T This research to analyze revenue recognition in an advertising company, which is atax dispute between PT JCW and the Tax Auditor regarding the timing of revenuerecognition. It also aims to analyze the value-added tax (VAT) reporting related tothe dispute. The tax dispute arises because the Tax Auditor made positive correctionsto the recognition of advertising service transaction revenue due to equalizationexamination techniques, where sales subject to VAT are smaller than the businessturnover subject to corporate income tax. The analysis in this research is conductedusing tax dispute theory, income concepts, revenue recognition, and incomemeasurement. The research method employs a qualitative approach with in-depthinterviews. The results of the research indicate that the discrepancy is caused by theissuance of tax invoices in the previous year, while the revenue is recognized in thefollowing year after the service is completed. From an accounting perspective, thisrevenue should have been recognized upon the completion of service provision,meeting the accrual basis and PSAK 23. From a taxation perspective, thisrecognition has fulfilled the bookkeeping requirements and the principle ofcompliance using the accrual basis. Furthermore, the research results show thatbased on tax regulations, there is no indication of underpaid VAT.