Replacing the Government Regulation (PP) Number 26 Year 2005 since August 13, 2012, PP Number 71 Year 2012 announced that VAT is no longer collected on transfer of aviation turbo fuel (avtur) to national air transports for international flight. This facility is also given to foreign air transports so long that there is a reciprocal principle applied by the domicile country of the foreign air transport to Indonesian air transports in their country under the Convention on International Civil Aviation which has been ratified.
However, Tax Invoices are still mandatory to be issued. The Tax Invoice shall be stamped by sign “Not Collected VAT referring to PP No. 71 Year 2012.”
In the event that avtur under the facility of VAT Not Collected is transferred to other party---partially or fully---, the VAT payable which is not collected shall be paid within 30 calendar days starting from the time when the avtur is transferred. Otherwise, DGT will issue the Tax Assessment Notice on Underpayment along with the administrative sanction.