Indonesia's Latest Value-Added Tax Rate: The Details

Indonesian Finance Ministry introduced 14 value-added tax regulations, signed on March 30, 2022. Some of them have been in effect since April 1, while others will be implemented on May 1. The director-general of taxation Suryo Utomo said the VAT rate had gone up to 11 percent since April 1, based on Law No. 7/2021 on the Harmonized Tax Law (UU HPP).

Suryo explained that several types of goods and services would be exempted from the VAT through the issuance of upcoming government regulations, unlike the VAT provisions, which were regulated in finance ministerial regulations (PMK). He admitted that drafting the regulation and harmonizing it with other laws would take some time. "We are still processing it," Suryo said on Tuesday.

The following are the new VAT provisions recently issued by the Finance Ministry:

1. PMK No. 58/2022 on the appointment of other parties as tax collectors and procedures for collecting, depositing, and/or reporting taxes collected by them for transactions in the procurement of goods and/or services through the government procurement information system.
2. PMK No. 59/2022 on procedures for Taxpayer Identification Number (NPWP) registration and removal; determining or removing the corporate taxpayer (PKP) status, as well as withholding and/or collecting, depositing, and reporting taxes for government agencies.
3. PMK No. 60/2022 concerning procedures for appointing collectors, collecting, depositing, and reporting VAT on the utilization of intangible BKP and/or JKP from outside the customs area within the customs area through trading through the electronic system.
4. PMK No. 61/2022 on VAT on private construction activities.
5. PMK No. 62/2022 on VAT on the delivery of certain liquefied petroleum gas.
6. PMK No. 63/2022 on VAT on the delivery of tobacco products.
7. PMK No. 64/2022 on VAT on the delivery of certain agricultural products.
8. PMK No. 65/2022 on VAT on the delivery of used motor vehicles.
9. PMK No. 66/2022 on VAT on the delivery of subsidized fertilizers for the agricultural sector.
10. PMK No. 67/2022 on VAT on the delivery of insurance agent services, insurance, and reinsurance brokerage services
11. PMK No. 68/2022 on VAT and Income Tax (PPh) on crypto-asset transactions.
12. PMK No. 69/2022 on Income Tax and VAT on the implementation of financial technology.
13. PMK No. 70/2022 on criteria and details of food and beverages, arts and entertainment services, hospitality, parking, and catering.
14. PMK No. 71/2022 on VAT on the submission of certain JKP.