Along with the enactment of Minister of Finance Regulation no. 131 of 2024, there are several new provisions regarding VAT and DPP Other Value information that need to be taken into account.
Main points of Minister of Finance Regulation 131/2024:
Determine adjustments in determining the Tax Imposition Base (DPP) for calculating VAT, which may include changes to the calculation of tax inclusive prices.
Further regulates the reporting and documentation required for the determination of DPP Other Values.
Impact on Services: The implementation of this regulation will coordinate with an increase in the VAT rate to 12% effective from 1 January 2025. Therefore, it is important to understand how all services will be calculated under this new DPP.
Goods and services that are not included in the luxury goods category will be subject to VAT at an effective rate of 11%. This calculation uses a tax base in the form of "other value", namely 11/12 of the selling price. Although the basic VAT rate is 12%, the use of other values causes the effective rate to be 11%.
As an illustration:
If the price of the Advanced (Annually) 50,000 email package is IDR 1,589,000/month, the tax base is calculated as 11/12 x IDR 1,589,000 = IDR 1,456,583
Then the VAT payable is 12% x IDR 1,456,583 = IDR 1,747,890
For further information and explanations regarding the impact of this new regulation, please contact our Support team or send an email to [email protected].