VAT Exemption on Clean Water Delivery

On April 6, 2021, the Government issued Government Regulation No. 58 Year 2021 (“GR-58”) regarding the amendment of GR-40 Year 2015 concerning the VAT Exemption on the Clean Water Delivery.

The main points of GR-58 are summarized as follows:

  1. The definition of clean water is expanded to include the installation and fixed load cost.
  2. The installation cost is the fees that are billed by entrepreneurs to customers for activities connecting the water installation owned by the entrepreneur to the water installation owned by the customer.
  3. The cost of clean water fixed load is a fee charged by entrepreneurs to customers, the amount of which is not influenced by the volume of water usage.
  4. Clean water that is ready for drinking (drinking water) does not include bottled drinking water.

This GR-58 is applied since 07 April 2021.

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