OVERVIEW OF ADDED VALUE-ADDED TAXES IN CONNECTION WITH COVID-19 VIRUS PLAGUE: VAT FACILITIES OR TAX INCENTIVES?

Abstract

This study aimed to explain how the PMK-28 / PMK.03 / 2020 applies, relating to the PPN DTP as a VAT facility or incentive. There is a confusion between the understanding of VAT facilities based on the VAT Act and the PPN DTP incentives. Nevertheless, the researchers tried to explain the government's reasons for providing VAT incentives. This research using a literature study data collection method. The analytical method used is a qualitative descriptive approach. The results showed that the application of PMK-28 / PMK.03 / 2020 was based on the government's rapid initiative in tackling the Covid-19 outbreak. Research indicates that PPN DTP incentives are not included in the facilities regulated by the VAT Law. However, the granting of this incentive tries not to violate the rules governed by the VAT Law. It can be seen by the mechanism of PK-PM still running, even though the government bears the burden of PK. In this study, it can be concluded that the application of PMK-28 / PMK.03 / 2020 is the provision of tax incentives and not VAT facilities, as stipulated in the VAT Law.