Business Actors Sued Until March To Adjust Tax Invoice Issuance Related To VAT

Tax illustration (ANTARA)

The Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu) issued a Regulation of the Director General of Taxes Number PER-01/PJ/2025 on January 3, 2025. This regulation was made as a step to follow up on public input, especially business actors, so that the process of issuing tax invoices is smoother in line with changes to the provisions of Value Added Tax (VAT) in the Regulation of the Minister of Finance (PMK) 131 of 2024.

The Director of Counseling, Services and Public Relations of the Ministry of Finance, Dwi Astuti, said that this new rule is expected to serve as a guideline in the administrative system for the issuance of tax invoices and the mechanism for returning VAT which is effective from January 1, 2025.

"To accommodate the needs of business actors, a Regulation of the Director General of Taxes Number PER-01/PJ/2025 dated January 3, 2025 has been issued. In essence, this regulation provides a transition period of 3 months, from January 1 to March 31, 2025," said Dwi in an official statement received on Sunday, January 5.

Dwi explained that there are three main points that need to be considered:

1. The Transitional Period for Adjusting the Tax Administration System Business actors is given time to adjust the tax payer's administrative system in issuing tax invoices as stipulated in PMK 131 of 2024.

2. Adjustment of VAT Tariffs The delivery of goods other than luxury goods imposed by VAT has adjustments related to the value of the VAT owed. The rate calculation formula that is considered correct is: - VAT 11 percent: 12% x 11/12 x selling price. - VAT 12 percent: 12% x 11/12 x selling price. Both are considered correct and will not be subject to sanctions.

3. Return of 1 percent VAT excess If there is an excess of VAT collection of 1% due to the application of a 12% tariff on transactions that should be subject to an 11% tariff, buyers can ask the seller for the return of the excess. Sellers, as Taxable Entrepreneurs (PKP), are required to make reimbursements for tax invoices to accommodate the return.

"Buyers can request a return on the excess VAT of 1% to the seller. Sellers as PKP will replace the tax invoices to accommodate the return," concluded Dwi.

With this regulation, it is hoped that business actors can carry out their tax obligations more smoothly during the transition period.