Sri Mulyani Officially Frees VAT For Horses And TNI Military Equipment Until The End Of 2025

JAKARTA - Procurement of horsemen and military equipment officially obtained a Value Added Tax (VAT) exemption.

This policy is contained in the Minister of Finance Regulation (PMK) Number 61 of 2025 which was signed by the Minister of Finance Sri Mulyani.

The regulation states that the government will fully bear VAT on the procurement of horses and supporting equipment used by the Ministry of Defense or the Indonesian National Army (TNI) until December 31, 2025.

"VAT is owed for the delivery of certain special animals in the form of horses and supporting equipment to the Ministry of Defense and/or the TNI borne by the government for the 2025 budget year of 100 percent," Article 2 reads in the PMK, quoted Wednesday, September 3.

This Government-Borrowed VAT (DTP) facility includes battalion horses and 44 other types of equipment, such as ceremonial saddles, reins, horseshoes, rider uniforms, horse medicines, to portable cages for army units.

Sesuai Pasal 4, pembebasan PPN ini berlaku untuk transaksi yang terjadi sejak PMK ini diundangkan, yakni mulai 1 September 2025, sampai akhir tahun yang sama.

Namun demikian, insentif ini tidak berlaku jika barang yang diserahkan bukan termasuk kategori kuda kavaleri dan perlengkapannya, dilakukan di luar periode yang ditetapkan, atau faktur pajaknya tidak dibuat sesuai aturan yang berlaku.

Dalam kondisi tersebut, pengenaan PPN akan mengikuti ketentuan perpajakan umum.

In accordance with Article 4, the exemption from VAT applies to transactions that have occurred since the PMK was promulgated, starting September 1, 2025, until the end of the same year.

However, this incentive does not apply if the goods handed over are not included in the category of horsemen and equipment, carried out outside the stipulated period, or the tax invoices are not made according to applicable regulations.

Under these conditions, the imposition of VAT will follow the provisions of public taxation.