- Indonesia has extended VAT incentives on the sale of electric vehicles and buses through December 2024
- The government bears a significant portion of the VAT due on the sales
- The incentives aim to encourage the purchase of EVs and mitigate the impact of fossil fuels on the environment
- A new regulation released on 15 February 2023 provides for the same benefits
- 1% VAT applies to four-wheeled battery-powered electric motor vehicles and buses with at least 40% locally manufactured components
- 6% VAT applies to battery-powered electric buses with 20% to 40% locally manufactured components
Source: bdo.global
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.
Latest Posts in "Indonesia"
- Finance Ministry to Inspect Steel Giants After Uncovering Widespread VAT Evasion Scheme
- VAT Registration and E-Faktur Compliance in Indonesia: Key Challenges for Foreign Investors
- Indonesia Reinstates 100% VAT Incentive for Home, Apartment Purchases up to Rp2 Billion in 2026
- Finance Ministry Offers 100% VAT Incentive for Home Buyers Throughout 2026
- Indonesia Appoints OpenAI as VAT Collector for Digital Services to Boost State Revenue
