#Financial knowledge science popularization #How to tax the tourist resort Bali・Indonesia "Tax Law" Guide No. 10
Features of Indonesia's Tax Code: concise, itemized. Today, I would like to introduce you to the VAT in Bali in the Indonesian Free Trade Zone.
40. VAT in Bali. As a special bonded zone, Bali has been having more VAT services than ordinary bonded zones for many years. After several extensions, Bali has become an ordinary bonded zone. Therefore, in addition to companies that meet the conditions of the bonded zone, from January 1, 2004, Bali began to collect VAT and luxury goods sales tax.
Since January 1, 2004, value-added tax has been levied on cars, cigarettes and alcohol;
From March 1, 2004, the list of dutiable goods will include electronic products;
Although it was originally planned to expand the list of dutiable goods every six months, no new goods or services have been added to the list since March 1, 2004.
During 2004, only the Treasury was the legal VAT collector. This continued until 1 February 2005, when the Public Affairs Commission was re-appointed as the VAT collection authority. Since then, the VAT collection body has been composed of the Treasury and Public Affairs Commission. In view of this change, the ordinary input-output VAT mechanism shall apply to all transactions involving VAT, except for transactions paid by the Treasury or the Public Affairs Commission.
41. Self-assessment of VAT. When an Indonesian taxpayer accepts services from outside Indonesia, including royalties, the recipient of the service must self-assess, declare the tax payable and pay the corresponding tax by the 15th of the following month. The VAT payable for this process is deductible on the normal input VAT principle.
42. Special rate on output VAT amounts. Special tax rates apply to specific goods and services. For example, the following goods and services:
1. VAT is levied at 1% of the invoice amount for services provided by travel agencies;
2. Cigarette manufacturers selling cigarettes are subject to VAT at 8.4% of the invoice amount;
3. For express delivery services, VAT is levied at 1% of the invoice amount;
4. Self-built (self-built), VAT is levied at 4% of the total cost (excluding land acquisition costs);
5. For factoring services, VAT is levied at 0.5% of the total cost. Total costs include service fees, reserves and discounts;
6. Motor vehicle dealers sell second-hand motor vehicles and are subject to VAT at 1% of sales;
7. Refund of VAT paid on audio and video tapes;
8. Taxable goods and/or services for personal use and free gifts are subject to VAT at 10% of the sales amount.
43. VAT invoices. The VAT invoice must contain the following information:
a. the taxpayer's name, address and tax registration number for the delivery of taxable goods or services;
b. Buyer's name, address and tax registration number;
c. the type, quantity, sales price or compensation of the goods or services, and discounts;
d. the amount of VAT paid;
e. Sales tax already paid on luxury goods, if any;
f. Invoice code, serial number and date of issue;
g. Name, position and signature of the authorized signatory.
Documents that can be considered VAT invoices include:
a. Import declarations, together with customs payment documents or tax collection documents issued by customs;
b. Export declaration;
c. Distribution instructions for crushed flour;
d. Delivery invoices from Petronasia;
e. Telephone/telecommunications service receipts, electricity bill receipts, airline receipts, or deliveries issued by domestic air transportation services
Bill;
f. Sales invoice issued by the port service provider.
44. VAT Base. Generally, the tax collection base is the sales price or compensation payment amount.
Sales tax on luxury goods is not included in the importer's or manufacturer's tax base.
45. Administrative Penalties.
In any of the following circumstances, an administrative penalty of 2% of the tax collection base will be imposed:
a. The eligible taxpayer is not registered as a VAT paying enterprise;
b. Taxpayers who have not been recognized as VAT taxpayers issue VAT invoices;
c. The act of not issuing VAT invoices, or issuing inaccurate, delayed issuance or incomplete VAT invoices.
If the overpayment is mistakenly used for deduction, or if the zero rate is used incorrectly, the taxpayer will be subject to a penalty of 100% of the tax payable on top of the tax due.