- Change in Definition and VAT Status: The way crypto assets are categorized has changed from “crypto assets” to “digital financial assets.” This means that selling crypto assets is no longer subject to Value Added Tax (VAT). However, services related to crypto assets, like trading and verification, are still subject to VAT.
- Categories of VAT Treatment:
- Non-VATable Delivery: The sale or delivery of crypto assets themselves is now treated like the sale of securities (like stocks), meaning no VAT is charged on these transactions.
- VATable Delivery: Services related to crypto assets are still taxed. For example:
- Trading Platforms: E-commerce marketplaces that provide platforms for trading crypto assets must charge VAT on their services, which is calculated at an effective rate of 11% (after applying certain adjustments).
- Crypto Miners: Services that verify crypto transactions (like those done by miners) are charged a VAT rate of 2.2% on the value of the crypto they receive.
- Invoicing and Currency Conversion: When miners provide their services, they can issue simplified VAT invoices without needing the buyer’s name or signature. If payments for these services are made in foreign currency or crypto assets, the rules for converting the amounts into the local currency (Rupiah) remain largely the same, but they can also use the value of previous crypto sales to calculate the VAT.
Overall, these changes are designed to clarify how VAT applies to crypto assets and their related services, making it easier for businesses and tax authorities to understand and comply with the rules.
- New regulation clarifies income tax and VAT for crypto transactions in Indonesia
- Regulation replaces previous rules and introduces new provisions
- Final income tax rate increased and VAT eliminated for crypto asset transfers
- Oversight authority shifts from Bappebti to OJK
- Regulation effective from 1 August 2025
- Crypto assets defined as digital value representations using distributed ledger technology
- Crypto assets reclassified as securities, exempting transfers from VAT
- Supporting services by PPMSEs and crypto miners are taxable and subject to VAT
- PPMSEs must register as VAT-able entrepreneurs and issue tax invoices
- VAT for PPMSE services charged at an effective rate of 11%
- Crypto miners must also register as VAT-able entrepreneurs
- VAT on verification services for miners imposed at an effective rate of 2.2%
- Both PPMSE and miners must report VAT in periodic returns by the end of the following month
Source: ahp.id
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.
