SW Indonesia Tax Update PER 1 Tahun 2025 (English)

DIRECTOR GENERAL OF TAX REGULATION NUMBER PER-1/PJ/2025 CONCERNING TECHNICAL INSTRUCTIONS FOR THE ISSUANCE OF TAX INVOICE IN THE CONTEXT OF THE IMPLEMENTATION OF THE MINISTER OF FINANCE REGULATION NUMBER 131 OF 2024

This regulation serves as a technical guideline for the issuance of Tax Invoices (“FP”) to provide legal certainty and ease for Taxable Entrepreneurs (“PKP”) in the implementation of the Minister of Finance Regulation Number 131 of 2024, effective from January 3, 2025.

Here are some key provisions included in PER-1/PJ/2025:

A. ISSUANCE OF TAX INVOICES OR DOCUMENTS EQUIVALENT TO TAX INVOICES

1. Tax Invoices or certain documents equivalent to Tax Invoices must be created by Taxable Entrepreneur for the delivery of Taxable Goods (“BKP”) and Taxable Services (“JKP”) and must be filled out correctly, completely, and clearly, at a minimum containing:
   1. name, address, and Taxpayer Identification Number (“NPWP”) of the entity delivering Taxable Goods or Taxable Services;
   2. the identity of the buyer of the Taxable Goods or the user of the Taxable Services, which includes:
      1. name, address, and Taxpayer Identification Number for domestic tax entities and government agencies;
      2. name, address, and Taxpayer Identification Number or National Identification Number (“NIK”) for domestic individual taxpayers in accordance with applicable laws;
      3. name, address, and passport number for foreign individual taxpayers; or
      4. name and address for foreign entities or those not classified as taxpayers as regulated in Article 3 of the Income Tax Law;
   3. type of goods or services, the total sale price or reimbursement cost, and discounts;
   4. Value Added Tax (“PPN”) collected;
   5. Luxury Goods Sales Tax (“PPnBM”) collected;
   6. code, serial number, and issuance date of the Tax Invoice; and
   7. name and signature of the authorized signatory of the Tax Invoice.
2. Tax Invoices can be issued without stating information regarding the identity of the buyer as well as the name and signature of the seller for the delivery of Taxable Goods and/or Taxable Services performed by retail Taxable Entrepreneurs to buyer characterized as end consumers.
3. Retail Taxable Entrepreneurs must create Tax Invoices in accordance with the provisions in point 1 for the following deliveries:
   1. Certain Taxable Goods, including:
      1. land transportation in the form of motor vehicles;
      2. water transportation in the form of yachts, excursion ships, ferries, and/or yachts;
      3. air transportation in the form of airplanes, helicopters, and/or balloons;
      4. land and/or buildings; and
      5. firearms and/or ammunition; and
   2. Certain Taxable Services, including:
      1. services for renting land transportation in the form of motor vehicles;
      2. services for renting water transportation in the form of yachts, excursion ships, ferries, and/or yachts;
      3. services for renting air transportation in the form of airplanes, helicopters, and/or balloons; and
      4. services for renting land and/or buildings.

B. PROVISIONS FOR TAX INVOICES DURING THE TRANSITION PERIOD

1. Tax Invoices or certain documents equivalent to Tax Invoices created from January 1, 2025, to March 31, 2025, for deliveries other than luxury goods that stated:
   
   a. Tax Base for the sale price/replacement/import value fully at a rate of 12%; or
   
   b. Tax Base for the sale price/replacement/import value fully at a rate of 11%
   
   are considered valid and will not incur penalties if it also includes other information according to applicable tax laws.
2. If there is an over-collection of VAT beyond what should have been collected, the following provisions apply:
   1. the collected party requests a refund of the excess VAT from the selling Taxable Entrepreneur; and
   2. based on the refund request from the collected party, the selling Taxable Entrepreneur corrects or replaces the Tax Invoice or certain documents equivalent to the Tax Invoice.

C. PROVISIONS FOR TAX INVOICES MADE BY RETAIL TAXABLE ENTREPRENEURS FOR THE DELIVERY OF TAXABLE GOODS CLASSIFIED AS LUXURY

1. Taxable Entrepreneurs delivering Taxable Goods to buyers characterized as end consumers, for the delivery of Taxable Goods in the form of motor vehicles and other motor vehicles classified as luxury, the following provisions apply:
   1. Starting from January 1 to January 31, 2025, the VAT payable shall be calculated by multiplying the rate of 12% by the Tax Base of other value of 11/12 of the selling price; and
   2. Starting from February 1, 2025, the VAT payable shall be calculated by multiplying the rate of 12% by the Tax Base of the selling price.
2. The provisions in point 1 (a) shall not apply to retail Taxable Entrepreneurs who deliver luxury goods (motor vehicles and other luxury goods).

Tax consultancy services can be contacted at:

            Rani Widianti

            T. (+6221) 2222-0200

            E. [email protected]

            Alvina Oktavia

            T. (+6221) 2222-0200

            E. [email protected]