Refund applications can be made at the end of a book year. The DGT is required to make a decision on a VAT refund application, on the basis of a VAT audit, within 12 months of the receipt of a complete application. If no decision has been made within 12 months, the application is considered… Read More
Value Added Tax Collector
A deviation from the standard mechanism, however, is in force for deliveries of taxable goods and services to VAT collectors. The VAT Collector is currently either the State Treasury or PSC (Production Sharing Contract) companies. As the name implies, a VAT Collector is required to collect the VAT due from a taxable enterprise (vendor) on… Read More
Value Added Tax Facilities
Tax facilities As stated in government regulations, tax facilities are granted to certain taxpayers in the form of non-collection of VAT or VAT exemption. These facilities are covered by the following schemes: Bonded zones Bonded Zone (Kawasan Berikat/KB) status is typically granted by MoF at the request of export-oriented manufacturing companies. The aim is to… Read More
Reporting Value Added Tax
Companies and individuals designated as taxable enterprises (Pengusaha Kena Pajak/PKP) are required to report their business activities and settle the VAT liabilities on these every month. VAT is usually to be accounted for on a decentralization basis. As a result, a company carrying out business activities through a number of business units (branches) in the… Read More
Non Taxable Goods and Profit
By law, all goods and services, unless otherwise stated, constitute taxable goods or taxable services. The legal negative list sets out which goods and services are categorized as non- taxable, as follows: Non-taxable Goods mining or drilling products extracted directly from their sources, for example crude oil, natural gas, geothermal energy, sand and gravel, coal… Read More
Value Added Tax Rate and Tax Base
Tax rates and tax base The VAT rate is typically 10%. This may be increased or decreased to 15% or 5% according to a government regulation. However, VAT on the export of taxable tangible and intangible goods as well as export of services is fixed at 0%. Certain limitations for the zero-rated VAT apply to… Read More
The introduction of Indonesian Value Added Tax
General VAT is typically due on events involving the transfer of taxable goods or the provision of taxable services in the Indonesian Customs Area. The taxable events are: Deliveries of taxable goods in the Customs Area by an enterprise; Import of taxable goods; Deliveries of taxable services in the Customs Area by an enterprise; Use… Read More
INDONESIAN TAX 