Indonesia: VAT exemption for “basic necessities” | KPMG Global
Share with your friends

Indonesia: VAT exemption for “basic necessities”

Indonesia: VAT exemption for “basic necessities”

The Ministry of Finance issued guidance that exempts “basic necessities” from value added tax (VAT).


Related content

The guidance (a regulation) clarifies 11 types of commodities (food items or products) as being eligible for the VAT exemption.

The Ministry of Finance also issued guidance that postpones the date for payment of customs duties and related civil penalties. The regulation allows those taxpayers that underpaid their import or export customs duties to delay payment of penalties. The regulation has an effective date of 6 October 2017. The postponement is available only if approved by the Indonesian customs officials. 


Read a September 2017 report [PDF 742 KB] prepared by the KPMG member firm in Indonesia

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal