Official! Buying And Selling Used Cars And Motorcycles In Showrooms Now Taxable 1.1 Percent

JAKARTA - The government is said to have issued Regulation of the Minister of Finance (PMK) Number 65/PMK.03/2022 concerning Value Added Tax (PPN) on Delivery of Used Motor Vehicles.

Director of Counseling, Services and Public Relations of the Ministry of Finance Neilmadrin Noor said VAT on used motor vehicles is not a new type of tax regulation.

"This PMK accommodates changes in the VAT rate by the Law on the Harmonization of Tax Regulations (UU HPP)", he said in an official statement, Tuesday, April 12.

According to Neilmadrin, the presence of the PMK is an effort to simplify the mechanism and adjust changes in VAT rates on transactions for the delivery of used vehicles.

“The obligation to collect and deposit VAT of 1.1 percent of the selling price is only for Taxable Entrepreneurs (PKP) who carry out certain business activities in the form of handing overused motor vehicles. Meanwhile, if the sale and purchase are carried out by non-PKP, there is no need to collect VAT", he said.

Therefore, the sale and purchase of used motor vehicles carried out by private persons or individuals who are not Taxable Entrepreneurs is nil.

"If there are sales or purchases that are not made in the context of business or business activities, then there is no need to collect VAT", concluded Neilmadrin.