- Indonesia implemented new VAT regulations with a 12% rate effective January 1, 2025
- The regulations apply to both luxury and non-luxury goods
- A transition period allows for an alternative tax base for deliveries to end consumers until January 31, 2025
- Technical guidance on VAT invoice preparation was released on January 3, 2025
- The VAT rate is set at 12% for 2025
- Luxury goods are taxed based on the full selling price or import value, while non-luxury goods use an “Other Value” tax base
- Certain services are exempt from VAT
- B2B transactions involve a reverse charge mechanism
- VAT invoice requirements include specific details for transactions involving a VAT-registered non-resident DSP
- Refund procedures are in place for excess VAT collected
- Businesses must update their administrative processes to comply with the new regulations and technical guidance issued by the Director General of Taxation
Source: fiscal-requirements.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.
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