{"id":9045,"date":"2025-01-21T16:28:59","date_gmt":"2025-01-21T09:28:59","guid":{"rendered":"https:\/\/suryacipta.com\/?post_type=news&p=9045"},"modified":"2025-01-24T09:25:11","modified_gmt":"2025-01-24T02:25:11","slug":"officially-effective-vat-rate-for-luxury-goods-12-and-non-luxury-goods-11","status":"publish","type":"news","link":"https:\/\/suryacipta.com\/en\/news\/officially-effective-vat-rate-for-luxury-goods-12-and-non-luxury-goods-11\/","title":{"rendered":"Effective Now: 12% VAT for Luxury Goods, 11% for Non-Luxury Goods"},"content":{"rendered":"

The government has set a Value-Added Tax (VAT) rate of 12% on the import or transfer of taxable goods (BKP) and\/or taxable services (JKP) classified as luxury items.<\/p>\n

Luxury items subject to this tax include motor vehicles and non-motor vehicles that were previously subject to Sales Tax on Luxury Goods (STLG), such as luxury residences priced at IDR 30 billion, hot air balloons, and luxury yachts.<\/p>\n

This policy is stipulated in the Minister of Finance Regulation (PMK) Number 131 of 2024, issued on December 31, 2024, and effective from January 1, 2025.<\/p>\n

Alternative Tax Base<\/strong><\/p>\n

For the period of January 1 to January 31, 2025, the VAT on luxury goods will be calculated by applying the 12% rate to an alternative tax base (DPP) of 11\/12 of the selling price.<\/p>\n

Starting February 1, 2025, the VAT liability will be calculated directly by applying the 12% rate to the full selling price or import value.<\/p>\n

Meanwhile, for the import and transfer of taxable goods (BKP) and\/or taxable services (JKP) other than luxury goods, a 12% VAT will be applied to an alternative tax base of 11\/12 of the selling price starting January 1, 2025, and onwards.<\/p>\n

Consideration of Fairness Aspects<\/strong><\/p>\n

For non-luxury taxable goods (BKP) and taxable services (JKP), the alternative tax base is set at 11\/12, so the effective VAT rate remains at 11%.<\/p>\n

\"\"<\/p>\n

Meanwhile, for taxable goods (BKP) and taxable services (JKP) that were previously subject to VAT with an alternative tax base (DPP) or a specific amount, the existing provisions will continue to apply.<\/p>\n

For example, the use of an alternative tax base for the transfer of goods for personal use or free distribution is regulated in PMK 121\/2015.<\/p>\n

Other examples include specific VAT rates for parcel delivery services or freight forwarding services, as outlined in PMK 71\/PMK.03\/2022, or insurance agent services regulated by PMK 67\/PMK.03\/2022.<\/p>\n

In its consideration, the government explained that this policy was issued to ensure fairness to the public.<\/p>\n

Previously, under the Tax Regulation Harmonization Law (HPP), the government was required to increase the VAT rate to 12%, without any exceptions.<\/p>\n

This information is provided by MUC Consulting<\/a><\/em><\/h6>\n","protected":false},"author":5,"featured_media":9050,"template":"","class_list":["post-9045","news","type-news","status-publish","has-post-thumbnail","hentry"],"_edit_lock":"1749437014:4","_wpml_media_duplicate":"","_edit_last":"1","_wpml_media_has_media":"1","_thumbnail_id":"9050","rs_page_bg_color":"","lima_bg_color":"","lima_bg_image":{"id":"0","url":""},"lima_contact_shortcode":"","_wpb_vc_js_status":"","_heateor_sss_meta":{"sharing":0,"vertical_sharing":0},"_yoast_wpseo_content_score":"30","_yoast_wpseo_estimated-reading-time-minutes":"2","_yoast_wpseo_title":"","_yoast_wpseo_metadesc":"The government has set a Value-Added Tax (VAT) rate of 12% on the import or transfer of taxable goods (BKP) and\/or taxable services (JKP) classified as luxury items.","_wpml_word_count":"356","_last_translation_edit_mode":"","_wp_old_slug":"","_wp_old_date":"","_wpml_location_migration_done":"","_wpml_media_featured":"","_links":{"self":[{"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/news\/9045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/types\/news"}],"author":[{"embeddable":true,"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/users\/5"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/media\/9050"}],"wp:attachment":[{"href":"https:\/\/suryacipta.com\/en\/wp-json\/wp\/v2\/media?parent=9045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}