ProdukHukum Perdagangan

DECISION OF THE DIRECTOR GENERAL OF TAXATION
NO. KEP-540/PJ/2000 DATED DECEMBER 29, 2000
THE IMPOSITION OF VALUE ADDED TAX AND SALES TAX
ON LUXURY GOODS ON MOTOR VEHICLES

THE DIRECTOR GENERAL OF TAXATION,

Considering :
a. that Law No. 18/2000 on the second amendment to Law No. 8/1983 concerning value added tax on goods
and services and sales tax on luxury goods stipulates, among others, definitions of selling prices and import
values becoming the basis for the imposition of value added tax and sales tax on luxury goods;
b. that Article 4 of Government Regulation No. 143/2000 on the implementation of Law No. 8.1983
concerning value added tax on goods and services and sales tax on luxury goods as already amended several
times the latest by Law No. 18/2000, already stipulates further the basis for the imposition of tax on the
delivery of taxable goods of the luxury category which is done by taxable entrepreneurs and other than
taxable entrepreneurs producing taxable goods of the luxury category;
c. that based on the considerations as meant in letters a and b, in the framework of executing the collection of
value added tax and sales tax on luxury goods on motor vehicles, it is necessary to stipulate a decision of the
Director General of Taxation on the imposition of value added tax and sales tax on luxury goods on motor
vehicles;
In view of :

1. Law No. 8/1983 on value added tax on goods and services and sales tax on luxury goods (Statute Book of
1983 No. 51, Supplement to Statute Book No. 3264) as already amended the latest by Law No. 18/2000
(Statute Book of 2000 No. 128, Supplement to Statute Book No. 3986);
2. Government Regulation No. 143/2000 on the implementation of Law No. 8/1983 on value added tax on
goods and services and sales tax on luxury goods as already amended the latest by Law No. 18/2000
(Statute Book of 2000 No. 259, Supplement to Statute Book No. 4061);
DECIDES:
To stipulate :
THE DECISION OF THE DIRECTOR GENERAL OF TAXATION ON THE IMPOSITION OF VALUE
ADDED TAX AND SALES TAX ON LUXURY GOODS ON MOTOR VEHICLES.
Article 1
(1) Selling prices used as the basis for calculating value added tax and sales tax on luxury goods on the delivery
of motor vehicles of the luxury category which is done by manufacturers or producers shall not include
value added tax, sales tax on luxury goods and price discounts mentioned in tax invoices.
(2) Import values used as the basis for calculating value added tax and sales tax on luxury goods on motor
vehicles of the luxury category shall not include value added tax and sales tax on luxury goods.

(3) Selling prices used as the basis for calculating value added tax on the delivery of motor vehicles of the
luxury category which is done by taxable entrepreneurs other than manufacturers or producers or on the
basis of the import shall include sales tax on luxury goods imposed on the delivery from manufacturers or

producers or on the basis of the import of motor vehicles of the luxury category.
Article 2
(1) In the case of motor vehicles of the luxury category being imported in completely knocked down (CKD)
condition or being produced in the country :
a. Sales tax on luxury goods shall not yet become due upon the import of the motor vehicles in CKD
condition.
b. The basis for the imposition of value added tax on the delivery of the motor vehicles form manufacturers
or producers of the motor vehicles shall be the same as the basis for the imposition of sales tax on luxury
goods, i.e. amounting to the selling prices as meant in Article 1 paragraph (1).
c. The basis for the imposition of tax used as the basis for calculating value added tax on the delivery of
the motor vehicles in the lines after the delivery from manufacturers or producers of the motor vehicles
shall be the selling prices as meant in Article 1 paragraph (3).
(2) In the case of motor vehicles of the luxury category being imported in completely built up (CBU) condition:
a. The basis for the imposition of value added tax on the import of the motor vehicles shall be the same as
the basis for the imposition of sales tax on luxury goods, i.e. amounting the import values as meant in
Article 1 paragraph (2).
b. The basis for the imposition of tax used as the basis for calculating value added tax on the delivery of
the motor vehicles by the relevant importers and the delivery in the subsequent lines shall be the selling
prices as meant in Article 1 paragraph (3).
Article 3

(1) Tax invoices shall be issued for the delivery of motor vehicles.
(2) The values of sales tax on luxury goods collected or already collected in the previous lines shall also be
mentioned in tax invoices issued in every distribution line of motor vehicles of the luxury category.
Article 4
(1) Selling prices used for calculating value added tax on the delivery of motor vehicles of the luxury category
to buyers having certificates of exemption (SKB) from sales tax on luxury goods shall not include sales tax
on luxury goods already collected.
(2) Parties delivering the motor vehicles as meant in paragraph (1) can submit applications for the restitution of
sales tax on luxury goods already collected previously in accordance with the provisions in force to Heads
of Tax Service Offices where the relevant parties are validated.
Article 5
The calculation of value added tax and/or sales tax on luxury goods owed as meant in the provisions in
Articles 1 and 2 shall be in accordance with specimens in Attachments I and II to this decision of the Director
General of Taxation.
Article 6
This decision of the Director General of Taxation shall come into force as from January 1, 2001.

For public cognizance, this decision of the Director General of Taxation shall be published by placing it
in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On December 29, 2000
THE DIRECTOR GENERAL OF TAXATION
sgd
MACHFUD SIDIK

ATTACHMENT I
a. Example of the mechanism of collection of Value Added Tax (PPn) and Sales Tax on Luxury Goods
(PPnBM) on imported motor vehicles in Completely Built Up (CBU) condition :
1) Importers of motor vehicles : General importers/assemblers/authorized sole agents (ATPM).
a) Import :
- Import value (DPP)
- PPN (10%)
- PPnBM (50%)
Import price

= Rp. 200,000,000,= Rp. 20,000,000,- (Input Tax)
= Rp. 100,000,000,------------------------= Rp. 320,000,000,-

b) Delivery :

- Purchasing price of
motor vehicle
- Profit
- PPnBM paid
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 200,000,000,= Rp. 20,000,000,= Rp. 100,000,000,------------------------= Rp. 320,000,000,= Rp. 32,000,000,- (Output tax)
------------------------= Rp. 352,000,000,-

2) Distributor :
a) Purchase :
- Purchasing price (DPP) = Rp. 320,000,000,- PPN (10%)
= Rp. 32,000,000,- (Input tax)
------------------------- Purchasing price
= Rp. 352,000,000,b) Delivery :
- Purchasing price of
motor vehicle
- Profit

- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 320,000,000,= Rp. 20,000,000,------------------------= Rp. 340,000,000,= Rp. 34,000,000,- (Output tax)
------------------------= Rp. 374,000,000,-

3) Dealer :
a) Purchase :
- Purchasing price (DPP) = Rp. 340,000,000,-

- PPN (10%)
Purchasing price

= Rp. 34,000,000,- (Input tax)
------------------------= Rp. 374,000,000,-

b) Delivery :
- Purchasing price of
motor vehicles

- Profit
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 340,000,000,= Rp. 20,000,000,-----------------------= Rp. 360,000,000,= Rp. 36,000,000,- (Output tax)
-----------------------= Rp. 396,000,000,-

4) Sub-dealer/showroom
a) Purchase :
- Purchasing price (DPP) = Rp. 360,000,000,- PPN (10%)
= Rp. 36,000,000,- (Input tax)
------------------------Purchasing price
= Rp. 396,000,000,b) Delivery :
- Purchasing price of
motor vehicle
- Profit
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 360,000,000,= Rp. 20,000,000,-----------------------= Rp. 380,000,000,= Rp. 38,000,000,- (Output tax)
------------------------= Rp. 418,000,000,- (paid by consumer)

If the consumer purchasing the motor vehicle from the sub-dealer or showroom has a certificate of
exemption from sales tax on luxury goods (SKB PPnBM), the calculation of PPnBM on the delivery of the
motor vehicle from sub-dealer or showroom to the buyer is as follows :
Delivery :
- Purchasing price of
motor vehicle
- Profit
- PPnBM paid
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 260,000,000,= Rp. 20,000,000,= Rp.
0 (exempted by SKB)
-----------------------= Rp. 280,000,000,= Rp. 28,000,000,- (Output tax)
-----------------------= Rp. 308,000,000,- (paid by consumer)

Elucidation
The selling price being the basis for the imposition of tax in point 4 letter b which amounts to Rp.
380,000,000,- already includes PPnBM on the import totaling Rp. 100,000,000 (point a.1.a). In order to
calculate the basis for the imposition of Value Added Tax on the delivery of the motor vehicle exempted from
PPnBM, the value of PPnBM on the import amounting to Rp. 100,000,000,- must be deducted from the selling
price which constitutes the basis for the imposition of tax so that the value becomes Rp. 280,000,000,-.

b. Example of mechanism of collection of Value Added Tax (PPN) and Sales Tax on Luxury Goods (PPnBM)
on imported motor vehicles in Completely Knocked Down (CKD) condition or domestic motor vehicles :
1) Importers of motor vehicles : General importers/assemblers/authorized sole agents/ATPM (as
manufacturers of motor vehicles)
a) Import :
- Import value (DPP)
- PPN (10%)
- PPnBM (-%)
Import price

= Rp. 200,000,000,= Rp. 20,000,000,- (Input Tax)
= ------------------------= Rp. 220,000,000,-

b) Delivery :
- Purchasing price of
motor vehicle
- Profit
- Selling price (DPP)
- PPnBM (50%)
- PPN (10%)
Selling price

= Rp. 200,000,000,= Rp. 20,000,000,------------------------= Rp. 220,000,000,= Rp. 110,000,000,= Rp. 22,000,000,- (Output tax)
------------------------= Rp. 352,000,000,-

2) Distributor :
b) Purchase :
- Purchasing price (DPP) = Rp. 220,000,000,- PPnBM (50%)
= Rp. 110,000,000,- PPN (10%)
= Rp. 22,000,000,- (Input tax)
------------------------Purchasing price
= Rp. 352,000,000,b) Delivery :

- Purchasing price of
motor vehicle
- Profit

= Rp. 330,000,000,= Rp. 20,000,000,-------------------------

- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 350,000,000,= Rp. 35,000,000,- (Output tax)
------------------------= Rp. 385,000,000,-

3) Dealer :
a) Purchase :
- Purchasing price (DPP) = Rp. 350,000,000,- PPN (10%)
= Rp. 35,000,000,- (Input tax)
------------------------Purchasing price
= Rp. 385,000,000,b) Delivery :
- Purchasing price of
motor vehicles
- Profit
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 350,000,000,= Rp. 20,000,000,-----------------------= Rp. 370,000,000,= Rp. 37,000,000,- (Output tax)
-----------------------= Rp. 407,000,000,-

4) Sub-dealer/showroom
a) Purchase :
- Purchasing price (DPP) = Rp. 370,000,000,- PPN (10%)
= Rp. 37,000,000,- (Input tax)
------------------------Purchasing price
= Rp. 407,000,000,b) Delivery :
- Purchasing price of
motor vehicle
- Profit
- Selling price (DPP)
- PPN (10%)
Selling price

= Rp. 370,000,000,= Rp. 20,000,000,-----------------------= Rp. 390,000,000,= Rp. 39,000,000,- (Output tax)
------------------------= Rp. 429,000,000,- (paid by consumer)

ATTACHMENT II
EXAMPLE OF COLLECTION OF PPN AND PPnBM ON MOTOR VEHICLES DERIVED FROM CHASSIS
(DEALERS AS COLLECTORS OF PPnBM)

1. Dealer "B" purchase a chassis of motor vehicle from Main Dealer "A" at a price of Rp. 100,000,000,- with a
price discount of Rp. 1,000,000,- (including PPN)
2. Dealer "B" asks assembler "C" to change the chassis into a motor vehicle for the transport of people at a
cost of Rp. 10,000,000,- and assembler "C" collects PPN amounting to Rp. 1,000,000,3. Dealer "B" later sells the assembled motor vehicle to a buyer at a price of Rp. 150,000,000,- (including
PPN and PPnBM)
4. PPnBM is owed and collected by Dealer "B" at a tariff of 15%.
THE CALCULATION AND REPORTING OF PPN BY DEALER "B" ARE AS FOLLOWS :
Purchase :
Purchasing price of chassis from main dealer "A"
Purchasing discount

= Rp. 100,000,000,= Rp. 1,000,000,------------------------= Rp. 99,000,000,-

Purchasing price of chassis (including PPN)
DPP of PPN on the purchase of chassis
(100/110 x Rp. 99,000,000,-)
PPN on the purchase of chassis
(10% x Rp. 90,000,000,-)
Assembled cost
PPN on assemble cost

= Rp. 90,000,000,= Rp. 9,000,000,= Rp. 11,000,000,= Rp. 1,000,000,-

Selling (off the road) :
Selling price, including PPN (10%) and PPnBM (15%)
DPP of PPN and PPnBM
(100/125 x Rp. 150,000,000,-)
PPN owed (10% x Rp. 120,000,000,-)
PPn BM owed (15% x Rp. 120,000,000,-)

= Rp. 150,000,000,= Rp. 120,000,000,= Rp. 12,000,000,= Rp. 18,000,000,-

The calculation of PPN and PPnBM on the said transaction :
1. PPN
- Output tax (10% x Rp. 120,000,000,-)
- Input tax :
- Purchase of chassis
Rp. 9,000,000,- Assemble service fee Rp. 1,000,000,--------------------Total input tax
PPN which must be remitted

= Rp. 12,000,000,-

= Rp. 10,000,000,------------------------= Rp. 2,000,000,-

2. PPnBM which must be remitted
15% x Rp. 120,000,000,-

= Rp. 18,000,000,-