100% Government-Borne VAT Facility for Housing Extended, Valid until End of 2024

JAKARTA. The government will extend the 100% Government-Borne Value Added Tax (VAT) facility for housing until December 2024.

Previously, the 100% government-borne VAT for housing was only valid until 30 June  2024. Meanwhile, from July 1 to December 31, the facility only applies 50%.

Quoting kontan.co.id, the extension was carried out to maintain the purchasing power of the middle class towards housing. In addition, the housing sector can have a further impact on other economic activities. The plan is for the provisions governing the extension to be issued soon.

The provisions regarding the provision of government-borne VAT were previously stipulated in Minister of Finance Regulation (PMK) Number 120 of 2023, which was issued and came into effect on 21 November 2023.

Read: Government-borne VAT Regulation on Landed House Released, Here are the Provisions

According to the regulation, the government-borne VAT facility is provided for the transfer of landed houses and apartment units with a maximum selling price of IDR 5 billion and a maximum tax base of VAT of IDR 2 billion.

This facility only applies to new landed houses or apartments ready for occupancy handed over by VAT-Registered Persons to individual taxpayers as the first hand. This means that the facility does not apply if the status of the house is a transfer or is handed over to the second person and so on.

For information, the government-borne VAT policy for housing is a policy that was also given during the Corona Virus Disease (COVID-19) pandemic. (ASP/KEN)