Input VAT carried forward or refund
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The situation
Excess input VAT is carried forward to the next period. A refund can be asked for at year end or under special rules.
The law
- Art 9, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: Input VAT is credited against output VAT in the same period; excess can be carried forward or refunded at year end
- Art 3, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: Returns are due 20 days after the month for most monthly returns, end of the next month for VAT, 3 months after year end for individuals and 4 months for companies; annual returns can be extended by up to 2 months
What it means for you
Refunds often lead to an audit. Some low risk taxpayers can get a quicker refund. Exporters often have regular overpayments. Example: IDR 50 million credit at year end can be refunded or carried forward.
What to do
- Check the credit is right.
- Decide carry forward or refund.
- Prepare documents.
- Expect a review.
A refund request can open an audit of all taxes.
We can do this for youMonthly VAT return and e-Faktur in Coretax: output and input VAT, the 11/12 base and payment: IDR 2.900.000