Indonesia: VAT exemption for “strategic goods” | KPMG | GLOBAL

Indonesia: VAT exemption for “strategic goods”

Indonesia: VAT exemption for “strategic goods”

The government of Indonesia issued regulations to implement its revised policy concerning the import and/or delivery of certain taxable goods classified as “strategic goods” that are exempt from value added tax (VAT).


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The regulations include lists of “strategic goods” that are exempt from VAT. Among these goods are machinery and factory equipment, goods in the areas of maritime and fishery activities, livestock, animal feed, seeds, and electricity.

The procedures for claiming the VAT exemption are provided. In general, an “exemption certificate” must be issued by the tax authority before the purchase is made.


Read a March 2016 report [PDF 1.79 MB] prepared by the KPMG member firm in Indonesia: Certain Strategic Goods Purchases VAT Exemption - Update

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