The Second Amendment To Law Number 8
Year 1983 On Value Added Tax On Goods And
Services And Sales Tax On Luxury Goods
Undang-Undang No. 18 YEAR 2000, Tgl. 02-08-2000
WITH THE GRACE OF GOD ALMIGHTY
PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering :
that in framework of further enchancing legal certainty and justice, as well as creating simple taxation
system without avoiding the supervision over and safeguarding of State Revenue. so that the national
development can be executed in self reliant manner, it is necessary to amend the Law Number 8 Year
1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended by Law
Number 11 Year 1994;
In a view of :
1.
Article 5 paragraph (1), Article 20 paragraph (2) and Article 23 paragraph (2) of the 1945
Constitution as amended by First Amendment Year 1999;
2.
Law Number 6 of 1983 on General Provisions and Procedures of Taxation (State Gazette 1983
Number 49, Supplement to the State Gazette Number 3262) as amended by the Law Number 16
of 2000 (State Gazette 2000 Number 126, Supplement to the State Gazette Number 3984);
3.
Law Number 7 of 1983 on Income Tax (State Gazette 1983 Number 50, Supplement to the State
Gazette Number 3263) as amended lastly by the Law Number 17 of 2000 (State Gazette 2000
Number 127, Supplement to the State Gazette Number 3567);
4.
Law Number 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury
Goods (State Gazette 1983 Number 51, Supplement to the State Gazette Number 3264) as
amended lastly by the Law Number 11 of 1994 (State Gazette 1994 Number 3568)
With the Approval of
THE HOUSE OF THE PEOPLE'S REPRESENTATIVES
OF THE REPUBLIC OF INDONESIA,
DECIDES:
To stipulate:
LAW ON THE SECOND AMENDMENT ON THE LAW NUMBER 8 YEAR 1983 CONCERNING VALUE
ADDED TAX ON GOODS AND SERVICES AND SALES TAX ON LUXURY GOODS.
Article 1
The Law Number 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury
Goods (State Gazette 1983 Number 51, Supplement to the State Gazette Number 3264) as amended
lastly by the Law Number 11 of 1994 (State Gazette 1994 Number 3568) amended as follows:
1.
The provisions of Article 1 are amended, so that Article 1 altogether turns out to say as follows:
"Article 1
In this Law referred to as:
1.
Economic Exclusive Zone and Continent as valid in law number 10 Year 1995 on customs.
2.
Goods shall be tangible goods, which, according to the nature or law thereof may
constitute movable or immovable goods, as well as intangible goods.
3.
Taxable goods shall be goods as referred to in (2), which are imposed with tax based
on this Law;
4.
Delivery of taxable goods is all delivery activities as referred to in (3).
5.
Services are all service activities, based on a commitment or legal action causing goods
or facility or convenience or right to become available to be used, including services,
conducted to produce goods because of an order or a request, with materials and on the
directives of the party, placing the order;.
6.
Taxable services shall be services as referred to in (5) which are imposed with tax based
on this Law.
7.
The delivery of Taxable Services shall be all activities as referred to in (6).
8.
The utilization of Taxable Services from Outside the Customs Area within the Customs
Area.
9.
Import shall be any activity to import goods from outside the Customs Area into the
Customs Area.
10.
The utilization of intangible goods from outside the Customs Area because an agreement
within the Customs Area.
11.
Export shall be all activities to export goods from the Customs Area to Regions outside
the Customs area.
12.
Trade shall be any business activities to purchase and sell goods, without changing
the form or the nature thereof.
13.
Statutory bodies shall be groups of persons, and/or capital which constitutes an unit,
undertaking or not undertaking businesses, covering limited liability companies,
limited partnership companies, other companies, state # or regional administration-owned
companies in whatever names and forms, firms, joint companies, cooperatives, pension
funds, partnerships, groups, foundations, mass organizations, social and political
organizations or organizations of the same type, institutions, permanent establishments
and other forms of statutory bodies.
14.
Entrepreneur shall be an individual person or an entity as referred to in (13) within his
activity or work produces goods, imports goods, exports goods, conducts a commercial
business, utilizes intangible goods outside the Customs Area, conducts a service
business, or utilizes services from outside the Customs Area.
15.
Taxable entrepreneurs shall be Entrepreneurs as referred to in (14) who conduct delivery
of Taxable Goods and/or delivery of Taxable Services, imposed with tax based on this
law, not including small-scale entrepreneurs of which the definition shall be determined
by the Minister of Finance, except Small-Scale Entrepreneurs preferring to be confirmed
as Taxable Entrepreneurs;
16.
Producing shall be the activities of processing through changing the form or nature of an
object/good from its original form into a new object/good or to have a new utility, or the
activities to process natural resources, including having an individual person or agency
conduct said activities;
17.
The Tax Imposition basis shall be the amount of the Sales Price or Replacement Price
or Import Value or Export Value or other values stipulated by the Minister of Finance,
used as basis for the calculation of the owed tax;
18.
The Sales Price shall be the Value in the form of money, including all costs, requested
or should have been requested by the seller, because of the delivery of Taxable goods,
not including the tax, collected according to this Act, and the price reduction, set forth
in the Tax Invoice;
19.
Replacement shall be a value, constituting money, including all costs requested or that
should have been requested by the Services Provider, because of the delivery of Taxable
Services, not including the tax, collected according to this Act, and the price reduction,
set forth in the Tax Invoice;.
20.
The Import Value shall be the value, constituting money, which is the calculation basis
of the import duties, added with other levies, imposed based on the provisions in the
Customs legislative regulations, for the import of Taxable Goods, not including the Value
Added Tax, collected according to this Law;
21.
Purchaser shall be an individual person or entity who receives or should have received
the delivery of the Taxable Goods and pays or should have paid the price of said
Taxable Goods;
22.
Services Recipient shall be an individual person who receives or should have received
the delivery of Taxable Services and pays or should have paid a remuneration for said
Taxable Services;
23.
Tax Invoice shall be the tax collection evidence prepared by the Taxable Entrepreneur
because of the delivery of Taxable Goods or Taxable services, or the tax collection
evidence because of the import of Taxable Goods used by the Directorate General of
Customs and Excise
24.
Input Tax shall be the Value Added Tax, paid by a Taxable Entrepreneur caused by
obtaining Taxable Goods and/or Taxable Services and/or the utilization of intangible
Taxable Goods from outside the Customs Area and/or the utilization of Taxable Services,
from outside the Customs Area and/or the import of Taxable Goods;
25.
Output Tax shall be the owed Value Added Tax, collected by a Taxable Entrepreneur
because of the delivery of Taxable Goods, or the delivery of Taxable Services, or export
of Taxable Goods.
26.
Export Value shall be the value in the form of money, including all costs requested
or which should have been requested by the exporter;
27.
"Value Added Tax Collector shall be an individual person or entity, or Government
Agency designated by the Minister of Finance to collect, deposit and report the tax
owed by a Taxable Entrepreneur on the delivery of Taxable Goods and/or Services to
said individual person, body, or the said Government Agency.#
2.
Among Article 1 and 2 is inserted 1 (one) Article that is Article 1A read as follows:
"Article 1A
(1)
(2)
3.
Included in the concept of delivery of taxable goods are:
a.
the delivery of rights on Taxable Goods because of an agreement;
b.
the transfer of Taxable Goods because of a lease-purchase agreement and a
leasing agreement;
c.
the delivery of Taxable Goods to a broker or through an auctioneer;
d.
own use and/ or granting free of charge on Taxable Goods;
e.
stock of Taxable Goods and assets which according to the initial purpose,
shall not be transacted/traded, and which are still remaining at the time of
dissolution of the company, as far as the Value Added Tax on the acquisition
of said assets, according to the provisions, can be credited;
f.
the delivery of Taxable Goods from the Head Office to a Branch Office or vice
versa and the delivery of Taxable Goods among Branches;
g.
the delivery of Taxable Goods by consignment.
Not included in the concept of delivery of Taxable Goods are:
a.
the delivery of Taxable Goods to a broker, as referred to in the Commercial
Code;
b.
the delivery of Taxable Goods for liabilities & receivables security;
c.
the delivery of Taxable Goods as referred to in number 1) (f), in case the
Taxable Entrepreneur has obtained a permit for centralization of the owed tax
location."
Title of CHAPTER IIA is amended, so that reads as follows:
"CHAPTER II (A)
THE OBLIGATION TO REPORT A BUSINESS AND THE OBLIGATION TO COLLECT,
DEPOSIT, AND REPORT OWED TAXES#
4.
The provisions of Article 3 (A) are amended, so that Article 3 (A) altogether turns out to say as
follows:
"Article 3A
(1)
An Entrepreneur who is conducting a delivery as referred to in Article 4 (a), (c) or (f),
have an obligation to report his business to be confirmed as Taxable Entrepreneurs and
to collect, deposit, and report the owed Value Added Tax and Sales Tax on Luxury
Goods.
5.
(2)
Small-scale Entrepreneurs, who prefer to be confirmed as Taxable Entrepreneurs, shall
implement the provisions as referred to in paragraph (1).
(3)
An individual person or body, utilizing intangible Taxable Goods from outside the
Customs Area as referred to in Article 4 (d) and/or utilizing Taxable Services from outside
the Customs Area as referred to in Article 4 (e), shall collect, deposit and report the
owed Value Added Tax, of which the calculation and procedure shall be stipulated by the
Minister of Finance.
Title of Chapter III amended, so that it turns to say as follows:
"CHAPTER III
TAX OBJECT"
6.
The provisions of Article 4 are amended, so that Article 4 altogether turns out to say as follows:
"Article 4
A Value Added Tax is imposed on:
7.
a.
the delivery of Taxable Goods in the Customs Area conducted by an Entrepreneur;
b.
the Import of Taxable Goods;
c.
the delivery of Taxable Services in the Customs Area conducted by an Entrepreneur;
d.
the utilization of intangible Taxable Goods from Outside the Customs Area within the
Custom Area;
e.
the utilization of Taxable Services from Outside the Customs Area within the Customs
Area; or
f.
the export of Taxable goods by a Taxable Entrepreneur.#
The provisions of Article 4A are amended and turned into paragraph (1) and added 2 (two)
paragraphs, so that Article 4A altogether turns out to say as follows:
"Article 4A
(1)
The kinds of goods as referred to in Article 1 letter (2), and the kinds of Services as
referred to in Article 1 letter (5), which are not imposed with tax based on this Act, shall
be stipulated by a Government Regulation."
(2)
The stipulation of kinds of goods exempted from Value Added Tax as meant in
paragraph (1) based on groups of goods as follows:
a.
goods from mining and drilling taken directly from their sources;
b.
goods being basic necessities which are badly needed by the public at large;
c.
food and drinks served at hotel, restaurant, stalls and other similar kinds;
d.
Money, bar gold valueable papers
(3)
8.
The stipulation of kinds of services exempted from Value Added Tax as meant in
paragraph (1) based on groups of services as follows:
a.
medical services;
b.
social services;
c.
delivery services of letter with postal stamps;
d.
banking, insurance and optional leasing services ;
e.
religiuos services;
f.
educational services;
g.
art and entertainment services already subjected to entertainment tax;
h.
non-advertisement broadcasting services;
i.
public transport services on land and in waters;
j.
manpower services
k.
hotel services;
l.
services provided by the Government in the framework of executing public
administration in general"
The provisions of Article 5 are amended, so that Article 5 altogether turns out to say as
follows:
"Article 5
(1)
(2)
Besides the tax imposition as referred to in Article 4, Sales Tax on Luxury goods shall
also be imposed on:
a.
the delivery of Taxable Goods classified as Luxury Goods, conducted by an
Entrepreneur producing said Taxable Goods, Classified as Luxury Goods in the
Customs Area, within the Company or the work;
b.
the import of Taxable Goods, classified as Luxurious.
Sales Tax on Luxury Goods shall only be imposed once, at the time of the delivery
of Taxable Goods, classified as Luxury, produced by the Entrepreneur, or at the time
of import.
9.
The provisions of Article 6 are abolished.
10.
The provisions of Article 8 paragraph (1), paragraph (3) and paragraph (4) are amended so that
Article 5 altogether turns out to say as follows:
"Article 8
(1)
The tariff of Sales Tax on Luxury Goods shall be a minimum of 10% (ten percent),
and a maximum of 75% (seventy percent).
11.
(2)
On export of Taxable Goods, classified as Luxury Goods, tax is imposed at a 0%
(zero percent) tariff.
(3)
By Government Regulation shall be stipulated the Groups of Taxable Goods,
classified as Luxury Goods imposed with Sales Tax on Luxury Goods as referred to
in paragraph (1).
(4)
The kinds of Goods imposed with Sales Tax on Luxury Goods, classified as Luxury
Goods as referred in paragraph (3), shall be stipulated by the Minister of Finance."
The provisions of Article 9 paragraph (2), paragraph (4),paragraph (5), paragraph (6), paragraph
(7), paragraph (8), paragraph (9) and paragraph (13) are amended, paragraph (10),
paragraph (11),
paragraph (12) and paragraph (14) are abolished, and among paragraph (2) and
paragraph (3) inserted a new paragraph that is paragraph (2a), so that Article 9 altogether turns
out to say as follows:
"Article 9
(1)
Value Added Tax due shall be calculated by multiplying the tariff as referred to in
Article 7 with the basis for Imposition Tax.
(2)
The Input Tax in a Tax Period can be credited with the Output Tax in the same Tax
Period.
(2a)
In case it has no the Output Tax in a Tax Period, so the Input Tax shall remain be
credited.
(3)
In base of Output Tax is higher than Input Tax in tax year, then the difference shall
constitute Value Added Tax which shall be paid by the Taxable Entrepreneur.
(4)
If in a Tax Period, the Input Tax which can be credited, is larger than the Output Tax,
then the difference shall constitute a tax excess which can be compensated in the next
Tax Period.
(5)
If in a Tax Period, the Taxable Entrepreneur, besides conducting a tax due delivery,
also conducts a non-tax due delivery, as far as the tax due part of the delivery can be
known for certain, from the bookkeeping thereof, then the Input Tax amount which can
be credited, shall be the Input Tax, which concerns the tax due delivery.
(6)
If in one Tax Period, a Taxable Entrepreneur, besides conducting a tax due delivery,
also conducts a non-tax due delivery, whereas the Input Tax for the tax due delivery
cannot be known for sure, then the Input Tax amount which can be credited for the due
Tax delivery, shall be calculated by way of using the guidelines, stipulated by the
Minister of Finance.
(7)
The Input Tax amount which can be credited by an Income Taxable Entrepreneur,
by using the Net Income Calculation Norms as referred to in Law Number 8 Year 1983 on
Income Tax Law as already amended lastly by Law Number 17 Year 2000, can be
Calculated by using the guidelines for Input Tax Crediting Calculation, stipulated by the
Minister of Finance.
(8)
The Input Tax shall not be credited according to the way regulated in paragraph (2) for
expenditures to:
a.
acquire Taxable Goods or Services, before the Entrepreneur is confirmed as a
Taxable Entrepreneur;
b.
acquire Taxable Goods or Services, which have no direct relationship with the
business activities;
c.
acquire and maintain motor vehicles, such as sedans, jeeps, station wagons,
vans and combis and except it shall be a trading goods or leased;
d.
utilize intangible Taxable Goods or Services outside the Customs Area, before
the Entrepreneur is confirmed as a Taxable Entrepreneur;
e.
acquire Taxable Goods or Services, of which the Tax Collection Evidence
constitutes a Simple Tax Invoice.
acquire Taxable Goods or Services, of which the Tax Invoice does not meet
the provisions as referred to in Article 13 paragraph (5);
f.
12.
g.
utilize intangible Taxable Goods or Services outside the Customs Area,
which the Tax Invoice does not meet the provisions as referred to in Article 13
paragraph (6);
h.
acquire Taxable Goods or Services, of which the Input Tax shall be collected
by issuance of a Tax Assessment Letter;
i.
acquire Taxable Goods or Services, of which the Income Tax is not reported in
a Value Added Tax Period Return, found at the time an examination is
conducted.
(9)
The Input Tax, which can be credited, but has not yet been credited with the Output Tax
in the same Tax Period, can be credited in the next Tax Period, at least in the three
month after the end of the fiscal year concerned, as long as it is not yet charged as
cost, and no examination has been conducted.
(10)
abolished.
(11)
abolished.
(12)
abolished
(13)
The calculation and Procedure for the Restitution of Excess Input Tax as referred to in
paragraph (4), paragraph, shall be stipulated by the Director General of Taxation.
(14)
abolished."
The provisions of Article 10 paragraph (1), paragraph (3) are amended so that Article 10
ltogether turns out to say as follows:
"Article 10
(1)
The owed Sales Tax on Luxury Goods shall be calculated by way of multiplying the
tariff as referred to in Article 8 with the Tax Imposition Basis.
(2)
The Sales Tax on Luxury Goods, already paid at the time of the acquisition or the
Import of Taxable Goods, classified as Luxury, cannot be credited with the Value Added
Tax or Sales Tax on Luxury Goods, collected on the basis of this Act.
(3)
A Taxable Entrepreneur who exports Taxable Goods classified as Luxury Goods, can
apply for a restitution of the Sales Tax on Luxury Goods, paid at the time of the
acquisition of the exported Taxable Goods classified as Luxury#.
13.
The provisions of Article 11 paragraph (1), paragraph (2) and paragraph (4) are amended,
paragraph (3) and paragraph (5) are abolished, so that Article 11 altogether turns out to say as
follows:
"Article 11
(1)
14.
The tax is owed at the time of:
a.
the delivery of the Taxable Goods;
b.
the import of the Taxable Goods;
c.
the delivery of the Taxable Services;
d.
On the utilization of intangible Taxable Goods outside the Customs Area as
referred to in Article 4(d),
e.
the utilization of Taxable Services outside the Customs Area as referred to in
Article 4(e); or
f.
the export of Taxable Goods.
(2)
In case the payment is received before the delivery of the Taxable Goods, or before the
delivery of the Taxable Services, or in case the payment is made before started the
utilization of intangible Taxable Goods outside the Customs Area as referred to in
Article 4(d), or the utilization of Taxable Services outside the Customs Area as referred to
in Article 4(e), the moment the tax is due, is at the time of payment.
(3)
abolished
(4)
The Director general of Taxation can stipulate in other time, the moment the tax due is
hardly stipulated or changing provision which causing an unfair.
(5)
Abolished."
The provisions of Article 12 paragraph (1) and paragraph (4) are amended, , so that Article 12
altogether turns out to say as follows:
"Article 12
(1)
A taxable entrepreneur who is conducting the delivery as referred to in Article 4 (a),
(c) and (f) tax is due at the domicile or the location of his business activities conducting
in or any other location, determined by the Director General of Taxation.
(2)
On the written application/request of the Taxable Entrepreneur, the Director General
of Taxation can stipulate one location or more as the location for the owed Tax.
(3)
In case of an import, the tax is due at the location the taxable goods are imported and
collected through the Directorate General of Customs and Excise.
(4)
For an individual or an entity, utilizing intangible taxable goods and/or Services from
outside the Customs Area into the Customs Area as referred to in Article 4(d) and (e),
the tax is due at the location at the domicile and the location of his business activities."
15.
The provisions of Article 13 paragraph (1), Paragraph (2), paragraph (5), paragraph (6) and
paragraph (7) are amended, so that Article 13 altogether turns out to say as follows:
"Article 13
16.
(1)
Taxable Entrepreneurs shall make a Tax Invoice for any delivery of Taxable Goods as
referred to in Article 4 (a) or (f), and for any delivery of Taxable Services as referred to in
Article 4 (c).
(2)
Deviating from the provision as referred to in paragraph (1), a Taxable Entrepreneur can
make one Tax Invoice, comprising all deliveries, made to the same Purchaser of the
Taxable Goods or the same recipient of the Taxable Services during one calendar year.
(3)
If the payment is received before the delivery of the Taxable Goods or Services, then the
Tax Invoice shall be prepared at the time of the payment.
(4)
The time of the payment, the form, size, procurement, submission procedure and the
procedure for the correction of the Tax Invoice shall be stipulated by the Director
General of Taxation.
(5)
In the Tax Invoice information shall be set forth concerning the Delivery of the Taxable
Goods or Services at least comprising:
a.
Name, address, the Taxpayer's Identification Number who delivers the Taxable
Goods or the Taxable Services;
b.
Name, address, and the Taxpayer's Identification Number of the Purchaser of the
Taxable Goods, or the recipient of the Taxable Services;
c.
The kind, type, quantity, unit price, the Total Sales Price or replacement and
price reduction.
d.
The Value Added Tax collected;
e.
The Sales Tax on Luxury Goods collected;
f.
Code, Serial Number and date of making of the Tax Invoice; and
g.
The name, function/designation, and signature of the person who has the right
to sign the Tax Invoice.
(6)
The Director General of Taxation can stipulate certain documents as a Tax Invoice.
(7)
A Taxable Entrepreneur can prepare a Simple Tax Invoice, of which the conditions shall
be stipulated by the Director General of Taxation."
The provisions of Article 16A amended, so that Article 16A altogether turns out to say as
follows:
"Article 16A
(1)
The Tax due on the delivery of Taxable Goods and/or Services to a Value Added Tax
Collector, shall be collected, deposited and reported by the Value Added Tax Collector.
(2)
The procedure for the Tax collection, deposit and reporting by the Value Added Tax
Collector as referred to in paragraph (1), shall be stipulated by the Minister of Finance."
17.
The provisions of Article 16B amended, so that Article 16B altogether turns out to say as
follows:
"Article 16B
(1)
18.
A Government Regulation can be stipulated, that owed tax shall not be collected
partially or entirely, whether temporarily or permanently or exempted from tax imposition,
for:
a.
activities in certain zones or places in a Customs Area;
b.
the delivery of certain Taxable Goods or the delivery of certain Taxable
Services;
c.
the import of certain Taxable Goods;
d.
the utilization of certain intangible Taxable Goods from Outside the Customs
Area in the Customs Area;
e.
the utilization of certain Taxable Services from Outside the Customs Area in
the Customs Area.
(2)
The Input Tax paid for the acquisition of Taxable Goods and/or Taxable Services,
for which on the delivery thereof no Value Added Tax has been collected, can be
credited.
(3)
The Input Tax paid for the acquisition of Taxable Goods and/or acquisition of Taxable
Services, for which the delivery has been exempted from Value Added Tax Imposition,
cannot be credited."
The provisions of Article 16C amended, so that Article 16C altogether turns out to say as
follows:
"Article 16C
Value Added Tax shall be imposed on activities of self construction conducted not within business
activity or the job by an individual person or entity, of which the proceeds are used by
himself/itself or used by another party, of which the definition and procedure shall be stipulated
by the Minister of Finance."
ARTICLE II
This Act may be called "Act on Second Amendment of the Value Added Tax of 1984".
ARTICLE III
This Act shall be effective as of January 1, 2001.
For information of the public, it is instructed to promulgate this Act by inserting it in the State Gazette
of the Republic of Indonesia.
Stipulated in Jakarta
On 2 August 2000
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
sgd
ABDURRAHMAN WAHID
Promulgated in Jakarta.
On August 2, 2000
THE STATE SECRETARY OF THE REPUBLIC OF INDONESIA,
sgd
DJOHAN EFFENDI
STATUTE BOOK OF THE REPUBLIC OF INDONESIA YEAR 2000 NUMBER 128.
------------------------------------------------------------------------------------------------------------------------ELUCIDATION
ON
THE LAW OF THE REPUBLIC OF INDONESIA
NUMBER 18 YEAR 2000
CONCERNING
SECOND AMENDMEND ON LAW NUMBER 8 YEAR 1983
CONCERNING VALUE-ADDED TAX ON GOODS AND SERVICES AND SALES TAX ON LUXURY
GOODS
I.
GENERAL
In the current reform era, social economic and political development are proceeding so fast that
the change in taxation system already executed can not yet accommodate business
development because the weakness are still found in Taxation Law, namely:
a.
being not yet fair even though it has already been implemented according to the
effective provisions,
b.
being lacking in the granting of rights of Taxpayers,
c.
being lacking in the granting of facilities to Taxpayers in fulfilling their obligations,
d.
being lacking in providing legal certainty and simplicity,
In relation thereto, in the framework of accommodating business development, it is deemed
necessary to improve the taxation law by prioritizing the enhancement of the following principles:
a.
justice.
b.
legal certainty,
c.
legality, and
d.
simplicity.
Based on the above mentioned matters, so the objective shall be granted in the implementation
of the amendment of Law on the Value Added Tax and Sales Tax on Luxury Goods in 2000 is to
create Taxation system fairly, simple, and giving legal certainty to community as well as giving
protection and uphold the state revenue.
Among the principles of the amendment are:
II.
a.
In order to better provide legal certainty to goods which are not subject to tax, so in
amendment of Law on the Value Added Tax and Sales Tax on Luxury Goods of 2000
only goods as basic necessities, goods already subjected to regional tax; goods
resulting from mining or drilling taken directly from their sources; goods constituting
exchange instrument, and other goods based on economic, social and cultural
consideration are not subject to Value Added Tax and Sales Tax on Luxury Goods.
b.
In order to provide justice and in a bid to control the unproductive consumption pattern
of society, tariff of Sales Tax on Luxury Goods is increased.
c.
In the case of in one tax period, Taxable Entrepreneurs has not yet producing or not
yet implemented the delivery of Taxable Goods and/or Taxable Services and/or export
of Taxable Goods, creditable input tax paid upon the acquisition of taxable goods in the
receipt of taxable services, the use of intangible taxable goods from outside the custom
area and taxable services from outside the custom area, and/or the import of taxable
goods can still be credited.
d.
Simplification of taxation administration covering procedures for restitution and the
enforcement of sale invoices as tax invoices.
e.
The Input Tax not yet credited against output tax in the same Tax period can still be
credited different Tax period not later than 3 (three) months after the expiration of the
relevant Tax period.
f.
Taxation facilities are no longer granted to transaction of merger or changes in business
status or total transfer of transfer corporate assets.
g.
Taxation facilities are only granted to sectors of economic activities highly prioritized,
to boost business growth and enhance competitiveness, and support the national
defense and security as well as to ensure the smooth national development.
ARTICLE BY ARTICLE
ARTICLE I
Number 1
Article 1
Sufficiently clear
Number 2
Article 1A
Paragraph (1)
Letter a
the Agreement referred to in this provision comprising
transactions, exchange, transactions with installments,
or other agreements, causing the assignment of rights
on goods.
Letter b
the delivery of Taxable Goods may also occur because
of a hire-purchase agreement or a leasing agreement.
Whereas referred to as delivery because of a leasing
agreement, shall be the delivery, caused by a leasing
agreement with option right. Although the transfer or
assignment of the right on Taxable Goods is not
implemented and the payment of the sales price of the
Taxable Goods is in phases, but because the control
on the Taxable Good is already transferred from the
seller to the purchaser, or from the lessor to the
lessee, so this Law stipulates, that the delivery of
Taxable goods shall be considered as already having
taken place at the time the agreement is signed,
except if the time of the transfer of control on Taxable
goods clearly occurs earlier than the moment the
agreement is signed.
Letter c
Referred to as broker shall be an individual person or
entity who/which within the company or the work in
his/its own name, concludes an agreement or
commitment on behalf of and for the responsibility of
another person, and as such obtains certain wages or
remuneration, for instance a commission merchant.
Referred to as auctioneer here, shall be the
Government Auctioneer, or one who is designated by
the Government.
Letter d
Own-use shall be understood as the use for the
purpose of the Entrepreneur himself, his caretaker/the
management or his staff, as his own production as well
as not his own production. Whereas the granting free of
charge shall be understood as a gift/grant without
payment as his own production as well as not his own
production, among others the granting of a sample of
goods for promotion to customers or purchasers.
Letter e
The stock of taxable goods and assets which are
initially not to be traded and still remain at the time of
the
dissolution, shall be treated in the same way as goods
for own use, so that it shall be considered as a delivery
of Taxable Goods.
In particular for assets, which according to the initial
purpose, are not to be traded as mentioned above, they
shall only be taxed with Value Added Tax, if they meet
the conditions, namely that the Value Added Tax, paid
at the time of the acquisition, can be credited.
Letter f
If a Company has more than one place of owed tax,
namely a place to conduct delivery of Taxable Goods
to another party as a central as well as subsidiary
company, this Law considers, that the transfer of
Taxable Goods between said places, constitutes a
delivery of Taxable Goods. Referred to as subsidiary
company in this provision, shall include, among others,
the location of the business, representative office,
marketing unit and the like.
Letter g
In case of delivery by way of consignment, then the
Value Added Tax already paid at the time the Taxable
Goods concerned are delivered to be deposited, can be
credited with the Output Tax in the Tax Period, in which
the delivery of deposited Taxable Goods occurs. On the
other hand, if said deposited Taxable Goods cannot be
sold, and it is decided to return them to the owner of
the Taxable Goods, then the Entrepreneur who has
received the deposit, can use the provision concerning
the return of Taxable Goods as referred to in Article 5A
of this Law.
Paragraph (2)
Letter a
Referred to as broker in the Commercial Code is a
broker sworn by the President, stated to right. They
are conducting their company with his work by getting
a wage or certain commission, on mandate or on behalf
of other party, of which has no work relationship the
delivery of Taxable Goods to a broker, as referred to in
the Commercial Code;
Letter b
Sufficiently clear
Letter c
In case a Taxable Entrepreneur has more than one
place
of business as head-office as well as subsidiary
company, and said Taxable Entrepreneur has already
obtained a permit for the centralization of the place for
his owed tax from the Director General of Taxation,
then
the transfer of the Taxable Goods from one place of
business to another (head office to subsidiary company,
or the reverse, or between subsidiary companies), shall
be considered not to be included in the concept of
delivery of Taxable Goods, except transfer of Taxable
Goods between places of owed Tax.
Number 3
Sufficiently clear
Number 4
Article 3A
Paragraph (1)
An entrepreneur who makes a delivery of Taxable Goods and/or
Services within the Customs Area and/or exports Taxable
Goods, shall:
a.
report his business to be confirmed as Taxable
Entrepreneur;
b.
collect the owed tax;
c.
deposit the Value Added Tax, which still has to be paid
in case the Output Tax is larger than the creditable
Input
Tax, and shall deposit the owed Sales Tax on Luxury
Goods;
d.
report the tax calculations.
Paragraph (2)
Small-scale Entrepreneurs are allowed to be confirmed as
Taxable Entrepreneur. Then this Law shall be fully effective for
said Small-scale entrepreneur.
Paragraph (3)
The owed Value Added Tax on the utilization of intangible
Taxable Goods or Taxable Services from Outside the Customs
Area, shall be collected by the individual person or the entity,
utilizing said intangible Taxable Goods or Taxable Services.
Number 5
Sufficiently clear
Number 6
Article 4
Letter a
An entrepreneur who makes a delivery of Taxable Goods
comprising entrepreneur who has been confirmed to be Taxable
Entrepreneur as referred to in Article 3(A) paragraph (1) as well
as Taxable Entrepreneur but has not been confirmed.
The delivery of taxable goods shall meet the following
conditions:
a.
the delivered tangible goods shall constitute taxable
goods,
b.
the
delivered
intangible
goods
shall
constitute
Intangible
Taxable Goods;
c.
the delivery shall be conducted within the Customs
Area,
and
d.
the delivery shall be conducted within the Company
or work.
Letter b
Tax is also collected at the time Taxable Goods are imported
through the Directorate General of Customs and Excises.
Different from the delivery of Taxable Goods mentioned in letter
(a), anyone bringing Taxable Goods into the Customs Area
irrespective of whether or not it is within the company or the
work, shall still be taxed.
Letter c
An entrepreneur who makes a delivery of Taxable Goods
comprising entrepreneur who has been confirmed to be
Taxable Entrepreneur as referred to in Article 3(A) paragraph
(1) as well as Taxable Entrepreneur but has not been confirmed.
a.
the delivered services shall constitute Taxable
Services;
b.
the delivery shall be made with in the Customs Area;
and
c.
the delivery shall be made within the Company or the
Work of the Entrepreneur concerned.
The delivery of taxable services shall meet the following
conditions:
Included in the concept of delivery of taxable goods are Taxable
Goods used for own use and/ or granting free of charge on
Taxable Goods
Letter d
To be able to grant equal treatment in taxation with the import
of Taxable Goods, so, on intangible Taxable Goods originating
from Outside the Customs Area utilized by anyone within the
Customs Area, shall also be imposed with Value Added tax.
Example:
Entrepreneur "A", who is domiciled in Jakarta, has obtained
the right to use the trademark of Entrepreneur "B", domiciled at
Hongkong. On the utilization of said trademark by Entrepreneur
"A" within the Customs Area, Value Added Tax is owed.
Letter e
Services, originating from outside the Customs Area utilized by
anyone within the Customs Area, shall be taxed with Value
Added Tax,. For instance, Taxable Entrepreneur "C" in
Surabaya utilizes Taxable Services from Entrepreneur "B" who
is domiciled at Singapore. On the utilization of said Taxable
Services, Value Added Tax is owed.
Letter f
Different from An entrepreneur who makes a delivery of Taxable
as referred to in Letter a and/or c, so an entrepreneur who
exports Taxable Goods, only entrepreneur who has been
confirmed to be Taxable Entrepreneur as referred to in Article
3 (A) paragraph (1).
Number 7
Article 4A
Paragraph (1)
Sufficiently clear
Paragraph (2)
Letter a
Referred to as goods resulting from mining and drilling,
taken directly from the source, such as crude oil, gas,
sand and gravel, iron ore, gold ore.
Letter b
Referred to as main necessity goods in this article,
such as rice, seed rice, corn, sogo palm, soybean,
iodized salt or not.
Letter c
To avoid double taxation, because it has been tax
objection of Regional Tax Administration
Letter d
Sufficiently clear
Paragraph (3)
Sufficiently clear
Number 8
Article 5
Paragraph (1)
With the consideration that:
a.
there shall be proportionate tax imposition between
low-income consumers and high-income consumers.
b.
there shall be consumption pattern control on the
Taxable Goods classified as Luxury.
c.
there shall be protection towards the small-scale or
traditional producers;
d.
it is necessary to safeguard the state revenues;
so, on the delivery of Taxable Goods Classified as Luxury by
the producer or on the import of Taxable Goods Classified as
Luxury, besides that Value Added Tax a Sales Tax on Luxury
Goods shall also be imposed.
Referred to as Taxable Goods Classified as Luxury in these
paragraph:
1.
not main necessity goods, or
2.
that goods consumpted by certain people; or
3.
generally that goods consumpted by high income
people; or
4.
that goods consumpted just to show his status
5.
If it is consumpted effecting to health and people
morality, as well as disturbing people orderliness, such
as alcohol.
The imposition of Sales Tax on Luxury Goods on the import
of Taxable Goods Classified as Luxury Goods, shall be
irrespective of whether the import is made continuously or only
just once.
Besides that, the imposition of Sales Tax on Luxury Goods on
delivery of Taxable Goods Classified as Luxury, shall be
irrespective of whether one part of said Taxable Goods has
already been imposed or not with Sales Tax on Luxury Goods in
a previous transaction.
Included in the concept of producing in this paragraph are:
a.
assembling:
to assemble loose parts of an object into semifinished
or finished goods, such as the assembling of cars,
electronics, household furniture, etc;
b.
cooking:
to process goods by way of heating whether mixed or
not mixed with other materials;
c.
mixing:
to unite two or more elements (substances) to produce
one or more other goods;
d.
packaging:
to place an object into another object to protect it from
damage and/or to increase the strength of the
marketing
thereof;
e.
bottling:
pouring drinks or liquid material into bottles, which
shall be covered with a lid, according to a certain
method;
and other activities, which equivalent to said activities, or to
have another person or entity conduct said activities;
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Paragraph (2)
The General Concept of Input Tax is only effective in the Value
Added Tax, and is not known in the Sales Tax on Luxury
Goods. Therefore, the Sales Tax on Luxury Goods already paid,
cannot be credited with the owed Sales Tax on Luxury Goods.
Therefore, the collection principle is only just once, namely at
the time:
a.
of the delivery by the Manufacturer or Producer of
Taxable Goods Classified as Luxury, or
b.
of the import of Taxable Goods Classified as Luxury.
The delivery at the next stage is no longer imposed on Sales
Tax on Luxury Goods.
Letter 9
Sufficiently clear
Letter 10
Article 8
Paragraph (1)
The Sales Tax on Luxury Goods tariff can be stipulated in
several tariff groups, namely with the lowest tariff of 10% (ten
percent) and the highest tariff of 75% (seventy five percent). The
difference in said tariff groups is based on the classification of
Taxable Goods classified as Luxury, on the delivery of which
Sales Tax on Luxury Goods is also imposed as referred to in
Article 5 paragraph (1).
Paragraph (2)
Sales Tax on Luxury Goods shall be the Tax, imposed on the
consumption of Taxable Goods classified as Luxury within the
Customs Area. Therefore, the Taxable Goods classified as
Luxury, exported or consumed outside the Customs Area, shall
be imposed with Sales Tax on Luxury Goods at a 0% (zero
percent) tariff. Sales Tax on Luxury Goods, already paid on the
acquisition of Taxable Goods classified as Luxury, which are
exported, can be refunded.
Paragraph (3)
With reference to the considerations as set forth in the
Elucidation of Article 5 paragraph (1), the classification of goods,
imposed with Sales Tax on Luxury Goods, is particularly based
on the capability level of the community group utilizing said
goods, besides that, it is also based on the value of the utility
for the community in general.
In connection therewith, a high tariff has been imposed on
goods, which are only consumed by the high-income
community. And the consumption of the goods shall also be
limited. In case, towards goods, much consumed by the
community at large, Sales Tax on Luxury Goods shall be
imposed, so the applied tariff shall below.
Paragraph (4)
Sufficiently clear.
Letter 11
Article 9
Paragraph (1)
The way to calculate owed Value Added Tax is by multiplying
the Sales Price amount, Substitution or Import Value, Export
Value or other Value with the Tax tariff as stipulated with
Minister of Finance, with the Tax tariff as stipulated in Article 7
paragraph (1). This owed tax constitutes Output Tax, collected
by the Taxable Entrepreneur.
Basis for Value Added Tax Imposition can be stipulated with
Minister of Finance Decree, only to assure the justification in:
a.
Sales Price, Substitution Price, Import Value and
Export
Value are hardly stipulated; and or
b.
The delivery of Taxable Goods, which is needed by
large community, such as drinking water, electricity and
alike.
Example:
a)
Taxable Entrepreneur "A" has sold in cash taxable
goods at the sales price of Rp. 25,000,000.00.
The owed Value Added Tax =
10% x Rp. 25,000,000.00 = Rp. 2,500,000.00.
Value Added Tax Rp. 2,500,000.00. constitutes an
Output Tax, collected by the Taxable Entrepreneur
"A".
b)
Taxable Entrepreneur "B" conducts a delivery of
Taxable
Services and obtains remuneration amounting
Rp. 20,000,000. The owed Value Added Tax =
10% x Rp. 20,000,000.00. = Rp. 2,000,000.00.
Value Added Tax Rp. 20,000,000.00. constitutes an
Output Tax, collected by the Taxable Entrepreneur "B".
c)
Somebody imports Taxable Goods from outside the
Customs Area with an import value of
Rp. 15,000,000.00. The Value Added Tax, collected
through the Directorate General of Customs and
Excises, shall be = 10% x Rp. 15,000,000.00. =
Rp. 1,500,000.00.
Paragraph (2)
A Purchaser of Taxable Goods, Recipient of Taxable services or
an importer of Taxable Goods, party which utilize intangible
Taxable Goods from outside Customs Area, or Taxable Goods
from outside Customs Area, shall pay Value Added Tax and has
the right to receive tax collection evidence. Value Added Tax
should have been paid, constitute the Input Tax to purchaser of
Taxable Goods, or recipient of Taxable Services, or an importer
of Taxable Goods, party which utilize intangible Taxable Goods
from outside Customs Area, or party which utilize Taxable
Services from outside Customs Area who has the status of a
Taxable Entrepreneur.
The Input Tax concerned shall be paid by Taxable Entrepreneur
can be credited with the Output Tax for the same Tax Period.
Paragraph (2a)
In case of Taxable Entrepreneur has not produce, or has not
conducted the delivery of Taxable Goods or Taxable Services,
or export of Taxable Goods so that the Output Tax is nil, so the
Output Tax which has not been paid by Taxable Entrepreneur at
the time of acquisition of Taxable Goods, or receiving of Taxable
Services, or utilization of Taxable Services from Outside
Customs Area within Customs Area can still be credited
according to Article 9 paragraph (2), except the Input Tax as
referred to in Article 9 paragraph (8).
Paragraph (3)
The difference referred to in this paragraph, shall be deposited
to the State Treasury according to the provisions as regulated
in the Law on General Provisions and Procedures of Taxation.
Paragraph (4)
The Input Tax referred to in this paragraph, shall be the Input
Tax, which can be credited.
It may occur, that in one Tax Period, there is a creditable Input
Tax, which is larger than the Output Tax. Said excess of Input
Tax cannot be refunded, or can be compensated in the following
Tax Period.
Example:
Tax Period of May 2001:
Output Tax
=
Rp
Creditable input
=
Rp
2,000,000.00.
4,500,000.00
---------------------- -/Excess Tax payment
=
Rp
2,500,000.00
The excess tax payment cannot be refunded, but can be
compensated in the June 2001 Tax Period.
Tax Period of June 2001:
Output Tax
=
Rp3.000.000,00
Creditable Input Tax
=
Shortage of Tax payment
Excess Tax payment of
the May 2001 Tax
=
Rp 2,000,000.00
-------------------
----- -/Rp 1,000,000.00.
Period compensated to
June 2001
=
Rp
2,500,000.00
----------------------- -/Excess Tax payment in
June 2001
=
Rp
1,500,000.00
Paragraph (5)
In this paragraph referred to as tax owed delivery shall be the
delivery of goods or services which, in accordance with the
provisions in this Law, shall be imposed with Value Added Tax.
Referred to as tax due delivery which the Input Tax can not be
credited, shall be the delivery of goods or services which is not
imposed Value Added Tax as referred to in Article 16B.
A Taxable Entrepreneur, who in a Tax Period, makes a taxable
delivery and a delivery which is not taxable, can only credit the
Input Tax which is in connection with the taxable delivery.
The taxable part of the delivery shall be known exactly from the
Accounts of the Taxable Entrepreneur
Example:
A Taxable Entrepreneur has made three kinds of delivery,
namely:
a.
a tax owed delivery of = Rp 25,000,000.00.
Output Tax = Rp 2,500,000.00.
b.
a non Value Added Tax delivery of = Rp 5,000,000.00.
c.
Value Added Tax exemption delivery of =
Rp 5,000,000.00.
Output Tax = ZERO
The Input Tax, paid on the acquisition of:
a.
Taxable Goods and Services in connection with a
Value Added Tax owed delivery of = Rp 1,500,000.00
b.
Taxable Goods and Services in connection with a
non-Value Added Tax owed delivery of =
300,000.00.
c.
Taxable Goods and Services in connection with
imposing tax owed delivery of = Rp 300,000.00.
According to this provision, the Input Tax, which is creditable
with the Output Tax of Rp 2,500,000.00. only amounts to
Rp 1,500,000.00.
Paragraph (6)
Rp
In case the Input Tax for an taxable delivery cannot exactly be
known, then the way to credit the Input Tax shall be calculated
based on the guidelines stipulated by the Minister of Finance,
which is for the purpose of granting facilities and certainty to the
Taxable Entrepreneurs.
Example:
A Taxable Entrepreneur has made two kinds of delivery,
namely:
a.
a taxable delivery of = Rp 35,000,000.00.
The Output Tax = Rp 3,500,000.00.
b.
non-taxable delivery of = Rp15.000.000,00
The Output Tax shall be NIL
The Input Tax, paid on the acquisition of Taxable Goods and
Services in connection with the entire delivery is
Rp 2,500,000.00., whereas the Input Tax in connection with the
taxable delivery cannot be known for sure. According to this
provision, the Input Tax of Rp 2,500,000.00. cannot entirely be
credited with the Output Tax Rp 3,500,000.00. The amount of
the Input Tax credited, shall be calculated based on the
guidelines stipulated by the Minister of Finance.
Paragraph (7)
An entrepreneur who is allowed to calculate Net Income with
Net Income Calculation Norms, shall make records on the
gross turn-over and gross receiving, So, the amount of the Input
Tax credited, shall not be known in connection to taxable
entrepreneur did not make record on purchasing, thus the
Minister of Finance has an authority to determine the amount
of Input Tax which can be credited.
Paragraph (8)
The Input Tax can basically be credited with the Output Tax,
but for expenditures as referred to in this paragraph, the Input
Tax cannot be credited.
Letter a
This paragraph give legal certainty that the Input Tax
obtained before entrepreneur make his business report
to be confirmed as Taxable Entrepreneur, shall not be
credited.
Example:
Entrepreneur A make his business report to be
confirmed as Taxable Entrepreneur in January 3, 2001.
The confirmation as Taxable Entrepreneur shall be
given
in January 5, 2001and shall be effective on January 3,
2001. The Input Tax obtained before January 3, 2001
shall not be credited.
Letter b
Referred to as direct expenditures in connection with
the business activities, shall be the expenditures for
production activities, the activities of distribution,
marketing and management. This provision shall be
valid
for all business sectors.
Letter c
Sufficiently clear
Letter d
This paragraph give legal certainty that the Input Tax
obtained before entrepreneur make his business report
to be confirmed as Taxable Entrepreneur, shall not be
credited.
Example:
Entrepreneur A make his business report to be
confirmed as Taxable Entrepreneur in January 3, 2001.
The confirmation as Taxable Entrepreneur shall be
given
in January 5, 2001 and shall be effective since January
3, 2001. The Input Tax on utilization of intangible
Taxable Goods or Taxable Services from outside
Customs Area which obtained before January 3, 2001
shall not be credited according to this paragraph.
Letter e
A Simple Tax Invoice shall be a Tax Invoice as referred
to in Article 13 paragraph (7). Because a Simple Tax
Invoice constitutes a Tax Invoice, of which the contents
completely contain the matters regulated in Article 13
paragraph (5), so shall only constitute an evidence of
the Value Added Tax Collection, and cannot be used as
basis for crediting the Input Tax.
Letter f
Sufficiently clear
Letter g
Sufficiently clear
Letter h
It may occur, that a Taxable Entrepreneur has just
paid the owed Value Added Tax on the acquisition or
utilization of Taxable Goods or Services, after the
issuance of the Tax Stipulation Assessment. The Value
Added Tax paid on said tax stipulation assessment
does not constitute a creditable Input Tax.
Letter i
In accordance with the self-assessment system, the
Taxable Entrepreneur shall report all activities of his
business in the Value Added Tax Period Return.
Besides that, to the Taxable Entrepreneur is also given
the opportunity to make a correction in the Value
Added Tax Period Return, so that it is only reasonable
that Input Tax, not reported in the Value Added Tax
Period Return, cannot be credited.
Example:
In the Period Return shall be reported:
Output Tax
Input Tax
=
Rp 10,000,000.00.
Rp 8,000,000.00.
=
From the results of the audit, it is known that:
Output Tax
=
Rp 15,000,000.00.
Input Tax
=
Rp 11,000,000.00.
In this case, the Input Tax, which can be credited, shall
not be Rp 11,000,000.00. but shall still be
Rp 8,000,000.00., in accordance with the reported
amount in the Period Return.
In this way, the calculation of the Audit results shall
be as follows:
Output Tax
=
Rp
15,000,000.00.
Input Tax
=
Rp 8,000,000.00.
-------------------
----(-)
According to the Audit results, the shortage
of payment
=
Rp
7,000,000.00.
According to the results of the Return, the shortage
of payment
=
Rp
2,000,000.00.
----------------------(-)
the shortage of payment
=
Rp
5,000,000.00.
Paragraph (9)
This provision enables the Taxable Entrepreneur to credit Input
Tax with Output Tax in a different Tax period, caused, among
others, by the fact that the Tax Invoice has been received too
late. The crediting of the Input Tax in a different Tax period, is
only allowed, if it is made no exceeding 3 (three) months after
the end of the fiscal year concerned. In case said period has
been exceeded, then Input Tax crediting can be made through
a correction of the Value Added Tax Period Return concerned.
Both said crediting ways can be made, if the Input tax
concerned has not yet: been charged as cost, or not capitalized
into the acquisition price of the taxable goods or services
concerned, and towards the Taxable Entrepreneur concerned an
audit has not yet been made.
Example:
The Input Tax on Taxable Goods which the Tax Invoice
dated 7 July 2001 can be credited with the Output Tax
in Tax Period July 2001 or the following Tax Period not
exceeding October 2001 of Tax Period.
Paragraph (10)
Abolished.
Paragraph (11)
Abolished.
Paragraph (12)
Abolished.
Paragraph (13)
Sufficiently clear
Paragraph (14)
Abolished.
Number 12
Article 10
Paragraph (1)
The way to calculate the Sales Tax due on Luxury Goods
shall be by multiplying the Sales Price or Import Value,
Export Value or Other Value stipulated by Minister of Finance
Decree, with the Tax Tariff as stipulated in Article 8.
Paragraph (2)
Different from Value Added Tax, which is collected at each
stage of delivery, Sales Tax on Luxury Goods is only collected
at the delivery stage by the Taxable Entrepreneur who has
produced the Taxable Goods classified as Luxury, or on the
import of Taxable Goods classified as luxury. In this way, Sales
Tax on Luxury Goods does not constitute Input Tax, so that it
cannot be credited. Therefore, Sales Tax on Luxury Goods can
be added to the price of the Taxable Goods concerned, or
charged as cost, in accordance with the provisions of the
legislative regulation on Income Tax.
Example:
Taxable Entrepreneur "A" imports Taxable Goods with an Import
Value of Rp 5,000,000.00. Said Taxable goods are, besides
imposed with Value Added Tax, for instance also imposed with
a 20% tariff of Sales Tax on Luxury Goods. In this way, the
calculations of the owed Value Added Tax and the Sales Tax on
Luxury Goods on import of said Taxable Goods, shall be as
follows:
-
Basis of Taxation
Value Added Tax
10 % x Rp 5,000,000.00.
Sales Tax on Luxury Goods:
20 % x Rp 5,000,000.00.
= Rp 5,000,000.00.
= Rp 500,000.00.
= Rp 1,000,000.00.
Then, Taxable Entrepreneur "A" uses said Taxable Goods as
part of another Taxable Object, on the delivery of which a 10%
Value Added Tax and a 35% Sales Tax on Luxury Goods is
imposed. Because the Sales Tax on Luxury Goods, already
paid on the imported Taxable Goods, cannot be credited, so the
Sales Tax on Luxury Goods, amounting to Rp 1,000,000.00.
can be added to the price of the Taxable Goods, produced by
Taxable Entrepreneur "A" or charged as cost.
Further Taxable Entrepreneur "A" sells the produced Taxable
Goods to Taxable Entrepreneur "B" at a sales price of
Rp 50,000,000.00. Therefore, the calculation of the owed
VAT/Value Added Tax and the Sales Tax on Luxury Goods,
shall be as follows:
-
Basis of Taxation
Value Added Tax:
10% x Rp 50,000,000,00.
Sales Tax on Luxury Goods:
35% x Rp 50,000,000.00.
= Rp 50,000,000.00.
= Rp 5,500,000.00.
= Rp 17,500,000.00.
In this example, Taxable Entrepreneur "A" can credit the
above Value Added Tax of Rp 500,000.00. against the Value
Added Tax of Rp 5,000,000.00.
Whereas the Sales Tax on Luxury Goods of Rp 1,000,000.00.
cannot be credited, neither with the Value Added Tax of
Rp 5,000,000.00. nor with the Sales Tax on Luxury Goods of
Rp 17,500,000.00.
Paragraph (3)
Taxable entrepreneur who has paid the Sales Tax on Luxury
Goods at the time of acquiring Taxable Goods on Luxury Goods,
as far as the said Sales Tax on Luxury Goods is imposed yet
as cost, Taxable entrepreneur has the right to ask for
compensate the Sales Tax on Luxury Goods which has already
been paid, if that Taxable entrepreneur has imported the said
Taxable Goods on Luxury Goods.
Example:
Taxable entrepreneur #A# purchases a car from Trade Mark
of the Sole Agent with the price of Rp. 100.000.000,00.
He pays the Value Added Tax and Sales Tax on Luxury Goods
respectively of Rp.10.000.000,00 and Rp. 35.000.000,00. If then,
that car exported, so Taxable entrepreneur "A" has the right to
compensate the Value Added Tax as amount of
Rp. 10.000.000,00 and Sales Tax on Luxury Goods as amount
of Rp. 35.000.000,00 which already paid at the time of
purchasing the said car.
Letter 13
Article 11
Paragraph (1)
The collection of Value Added Tax and Sales Tax on Luxury
Goods adheres to have the accrual principle, means the Tax
Liability occur at the time of delivery of Taxable Goods or
Taxable Services, although the payment for that delivery not
yet received or not fully received, or at the time of import of
Taxable Goods. When the owed tax for transaction conducting
through "electronic commerce# obey to this paragraph.
Letter a
Sufficiently clear
Letter b
Sufficiently clear
Letter c
Sufficiently clear
Letter d
In case an individual person or an entity utilizes
intangible Taxable Goods from outside the Customs
area within the Customs Area, or utilizes Taxable
Services from outside the Customs Area in the
Customs Area, then the Tax Liability occurs at the time
the individual person or the entity starts to utilize the
intangible Taxable Goods or Services within the
Customs Area. This shall be connected with the fact,
that the party/person who has delivered the intangible
taxable goods or services, is outside the Customs Area,
so that he cannot be confirmed as a Taxable
Entrepreneur. Therefore, the moment of tax liability can
no longer be connected with the time of the delivery,
but shall be connected with the moment of the
utilization.
Letter e
Sufficiently clear
Letter f
Sufficiently clear
Paragraph (2)
In case the payment is received before the delivery of the
Taxable Goods as referred to in Article 4 (a), before the
delivery of the Taxable Services as referred to in Article 4 (c),
or the payment is made before started the utilization of
intangible Taxable Goods from outside the Customs Area as
referred to in Article 4(d), or before stated the utilization of
Taxable Services from outside the Customs Area as referred to
in Article 4(e), the moment the tax is due, is at the time of
payment.
Paragraph (3)
Abolished.
Paragraph (4)
Sufficiently clear
Paragraph (5)
Abolished.
Letter 14
Article 12
Paragraph (1)
Taxable Entrepreneur of Individual person tax due at domicile
and/or business location, while Taxable Entrepreneur of entity
tax due at domicile and business location.
If a Taxable Entrepreneur has one or more places of business
activities, besides his residence or domicile, then each of those
places shall constitute a place of tax liability, and that Taxable
Entrepreneur shall report his business to be confirmed as a
Taxable Entrepreneur.
If a Taxable Entrepreneur has more than one place of tax
liability in one place of work of the Directorate General of
Taxation, then the said entire places of tax liability, Taxable
Entrepreneur choose one of the business activity as a place
of tax liability, responsible for his entire business activity.
Example 1:
An individual person #A# resides in Bogor conducting
business in Cibinong. If the residence of Individual person "A"
has no the delivery of Taxable Goods and Taxable Service, so
Individual person "A" shall report his business to be confirmed
as a Taxable Entrepreneur in Tax Services Office Cibinong
because place of tax liability to Individual person "A" is in
Cibinong. Whereas, if the delivery of Taxable Goods and
Taxable Service conducted by Individual person "A" shall
register himself in Tax Services Office Bogor and Cibinong,
because his place of tax liability is in Bogor and Cibinong.
Different from Individual person, Taxable Entrepreneur of entity
tax due at domicile or business location because Taxable
Entrepreneur of entity in both places considered conducting
the delivery of Taxable Goods and/or Taxable Services.
Example 2
PT. A has 3 (three) places of business activity, respectively in
City of Bengkulu, Curup, and Manna, in which the three of them
under one Tax Services Office, namely Tax Services Office
Bengkulu. These three business places respectively conducting
the delivery of Taxable Goods and/or Taxable Services and
conducting sales and financial administration, so PT A of tax
liability in (3) three places or cities. In this circumstances,
PT A shall choose one of business activity place, for example,
business activity place in Bengkulu to report his business to be
confirmed as Taxable Entrepreneur in Tax Services Office in
Bengkulu. PT A which domiciles business activity in Bengkulu
is responsible for reporting the entire business activity
conducted by the said 3 (three) company branches.
Paragraph (2)
If a Taxable Entrepreneur owes tax at more than one place
of business, then said Taxable Entrepreneur, in the fulfillment
of his tax obligations, can forward a written application to the
Director General of Taxation to select one place or more as the
place of his tax liability.
The Director General of Taxation, before giving his decision, shall
conduct an audit to ascertain, among others, that:
a.
the activities for the delivery of Taxable Goods or
Services for all places of business activities, are only
made in one or more places of business activities;
b.
the sales and financial administration is made in a
centralized way in one or more places of business
activities.
Paragraph (3)
Sufficiently clear
Paragraph (4)
An individual person or entity whether as Taxable Entrepreneur
or not who utilizes intangible Taxable Goods from outside
Customs Area within in Customs Area and/or utilizes Taxable
Services from outside Customs Area still tax due at domicile
or place of individual person business activity or an place of an
entity business activity.
Letter 15
Article 13
Paragraph (1)
In case the delivery of Taxable Goods and/or Taxable Services,
so Taxable Entrepreneur who delivers Taxable Goods or Taxable
Services, shall collect the owed Value Added Tax and gives Tax
Invoice as tax collection evidence. Tax Invoice is not necessary
made special and different with Sales Invoice. Tax Invoice may
constitute Standard Tax Invoice, Simple Tax Invoice, and certain
documents stipulated as Tax Invoice by the Director General
of Taxation.
Paragraph (2)
Deviating from the provisions as referred to in paragraph (1),
to lighten the administrative burden, Taxable Entrepreneurs are
permitted to draw-up a Tax Invoice, comprising all deliveries of
Taxable Goods or Services, occurring during one calendar month
to the same purchaser or recipient of taxable services,
mentioned in the combined Tax Invoice.
Paragraph (3)
Sufficiently clear
Paragraph (4)
In view of the fact, that in the business world, the preparation
of a sales invoice is allowed, after the occurrence of the delivery
of Taxable Goods or Services, so the Director General of
Taxation is given the authority to stipulate the time when a Tax
Invoice shall be drawn-up/prepared.
Likewise also, the Director General of Taxation is authorized to
regulate the uniformity of the form, size, procurement,
submission procedure and the correction procedure of Tax
Invoices, in this paragraph, referred to as the regulation in the
tax invoice procurement, shall be the regulation on who shall
procure the Tax Invoice Forms and the conditions to be met.
For instance, the procurement of Tax Invoice Forms can be
made by printing by the Entrepreneur himself in a form, size
and other administrative technical conditions as stipulated by
the Director General of Taxation.
Paragraph (5)
A Tax Invoice constitutes a tax collection evidence, and can be
used as a means for crediting the Input Tax. Therefore, a Tax
Invoice shall be correct, formally as well as materially. A Tax
Invoice shall be completed entirely, clearly, correctly, and
signed by the company staff, designated by the Taxable
Entrepreneur to sign it. A Tax Invoice, not completed in
accordance with the provisions in this paragraph, may have
the consequence, that the Value Added Tax, set forth there-in,
cannot be credited in accordance with the provisions in Article 9
paragraph (8) letter f. A Tax Invoice, of which the completion is
in accordance with the provisions of this paragraph, is called
"Standard Tax Invoice".
Paragraph (6)
Deviating from the provisions as referred to in paragraph (5), the
Director General of Taxation can determine the documents,
normally used in the business world, as substitute for the
Standard Tax Invoice.
This provision is necessary, because:
a.
the Sales Invoice, used by the Entrepreneur, is already
known by the community at large, and meets the
administrative conditions as Tax Invoice. For instance,
a telephone bill and airplane tickets.
b.
For the evidence of a tax collection, there shall be a
Tax Invoice, whereas the party which will make the Tax
Invoice, namely the party delivering Taxable Goods or
Services is outside the Custom Area. For instance,
in case of utilization of Taxable Goods, so Tax Deposit
Letter can be stipulated as Tax Invoice.
Paragraph (7)
A Simple Tax Invoice constitutes a tax collection evidence made
by Taxable Entrepreneur to accommodate the activities of the
delivery of Taxable Goods or Services, made directly to final
consumers. the Director General of Taxation can stipulate a
delivery or payment evidence as Simple Tax Invoice, shall at
least contain:
a
The Name, address, Taxpayer's Identification Number,
and the Number and Date of the Confirmation of the
Taxable Entrepreneur delivering the Taxable Goods or
Taxable Services;
b.
Kind, Type and Quantity;
c.
The Total Sales Price or Compensation, already
including the Tax, or of which the tax amount is set
forth
separately;
d.
The date of the preparation of the Simple Tax Invoice.
Letter 16
Article 16A
Paragraph (1)
In case a Taxable Entrepreneur makes a delivery of Taxable
Goods or Services to a Value Added Tax Collector, then the
Value Added Tax Collector shall collect, deposit, and report the
tax collected by him. Nevertheless, a Taxable Entrepreneur who
has made a delivery of Taxable Goods or Services to a Value
Added Tax Collector shall still be obligated to report the tax
collected by the Value Added Tax Collector.
Paragraph (2)
Sufficiently clear
Letter 17
Article 16B
Paragraph (1)
One of the principles, which shall be adhered to in the Taxation
Law, shall be the enforcement and application of equal treatment
towards all Taxpayers or towards cases in the taxation sector,
which essentially are the same, by adhering to the legislative
provisions in force. Therefore, all facilities in the taxation sector,
if really necessary, shall refer to the above norms and shall be
safeguarded, in order that in the application thereof, there will
not be any deviation from the aims and objectives for the
granting of said facilities.
The aims and objectives for the granting of facilities are
essentially for the success of high priority economic activity
sectors on national scale, to stimulate the development of
business world and enhance competitiveness, and support the
national security, and accelerate national development.
The taxation facilities, regulated in this article, are granted in
a limited way:
a.
to stimulate export, which constitutes a national priority
in the Bonded Zones and Production Entrepots for the
purpose of Export (EPTE), or other territories in the
Customs Area, especially established for said purpose;
b.
to accommodate the possibility of an agreement with
another country or with other countries in the sectors of
Trade and Investment;
c.
to stimulate community health through providing the
needed vaccines within the National Immunization
Program;
d.
To assure the available tool for the Indonesian Army
Force/ Police(TNI/POLRI) to protect the territories of
the
Republic of Indonesia from external and internal
treatment;
e.
To assure the available limitation data and air
photography of the territories of the Republic of
Indonesia conducted by the Indonesian Army Force in
supporting national defense;
f.
To increase the national education and intelligence with
help the available general books, holy book and religion
books with the price that community can afford;
g.
To stimulate the development of holy place;
h.
To assure the available afforded housing by lower
community that is simple housing, very cheap housing
and flat housing;
i.
To stimulate the development of national fleet in land,
shipping and air transport;
j.
To stimulate national development by helping the
available goods strategically and after consulted with
House of People Representative (DPR).
Paragraph (2)
The existence of special treatment, constituting Value Added
Tax, which is owed but not collected, shall be interpreted, that
the Input Tax, relating to the delivery of Taxable Goods and/or
Services, which has obtained special treatment concerned,
can still be credited, and therefore, Value Added Tax shall still
be owed, but not collected.
Example:
Taxable Entrepreneur "A" produces Taxable Goods, which have
obtained facilities from the State, namely the Value Added Tax
on the Delivery of said Taxable Goods is not collected
Permanently (not just postponed).
To produce said Taxable Goods, Taxable Entrepreneur "A"
uses other Taxable Goods and/or Services as raw material,
auxiliary material, capital goods, or as other cost components.
At the time he bought the other Taxable Goods and/or Services,
Taxable Entrepreneur "A" paid Value Added Tax to the Taxable
Entrepreneur, who sold/or delivered the Goods or Taxable
Services.
If the Value Added Tax, paid by Taxable Entrepreneur "A" to
said Supplier Taxable Entrepreneur, constitutes an Input Tax,
which can be credited with the Output Tax, then the Input Tax
shall still be creditable with the Output Tax, although said Output
Tax is zero because of the enjoyed Value Added Tax facilities,
not collected based on the provisions as referred to in
paragraph (1).
Paragraph (3)
Different from the provisions in paragraph (2), the existence of
special treatment, constituting exemption from Value Added
Tax, causes the non-existence of Output Tax, so that the Input
Tax in connection with the delivery of Taxable Goods and/or
Services, which obtain said exemption, cannot be credited.
Example:
Taxable Entrepreneur "B" produces Taxable Goods, which
obtain facilities from the State, namely on the delivery of said
Taxable Goods, it is exempted from the imposition of Value
Added Tax.
To produce said Taxable Goods, Taxable Entrepreneur "B" uses
other Taxable Goods and/or services as raw material, auxiliary
material, capital goods as other cost components.
At the time he bought the other Taxable Goods and/or Taxable
Services, Taxable Entrepreneur "B" paid Value Added Tax to
the Taxable Entrepreneur, who sold or delivered the Taxable
Goods or Taxable Services.
Although the Value Added Tax, paid by Taxable Entrepreneur
"B" to said supplier Taxable Entrepreneur, constitutes a
creditable Input Tax, but because there is no Output Tax due
to the fact that facilities of taxation exemption were granted as
referred to in paragraph (1), said Input Tax can still not be
credited.
Letter 18
Article 16C
Self construction activities, made not within the company or the work,
are imposed with Value Added Tax, with the following considerations
as an effort to prevent the occurrence of evasion of Value Added Taxation.
To prevent the low income community from Value Added Tax on self
construction, therefore stipulated a definition of self construction by
Minister of Finance Decree.
ARTICLE II
Sufficiently clear
ARTICLE III
Sufficiently clear
SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 3986