Incorrect Tax Account Code, Offshore Service VAT Input Forfeited? Case Study of PT DIA

Tax Court Decision on Tax Account Code Error on SSP and Tax Overbooking of PT DIA

The utilization of Taxable Services from outside the Customs Area (VAT JKP LN) requires taxpayers in Indonesia to collect and pay the VAT themselves using a self-assessment mechanism via a Tax Payment Slip (SSP). The validity of this SSP is crucial for claiming Input VAT credit. However, what happens if an administrative error occurs when filling out the SSP? Tax Court Decision Number PUT-008810.16/2023/PP/M.IA Tahun 2025 provides an important legal perspective on this issue. The dispute involved PT DIA (Appellant) against the Directorate General of Taxes (Respondent) concerning VAT for the April 2018 Tax Period.

Core Conflict and Formalities vs. Substance Disparity

The core conflict began with the Respondent's correction of Input VAT JKP LN amounting to IDR 15,500,640.00. The Respondent disallowed this credit because the output VAT was deemed "unpaid." The Respondent found that the SSP used by the Appellant (NTPN 4E181041DHF55G1B) was filled using the Tax Account Code (KAP) 411127 (Income Tax Art. 26), instead of KAP 411212 (VAT on JKP LN Utilization). For the Respondent, this formal error was fatal, meaning the output VAT was not paid, thus failing to meet the requirement of Article 9 paragraph (2) of the VAT Law. Conversely, the Appellant argued that the payment had substantially been settled and received by the state treasury on May 15, 2018 (on time), as proven by the NTPN. The KAP error was acknowledged as an administrative human error, not an absence of payment.

Dispute Resolution and the Role of Tax Overbooking (Pbk)

In resolving the dispute, the Panel of Judges focused on the substance of the obligation fulfillment. The Panel verified that the payment of IDR 15,500,640.00 had entered the state treasury (proven by NTPN) and was paid on time (in accordance with PMK-40/PMK.03/2010). The Panel deemed the KAP error an administrative issue that should not nullify the taxpayer's substantive right. The key to the Panel's analysis was the Appellant's proactive action in correcting the error through the Tax Overbooking (Pbk) mechanism under PMK 242/PMK.03/2014. The fact that the Tax Office had approved the Pbk (Approval Letter S-1163/Pbk.../2022) confirmed that the deposit was recognized as a payment for VAT JKP LN.

Judicial Panel Verdict and Legal Implications

The Panel of Judges ultimately decided to partially grant the appeal. This decision canceled the entire principal VAT JKP LN correction (reducing it to IDR 0.00), affirming that the right to credit Input VAT remains valid if the SSP administrative error has been corrected via Pbk. Nonetheless, the final verdict still imposed administrative sanctions (amounting to IDR 3,100,128.00), indicating that administrative errors still carry consequences, even if they do not void the principal tax.

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