Indonesia has recently amended its VAT law by issuing Law 11/2020 concerning job creation (Law 11/2020), which took effect starting from November 2 2020.
There are several significant changes in Law 11/2020 including on the topic of claiming input VAT as VAT credit. The summary of changes between the old and the new provisions are listed below.
No.
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New provision
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Previous provision
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1.
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Crediting input VAT for the taxpayer, that has not made any supply or export of taxable goods or services (TGS) or in a pre-production phase:
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Crediting input VAT for the taxpayer, that has not made any supply or export of TGS or in a pre-production phase:
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2.
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Provisions regarding the uncreditable input VAT:
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Provisions regarding the uncreditable input VAT:
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Endy Arya Yoga
Partner
Aditya Wicaksono
Director