP perceptions from the aspects of tax administration and tax evidence, and taxpayer compliance assessed from the aspects of calculation, deposit and reporting. This research is qualitative research with a case study approach. Data analysis is carried out interactively starting from data collection, data reduction, data presentation, and conclusion drawing. According to PKP, the advantages of e-invoicing are more efficient processing time, more accurate tax calculation results, easier and safer storage because it has a QR code, but the weaknesses of e-invoicing are repetitive work in inputting input tax values, the system is not yet able to read invoice codes and the application is vulnerable to viruses. According to KPP, the application of e-invoicing is very helpful for the tax office in fully controlling in real time all tax invoices uploaded and reported by PKP. From the research results, there is not enough evidence that e-invoicing has an impact on improving taxpayer compliance, especially in tax calculations. According to the Tax Office, the application of e-invoicing can improve taxpayer administrative compliance in terms of calculating, depositing and reporting so that tax revenue will be increased

Navigating Complexity: The Complexities in Taxing the Unorganised Sector Under GST

This article goes into the complex web of issues related with taxing the unorganised sector under the Goods and Services Tax (GST). The unorganised sector, due to its diversity and informal nature, presents unique challenges for successful tax assessment and compliance. The study delves into major aspects of this complexity, such as the lack of formal paperwork, the frequency of cash transactions, a lack of awareness, and the varied range of enterprises in the sector.The paper investigates the limited access to input tax credits, examining how this challenge impacts the cost structures of businesses operating in the unorganised sector, drawing attention to the difficulty in assessing income due to irregular patterns and informal transactions.

Input VAT Recovery On Share Sales And Other Fundraising Costs: Is The Direct And Immediate Link Test Modified?

It is trite law that Value Added Tax (VAT) paid on purchased goods or services is only recoverable as input tax if there is a direct and immediate link to a taxable activity. VAT paid on advisory services relating to a VAT-exempt share sale would therefore prima facie not be deductible. The United Kingdom (UK) courts and tribunals however now claim to have found an exception to that principle in the case-law of the Court of Justice of the European Union (CJEU) insofar as fundraising is concerned: Rather than the nature of the exempt fundraising transaction itself, it is allegedly the purpose to which the raised funds are applied which determines input tax deduction – exceptionally, even direct use for an exempt transaction has then no chain breaking effect, i.e., the effect that an exempt transaction breaks the chain between a supply and the taxable person’s taxable economic activities (See UKUT Commissioners for His Majesty’s Revenue and Customs v. Hotel La Tour Ltd [2023] UKUT 178 (TCC), para. 64.). The present contribution seeks to investigate the merits of this view, and whether it is one that the CJEU should also endorse. VAT, Input Tax, Deduction, Deal Costs, Fundraising, Direct and Immediate Link, SKF