When Endorsement Documents Are Missing, Is the FTZ VAT Facility Automatically Void?

PT TDASI VAT Dispute: Reclassification of Free Trade Zone Deliveries vs SPHP Audit Procedures

Tax authorities often reclassify non-collected VAT deliveries into taxable ones due to the absence of endorsement documents (PPFTZ-03). In the case of PT TDASI, the Respondent corrected Rp903,310,509, claiming the Appellant failed to prove the validity of Batam Free Trade Zone facilities. However, the Board of Judges emphasized that under PMK-173/PMK.03/2021, the burden of paying VAT upon facility failure lies with the buyer via the SSP mechanism, not the seller.

Judicial Consideration: Formal and Material Flaws in Omitted SPHP Guidelines

Procedurally, the Board found this correction was omitted from the SPHP and the Final Discussion Minutes, violating the taxpayer's constitutional rights under Article 31 of the KUP Law jo. PMK-184/PMK.03/2015. Consequently, the correction was deemed formally and materially flawed. This ruling serves as a vital precedent that audit procedures failing to adhere to SPHP guidelines can invalidate tax assessments entirely.

A Comprehensive Analysis and the Tax Court Decision on This Dispute Are Available Here