Indonesia Tax Agency Posts Regulation on VAT Exemption for Transportation Equipment

The Indonesian Directorate General of Taxation July 4 posted online a regulation on a VAT exemption for the import and supply of transportation equipment and related services. The regulation includes measures: 1) exempting water and air transportation equipment, trains, safety and maintenance equipment, and spare parts from VAT; 2) exempting services related to aircraft and boat rentals; 3) requiring VAT payments for transferred equipment or equipment not used for its original purpose within four years of purchase; and 4) the VAT payment deadline of one month from the date equipment is transferred or used for an alternative purpose. The regulation ...