- Indonesian government will bear all or part of the 11% VAT on sales of certain residential properties
- Regulation Number 120 of 2023 (PMK-120) came into effect on 21 November 2023
- The government will bear 100% of the VAT if the transfer of property rights occurs between 1 November 2023 and 30 June 2024
- The facility is available for properties with a selling price of up to IDR 5 billion and a VAT base of up to IDR 2 billion
- The facility is available for properties delivered between 1 November 2023 and 31 December 2024
- The PKP selling the property must issue a VAT invoice and disclose certain information
- VAT that has been borne by the government must be repaid if certain conditions are not met
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
