In the Law on the Harmonization of Tax Regulations (UU HPP) which was validated by the government on October 29, 2021, it stated the new provisions as outlined in the amendment to the Value Added Tax Law (VAT Law) article 9A paragraph (1) regarding the amount of VAT that can be determined. by the Minister of Finance against Taxable Entrepreneurs (PKP) whose business circulation in one financial year does not exceed a certain amount, carries out certain business activities, and delivers certain Taxable Goods (BKP) or certain Taxable Services (JKP).

 

In the explanation of Article 9A paragraph (1), carrying out certain business activities means that PKPs experience difficulties in administering input taxes, conduct transactions through third parties, both submission of BKP and/or JKP, as well as payments, or have business process complexity so that the imposition of Added Tax Value is not possible to do with normal mechanism. Then, what is meant by the submission of certain BKP or JKP is BKP or JKP which is subject to VAT in the context of expanding the tax base, and BKP which is needed by the society.

 

With the emergence of this new rule, it means that in the future a Final VAT scheme will appear to accommodate the particular BKP or JKP collection system. Then it is continued in Article 9A paragraph (2) input tax on the acquisition of BKP or JKP, imports of BKP, as well as intangible BKP utilization, and/or utilization of JKP from outside the customs area within the customs area in connection with the delivery by PKP as referred to in paragraph (1) cannot be credited.

 

The Minister of Finance of the Republic of Indonesia, Mrs. Sri Mulyani, said in a video conference on 7 September 2021 that the final VAT rate will be 1% - 3% of turnover. However, as of this article was written, a Minister of Finance Regulation (PMK) has not yet been issued which regulates the criteria and which sectors are subject to this Final VAT.

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