- Indonesia’s Ministry of Finance issued Regulation No. 24/2026 granting a 100% government-borne VAT incentive for domestic commercial air transportation services in 2026.
- The incentive applies to base fare and fuel surcharge for tickets purchased and flights taken within 60 days of the regulation’s effective date.
- Airlines must issue tax invoices, report VAT distinguishing government-borne VAT, and submit detailed transaction reports.
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.
Latest Posts in "Indonesia"
- Indonesia Proposes 40-100% VAT Incentives for Pure Electric Vehicles, Excludes Hybrids
- Indonesia to Cover 100% VAT on Domestic Economy Flights Amid Rising Fuel Costs
- Indonesia Introduces Full VAT Incentive for Domestic Air Transportation Services in 2026
- VAT on Toll Roads: A Risky Move Threatening Indonesia’s Economy and Public Mobility
- Indonesia Waives VAT on Economy Flights to Lower Airfares Amid Rising Fuel Costs














