On July 22, 2020, the Government of Indonesia, through the Minister of Finance (MoF), issued regulation no. 92/PMK.03/2020 (“PMK-92”) regarding the Criteria and/or Details of Religious Services Not Subject to Value Added Tax.

Key notes on PMK-92:

1. This regulation provides details and criteria regarding the non-application of Value Added Tax to religious services which include Hajj/Umrah services and worship trip services to other specified destinations that are administered by certified travel agents registered at the Ministry of Religious Affairs.
2. Consequently, Input VAT on the acquisition of Taxable Goods and/or Taxable Services related to delivery of religious services that are not subject to VAT cannot be credited.
3. Additional services given by the travel agents, for the provision of commission /compensation for the delivery of sales intermediary services and for arrangement of travel to places other than those specified in this regulation are subject to VAT.

This MoF Regulation comes into force after 30 (thirty) days from July 23, 2020.