Analysis on the Vat-Only Registration of Non-Resident Traders in Relation to Supply Chain Activities
Abstract: This paper analyses
the possibility of implementing a VAT-non-PE (hereinafter referred as
’VAT-only’) registration under the prevailing Indonesian Tax Laws to accomodate
changes in the global business models. The research methodology used is a
literature research, particularly those detailing VAT practices in ASEAN
countries in dealing nonresident entities to apply for a VAT-only registration
under certain circumstances. In-depth interview with capable fiscal scholars
and tax practitioners were also carried out aimed at providing suggestions on
how VAT-only registration for nonresident traders could be implemented so as to
enhance a favorable climate for supply chain activities in Indonesia. In
addition, a secondary data collection is also conducted to support the
suggestions of introducing a VAT-only registration in this jurisdiction in
respect of nonresidents due to the following reasons: (i) it technically does
not breach the prevailing tax law; and (ii) it may encourage more supply chain
activities by nonresidents in Indonesia in order to further developing the
national economy.
Penulis: IMAN SANTOSO
Kode Jurnal: jpadministrasinegaragg110025
