Implementing Regulations issued on VAT Changes from HPP Law

Date of Post

May 11, 2022

Written by

lemonadecares

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.RegardingEffective Date
Foreign e-Commerce
1.PMK 60/PMK.03/2022Procedures 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)
2.PMK 62/PMK.03/2022Value Added Tax on the Delivery of Certain Liquefied Petroleum Gas.1st April 2022
3.PMK 63/PMK.03/2022Value Added Tax on Delivery of Tobacco Products.1st April 2022
4.PMK 66/PMK.03/2022Value 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.03/2022Criteria 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.03/2022Value Added Tax on Self-Building Activities (“KMS”).1st April 2022
7.PMK 64/PMK.03/2022Value Added Tax on Delivery of Certain Agricultural Products.1st April 2022
8.PMK 65/PMK.03/2022Value Added Tax on Delivery of Used Motor Vehicles.1st April 2022
9.PMK 67/PMK.03/2022Value Added Tax on the Delivery of Insurance Agent Services, Insurance Broker Services, and Reinsurance Broker Services.1st April 2022
10.PMK 71/PMK.03/2022Value Added Tax on the Delivery of Certain Taxable Services.1st April 2022
Taxation on Crypto Asset Trading
11.PMK 68/PMK.03/2022Value Added Tax and Income Tax on Crypto Asset Trading Transactions.1st May 2022
Taxation on FinTech Activities
12.PMK 69/PMK.03/2022Income Tax and Value Added Tax on the Implementation of Financial Technology.1st May 2022
Taxation related to Transactions with Government
13.PMK 58/PMK.03/2022Appointment 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.03/2022Amendments 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 Agencies1st May 2022
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