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IMPLEMENTATION OF VALUE ADDED TAX (VAT) COLLECTION AND REPORTING ON ELECTRICAL INSTALLATION SERVICES AT PT REXA CIPTA MANDIRI PANGKAH

Abstract

This study aims to evaluate the implementation of Value Added Tax (VAT) collection and reporting for electrical installation services at PT Rexa Cipta Mandiri Pangkah, as well as to identify the challenges encountered and propose feasible solutions. A qualitative descriptive approach was employed, with data gathered through observation, literature review, and document analysis, including contracts, tax invoices, and periodic VAT returns. The results reveal that PT Rexa Cipta Mandiri has complied with Law No. 42 of 2009 by collecting and reporting VAT at the statutory rate of 11% using the e-Faktur system. Nevertheless, several challenges persist, such as delays in invoice issuance, data entry errors, and limited understanding of regulatory changes in taxation. The findings suggest that, while the company demonstrates generally good tax compliance, further improvements are needed in human resource capacity, administrative governance, and the implementation of regular evaluations to ensure sustained compliance and consistency with prevailing tax regulations.