kelolalaut.com Indonesia's VAT policy for exports is designed to support international competitiveness and promote economic growth. Below is a summary and explanation of the key points of this policy:

1. Export of Goods

• 0% VAT Rate:
  • Goods exported are subject to a 0% VAT rate (zero-rated), meaning:
    • Taxable Entrepreneurs (PKP) do not charge VAT to foreign buyers.
    • PKP can still claim input tax credits on the purchase of goods/services used in the production of export goods.
  • Goods considered as exports are those shipped outside the customs area in accordance with customs regulations.

2. Export of Services

• 0% VAT Rate Only for Certain Services:
  • Maklon Services: Services for processing goods owned by foreign parties performed in Indonesia.
  • Services Utilized Abroad: Services where the results are used outside Indonesia.
  • Other services not included in these categories are generally subject to the domestic VAT rate (currently 11%).

3. Criteria for Exports

• Supporting Documents:
  • Exports of goods/services must be supported by documents such as a Customs Export Declaration (PEB), proof of foreign payment, and other relevant documentation.
• Goods or services are considered exports if:
  • Goods are shipped outside the customs area.
  • The results of services are utilized abroad.

4. Benefits of the 0% VAT Policy

• Enhances the competitiveness of Indonesian products in international markets since prices are not burdened by VAT.
• Strengthens exporters' positions in global trade.
• PKP exporters can claim tax refunds for input VAT already paid.

5. Recent Changes

• Harmonization of Tax Regulations Law (UU HPP):
  • Provides clearer definitions of services eligible for the 0% VAT rate.
• Increase in Domestic VAT Rates:
  • Since April 1, 2022, the general VAT rate has increased from 10% to 11%.
  • It is planned to rise to 12% in the coming years, although the export VAT rate remains at 0%.

This policy aims to boost export performance, create economic efficiency, and improve the competitiveness of Indonesian products and services in global markets.

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