Minister Of Finance Issues Official Regulations For VAT 12 Percent Especially For Luxury Goods, Here's The Complete Contents

Minister of Finance Sri Mulyani (Photo: Antara)

JAKARTA - The government officially issued regulations related to the 12 percent value added tax (VAT) policy in 2025 specifically for luxury goods. This is stated in the Minister of Finance Regulation (PMK) Number 131 of 2024.

As for the regulation, apart from luxury goods, goods and services will be subject to VAT with an effective rate of 11 percent through the DPP Value Other mechanism.

"That in order to realize the aspect of justice in society, policies need to be issued in the application of Value Added Tax rates," he wrote in the regulation, quoted Thursday, January 2.

The 12 percent VAT tariff scheme in this regulation is divided into two, namely first using the basis for imposition of taxes (DPP) in the form of selling prices or import values, while the second is in the form of other values.

In addition, the VAT rate of 12 percent will be imposed on imports of Taxable Goods (BKP) and/or the submission of BKP within the Customs Area, the use of BKP is not realized from abroad at home, and the utilization of Taxable Services (JKP) from abroad. country.

Furthermore, this PMK regulates that other values can be used as a basis for imposition of taxes (DPP) in certain situations, such as luxury goods.

Meanwhile, for BKPs that are not classified as luxury goods, the scheme for imposing VATs that are owed is calculated by multiplying the 12 percent tariff with the DPP in the form of other values. The other value is calculated at 11/12 of the import value, selling price, or replacement of goods/services.

In addition, this regulation also regulates special provisions for Taxable Entrepreneurs (PKP) who submit BKPs, which are classified as final consumers.

As for the submission of BKP which is classified as luxurious to consumers, the final two provisions apply, namely:

First, starting from January 1, 2025 to January 31, 2025, the VAT owed is calculated by multiplying the 12 percent tariff on the basis of the DPP in the form of another value of 11/12 of the selling price.

Second, starting on February 1, 2025, the outstanding VAT is calculated by multiplying the tariff of 12 percent with the DPP in the form of selling prices or import values.