The Government Again Gives Incentives For VAT DTP Electric Motor Vehicles

Electric motor (photo: dock. Antara)

The government has issued regulations regarding the provision of Value Added Tax (VAT) Borne by the Government (DTP) for the delivery of certain four-wheeled battery-based Electric Motor Vehicles (KBL) and Electric Motor Vehicles (KBL) based on certain bus batteries for the 2024 fiscal year.

This provision is regulated in the Minister of Finance Regulation (PMK) Number 8 of 2024 which will take effect on February 15, 2024.

"The provision of DTP VAT incentives is given in the context of economic transformation to increase the attractive investment of the electric vehicle ecosystem and the shift from fossil energy to electrical energy," said Dwi Astuti, Director of Counseling, Services, and Public Relations.

Dwi conveyed that the VAT DTP incentive was given at 10 percent of the selling price for the delivery of certain four-wheeled battery-based KBLs that met the TKDN value criteria of 40 percent.

Meanwhile, for certain bus battery-based KBLs that meet the TKDN value criteria, 40 percent are given VAT DTP incentives of 10 percent of the selling price.

Then, for certain bus battery-based KBLs that meet the TKDN value criteria of 20 percent to 40 percent, the DTP VAT incentive is given at 5 percent of the selling price.

For example, PT Primbono bought a certain bus battery-based KBL from the Jaya Kencana dealers for IDR 2 billion in March 2024. This type of vehicle meets a 20 percent TKDN value. For the purchase of the bus, a VAT DTP incentive of 5 percent multiplied by IDR 2 billion or IDR 100 million. Thus, the value of the money paid by PT Primbono to Jaya Kencana is IDR 2.12 billion. If there is no VAT DTP incentive, then PT Primbono will pay IDR 2.22 billion," explained Dwi.

Dwi said that the validity period for VAT DTP in PMK was the tax period from January to the tax period in December 2024.

"We hope that the public can take advantage of this opportunity to get this incentive," concluded Dwi.

A copy of PMK Number 8 of 2024 concerning Value Added Tax on the Submission of Certain Four-wheeled Battery Battery-Based Electric Motor Vehicles and Certain Bus Battery-Based Electric Motor Vehicles Borne by the Government for Fiscal Year 2024 can be downloaded on the official website of the Directorate General of Taxes.