MINISTRY OF FINANCE REGULATIONS NO. 9 YEAR 2024 (PMK 9/2024) CONCERNING SALES TAX ON LUXURY GOODS ON THE IMPORT AND/OR DELIVERY OF TAXABLE LUXURY GOODS IN THE FORM OF CERTAIN FOUR-WHEELED BATTERY-BASED ELECTRIC VEHICLES BORNE BY THE GOVERNMENT IN THE 2024 FISCAL YEAR
This regulation aims to support the Government policy in transitioning from the use of fossil energy to electric energy, attract investment interest, increase domestic production of battery-based electric vehicles, and support the acceleration program for battery-based electric vehicles.
These are following of the main regulatory points contained in PMK 9/2024:
1) The government provide fiscal incentives in the form of Sales Tax on Luxury Goods (PPnBM) borne by the Government for the 2024 fiscal year to Taxable Entrepreneurs who carry out:
- Import of Completely Built Up (CBU) four-wheeled battery-based Electric Vehicle; and
- Delivery of certain four-wheeled battery-based Electric Vehicle from the production of Completely Knocked Down (CKD) four-wheeled battery-based Electric Vehicle
2) Sales Tax on Luxury Goods borne by the Government is given 100% from the total Sales Tax payable on Luxury Goods for tax period of January 2024 to December 2024 which can be proven by:
- The registration date of the Import declaration documents, for imports of Four-Wheel CBU Battery-based Electric Vehicles.
- Tax invoice date, for the delivery of Four-Wheeled Battery-Based Electric Vehicles.
3) For the import of certain CBU four-wheeled battery-based Electric Vehicles, the Taxable Entrepreneur is required to make:
a. Import declaration documents by including information:
- number and date of approval for utilization of import incentive
- import facility code,
- brand
- type and variant,
- chassis number, and
- Harmonized System (HS) code.
b. The realization report of the Sales Tax on Luxury Goods borne by the Government is in the form of import goods notification document reported in the Monthly VAT return.
4) The delivery of certain four-wheeled battery-based Electric Vehicle from the production of CKD four-wheeled battery-based Electric Vehicle, the Taxable Entrepreneur is obliged to make:
a. Tax Invoice is prepared by including:
- transaction code 01 (zero one);
- description of type of item contains information: brand, type, variant and vehicle chassis number; and
- the description “Sales Tax on Luxury Goods BORNE BY THE GOVERNMENT ACCORDING TO Regulation of The Minister of Finance NUMBER… YEAR 2024”.
b. The Sales Tax on Luxury Goods borne by the Government realization report is in the form of a Tax Invoice reported in the VAT Monthly tax return by the Taxable Entrepreneur who delivers certain four-wheeled battery-based Electric Vehicle from the production of CKD four-wheeled battery-based Electric Vehicle.
5) Sales Tax on Luxury Goods on imports of certain CBU Four-Wheeled Battery-Based Electric Vehicles becomes payable and not borne by the Government if upon delivery:
- do not use Tax Invoice
- do not report the realization
6) The Directorate General of Taxation can collect the Sales Tax on Luxury Goods payable if data and/or information obtained indicating:
- Taxable Entrepreneur does not have approval letter for the utilization of import incentives and/or certain Four-Wheeled Battery-Based Electric Vehicles CBU imported and/or certain Four-Wheeled Battery-Based Electric Vehicles originating from the production of CKD Four-Wheeled Battery-Based Electric Vehicles delivered that does not meet the requirements as stipulated in the regulation of the Minister which administers investment affairs.
- Import of certain four-wheeled CBU battery-based electric vehicles and/or delivery of certain four-wheeled battery-based electric vehicles originating from the production of four-wheeled CKD battery-based electric vehicles that does not comply with the tax period from January 2024 to December 2024.
- Taxable Entrepreneur fails to fulfill the obligation to prepare the Import Notification Documents and incomplete Tax Invoice.
- Taxable Entrepreneur fails to fulfill the obligation of reporting realization.
7) This Ministerial Regulation shall come into effect on February 15, 2024.
Tax services assistance please contact:
Rani Widianti
T. (+6221) 2222-0200
Alvina Oktavia
T. (+6221) 2222-0200
