IPL Flats And Apartments Get 11 Percent VAT, Ministry Of Finance: That's Old Rules And According To Law

Illustration. (Photo: Doc. Antara)

SERANG - Directorate General of Taxes (DGT) of the Ministry of Finance (Kemenkeu) stated that the imposition of Value Added Tax (VAT) rates on Environmental Management Contributions (IPL) on flats (rusun) and apartments had been implemented for a long time, which was in accordance with Government Regulation (PP) 49 of 2022.

Meanwhile, Government Regulation (PP) Number 49 of 2022 concerning Value Added Taxes Freed and Value Added Taxes or Value Added Tax and Sales Tax on Luxury Goods is not collected for imports and/or Submission of Certain Taxable Goods and/or Submission of Certain Taxable Services and/or Utilization of Certain Taxable Services from outside the Customs Region.

Head of the DGT Tax Revenue Management Sub-Directorate Muchamad Arifin explained that the regulation is not a new rule but is already an old rule and in the PP it has been explained that what components are excluded from VAT rates.

"Maybe today or tomorrow the DGT is inviting the association to explain, actually what is owed is not all," said Arifin in the media gathering of the Ministry of Finance 2024, Thursday, September 26.

Arifin explained that the services issued by the apartment and apartment managers were not exempted, so VAT was imposed.

According to Arifin, the cost of electricity and water is a component that is exempt from VAT, but if the occupants of flats or apartments are charged a greater tariff, the manager has added this fee, for the cost of managing electricity or water tariff payments.

"For example, the bill is Rp. 50,000 and then Rp. 50,000 is paid, yes, it doesn't get VAT. But if the payment is Rp. 70,000 to Rp. 80,000, there is a difference. If for example the invoice is separated, then the debt is actually only the service," he said.

Therefore, Arifin said that those affected by VAT were not electricity and water paid by apartment residents to apartment managers but payment services.

"So the debt is the management service, but the details will be explained after the DGT meets the association," he said.