Proposal includes
- Deliveries of taxable goods on consignment arrangements will not longer be subject to VAT
- Crediting input VAT in a different period: Input VAT can be credited within three months as long as the input VAT has not been expensed or capitalized.
- PKPs in pre-production will gain benefits of crediting input VAT that is not limited to procurement or import of capital goods.
- A PKP’s right to input VAT that is paid before it is registered as a PKP is confirmed, although the mechanics of the 80% calculation are still unclear.
- There may be resistance from some purchasers to provide the information required in place of NPWPs.
- An MoF regulation will be issued regarding the issuance of VAT invoices by a retail PKP (PKP pedagang eceran). It is as yet unknown whether the MoF regulation will broaden the definition of retail.
Source Deloitte
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