JAKARTA - The government has set an increase in Value Added Tax Rates (VAT) to 12 percent, as regulated in PMK 131 of 2024 concerning the Implementation of Value Added Tax on Imports of Taxable Goods, Submission of Taxable Goods, Submission of Taxable Services, Utilization of Intangible Taxable Goods from Outside the Customs Area, and Utilization of Taxable Services from Outside the Customs Area.
However, the understanding that has developed in the community regarding the absence of an increase in VAT rates needs to be straightened out. In fact, the VAT rate has officially increased to 12 percent, but the immediate impact on the general public is estimated to be relatively small because the direct impact of the 12 percent increase in tariff will only have a direct impact on the public on taxable goods which are classified as luxurious, in addition to taxable goods which are classified as luxury adjustments made is in the basic calculation method of tax imposition.
"The public generally continues to pay an 11 percent tariff because the basis for the imposition of taxes is now calculated as the value of the handover multiplied by 11/12. However, certain items such as luxury goods are directly subject to a tariff of 12 percent, including luxury housing such as houses or apartments with a minimum selling price of IDR 30 billion or more, private helicopters, private jets, cruise ships, yachts, as well as firearms such as revolvers and pistols for private collections," said Head of Tax and Transfer Pricing Grant Indonesia, Tommy David, in a written statement, Thursday, January 23.
The Impact Of This Policy On Taxpayers
Grantten Indonesia also said that this policy is not expected to have a significant impact on consumers in general. However, for sellers or business actors, administrative adjustments in the process of making tax invoices are a major challenge. To adapt to the new regulations, business actors need to understand the technical implementation of PMK 131 and PER-1/PJ/2024, which provides instructions for making tax invoices in the context of implementing this policy.
PMK 131 of 2024 stipulates that the VAT rate of 12 percent applies to certain goods and services, with adjustments to the basic calculation method for the imposition of taxes for most transactions. Meanwhile, PER-1/PJ/2024 provides technical guidance regarding the manufacture of tax invoices, which is an important step in ensuring administrative compliance by business actors.
Grantten Indonesia also sees that with the issuance of this new regulation, adjustments need to be made in the administration of Taxpayers, including to immediately make the necessary adjustments in their administrative system to ensure compliance with the latest regulations. Adjustments can be in the form of system invoice updates so that they are in accordance with the new calculation method on the determination of the basis for tax imposition.
Furthermore, business actors are advised to provide training to related staff in order to understand and implement these changes properly. In addition, consultation with professional tax consultants is highly recommended so that taxpayers can increase their compliance with the latest regulations and reduce the risk of administrative errors.
Business actors also need to pay attention to the category of goods or services subject to a 12% VAT rate, such as luxury goods, to ensure that there are no errors in determining the filling of tax invoices. By carrying out these steps, taxpayers are expected to be able to manage these policy changes more effectively and efficiently.
Next Steps For Taxpayers
Taxpayers are expected to immediately conduct a review and update on their tax administration system to ensure the smooth implementation of this regulation. Grant total Indonesia recommends taxpayers:
This ensures the suitability of documents and tax invoices with PER-1/PJ/2024. This Adjusts the pricing strategy to anticipate the impact of tariff increases in certain categories of goods.
Tommy David stated that this policy requires business actors to be more adaptive in managing their tax administration. To help meet this new need, business actors can start with several practical steps such as updating the administrative system in accordance with the latest tax calculations, increasing financial staff understanding of new regulations, and conducting internal compliance testing to ensure compliance.
"In addition, collaboration with experienced tax consultants can be a strategic step to ensure the smooth operation of the company. Grantten Indonesia is ready to assist the company with a solution designed for their specific needs, helping to expedite the adaptation process to this change," he explained.
Grantten Indonesia is committed to supporting taxpayers through data-based assistance and consultations and the latest regulations. With a correct understanding and the right strategy, taxpayers can ensure compliance as well as efficiency in their tax management.
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