TaxPrime Discusses Impact of Alternative DPP on VAT Oversight

On 3 November 2025, Bobby Savero, Senior Manager of Transfer Pricing Compliance and International Tax at TaxPrime, presented his analysis during the talkshow “Amplifying Tax Policy within The New Government Era: The Impact on Tax Revenues to Navigate Economic Growth”. The event was reported by from Jakarta.

Savero stated that the policy of using an alternative Tax Base (Dasar Pengenaan Pajak, DPP) for calculating Value‑Added Tax (VAT) changes the data comparison mechanism, causing the Directorate General of Taxes (DJP) to encounter inconsistencies in its equalisation analysis. Consequently, the VAT revenue data generated may contain defects, reducing the accuracy of tax oversight.

Such inaccuracy can hinder the DJP’s ability to monitor taxpayer compliance and evaluate the effectiveness of the twelve‑percent VAT rate introduced in 2025. For businesses, the shift adds complexity to accounting systems and raises the risk of reporting errors.