CHAPTER II

LITERATURE REVIEW
2.1

Tax
The definition or understanding of tax according to Rochmat Soemitro in
Mardiasmo (2011:1):
Pajak adalah iuran rakyat kepada kas negara berdasarkan
undang-undang (yang dapat dipaksakan) dengan tiada mendapat
jasa timbal (kontraprestasi) yang langsung dapat ditunjukkan dan
yang digunakan untuk membayar pengeluaran umum
Definition or understanding of tax according to Diana, Anastasia and
Setiawati, Lilis (2009:1) :
Pajak adalah kontribusi wajib kepada negara yang terutang oleh
orang pribadi atau badan yang bersifat memaksa berdasarkan
Undang-Undang, dengan tidak mendapatkan imbalan secara
langsung dan digunakan untuk keperluan negara bagi sebesarbesarnya kemakmuran rakyat

From the definition above, it can be concluded that tax is the contribution
from people to the state treasury under the law (which can be enforced)
with no fringe benefit, which can be directly demonstrated and used to
pay for general expenses.

According to Mardiasmo (2011:2) from the definitions above, it can be

concluded that tax has elements such as:
1. Tax collection should be fair (Terms Justice)
In accordance with the purposes of the law, to achieve the justice,
law, and the implementation of polling should be fair.
2. Tax collection should be based on the law (Terms Juridical)
In Indonesia, the tax is regulated in UUD 1945, article 23,
paragraph 2. This gives a law guarantee to declare of law, neither
the state nor its citizens.
3. Not disturbing the economy (Economic Terms)
Tax collection should not interfere the operation of the production
and trade, so that it doesnt cause of the public economic
downturn.
4. Tax collection should be efficient (Financial Terms)
Based on budgetair function, the cost of tax collection must be
suppressed much lower than the results that are collected.
5. Tax collection system should be simple
A simple collection system will make it easier and support the
public to fulfill their tax obligations. This requirement has been
fulfilled by the new tax laws.

2.1.1 Functions of Tax

Taxation is a source of state revenue that has two functions
(Mardiasmo, 2011:1) as follows:
1. Budget function (Budgetair)
As a source of funds for the government, to fund expenditures.
2. Set function (Regulerend)

As a means of implementing government regulators in the field

of social and economy.
2.1.2 Tax Collection System
There are 3 (three) tax collection systems according to Mardiasmo
(2011:7) that are :
1. Official Assessment System
Official Assessment System is a collection that gives an
authority to the government to determine the amount of payable
tax:
The characteristics are:
a) The authority determines the amount of payable tax on
the fiskus
b) The Tax payers are passive
c) The tax debt arising after the tax assessment letter is
issued by the fiskus
2. Self Assessment System
Self Assessment System is a system that authorizes the
taxpayers to determine themselves the amount of payable tax:
The characteristics are:
a) Authority determines the amount of tax payable on the
taxpayers own existing
b) Active taxpayers, starting from counting, depositing and
reporting tax payable
c) Fiskus does not intervence and control
3. Withholding System
Withholding System is a voting System that gives authority to a
third party (not the fiskus and not the taxpayer) to determine the
amount of tax payable by the taxpayer.
The characteristic is that the authority determines the amount of
tax payable that is a fiskus and the taxpayers themselves.
2.2

Tax Invoice

The definition of tax invoice Mardiasmo (2009:288) is:

Faktur Pajak adalah bukti pungutan pajak yang dibuat
oleh Pengusaha Kena Pajak yang melakukan penyerahan
Barang Kena Pajak yang digunakan oleh Direktoran
Jenderal Bea dan Cukai. Setiap Pengusaha Kena Pajak
yang melakukan penyerahan BKP dan atau JKP wajib
membuat Faktur Pajak
From the definition above, it can be concluded that Tax invoice is a
proof of tax collection made by taxable firm to handover taxable
goods used by General Directorate of Customs and Excise. Every
taxable firm is conducting to taxable services handover obliged to
make a tax invoice.
Definition of tax invoice (of Article 1 paragraph 23 of Legislation
Number 18 of 2000) :
1. Proof of withholding tax (VAT / VAT Luxury Goods) which is
made by the taxable firms which are taxable goods handover/
taxable services, or
2. Proof of withholding tax (VAT / VAT Luxury Goods) because
imports taxable goods which are used by the Directorate of
General of Customs and Excise.
2.2.1 Types of Tax Invoice
According to Diana, and Setiawati (2009:288) Tax Invoice
can be such as:
a) Standard tax invoice
In the standard tax invoice it should be included the
information about taxable goods handover or taxable
services handover:
1. Name, address, NPWP that are taxable goods
handover or taxable services

2. Name, address, NPWP buyer of taxable goods or

receiver taxables services;
3. Type of goods or services, amount of sales price or
excavation and discounts;
4. VAT which is levied;
5. Luxury VAT which is levied;
6. Code, serial number, and the date of manufacture
tax invoice; and
7. Name, title, and signature who authorize to sign the
tax invoice.
Tax invoice is a evidence of tax collection and can be
used as a means for crediting input tax. Therefore, the
tax invoice must be true, both formally and materially.
b) Combined tax invoice
To ease administrative burden, the taxable firm is
allowed to make a tax invoice which includes all
taxable goods or taxable services handover which
happens during one month to the buyer or taxable
service receiver which is the same.
c) Simple tax invoice
Simple tax invoice is also evidence of tax levies which
are made by the taxable to accomodate activities of
taxable goods or handover taxable service which is
made directly to the final customer.
d) Certain documents which are stated as standard tax
invoice by the directorate of general of tax.
Certain documents which are treated as standard tax
invoice must at least include:
1. Identity which issues documents;
2. Name and address of the document receiver;

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3. NPWP in terms of the receiver of the document is

as a domestic taxpayers
4. Amount of units of goods, if any;
5. Basis of tax imposition;
6. Amount of tax which is payable except in the terms
of export.
As long as they fulfill the requirements listed above, the
documents below can be treated as a standard tax invoice:
1. Notification of imported goods (PIB) which is attached
the taxpayment and or a proof of collected tax by the
general directorate of customs and excise of imports
taxable goods;
2. Notification of exported goods (PEB) which has been
issued by an authorized officer of the general directorate
of customs and excise and attached with invoice which
is inseparable unity with the PEB;
3. Letter of handover goods (SPBB) which is issued by
BULOG/DOLOG for distribution of wheat flour
4. Invoice of memorandum bon (PNBP) which is issued by
Pertamina for handover fuel and not a fuel;
5. Sign
of
payment
or
receipt
for

handover

telecommunication services
6. Tickets, air cargo letter bill (Airway Bill) or handover bill,
which is made for handover of domestic air transport
services;
7. Tax deposit for payment of VAT on the utilization of
taxable goods
8. Memorandum of sale of services which is issued for the
handover of port services;
9. Sign of payment or electric bill

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2.2.2 Replacement / Correction standard tax invoice

Based on the regulation General Directorate of Taxes in
2013, invoice that is missing can be done following this
way :
1. Replacement Standard Tax Invoice missing
a. Taxable Firm buyers submits a written request to the
Taxable Firm seller with a support to the head of tax
service office, a place that taxable firm buyers and
taxable firm seller gazettes as a taxable firms.
b. Based on the written request of the taxable firm
buyer, taxable firm seller creates a copy of the tax
invoice which is stored for legality by tax service
office, a place that taxable firms seller gazettes.
c. Legalized provided by tax services office a place that
taxable firms seller gazetted after examining SPT
Masa PPN from the taxable firms.
d. Tax services office a place that taxable firm gazettes,
shall conduct research on SPT Masa PPN of PKP
buyer, whether the missing reported tax invoice has
been credited as input tax or not
2. Standard Tax Invoice Correction is damaged or
defective or wrong in filling / writing
a. It can be replaced by taxable firms sellers who
make standard tax invoice as a replacement.
b. It is not allowed by deleting or crossing out or in
any other way.
c. Issuance of substitute tax invoice which is
implemented as an ordinary standard tax invoice.
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d. Standard tax invoice substitute filled based on the

information which should be filled and attached
with standard tax invoice which is damaged or
defective or wrong in writing / filling.
e. Standard tax invoice substitute stamped that
includes the serial number, code and date of tax
f.

invoice which is replaced.

Standard tax invoice substitute reported in SPT
Masa VAT at the tax period which is the same as
the tax period that is reported standard tax invoice

which is substituted.
g. Issuance of standard tax invoice substitute results
in the obligation to correct SPT Masa VAT on the
occurrence

of

manufacturing

fault

of

these

standard tax invoice.

2.2.3 Procedure how to report tax invoice

To be able to get a tax invoice number employer should :
1.

Submit a letter of request activation code and

password to the local tax office. If it is approved, the
activation code and password will be given to the
employer before. The activation code will be sent by
post and the password will be sent via email.
Therefore, the address of the taxpayer becomes
important to be updated so that the activation code
letter is not misdirected. Employers are also expected

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that has had an email and be able to use it, because it

will play a role in the delivery of email password by tax
authorities.
2. Submit a request code and serial number of tax invoice
that addressed to the tax office where it is registered.
Tax

invoice

number

will

be

given

after

the

entrepreneurs at the same time enter the activation

code and passsword to the tax office computer. After a
given the number, then the employer is able to transact
freely and collect VAT 10% (ten percent) from the
counterparty.
2.3

Value Added Tax (VAT)

According to Mardiasmo (2008:270) in his taxation book, Value Added Tax
(VAT) is:

Pajak Pertambahan Nilai adalah pajak yang dikenaka pada

setiap kenaikan nilai dari barang atau jasa yang beredar dari
produsen ke konsumen. Pajak Pertambahan Nilai (PPN) termasuk
pajak tidak langsung, itu berarti pajak yang dibayarkan oleh pihak
lain (pedagang) yang bukan penanggung pajak atau dengan kata
lain, penanggung pajak (konsumen akhir) tidak menyetorkan
langsung kewajiban pajak meraka
From the definition above, it can be concluded that Taxes is imposed on
every increase in the value of the goods or services in circulation from
producers to consumers. Value Added Tax (VAT) includes indirect taxes, it
means the tax paid by other parties (traders) who are not insurer taxes or
in other words, the insurer taxes (final consumers) are not directly
deposits their tax liability

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According to Legislation No. 42 of 2009 of article 4A paragraph (2). The

type of goods that are not subject to Value Added Tax are spesific items in
the following categories:
a. Goods from mining or drilling results are taken directly from source
b. Basic goods that are needed by many people
c. Food and drinks which are served in the hotel, restaurant, cafes,
includes meals and beverages which are consumed in the place or
not, including meals and drinks which are handed over by business
services catering
d. Money, gold bullion, and marketable securities
Paragraph (3) that is : types of services which are not subject to Value
Added Tax are spesific services in group of services as follows:
1) Medical health care services
2) Social care services
3) Financial services
4) Mail services with stamps
5) Insurance services
6) Religious services
7) Education services
8) Arts and entertainment services
2.3.1 The Weakness and the Advantages of VAT
According to Mardiasmo (2008:269) the weaknesses of Value
Added Tax (VAT) are:
a. Double taxation preventation
b. Not encourage exports, and have not been able to deal with
smuggling
The advantages of Value Added Tax are:
a. To prevent double taxation
b. Neutral in domestic and foreign trade
c. Value Added Tax (VAT) on the acquisition of capital goods which
can be obtained back in the month of acquisition, in accordance
with the type of consumption and indirect reduction methods.
d. Evaluating from incoming state revenue, Value Added Tax
received predicate as a money maker because consumer as a

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tax loadbearing do not feel burdened by the tax making, it is

easier for tax authorities to pick it up.
According to Djoko Muljono (2008:6) rate of Value Added Tax (VAT)
is currently at 10% (ten percent). Whereas the rates of Value Added
Tax (VAT) on export of taxable goods tax was 0% (zero percent) it
does not mean exemption from the imposition of Value Added Tax
(VAT), but the input tax that has been paid from the exported goods
can be credited.
Based on consideration of economc development and or
improvement funding needs for development, with a tax rate of
government regulation, Value Added Tax (VAT) can be changed a
minimum of 5% (five percent) and maximum rate of 15% (fifteen
percent) with maintaining the principle of a single rate.
2.3.2 Tax Rates
Based on the tax regulations, the rate of tax is divided into 2 parts,
that are the rate of Value Added Tax (VAT) and Sales Tax on
Luxury Goods. The procedure to calculate the Value Added Tax
and Sales Tax on Luxury goods which is payable is calculated by
multiplying

the

tax

rate

with

the

tax

base

(DPP).

(www.pajakonline.com/engine/learning/view.php?id=774)
1. Value Added Tax (VAT)
a. The rate of VAT is 10% (ten percent)
b. The rate of VAT on export of taxable goods is 0% (zero
percent)

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c. Based on governments regulation, tax rate as referred to in

subsection 1 (one) can be changed to a minimum of 5%
(five percent) and a maximum of 15% (fifteen percent)
2. Sales Tax on Luxury Goods
a. The rate of sales tax on luxury goods is the lowest 10%
(ten percent) and the highest 75% (seventy five percent)
b. The export of taxable goods which is categorized as
luxuries are taxed at the rate of 0% (zero percent)
2.3.3 Tax Credit
Based on the tax regulation which is cited in subesction 9 of
Legislation no. 143 of 2000 jo Government Regulation No. 25 of
2000 the requirement of credit tax are as follows:
1. The main requirement of input tax credit is tax invoice
2. Input tax in a tax period is credited with output tax which is
levied in the same tax period
3. If it can not be credited in the same tax period (for example
the tax invoice is received late), input tax still can be credited
to the next tax period, not later than three months after the
end of the tax period.
4. If in the 3 (three) months the tax have elapsed, the input tax
still can be credited by doing correction on SPT Masa of VAT.
5. In the case at any period which has not been found the output
tax, input tax still can be credited.

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6. If the ouput tax is greater then the input tax, the differerence
should be paid into the state treasury and not later than the
15th of the following month
7. If the input tax is greater than output tax, the excees can be
compensated to the next tax period or requested back
(restituted)
8. Input tax which can be credited, is the input tax on the
acquisition of BKP / JKP which is directly related to business
activities from the BKP / JKP.

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