Tax Court Overturns VAT Base Correction on Car Sale 130 M

The taxpayer appealed the tax authority’s correction of the VAT taxable base (DPP) for a car sold in June 2005. The Tax Court upheld the appeal on 16 April 2013, and the Supreme Court later dismissed the authority’s request for a tax‑court review.

The authority argued that the invoice omitted accessories, anti‑rust treatment, and name‑transfer services, leading to a correction of Rp130,765,248. The taxpayer contended that these costs were already included in the invoice, as required by Article 1 number 18 of Law No. 8/1983 as amended, and presented the invoice and VAT return as evidence.

The ruling confirms that the VAT base must reflect the amount shown on a valid invoice. This provides taxpayers with certainty that charges already billed to consumers cannot be re‑taxed, and requires the authority to substantiate any correction with detailed proof.