Indonesian Value Added Tax

Legal base for imposing Value Added Tax is Act Number 8 Year 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as several times amended lastly by Act Number 42 Year 2009.

Tax object:

Value Added Tax imposed on:

  1. delivery of taxable goods in the Customs Area by entrepreneur;
  2. import of taxable goods;
  3. Taxable services within the Customs Area by entrepreneur;
  4. utilization of intangible taxable goods from outside the Customs Area within the Customs Area;
  5. utilization of taxable services from outside the Customs Area within the Customs Area;
  6. export of tangible goods by entrepreneur;
  7. exports of intangible goods by entrepreneur, or
  8. exports of taxable service by entrepreneur.

The term “entrepreneur” means an individual or entity in any form of business or work activities to produce goods, import goods, export goods, do trade business, leveraging intangible goods from outside the Customs Area, conduct business services including export services, or use the services from outside the Custom  Area.

The type of goods that are not subject to Value Added Tax is a particular item in the following items:

  1.  goods from mining or drilling results taken directly from the source;
  2. necessity goods that are needed by many people;
  3. food and beverages served in hotels, restaurants, cafes, and the like, covering food and drink consumed in place or not, including food and beverages delivered by caterers or catering businesses, and
  4. money, gold and securities.
Types of services that are not subject to Value Added Tax is a particular service in the following services:
  1. medical health care services;
  2. social services;
  3. delivery letter service with a stamp;
  4. financial services;
  5. insurance services;
  6. religious services;
  7. education services;
  8. arts and entertainment services;
  9. broadcast services are not advertising;
  10. public transport on land and water and air transport services in the country that became an integral part of the air transport services abroad;
  11. employment services;
  12. hospitality services;
  13. services provided by the Government to run the government in general;
  14. parking lot service;
  15. public telephone services using a coin;
  16. remittance money service by postal order, and
  17. food service or catering.

Tax rate:

  1. VAT rate is 10%
  2. VAT rate of 0% applied to: a) export of taxable tangible goods, b) export of taxable intangible goods, c) export of Taxable Services.
Tax Invoice  shall be made at:

  1. time delivery of taxable goods and/ or rendering of taxable services;
  2. upon receipt of payment in terms of acceptance of payment occurs before delivery of taxable goods and/or prior rendering taxable services;
  3. upon receipt of payment terms in case the submission of a part of the job, or
  4. another time, regulated by or under the Regulation of the Minister of Finance.
The VAT due shall be paid at the latest by the end of next following month.

About Jaja Zakaria

Nama saya Jaja Zakaria, saya tinggal di Depok, Jawa Barat, kurang lebih 40 km dari Jakarta Selatan. Saya alumni Fakultas Hukum Universitas Gadjah Mada, Yogayakarta, dan Opleidings Instituut Financien, Den Haag, Belanda di bidang Hukum Pajak Internasional. Saya pengarang beberapa buku, e-book, dan makalah-makalah perpajakan. Pengalaman saya antara lain pernah menjadi anggota delegasi Indonesia dalam perundingan Perpajakan dengan Denmark, Mesir, Kanada, Uni Emirat Arab, Kuwait, Turki, Brunei Darussalam, Pilipina, Vietnam, Mongolia, dan Taiwan; dalam Study Group on Asian Tax Administration and Research (SGATAR) meeting; dan dalam Joint Commission Indonesia - China. Saya juga anggota International Word Tax Expert.

Posted on May 27, 2013, in English Version, Forum, Indonesian Taxation Summaries and tagged , , , . Bookmark the permalink. 12 Comments.

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