- Indonesia’s Ministry of Finance issued a regulation on VAT and sales tax on electric and low-carbon vehicles.
- The regulation sets rates for government payments:
- 10 percent VAT on battery-based four-wheeled vehicles with 40 percent domestic content.
- 10 percent VAT on battery-based electric buses with 40 percent domestic content, and 5 percent VAT for 20 percent domestic content.
- 3 percent sales tax on electric motorcycles with 40 percent domestic content.
- The regulation applies to government purchases in fiscal year 2025.
Source: news.bloombergtax.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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