Implementation of tax planning on VAT payable to avoid tax inspection at PT Kilang Kecap Angsa

Indonesia is a growing country where government require immense source of income. One of the greatest state incomes is derived from the tax sector and from Value Added Tax itself contributes one-third of tax revenue. However, for the company, Value Added Tax payable is a burden that must be paid by the company to the government. Tax planning is one of the functions in tax management that can be done in order to minimize tax payable. One example of tax planning that can be used by the company is tax planning to minimize the amount of Value Added Tax payable. The purpose of this research is to determine the impact of implementing tax planning on Value Added Tax payable at PT Kilang Kecap Angsa and to prevent tax investigation performed by Directorate General of Taxes. This research uses descriptive method with qualitative approach. The result of this research indicates that the implementation of tax planning on Value Added Tax can solve the overpaid VAT problem faced by PT Kilang Kecap Angsa. The company can conduct several ways in implementing the tax planning, such as separating an input tax invoice into several input tax invoices within a tax period, requesting suppliers to break up a single input tax into several tax invoices within several tax periods, or establishing a new subsidiary company which accumulates purchases of various raw materials.