The Taxpayer who has VAT Overpayment may claim the Preliminary VAT Refund, and the Tax Office will process the Preliminary VAT Refund within 1 month.
Although the Taxpayer has received the VAT Refund, the Tax Office may still conduct tax audit. If during tax audit the Tax Office impose VAT underpayment, and the Taxpayer qualifies as Low Risk VAT Entrepreneur (“PKP Risiko Rendah”), the penalty will be maximum 24 months instead of 100%.
