- The Indonesian government will temporarily cover 100% of VAT on qualifying domestic economy class airline tickets due to rising aviation fuel prices.
- The incentive applies to tickets purchased and travel occurring between 25 April and 23 June 2026, covering only the base fare and fuel surcharge.
- Airlines must issue VAT invoices indicating the VAT is government-borne and report eligible transactions to tax authorities by specified deadlines.
- The measure aims to support airlines facing higher costs and protect consumers from increased airfares.
Source: taxathand.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 Offers 0% Tax Incentive for Compliant Exporters
- Indonesia POS and Fiscalization Requirements: VAT, Receipts, Reporting, and Payment Methods Explained
- Indonesia POS and Invoicing: No Fiscalization, Flexible Receipts, Electronic Invoices Allowed
- Indonesia Proposes 40-100% VAT Incentives for Pure Electric Vehicles, Excludes Hybrids
- Indonesia Introduces Full VAT Incentive for Domestic Air Transportation Services in 2026
