Procedures and Scope of Examination of Periodic Tax Returns for Value Added Tax and Luxury Goods Sales Tax
Keywords:
tax audit, Value Added Tax, Luxury Goods Sales Tax, periodic tax returns, tax compliance
Abstract
Value Added Tax (VAT) and Luxury Goods Sales Tax (LGST) are objective taxes levied on the consumption of goods and services within the domestic territory. Their collection mechanism involves the crediting of input tax against output tax and is based on the self-assessment principle. These characteristics make tax audits an essential instrument for tax authorities to assess taxpayers' compliance with their tax obligations, particularly concerning periodic VAT returns. This article aims to examine, through a literature review, the procedures and scope of audits of periodic VAT and LGST returns, covering nine key areas of examination: the completeness of taxable objects, the crediting of input tax, the timeliness of issuance and completeness of output tax invoices, the identification of LGST-taxable objects, the determination of the tax base, the application of tax rates, the accuracy of tax payments, the examination of accounts related to VAT and LGST taxable objects, and the verification of financial statements. This study employs a library research method using a qualitative descriptive approach based on tax legislation and relevant academic literature. The findings indicate that VAT and LGST audits are conducted regularly in accordance with the audit standards specified in Ministry of Finance Regulation Number 15 of 2025 concerning Tax Audits. This regulation broadens the scope of compliance examinations and provides procedural certainty for both tax auditors and taxpayers. Ultimately, the effectiveness of tax audits contributes to improving taxpayers' voluntary compliance and optimizing state revenue from VAT and LGST.
References
A. Legislation
Regulation of the Minister of Finance Number 15 of 2025 concerning Tax Audits.
Regulation of the Minister of Finance Number 17/PMK.03/2013 concerning Audit Procedures.
Regulation of the Minister of Finance Number 184/PMK.03/2015 concerning Amendments to PMK Number 17/PMK.03/2013 concerning Audit Procedures.
Regulation of the Minister of Finance Number 131 of 2024 concerning Value Added Tax Treatment on Imports of Taxable Goods, Delivery of Taxable Goods, Delivery of Taxable Services, Utilization of Intangible Taxable Goods from Outside the Customs Area within the Customs Area, and Utilization of Taxable Services from Outside the Customs Area within the Customs Area.
Regulation of the Minister of Finance Number 22/PMK.03/2008 concerning Taxpayer Power of Attorney.
Regulation of the Minister of Finance Number 39/PMK.03/2018 concerning Procedures for Preliminary Refunds of Excess Tax Payments.
Regulation of the Minister of Finance Number 209/PMK.03/2021 concerning the Second Amendment to PMK Number 39/PMK.03/2018 concerning Procedures for Preliminary Refunds of Excess Tax Payments.
Regulation of the Minister of Finance Number 72 of 2010 concerning Procedures for Refunds of Excess Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods.
Government Regulation Number 61 of 2020 concerning Taxable Goods Classified as Luxury Goods other than Motor Vehicles Subject to Luxury Goods Sales Tax.
Regulation of the Director General of Taxes Number PER-03/PJ/2022 concerning Tax Invoices as amended by Regulation of the Director General of Taxes Number PER-11/PJ/2022.
Circular Letter of the Director General of Taxes Number SE-65/PJ/2013 concerning Guidelines for the Use of Inspection Methods and Techniques.
Circular Letter of the Director General of Taxes Number SE-10/PJ/2017 concerning Technical Instructions for Field Inspections in the Context of Inspections to Test Compliance with Tax Obligations.
Circular Letter of the Director General of Taxes Number SE-75/PJ/2008 concerning Procedures for Refunds of Excess Payments of Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods.
Circular Letter of the Director General of Taxes Number SE-79/PJ/2010 concerning Standard Operating Procedure (SOP) for Superior Tax Services.
Law Number 6 of 1983 concerning General Provisions and Tax Procedures as last amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.
Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as last amended by Law Number 42 of 2009.
Law Number 7 of 2021 concerning Harmonization of Tax Regulations.
B. Scientific Journal Articles
Friscilla, J. (2025). Analysis of Equalization of Periodic VAT Returns to Annual Corporate Income Tax Returns in Identifying Potential Tax Audit Corrections: A Case Study of PT X. Student Business Journal, 5(5), 2696–2714. https://doi.org/10.60036/jbm.845
Scientific Journal of Accounting Economics Students (JIMEKA), Syiah Kuala University. (2017). Maulida, CI, & Adnan. The Effect of Self Assessment System, Tax Audit, and Tax Collection on Value Added Tax (VAT) Revenue at Banda Aceh Pratama Tax Office. JIMEKA, 2(4), 67–74.
Journal of Accounting Students (JIRA), Indonesian College of Economics, Surabaya. (tt). Procedures for Submitting and Testing Mechanisms for Value Added Tax Restitution. https://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/download/1991/1998/
Journal of Accounting Students (JIRA), Indonesian College of Economics, Surabaya. (tt). Analysis of Equalization of Corporate Income Tax Returns with Periodic VAT Returns: Case Study of PT F. https://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/download/5104/5120
Kesatuan Student Scientific Journal (JIMKES), Kesatuan Institute of Business and Informatics. (tt). Analysis of Equalization of Periodic VAT Returns with Annual Corporate Income Tax Returns. https://jurnal.ibik.ac.id/index.php/jimkes/article/download/292/250
Journal of Taxation and State Finance (JPKN), State Finance Polytechnic STAN. (2019). The Effect of Tax Audits on Corporate Taxpayer Compliance in Indonesia. JPKN, 1(1), 91–111. https://jurnal.pknstan.ac.id/index.php/pkn/article/download/607/349/2211
Journal of Accounting & Taxation Research (JRAP), Pancasila University. (2021). Riyadi, SP, Setiawan, B., & Alfarago, D. The Effect of Taxpayer Compliance, Tax Audits, and Tax Collection on Corporate Income Tax Revenue. JRAP, 8(2), 57–67. https://doi.org/10.35838/jrap.2021.008.02.16
EMBA Journal, Sam Ratulangi University. (2016). Mangundap, PV, & Tirayoh, VZ Analysis of Value Added Tax Overpayment Restitution Procedures. EMBA Journal, 4(1), 100–108. https://media.neliti.com/media/publications/2881-ID-analisis-prosedur-retitusi-kelebihan-pembarayan-pajak-pertambahan-nilai-ppn-pad.pdf
Journal of Sharia Accounting and Tax (JSAT). (2023). Kusuma, IGKCBA, Supriyadi, Sulfan, & Priyono, AP: Determinants of Tax Audit Effectiveness According to Tax Auditors' Perceptions. JSAT, 2(1), 263–272. https://jsat.syekhnurjati.id/index.php/jsat/article/download/266/33
Concentration: Journal of Management and Business [check author], Pancasakti University, Tegal. (2023). Review of the Value Added Tax Overpayment Refund Process. Concentration, 3(2), 138–152. http://konsentrasi.upstegal.ac.id/index.php/Konsentrasi/article/download/63/54
SBAMER Journal, DHS Journal. (tt). Analysis of VAT Underpayments and Overpayments Due to Invoice Corrections. https://dhsjournal.id/index.php/SBAMER/article/download/80/46/
Sayekti, NW, & Sarjono, B. (2022). Equalization of VAT Periodic Tax Returns and Income Tax Periodic Tax Returns with Annual Income Tax Returns regarding CV Abadi's Tax Obligations. Applied Business Journal, 6(2), 183–196.
Accounting, Finance, and Management Studies. (2024). Savitri, AE Effectiveness of Taxpayer Compliance, Tax Audits, and Tax Collection on Tax Revenue. 3(2), 107–117.
Sukmawati, & Winata. (2019). Equalization of Periodic Tax Returns with Annual Corporate Tax Returns to Anticipate Potential Tax Audits at PT A in Solo City.
Journal of Business Perspectives (BIP), Darma Cendika Catholic University. (2019). A Theoretical Review of the Effectiveness of Tax Audits in Indonesia. BIP, 11(1), 37. https://jurnal.ukdc.ac.id/index.php/BIP/article/download/14/11
C. Official Sources and Tax Information Portals
Directorate General of Taxes. (2025a). Audit Regulation Update, Badora Tax Podcast Explains PMK-15/2025. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/116138
Directorate General of Taxes. (2025b). Tax Audit: Regulation of the Minister of Finance Number 15 of 2025. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/114041
Directorate General of Taxes. (2025c). Providing VAT Policy Space and Time. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/index.php/en/node/113379
Directorate General of Taxes. (2025d). Provisions in the Law on Harmonization of Tax Regulations. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/index.php/en/node/71871
Directorate General of Taxes. (tt). Restitution. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/34994
DDTC News. (tt). Input Tax Credit on Legally Defective Tax Invoices. https://news.ddtc.co.id/literasi/resume-putusan/1794171/pengkreditan-pajak-masukan-atas-faktur-pajak-yang-cacat-hukum
Hukumonline. (2025). Goods Subject to 12% VAT. Hukumonline Clinic. https://www.hukumonline.com/klinik/a/barang-barang-yang-dikenakan-ppn-12-lt6489e0a257733/
IWPI. (tt). Incomplete Tax Invoice Fines: Sanctions and Their Implementation in the Coretax System. https://www.iwpi.info/blog/denda-faktur-pajak-tidak-lengkap-sanksi-dan-implementasinya-di-coretax-system-1
Click Tax. (2025). How to Submit VAT Restitution on e-Invoices and the Requirements. https://klikpajak.id/blog/cara-mengajukan-restitusi-ppn-di-e-faktur-dan-syaratnya/
Click Tax. (2026). Understanding the Term Tax Equalization and Its Audit Procedures. https://klikpajak.id/blog/ekualisasi-pajak/
Kledo. (2026). VAT Journal: How to Record It in Accounting and Case Studies. https://kledo.com/blog/jurnal-ppn/
Surabaya Tax Consultant. (tt). Input Tax Crediting: Review of Formal and Material Requirements. https://konsultanpajaksurabaya.com/pengkreditan-pajak-masukan-telaah-atas-syarat-formal-dan-material
Surabaya Tax Consultant. (2024). Equalization of Corporate Income Tax and VAT in the Preparation of Annual Tax Return Reports. https://konsultanpajaksurabaya.com/ekualisasi-pph-badan-dan-ppn-dalam-persiapan-lapor-spt-tahunan
Mitra Konsultindo Group. (2025). Input Tax Credit Requirements. https://mitrakonsultindo.co.id/2025/07/syarat-pengkreditan-pajak-masukan/
MSM Consulting. (tt). Tax Equalization: Format, How to Create, and Reporting Examples. https://msmconsulting.co.id/news/127/ekualisasi-pajak-format-cara-membuat-dan-contoh-pelaporannya
Online Tax. (2025a). Criteria for Crediting Input Tax Invoices. https://www.online-pajak.com/tentang-ppn-efaktur/kriteria-pengkreditan-faktur-pajak-masukan/
Online Tax. (2025b). The Latest VAT Law: Regulations, 11% vs. 12% Rates, and Taxable Entrepreneur Obligations. https://www.online-pajak.com/tentang-efaktur-ppn/uu-ppn-terbaru/
Online Tax. (2025c). Penalties for Not Issuing Tax Invoices: Amounts and How to Avoid Them. https://www.online-pajak.com/tentang-efaktur-ppn/sanksi-tidak-menerbitkan-faktur-pajak/
Ortax. (2022). Understanding Equalization in Tax Audits. https://ortax.org/mengenal-ekualisasi-dalam-pemeriksaan-pajak
Ortax. (2025a). These are the Requirements for Input Tax Crediting. https://ortax.org/ini-syarat-pengkreditan-pajak-masukan
Ortax. (2025b). Update on the Latest VAT Tariff Provisions Post-HPP Law. https://ortax.org/tarif-ppn-terbaru-pasca-uu-hpp
PAJAK.COM. (2022). VAT: Input Tax Credit Mechanism. https://www.pajak.com/pajak/ppn-mekanisme-pengkreditan-pajak-masukan/
Salim & Co. (2021). Changes to Administrative Tax Sanctions in the Job Creation Law. https://www.salimkho.com/perubahan-sanksi-administrasi-perpajakan-pada-uu-cipta-kerja/
Regulation of the Minister of Finance Number 15 of 2025 concerning Tax Audits.
Regulation of the Minister of Finance Number 17/PMK.03/2013 concerning Audit Procedures.
Regulation of the Minister of Finance Number 184/PMK.03/2015 concerning Amendments to PMK Number 17/PMK.03/2013 concerning Audit Procedures.
Regulation of the Minister of Finance Number 131 of 2024 concerning Value Added Tax Treatment on Imports of Taxable Goods, Delivery of Taxable Goods, Delivery of Taxable Services, Utilization of Intangible Taxable Goods from Outside the Customs Area within the Customs Area, and Utilization of Taxable Services from Outside the Customs Area within the Customs Area.
Regulation of the Minister of Finance Number 22/PMK.03/2008 concerning Taxpayer Power of Attorney.
Regulation of the Minister of Finance Number 39/PMK.03/2018 concerning Procedures for Preliminary Refunds of Excess Tax Payments.
Regulation of the Minister of Finance Number 209/PMK.03/2021 concerning the Second Amendment to PMK Number 39/PMK.03/2018 concerning Procedures for Preliminary Refunds of Excess Tax Payments.
Regulation of the Minister of Finance Number 72 of 2010 concerning Procedures for Refunds of Excess Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods.
Government Regulation Number 61 of 2020 concerning Taxable Goods Classified as Luxury Goods other than Motor Vehicles Subject to Luxury Goods Sales Tax.
Regulation of the Director General of Taxes Number PER-03/PJ/2022 concerning Tax Invoices as amended by Regulation of the Director General of Taxes Number PER-11/PJ/2022.
Circular Letter of the Director General of Taxes Number SE-65/PJ/2013 concerning Guidelines for the Use of Inspection Methods and Techniques.
Circular Letter of the Director General of Taxes Number SE-10/PJ/2017 concerning Technical Instructions for Field Inspections in the Context of Inspections to Test Compliance with Tax Obligations.
Circular Letter of the Director General of Taxes Number SE-75/PJ/2008 concerning Procedures for Refunds of Excess Payments of Value Added Tax or Value Added Tax and Sales Tax on Luxury Goods.
Circular Letter of the Director General of Taxes Number SE-79/PJ/2010 concerning Standard Operating Procedure (SOP) for Superior Tax Services.
Law Number 6 of 1983 concerning General Provisions and Tax Procedures as last amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.
Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as last amended by Law Number 42 of 2009.
Law Number 7 of 2021 concerning Harmonization of Tax Regulations.
B. Scientific Journal Articles
Friscilla, J. (2025). Analysis of Equalization of Periodic VAT Returns to Annual Corporate Income Tax Returns in Identifying Potential Tax Audit Corrections: A Case Study of PT X. Student Business Journal, 5(5), 2696–2714. https://doi.org/10.60036/jbm.845
Scientific Journal of Accounting Economics Students (JIMEKA), Syiah Kuala University. (2017). Maulida, CI, & Adnan. The Effect of Self Assessment System, Tax Audit, and Tax Collection on Value Added Tax (VAT) Revenue at Banda Aceh Pratama Tax Office. JIMEKA, 2(4), 67–74.
Journal of Accounting Students (JIRA), Indonesian College of Economics, Surabaya. (tt). Procedures for Submitting and Testing Mechanisms for Value Added Tax Restitution. https://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/download/1991/1998/
Journal of Accounting Students (JIRA), Indonesian College of Economics, Surabaya. (tt). Analysis of Equalization of Corporate Income Tax Returns with Periodic VAT Returns: Case Study of PT F. https://jurnalmahasiswa.stiesia.ac.id/index.php/jira/article/download/5104/5120
Kesatuan Student Scientific Journal (JIMKES), Kesatuan Institute of Business and Informatics. (tt). Analysis of Equalization of Periodic VAT Returns with Annual Corporate Income Tax Returns. https://jurnal.ibik.ac.id/index.php/jimkes/article/download/292/250
Journal of Taxation and State Finance (JPKN), State Finance Polytechnic STAN. (2019). The Effect of Tax Audits on Corporate Taxpayer Compliance in Indonesia. JPKN, 1(1), 91–111. https://jurnal.pknstan.ac.id/index.php/pkn/article/download/607/349/2211
Journal of Accounting & Taxation Research (JRAP), Pancasila University. (2021). Riyadi, SP, Setiawan, B., & Alfarago, D. The Effect of Taxpayer Compliance, Tax Audits, and Tax Collection on Corporate Income Tax Revenue. JRAP, 8(2), 57–67. https://doi.org/10.35838/jrap.2021.008.02.16
EMBA Journal, Sam Ratulangi University. (2016). Mangundap, PV, & Tirayoh, VZ Analysis of Value Added Tax Overpayment Restitution Procedures. EMBA Journal, 4(1), 100–108. https://media.neliti.com/media/publications/2881-ID-analisis-prosedur-retitusi-kelebihan-pembarayan-pajak-pertambahan-nilai-ppn-pad.pdf
Journal of Sharia Accounting and Tax (JSAT). (2023). Kusuma, IGKCBA, Supriyadi, Sulfan, & Priyono, AP: Determinants of Tax Audit Effectiveness According to Tax Auditors' Perceptions. JSAT, 2(1), 263–272. https://jsat.syekhnurjati.id/index.php/jsat/article/download/266/33
Concentration: Journal of Management and Business [check author], Pancasakti University, Tegal. (2023). Review of the Value Added Tax Overpayment Refund Process. Concentration, 3(2), 138–152. http://konsentrasi.upstegal.ac.id/index.php/Konsentrasi/article/download/63/54
SBAMER Journal, DHS Journal. (tt). Analysis of VAT Underpayments and Overpayments Due to Invoice Corrections. https://dhsjournal.id/index.php/SBAMER/article/download/80/46/
Sayekti, NW, & Sarjono, B. (2022). Equalization of VAT Periodic Tax Returns and Income Tax Periodic Tax Returns with Annual Income Tax Returns regarding CV Abadi's Tax Obligations. Applied Business Journal, 6(2), 183–196.
Accounting, Finance, and Management Studies. (2024). Savitri, AE Effectiveness of Taxpayer Compliance, Tax Audits, and Tax Collection on Tax Revenue. 3(2), 107–117.
Sukmawati, & Winata. (2019). Equalization of Periodic Tax Returns with Annual Corporate Tax Returns to Anticipate Potential Tax Audits at PT A in Solo City.
Journal of Business Perspectives (BIP), Darma Cendika Catholic University. (2019). A Theoretical Review of the Effectiveness of Tax Audits in Indonesia. BIP, 11(1), 37. https://jurnal.ukdc.ac.id/index.php/BIP/article/download/14/11
C. Official Sources and Tax Information Portals
Directorate General of Taxes. (2025a). Audit Regulation Update, Badora Tax Podcast Explains PMK-15/2025. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/116138
Directorate General of Taxes. (2025b). Tax Audit: Regulation of the Minister of Finance Number 15 of 2025. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/114041
Directorate General of Taxes. (2025c). Providing VAT Policy Space and Time. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/index.php/en/node/113379
Directorate General of Taxes. (2025d). Provisions in the Law on Harmonization of Tax Regulations. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/index.php/en/node/71871
Directorate General of Taxes. (tt). Restitution. Ministry of Finance of the Republic of Indonesia. https://www.pajak.go.id/en/node/34994
DDTC News. (tt). Input Tax Credit on Legally Defective Tax Invoices. https://news.ddtc.co.id/literasi/resume-putusan/1794171/pengkreditan-pajak-masukan-atas-faktur-pajak-yang-cacat-hukum
Hukumonline. (2025). Goods Subject to 12% VAT. Hukumonline Clinic. https://www.hukumonline.com/klinik/a/barang-barang-yang-dikenakan-ppn-12-lt6489e0a257733/
IWPI. (tt). Incomplete Tax Invoice Fines: Sanctions and Their Implementation in the Coretax System. https://www.iwpi.info/blog/denda-faktur-pajak-tidak-lengkap-sanksi-dan-implementasinya-di-coretax-system-1
Click Tax. (2025). How to Submit VAT Restitution on e-Invoices and the Requirements. https://klikpajak.id/blog/cara-mengajukan-restitusi-ppn-di-e-faktur-dan-syaratnya/
Click Tax. (2026). Understanding the Term Tax Equalization and Its Audit Procedures. https://klikpajak.id/blog/ekualisasi-pajak/
Kledo. (2026). VAT Journal: How to Record It in Accounting and Case Studies. https://kledo.com/blog/jurnal-ppn/
Surabaya Tax Consultant. (tt). Input Tax Crediting: Review of Formal and Material Requirements. https://konsultanpajaksurabaya.com/pengkreditan-pajak-masukan-telaah-atas-syarat-formal-dan-material
Surabaya Tax Consultant. (2024). Equalization of Corporate Income Tax and VAT in the Preparation of Annual Tax Return Reports. https://konsultanpajaksurabaya.com/ekualisasi-pph-badan-dan-ppn-dalam-persiapan-lapor-spt-tahunan
Mitra Konsultindo Group. (2025). Input Tax Credit Requirements. https://mitrakonsultindo.co.id/2025/07/syarat-pengkreditan-pajak-masukan/
MSM Consulting. (tt). Tax Equalization: Format, How to Create, and Reporting Examples. https://msmconsulting.co.id/news/127/ekualisasi-pajak-format-cara-membuat-dan-contoh-pelaporannya
Online Tax. (2025a). Criteria for Crediting Input Tax Invoices. https://www.online-pajak.com/tentang-ppn-efaktur/kriteria-pengkreditan-faktur-pajak-masukan/
Online Tax. (2025b). The Latest VAT Law: Regulations, 11% vs. 12% Rates, and Taxable Entrepreneur Obligations. https://www.online-pajak.com/tentang-efaktur-ppn/uu-ppn-terbaru/
Online Tax. (2025c). Penalties for Not Issuing Tax Invoices: Amounts and How to Avoid Them. https://www.online-pajak.com/tentang-efaktur-ppn/sanksi-tidak-menerbitkan-faktur-pajak/
Ortax. (2022). Understanding Equalization in Tax Audits. https://ortax.org/mengenal-ekualisasi-dalam-pemeriksaan-pajak
Ortax. (2025a). These are the Requirements for Input Tax Crediting. https://ortax.org/ini-syarat-pengkreditan-pajak-masukan
Ortax. (2025b). Update on the Latest VAT Tariff Provisions Post-HPP Law. https://ortax.org/tarif-ppn-terbaru-pasca-uu-hpp
PAJAK.COM. (2022). VAT: Input Tax Credit Mechanism. https://www.pajak.com/pajak/ppn-mekanisme-pengkreditan-pajak-masukan/
Salim & Co. (2021). Changes to Administrative Tax Sanctions in the Job Creation Law. https://www.salimkho.com/perubahan-sanksi-administrasi-perpajakan-pada-uu-cipta-kerja/
Published
2026-10-30
How to Cite
Vera Tamara Palem, & Poltak Maruli John Liberty Hutagaol. (2026). Procedures and Scope of Examination of Periodic Tax Returns for Value Added Tax and Luxury Goods Sales Tax. International Journal of Economics, Business and Innovation Research, 5(06), 2237-2248. https://doi.org/10.63922/ijebir.v5i06.6941
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