The exemption of Sales Tax on Luxury Goods (STLG) on motor vehicles is extended until the end of 2021. Formerly, the STLG payable, which was fully borne by the government, was only valid from the April-August 2021 tax period.
Then, from the July to the December 2021 tax period, the amount of STLG borne by the government was reduced to only 25% of the value of the tax payable.
This extension of the STLG exemption applies to sedans or station wagons with a cylinder capacity of 1,500 cc and transport vehicles with a capacity of 10 people, with a single drive axle system (4X2) and having a cylinder capacity of 1,500 ccs.
This measure was taken to encourage people's purchasing power in the automotive industry and accelerate the recovery of the national economy which was depressed during the Covid-19 pandemic.
In addition, the government has also increased the value of STLG that is borne by the government for sedans or station wagons with cylinder capacities between 1,500-2,500 cc in the July-December 2021 period from 25% to 50%.
Similarly, with the government-borne STLG for vehicles carrying less than 10 people with cylinder capacities between 1,500 - 2,500 cc, the July-December period increased from 12.5% ??to 25%.
The extension and increase of the government-borne STLG is regulated in the Minister of Finance Regulation (PMK) No. 120/PMK.010/2021. This regulation revises the previous provision in PMK Number 77/PMK.010/21 which is an amendment to PMK Number 31/PMK.010/21.
Tax Invoice Can Be Changed
In the latest regulation, the government emphasizes that taxpayers who have already purchased a vehicle before this regulation is issued can change their invoices.
Thus, taxpayers can still take advantage of the government-borne STLG facility in accordance with the new regulations.
If the change in the tax invoice results in an overpayment of STLG, the taxpayer is entitled to a refund from the dealer or VAT-registered persons who have collected it.
A tax invoice is made by including transaction code 01 and a description of the type of goods, which explains information related to the vehicle such as cylinder capacity, chasis number, engine number, and Harmonized System (HS) code.
In addition to making tax invoices, VAT-registered persons are also required to make a report on the realization of the government-borne STLG consisting of a tax invoice and a list of details of certain motor vehicles.
A detailed list of certain motor vehicles must be submitted twice in each tax period. With the condition, for transactions made on the 1-15th of each month, the list of details must be submitted no later than three working days after the 15th.
If the transaction is made between the 16th and the end of the tax period, the list of details must be submitted no later than three days after the end of the tax period.
The realization report can be submitted through the DGT Online channel, namely www.pajak.go.id page, or through the nearest Tax Office (KPP), in the event that it cannot be done through the online DGT channel.