Home Finance Ministry of Finance Simplifies VAT Exemption Procedure for Foreign Representatives

Ministry of Finance Simplifies VAT Exemption Procedure for Foreign Representatives


Jakarta -In an effort to improve taxpayer compliance, while improving the ease of trying and stimulating the national economy, the Ministry of Finance prepared three new policies.

The three policies are the acceleration of restitution, joint examination of the Cooperation Contract Contractor (KKKS), and the exemption of VAT for foreign representatives. Finance Minister Sri Mulyani said the implementation of the three policies is part of the government’s efforts to improve the ease of business and stimulate the national economy.

Related to the exemption of VAT for foreign representatives, the Directorate General of Taxes Ministry of Finance (MoF) states that representatives of foreign countries and international bodies may be granted VAT and / or PPnBM exemptions on the importation or supply of Taxable Goods (BKP) or Taxable Services (JKP) .

Provided there are two conditions that are met. First, the recommendation of the Secretary of State or the appointed official. Second, it has a Certificate of Free (SKB) issued by the Directorate General of Taxation.

In an official statement received by Bisnis Indonesia on Thursday (29/3/2018), the Ministry of Finance stated that it is necessary to simplify the procedure of VAT exemption and / or PPnBM to international agencies and officials for activities attended by heads of state and / or heads of international bodies.

For that, there are some changes made by the government related to this. One of them, LCS is no longer included in terms of granting VAT exemption and / or PPnBM.

The following are the changes to the VAT exemption and / or PPnBM exemption:

Source: Directorate General of Taxation Ministry of Finance


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