- 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.
