Implementation Of Input Vat Calculation And Reporting On Domestic And Imported Raw Materials In A Bonded Zone

Abstract

Input Value Added Tax (VAT) administration is particularly important for export-oriented manufacturers that procure raw materials domestically and from overseas. This study examines input VAT calculation, reporting, and differentiated tax treatment at PT. XYZ, a manufacturing company operating in a bonded zone in Tegal Regency, Indonesia, during 2025. A descriptive case-study approach was applied using interviews with tax and accounting personnel, direct observation, and review of transaction records, tax invoices, customs documents, and reporting practices. Recorded domestic purchases had a tax base of IDR 166,213,891,591 and VAT of IDR 18,283,628,075, while imports had a tax base of IDR 1,234,761,842,427 and associated VAT of IDR 135,823,602,767. Normal domestic input VAT could be credited subject to documentation requirements, whereas VAT on qualifying bonded-zone transactions was not collected and therefore was not directly creditable. The Coretax reporting process required reconciliation between tax invoices, customs records, and the applicable VAT return attachments. The study identifies delays in customs-data synchronization, incorrect invoice transaction codes, and minor rounding discrepancies. Stronger document reconciliation, supplier coordination, and routine system validation can help maintain tax compliance and protect working capital.