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Jakarta, Ideatax -- Transactions or buying and selling activities in the realm of taxation are not something new. However, perhaps the term Deemed VAT sounds foreign to some people. This is a tax rule that has significant implications for every business transaction.
An in-depth understanding of tax regulations is very important, especially for business people. Because this is an aspect that affects the continuity of their business, and can affect the amount of tax burden they have to bear.
So, if you are an entrepreneur, make sure you read this discussion to the end.
What is Deemed VAT?
Deemed Value Added Tax (VAT) is a guide to calculating creditable input tax. In buying and selling transactions, there is VAT that must be paid including receipt of services, purchase of goods, imports, and use of goods/services from outside the customs area.
Taxes that have been paid become costs for buyers or users of goods/services. They can claim back the VAT amount in the same tax period. If a situation occurs where a claim cannot be made immediately, it can be made in the next tax period.
This tax claim must be made no later than 3 months after the end of the tax period. However, make sure that the tax is not considered an expense and has not been examined by the Director General of Taxes. Apart from that, tax claim procedures must follow the rules stated in the VAT Law.
The Impact of VAT in Deemed on Business
With the implementation of Deemed's VAT policy, it will certainly have an impact on businesses, including:
1. Effect on Tax Costs
The implementation of deemed tax will result in a final Value Added Tax (VAT) of around 2% -5%. This will increase the tax burden for retail businesses.
2. More Efficient Supervision
In addition, the use of Deemed Tax and Cash Register can also be an effective tool for tax authorities, to monitor transactions without requiring expensive intensive supervision.
3. Prevention of Fictitious Tax Invoices
This policy aims to reduce cases of issuing fictitious tax invoices which often occur, especially among small and medium businesses such as building materials stores.
4. Turnover Limit Adjustments
Currently, it is in the study stage regarding the possibility of adjusting the turnover limit to apply deemed tax, especially for businesses with a certain turnover.
So, that's the overview regarding Deemed VAT. Understanding this discussion is very important for effective tax management. And now, you have a more solid foundation for understanding these regulations, but don't let VAT on Deemed become an obstacle in your business journey.
To deal with the complexity of taxation, you can get tax assistance and consultation through Ideatax. With the support of experienced tax experts, you can carry out business transactions more confidently and efficiently, and optimize the tax benefits you can get.
Don't let Deemed VAT burden your business and find the solution with Ideatax now!
