VAT Payable - Non-deductible Items and Deferred Tax Credits丨Indonesia Tax Guide 2025 (22)
Indonesia
VAT
Tax payable
2025-02-13 09:08:49
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This issue's introduction
Tax payable-retained tax
Tax payable-other
Chapter III Value Added Tax
Tax payable - non-deductible items
(1) the portion of goods or services purchased by the enterprise before it became a VAT taxpayer that exceeds 80% of the output tax amount;
(2) goods or services purchased that are not related to the enterprise's business activities;
(3) purchase and maintenance expenses incurred on cars and station wagons, unless the vehicles are sold or leased;
(4) intangible assets and services used abroad before the enterprise became a VAT taxpayer;
(5) tax invoices obtained do not include the above minimum taxable goods or taxable services;
(6) tax invoices for the use of taxable intangible assets or taxable services obtained outside the country that do not meet the documentary requirements;
(7) input tax amounts for the acquisition of taxable goods or taxable services adjusted to the assessment results after the tax audit;
(8) input tax amounts for the acquisition of taxable goods or taxable services that are not reported in the VAT return and determined in the tax audit.
Tax payable - retained tax
If the correction declaration results in overpayment of tax, the overpayment can be applied for refund within 3 years from the date of overpayment, provided there has not been any tax audit.
VAT taxpayers can also choose to offset the overpayment of tax against other taxes. In this case, the overpayment of tax can be carried forward for 5 years.
Tax payable - other
(1) For machines imported for manufacturing products, the VAT related to them can be deducted indefinitely;
(2) For equipment imported for specific industries (such as the hotel industry, transportation industry, etc.), the VAT can be deducted for 18 months.
More exciting news in the next issue...