Value Added Tax (VAT) is a tax collection policy on every product and service transaction to individual taxpayers, business entities and the government. This tax is objective, indirect, and non-accumulative. Therefore, VAT is charged to consumers who buy products or services. As the economy in Indonesia develops, the government believes that it is necessary to issue new tax regulations to regulate every economic sector in Indonesia.
The Regulation: PMK No. 71/PMK.03/2022
The government has issued the latest tax regulation related to VAT, which is PMK No. 71/PMK.03/2022 on Value Added Tax on Delivery of Certain Taxable Services. This regulation is effective since April 1, 2022.
The regulation explains that taxable entrepreneurs who deliver certain taxable services (JKP) are required to collect and remit VAT payable with a certain amount. Services that are subject to certain taxes are as follows:
- package delivery services
- travel agency services or travel agent services in the form of tour packages, transportation booking facilities and accommodation booking facilities, the delivery of which is not based on the provision of commissions or rewards for sales brokerage services
- transportation management services (freight forwarding) in which the bill for transportation management services contains freight charges
- services for organizing religious worship trips that also organize trips to other places in accordance with the provisions of laws and regulations governing the criteria or details of religious services that are not subject to VAT
- organizing services such as marketing with voucher, payment transaction services related to the distribution of vouchers and customer loyalty and reward programs whose delivery is not based on commissions and cannot be margined, in accordance with the provisions of laws and regulations governing the calculation and collection of VAT and income tax on delivery or income in connection with the sale of credit, starter packs, tokens and vouchers.
The Tax Amount
Article 3 of the regulation outlines certain amounts on the delivery of certain taxable services for the services mentioned. The tax rates are as follows:
- package delivery services at 10% of the VAT rate
- travel agency services or travel agent services at 10% of the VAT rate
- transportation management services (flight forwarding) at 10% of the VAT rate
- services for organizing religious worship trips at 10% of the VAT rate multiplied by the selling price of the travel package to other places, in the event that the bill is detailed between the bill for the religious worship travel package and the bill for the travel package to other places or 5% of the VAT rate multiplied by the selling price of the entire travel package, in the event that the bill is not detailed between the bill for the religious worship travel package and the bill for the travel package to other places
- organizing services such as marketing with voucher media at 10% of the VAT rate.
Taxable companies cannot credit input tax on the acquisition of taxable goods or taxable services, import of taxable goods and utilization of taxable goods from outside the customs area within the customs area, which is related to the delivery of certain taxable services.
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