The value added tax (VAT) system in Indonesia is very much dependent on developments in the community. This is reflected in the most recent amendments contained in Law No. 42 of 2009, which amends the earlier tax law, No. 8 of 1983. This is the third amendment to the tax law.
There are six basic purposes that form the foundation of these amendments, namely::
1.
Increasing the level of legal certainty and improving the level of equality in imposing the VAT;
2.
Simplifying the VAT system;
3.
Reducing the imposition of the “compliance fees” (sanctions);
4.
Decreasing the level of recalcitrance while simultaneously focusing on increasing the level of compliance;
5.
Ensuring that the government maximizes revenue raised through the VAT system; and
6.
Reducing the level of distortion while increasing the number of economic activities.
The taxable goods that are subject to the VAT are listed in Article 4(1). These include, among others, the following:
1.
Taxable imported goods;
2.
Taxable tangible export goods;
3.
Taxable intangible export goods; and
4.
Taxable export services.
The law also lists what is not subject to VAT.
Article 7 has been amended to state that the VAT tariff is no longer set at a compulsory 10%. There are circumstances where there is to be no VAT applied. This includes exports of taxable tangible goods, taxable intangible goods, and taxable services. Interestingly, the law now permits VAT to be set between a minimum of 5% and a maximum of 15%.
The amendment also inserts Article 8A. This article sets out how to calculate any outstanding VAT. Essentially, this requires the allocation of the relevant tariff with the basic tax rate. This will also include sales price, reimbursements, import and export values, or any other relevant value.
The amended law was enacted on 15 October 2009 and comes into force on 1 April 2010.
The value added tax (VAT) system in Indonesia is very much dependent on developments in the community. This is reflected in the most recent amendments contained in Law No. 42 of 2009, which amends the earlier tax law, No. 8 of 1983. This is the third amendment to the tax law.
There are six basic purposes that form the foundation of these amendments, namely::
1.
Increasing the level of legal certainty and improving the level of equality in imposing the VAT;
2.
Simplifying the VAT system;
3.
Reducing the imposition of the “compliance fees” (sanctions);
4.
Decreasing the level of recalcitrance while simultaneously focusing on increasing the level of compliance;
5.
Ensuring that the government maximizes revenue raised through the VAT system; and
6.
Reducing the level of distortion while increasing the number of economic activities.
The taxable goods that are subject to the VAT are listed in Article 4(1). These include, among others, the following:
1.
Taxable imported goods;
2.
Taxable tangible export goods;
3.
Taxable intangible export goods; and
4.
Taxable export services.
The law also lists what is not subject to VAT.
Article 7 has been amended to state that the VAT tariff is no longer set at a compulsory 10%. There are circumstances where there is to be no VAT applied. This includes exports of taxable tangible goods, taxable intangible goods, and taxable services. Interestingly, the law now permits VAT to be set between a minimum of 5% and a maximum of 15%.
The amendment also inserts Article 8A. This article sets out how to calculate any outstanding VAT. Essentially, this requires the allocation of the relevant tariff with the basic tax rate. This will also include sales price, reimbursements, import and export values, or any other relevant value.
The amended law was enacted on 15 October 2009 and comes into force on 1 April 2010.
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
