On 9 September 2022, the Directorate General of Taxes (“DGT”) issued Regulation No. PER-13/PJ/2022 (“PER-13”) concerning the procedures of VAT / Sales Tax on Luxury Goods reporting for Government Business Partners in relation to the Government Procurement Information System. The issuance of this PER-13 is to provide clarity and legal certainty in order to ease the implementation of MoF Regulation No. 58/PMK.03/2022.

Government business partners categorized as small entrepreneurs do not need to report VAT or Sales Tax on Luxury Goods that have been collected, deposited, and reported by other parties.

On the other hand, government business partners that are not categorized as small entrepreneurs are required to report the delivery of taxable goods or taxable services as VAT that is collected by the VAT collector.

“Government business partners” as mentioned above are entrepreneurs that provide goods and/or services through the Government Procurement Information System, while the “other parties” are procurement marketplaces or online procurement retailers that are directly involved in or facilitate the transactions between parties through the Government Procurement Information System that have been designated by a government institution.

The criterion of “small entrepreneur” is an entrepreneur that has deliveries of Taxable Goods and/or Taxable Services with a total gross turnover not exceeding IDR 4.8 Bio for one fiscal year, as stipulated in MoF Regulation No. 197/PMK.03/2013 regarding the amendment of MoF Regulation No. 68/PMK.03/2013 concerning “small entrepreneurs.”