Minister of Finance Regulation Number 36 of 2025 (“MoF-36”) concerning Government-Borne Value Added Tax (VAT DTP) Incentive for Public Air Transportation Services

To support the public’s purchasing power and stimulate the national economy during the school holiday period, the Indonesian Government is offering a Government-Borne Value Added Tax (VAT DTP) incentive for domestic scheduled commercial economy class air transportation services for the 2025 fiscal year. Under this incentive, the Government will cover 6% of the VAT due on the replacement value, while the remaining 5% will be borne by the passenger. The replacement value, which serves as the basis for calculating VAT, includes the base fare, fuel surcharge, and other fees paid by the passenger. This VAT DTP incentive applies to tickets purchased and flights taken between June 5, 2025, and July 31, 2025.

Requirements for Taxable Entrepreneurs of Air Transportation Business Entities (PKP)

• The PKP utilizing the VAT DTP incentive must issue a tax invoice or a similar document reflecting a VAT value of 5% of the replacement value and report it in the Periodic VAT Return.
• The VAT DTP must also be reported in the delivery section that receives VAT or luxury tax facilities with a tax invoice, as stated in the Periodic VAT Return.
• The PKP is required to prepare a detailed list of DTP VAT transactions for the provision of air transportation services. This list must be included in the DTP VAT reporting, in accordance with the tax period for submitting the Periodic VAT Return, no later than September 30, 2025.

Limitations

• The VAT DTP cannot be utilized by a PKP if the ticket purchase and flight period occur outside of June 5, 2025 – July 31, 2025.
• The incentive does not apply if the flight is not in economy class.
• The VAT DTP is not valid if the detailed list of VAT DTP is submitted after September 30, 2025.