On 30 March 2022, the Minister of Finance (MoF) issued a total of 14 derivative regulations to implement the Value-Added Tax (VAT) changes set out under the Harmonization of Tax Regulations (Harmonisasi Peraturan Perpajakan/HPP) Law (specifically Law / UU No. 7 the Year 2021).
Regarding the issuance of the 14 regulations, the Directorate General of Taxes (“DGT”) issued an official statement through Press Release No. SP-23/2022 on 5th April 2022.
A summary of the implementing regulations issued according to their category of objectives is appended as follows:
| No. | MoF Regulation No. | Regarding | Effective Date |
|---|---|---|---|
| Foreign e-Commerce | |||
| 1. | PMK 60/PMK.03/2022 | Procedures for Appointment of Collector, Collection, Deposit, and Reporting of Value Added Tax on the Utilization of Intangible Taxable Goods and/or Taxable Services from Outside the Customs Area within the Customs Area through Trading Through the Electronic System. | 1st April 2022 |
| The Use of “Other Value” for the VAT Imposition Base (Dasar Pengenaan Pajak/DPP Nilai Lain) |
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| 2. | PMK 62/PMK.03/2022 | Value Added Tax on the Delivery of Certain Liquefied Petroleum Gas. | 1st April 2022 |
| 3. | PMK 63/PMK.03/2022 | Value Added Tax on Delivery of Tobacco Products. | 1st April 2022 |
| 4. | PMK 66/PMK.03/2022 | Value Added Tax on Subsidized Fertilizer Delivery for Agriculture Sector. | 1st April 2022 |
| Non-VATable goods and services that are subject to Regional Taxes | |||
| 5. | PMK 70/PMK.03/2022 | Criteria and/or Details of Food and Beverages, Arts and Entertainment Services, Hospitality Services, Parking Provision Services, and Catering or Catering Services, which are not subject to Value Added Tax. | 1st April 2022 |
| “Final” VAT regime | |||
| 6. | PMK 61/PMK.03/2022 | Value Added Tax on Self-Building Activities (“KMS”). | 1st April 2022 |
| 7. | PMK 64/PMK.03/2022 | Value Added Tax on Delivery of Certain Agricultural Products. | 1st April 2022 |
| 8. | PMK 65/PMK.03/2022 | Value Added Tax on Delivery of Used Motor Vehicles. | 1st April 2022 |
| 9. | PMK 67/PMK.03/2022 | Value Added Tax on the Delivery of Insurance Agent Services, Insurance Broker Services, and Reinsurance Broker Services. | 1st April 2022 |
| 10. | PMK 71/PMK.03/2022 | Value Added Tax on the Delivery of Certain Taxable Services. | 1st April 2022 |
| Taxation on Crypto Asset Trading |
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| 11. | PMK 68/PMK.03/2022 | Value Added Tax and Income Tax on Crypto Asset Trading Transactions. | 1st May 2022 |
| Taxation on FinTech Activities |
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| 12. | PMK 69/PMK.03/2022 | Income Tax and Value Added Tax on the Implementation of Financial Technology. | 1st May 2022 |
| Taxation related to Transactions with Government |
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| 13. | PMK 58/PMK.03/2022 | Appointment of Other Parties as Tax Collectors and Procedures for Collecting, Depositing, and/or Reporting Taxes Collected by Other Parties for Transactions on the Procurement of Goods and/or Services through the Government Procurement Information System. | 1st May 2022 |
| 14. | PMK 59/PMK.03/2022 | Amendments to MoF Reg No. 231/PMK.03/2019 concerning Procedures for Registration and Deletion of Taxpayer Identification Numbers, Confirmation and Revocation of Confirmation of Taxable Entrepreneurs, and Withholding and/or Collection, Depositing, and Reporting Taxes For Government Agencies | 1st May 2022 |
