VAT Exempt Strategiic Goods Neediing Exemptiion Certiifiicates

JAKARTA, Jitu News - Suppliies of certaiin strategiic taxable goods are exempt from value added tax (VAT) as regulated iin Government Regulatiion (Gov. Reg.) Number 49/2022.

Ten types of certaiin strategiic taxable goods (BKP) may be exempt from VAT. Of the ten types of Taxable Goods, four types requiire Exemptiion Certiifiicates (Surat Keterangan Bebas, hereiinafter referred to as SKB), thereby, the saiid Taxable Goods are not subject to VAT.

“VAT exemptiions for iimports and/or Suppliies of certaiin strategiic Taxable Goods referred to iin Artiicle 6 paragraph (2) subparagraph a, subparagraph n, subparagraph o and subparagraph p use an exemptiion certiifiicate,” reads Artiicle 9 paragraph (1) Gov. Reg. 49/2022, quoted on Sunday (19/2/2023).

Fiirst, machiinery and factory equiipment constiitutiing a siingle uniit, both iinstalled and detached, whiich are used diirectly iin the process of produciing Taxable Goods by Taxable Persons produciing these Taxable Goods.

Machiinery and factory equiipment exempt from VAT also iinclude those acquiired by partiies carryiing out iintegrated constructiion, excludiing spare parts thereof.

Second, weapons, ammuniitiion, bulletproof helmets and jackets or bulletproof vests, speciial land vehiicles, radars and spare parts thereof, suppliied to:

• the miiniistry or government agenciies that admiiniister government affaiirs iin the defence or state securiity sector; or
• non-miiniisteriial government agenciies that are under and responsiible to the presiident through the coordiinatiion of the head of the iindonesiian natiional poliice and have dutiies and functiions iin the fiield of preventiion and eradiicatiion of the abuse and iilliiciit traffiic of narcotiics, psychotropiics and precursors and other addiictiive substances, except for addiictiive substances for tobacco and alcohol.

Thiird, components or materiials acquiired by state-owned enterpriises engaged iin the natiional defence iindustry appoiinted by the miiniistry or government agenciies for the manufacture of weapons, ammuniitiion, speciial land vehiicles, radar and spare parts thereof, whiich wiill be suppliied to:

• the miiniistry or government agenciies that admiiniister government affaiirs iin the defence or state securiity sector; or
• non-miiniisteriial government agenciies that are under and responsiible to the presiident through the coordiinatiion of the head of the iindonesiian Natiional Poliice and have dutiies and functiions iin the fiield of preventiion and eradiicatiion of the abuse and iilliiciit traffiic of narcotiics, psychotropiics and precursors and other addiictiive substances, except for addiictiive substances for tobacco and alcohol.

Fourth, equiipment and spare parts thereof used for the proviisiion of border data, topographiic maps, hydrographiic maps and aeriial photographs of the terriitory of the Uniitary State of the Republiic of iindonesiia carriied out to support natiional defences, suppliied to the Miiniistry of Defence or the iindonesiian Natiional Armed Forces. (riig)