New Regulation on the VAT Treatment of Exports and Imports of Tangible Taxable Goods

s Deborah
s Puput Bayu Wibowo
By Deborah, Puput Bayu Wibowo
Deborah
Puput Bayu Wibowo
The Director General of Taxes has released a regulation on the Value Added Tax (VAT) treatment on businesses in the exports and imports of tangible taxable goods (Barang Kena Pajak/BKP). The policy is outlined in the Director General of Taxes Regulation No. PER-07/PJ/2021 concerning the Value Added Tax Treatment on Businesses in the Export and Import Sectors of Intangible Taxable Goods (PER-07/2021). This regulation has been issued to provide legal certainty and ease of administration in the exercise of tax rights and fulfillment of tax obligations in connection with exports of tangible BKP.
 
Article 2 PER-07/2021 asserts that VAT is imposed on exports of tangible BKP by Taxable Persons for VAT Purposes (Pengusaha Kena Pajak/PKP) and imports of BKP. Export Declaration (Pemberitahuan Ekspor Barang/PEB) and Import Declaration (Pemberitahuan Impor Barang/PIB) of exports and imports of tangible BKP are reported in the Periodic VAT Returns. The crediting of input VAT on imports of intangible BKP, as confirmed in Article 2 paragraph (5) of PER-07/2021, shall be carried out by the PKP as the owner of the goods as per statutory provisions in the field of taxation.
 
PEB is prepared by the exporter as per the statutory provisions in the customs sector. PEB attached with an export service note (Nota Pelayanan Ekspor/NPE), and bill of lading, or airway bill, constitutes a certain document equivalent to a tax invoice as per statutory provisions in the field of taxation.
 
Next, as per the provisions under Article 9 of PER-07/2021, PIB is prepared by the importer as per the statutory provisions in the customs sector. PIB constitutes a certain document equivalent to a tax invoice as per the statutory provisions in the field of taxation. PIB must, however, include the identity of the owner of the goods in the form of the name, address, and Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP), and is attached with the tax payment slip, customs, excise, and tax payment slips, and/or withholding tax receipt by the Directorate General of Customs and Excise (DGCE).
 
The aforementioned exporters/importers constitute the owners of the goods or other parties that supply services of export/import management to the owners of the goods. Goods owners (PKP) or parties conducting exports/imports using export/import management services (PKP) are required to report PEB/PIB in the Periodic VAT Returns. Supplies of export/import management services constitute supplies of JKP subject to VAT. The party supplying export/import management services as per the provisions constitutes a PKP, is required to collect payable VAT and prepare tax invoices, remit payable VAT, and report payable VAT in Periodic VAT Returns.
 
The exporter/importer, as the party supplying export/import management services to the owner of the goods, cannot state his identity as the owner of the goods in the PEB/PIB. VAT becomes payable on intangible BKP exports by PKP on the date of PEB registration, i.e. the date the export approval is granted by the competent authority of the Directorate General of Customs and Excise. The PEB registration date is the reporting date of tangible BKP exports in the Periodic VAT Returns.
 
VAT shall not be imposed on exports of tangible BKP in the form of packaged goods exports for which the DGCE has been notified that the packaged goods are intended to be re-imported as per the statutory provisions in the customs sector. Re-imports of packaged goods are not subject to VAT and are not reported in the Periodic VAT Returns by the PKP as the owner of the packaged goods insofar as the exports of packaged goods satisfy one or two of the following requirements. First, the packaged goods are recorded as the assets of PKP that owns the packaged goods. Second, there is an agreement elucidating that the packaged goods must be returned by the buyer outside the customs area to the PKP as the owner of the packaged goods.
 
Next, VAT shall not be imposed on imports of BKP in the form of imports of packaged goods for which temporary import permits have been obtained as per statutory provisions in the customs sector as well. Re-exports of packaged goods are not reported in the Periodic VAT Returns by PKP insofar as the imports of packaged goods satisfy one or two of the following provisions. First, the packaged goods are not recorded as the PKP’s assets. Second, there is an agreement that states that the packaged goods must be returned by PKP to the seller outside the customs area.
 
With the enactment of PER-07/2021 on 26 March 26, 2021, PER-13/PJ/2019 concerning Certain Documents Equivalent to Tax Invoices shall remain valid, except in terms of PIB in the form of a Decree on the Payment of Import Duties, Excise, or Taxes (Surat Penetapan Pembayaran Bea Masuk, Cukai, atau Pajak/SPPBMCP) for consignment goods and the formal requirements of PEB.