Starting May 1, Credit Transactions Will Be Subjected To VAT 1.1 Percent

JAKARTA - The government through the Directorate General of Taxes (DJP) of the Ministry of Finance has decided to impose a Value Added Tax (VAT) on the submission of Agunan Taken Over (AYDA) by creditors to collateral buyers.

Director of Counseling, Services, and Public Relations of DGT Dwi Astuti said the tariff charged was 10 percent of the VAT rate (1.1 percent) times the selling price of collateral.

"This has been clearly regulated in Article 10 of Government Regulation Number 44 of 2022 concerning the Implementation of VAT and PPnBM which also mandates further arrangements in the regulation of the minister of finance (PMK) regarding the procedures for collecting VAT," he said in a written statement on Wednesday, April 26.

According to Dwi, the subject of the collection tax in this transaction is creditors or financial institutions with objects in the form of AYDA sales by financial institutions to collateral buyers.

Therefore, financial institutions cannot credit the input tax on the imposition of this VAT. For the time the debt is when the payment is received by the financial institution so that it will not burden the cash flow of the financial institution," he said.

Dwi added that financial institutions in collecting VAT can use certain documents that are equated with tax invoices.

"This provision has come into effect since May 1, 2023," he said.

Meanwhile, a copy of PMK Number 41 of 2023 concerning VAT on the submission of AYDA by creditors to collateral buyers and other copies of tax regulations can be seen on the official website of the Directorate of Taxes at the Ministry of Finance, namely www.pajak.go.id.