This regulation replaces Government Regulation No. 1 of 2012 concerning implementation of the VAT Law and its amendments and became effective as of 2 December 2022.

Some of the provisions regarding VAT and LGST in PP 44/2022 are as follows:

1. The purchaser of Taxable Goods (BKP)/ Taxable Services (JKP) is jointly responsible if it does not fulfill the following provisions:
   • The tax that is due cannot be collected from the seller of the BKP/JKP; and
   • The purchaser or service recipient cannot show evidence that it has made payment of the Tax to the seller of the BKP/JKP.
2. The joint responsibility shall be carried out by the Purchaser or Service Recipient by making payment of the VAT and/or LGST that is due using a Tax payment slip. The joint responsibility may be billed through issuance of an SKPKB (Underpaid Tax Assessment Notice) or SKPKBT (Additional Underpaid Tax Assessment Notice) if the Purchaser of BKP/JKP has not made or has underpaid the payment of VAT or LGST.
3. Other parties who are appointed to collect, deposit, and/or report of VAT or VAT and LGST. Other parties are parties who are directly involved in or facilitate transactions between the transacting parties, including at least those in the form of traders, service providers, and/or Operators of Trade through Electronic Systems.
4. Some further provisions regarding BKP / JKP, including the following:
   • Own use of BKP and/or JKP that is subject to VAT constitutes provision that is provided without payment or compensation in any name or form whatsoever. In PP 1/2012, the imposition of VAT on own use was still differentiated between productive or consumptive purposes, whereby VAT was only assessed on own use for consumptive purposes.
   • Delivery of title to BKP because of an agreement which is included in the definition of delivery of BKP also includes delivery of collateral by a creditor to a Purchaser. The collateral concerned constitutes BKP which is taken over by the creditor based on:
   • Security right on land including the objects associated with the land;
     • Fiduciary guarantee;
     • Mortgage;
     • Collateral; or
     • Other similar charge.
   • Delivery of BKP for the purpose of deposit of capital in lieu of shares that is not included in the definition of delivery of BKP also includes delivery of BKP for the purpose of deposit of capital to an Entity as stipulated in the VAT Law.
   • Delivery of BKP for security for debts and receivables is not included in the definition of delivery of BKP (including sharia financing transaction schemes), so it is not subject to VAT as long as the BKP concerned is eventually returned to the party that originally delivered it.
5. Delivery of Taxable Goods and/or Taxable Services is subject to VAT as long as it fulfills the following requirements:
   • The delivery is done within the Customs Territory by an Entrepreneur; and
   • The delivery is done in the framework of its business or work.
     The meaning of “delivery done in the framework of business or work” is all deliveries of Taxable Goods and/or Taxable Services that are delivered, whether in operational activities or non-operational activities.
6. Certain documents whose status is treated as equivalent to a tax invoice that are produced after exceeding a period of three months from when said documents should have been produced are shall not be treated as certain documents whose status is treated as equivalent to a tax invoice.
7. In the case that a transaction is performed using currency other than Rupiah, the calculation of VAT and/or LGST must be made using the exchange rate stipulated by the Minister that was in force at the time the Tax Invoice or certain document treated as equivalent to a Tax Invoice should have been prepared.