The government has set new provisions for the administration of Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM). Where the regulation regulates activities in the Free Trade Area and Free Port (KPBPB or FTZ) it will take effect today or February 2, 2022.
These provisions are regulated in the Minister of Finance Regulation (PMK) Number 173/PMK.03/2021 concerning Procedures for Payment, Settlement, and Administration of PPN or PPN and PPnBM on Delivery of Taxable Goods (BKP)/Taxable Services (JKP) from and/ or to KPBPB.
The Director of Extension, Services and Public Relations at the Directorate General of Taxes at the Ministry of Finance, Neilmaldrin Noor, said that the substance of the regulation in this regulation is to strengthen the administration of VAT at KPBPB so that it is fair, simple, easy, provides legal certainty, and realizes effective supervision.
“One example of administrative strengthening provided by PMK-173 is the ease of the endorsement process, which is completely electronic,” said Neil in a press statement received by MPI, Wednesday (2/2/2022).
Now, said Neilmadrin, entrepreneurs do not need to apply separately and submit physical documents at all. Entrepreneurs at KPBPB only need to make a Notification of Acquisition or Entry of BKP/JKP (PPBJ) documents and upload them to the Indonesia National Single Window System (SINSW), then the system at DGT will be connected to SINSW and work electronically until the endorsement results are given.
“DJP has collaborated with the National Single Window Institution (LNSW) and the Directorate General of Customs and Excise (DJBC) regarding the data integration,” he explained.In addition, this PMK also regulates the supervisory mechanism as well as an instrument to create legal certainty and justice in the form of PPBJ documents. PPBJ is a document that must be made by entrepreneurs at KPBPB who intend to obtain BKP or JKP from Other Places in the Customs Area (TLDDP), Bonded Storage Places (TPB), or Special Economic Zones (KEK).
“PPBJ is the basis for Taxable Entrepreneurs (PKP) to issue tax invoices with code 07 (submissions that receive VAT-free facilities). PPJB contains information regarding the acquisition of BKP/JKP, attaches a copy of the engagement or agreement on the acquisition of BKP/JKP, and/or contains information regarding the entrepreneur’s payment bank account at KPBPB,” he concluded.
With PPJB providing legal certainty regarding the responsibility for paying off VAT, if an endorsement is not given on the acquisition of BKP, then the Entrepreneur at KPBPB who makes PPBJ is obliged to pay off the VAT payable.
“This also provides legal certainty and justice to PKP, PKP is only responsible administratively to make a tax invoice correctly, if the endorsement is not given or there are other problems related to the entry of goods, the responsibility for paying off the VAT owed is no longer the responsibility of the PKP, but entrepreneurs at KPBPB who make PPJB,”.
