Indonesia: VAT exemption for “basic necessities” | KPMG | GLOBAL

Indonesia: VAT exemption for “basic necessities”

Indonesia: VAT exemption for “basic necessities”

The Ministry of Finance issued guidance that exempts “basic necessities” from value added tax (VAT).

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The guidance (a regulation) clarifies 11 types of commodities (food items or products) as being eligible for the VAT exemption.

The Ministry of Finance also issued guidance that postpones the date for payment of customs duties and related civil penalties. The regulation allows those taxpayers that underpaid their import or export customs duties to delay payment of penalties. The regulation has an effective date of 6 October 2017. The postponement is available only if approved by the Indonesian customs officials. 

 

Read a September 2017 report [PDF 742 KB] prepared by the KPMG member firm in Indonesia

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