MINISTRY OF FINANCE REGULATIONS NO. 8 YEAR 2024 CONCERNING VALUE ADDED TAX ON DELIVERY OF CERTAIN FOUR-WHEELED BATTERY-BASED ELECTRIC VEHICLES AND CERTAIN BUS BATTERY-BASED ELECTRIC VEHICLES BORNE BY THE GOVERNMENT
This regulation aims to continue government support to provide fiscal incentives in the form of Value Added Tax (VAT) for the delivery of certain four-wheeled battery-powered electric motorized vehicles and certain bus battery-based electric motorized vehicles borne by the government in 2024. The provision of this fiscal incentives in 2023 is regulated in Minister of Finance Regulation Number 38 of 2023 as amended by Minister of Finance Regulation Number 116 of 2023.
I. Period and Criteria for Delivery of Certain Four-Wheeled Battery-Based Electric Vehicles and Certain Bus Battery-Based Electric Vehicles Borne by the Government
VAT payable on delivery of Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles to buyers in the form of registration as a new motorized vehicle is borne by the Government for the 2024 fiscal year (Period January – December 2024).
Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles must fulfil the criteria of Domestic Component Level as follows:
- Minimum 40% for Certain Four-Wheeled Battery-Based Electric Vehicles and Certain Bus Battery-Based Electric Vehicles.
- Minimum 20% until less than 40% for Certain Bus Battery-Based Electric Vehicles.
The amount of VAT tariff borne by the Government on Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles are as follows:
- For Domestic Component Level minimum 40% for Certain Four-Wheeled Battery-Based Electric Vehicles and Certain Bus Battery-Based Electric Vehicles, the amount of VAT borne by the Government is 10% from selling price.
- For Domestic Component Level minimum 20% until less than 40% for Certain Bus Battery-Based Electric Vehicles, the amount of VAT borne by the Government is 5% from selling price.
II. Realization Report of VAT Borne by Government
Taxable Entrepreneur who delivers Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles are required to issue Tax Invoice in accordance with Indonesian Tax Regulations and prepare the realization report of VAT amount borne by the Government.
The criteria for the issuance of Tax Invoice by the Taxable Entrepreneur are as follows:
a. For the amount of VAT borne by the Government of 10% from the selling price, made by issuing 2 Tax Invoices consisting of:
- Tax invoice with transaction code 01 (zero one) for fraction of 1/11 from the selling price;
- Tax invoice with transaction code 07 (zero seven) for fraction of 10/11 from the selling price by including a description “VAT is Borne by the Government in Accordance with Ministry of Finance Regulations Number 8 Year 2024”.
b. For the amount of VAT borne by the Government of 5% from the selling price, made by issuing 2 Tax Invoices consisting of:
- Tax invoice with transaction code 01 (zero one) for fraction of 6/11 from the selling price;
- Tax invoice with transaction code 07 (zero seven) for fraction of 5/11 from the selling price by including a description “VAT is Borne by the Government in Accordance with Ministry of Finance Regulations Number 8 Year 2024”.
In the case the delivery of Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles are made to:
- VAT Collectors of Government agency, the transaction code 01 (zero one) is changed to 02 (zero two).
- VAT Collectors other than Government agency, the transaction code 01 (zero one) is changed to 03 (zero three).
- Transactions where the tax base determined by another value, the transaction code 01 (zero one) is changed to 04 (zero four).
Realization report of VAT borne by the Government which should be submitted by Taxable Entrepreneur who deliver Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles is by issuing tax invoice with transaction code 07 (zero seven) that should be submitted in the Monthly VAT Return on the related period.
The submission and amendment of Monthly VAT Return for the delivery transactions of Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles for period January 2024 until December 2024 could be implemented as realization report as long as it is submitted no more than 31 January 2025.
The buyers or consumer who is a Taxable Entrepreneur and utilize the facilities of this VAT borne by Government when they purchase the Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles, cannot claim the Input VAT in the Monthly VAT Return.
The Taxable Entrepreneur who delivers Certain Four-Wheeled Battery-Based Electric Vehicles and/or Certain Bus Battery-Based Electric Vehicles could be given a preliminary refund of tax overpayments as a low-risk Taxable Entrepreneur in accordance with article 9 paragraph (4c) of the VAT Law.
This regulation was promulgated on February 15, 2024 and came into effect on the date of promulgation.
For further tax assistances please contact:
Rani Widianti
T. (+6221) 2222-0200
Alvina Oktavia
T. (+6221) 2222-0200
