- Indonesia introduced a VAT incentive for domestic air transportation services under Ministerial Regulation No. 24/2026.
- The government will bear 100% of the VAT on base fares and fuel surcharges for eligible flights within 60 days of the regulation’s effective date.
- Airlines must issue tax invoices, report VAT, and submit detailed transaction reports by July 31.
- The incentive excludes non-economy class services, transactions outside the eligible period, and cases of late reporting.
- The regulation takes effect the day after its publication in the Official Gazette.
Source: globalvatcompliance.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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