Headline:
Understanding Indonesia’s New PPN Billing Rules: DPP Nilai Lain and Kode Faktur 04
Article:
JAKARTA — The Directorate General of Taxes (DJP) has clarified the application of the Value Added Tax (PPN) in Indonesia, with a focus on the use of the Different Value Added Tax Base (DPP Nilai Lain) and Faktur Pajak code 04.
Effective immediately, businesses that invoice using the DPP Nilai Lain method, calculated as 11/12 of the sales price as per PMK 131/2024, must issue an invoice with the code 04. This aligns with the provisions of perk profession 3/2022 s.d.d 11/PJ/2022 from the Director General of Taxes, which states that code 04 is used for taxable supplies with a DPP calculated under the DPP Nilai Lain regime as per Article 8A Paragraph (1) of the PPN Law.
"For invoice calculation using DPP Nilai Lain, which is 11/12 of the sales price or an effective rate of 11%, the appropriate faktur pajak code is 04," confirmed Dwi Astuti, Director of Public Relations and Human Resources at the Directorate General of Taxes.
This DPP Nilai Lain method, detailed in PMK 131/2024, calculates PPN on imports and taxable supplies except for luxury goods at a rate of 12% applied to DPP Nilai Lain, equivalent to 11/12 of the import price, sales price, or replacement value. This results in an effective PPN rate of 11%, lower than the statutory rate of 12% stipulated in Article 7 Paragraph (1) Point b of the PPN Law.
For luxury goods, which are subject to the excise, PPN is calculated at 12% of the sales price or import value, as per Article 2 Paragraph (2) of PMK 131/2024. These luxury goods include motor vehicles and other select items subject to PPnBM, as outlined in the appendices of PMK 96/2021 s.t.d.d PMK 15/2023 and PMK 141/2021 s.t.d.d PMK 42/2022.
It’s important to note that the 12% PPN rate on luxury goods is effective from February 1, 2025. From January 1-31, 2025, PPN for luxury goods will continue to be calculated at 12% on DPP Nilai Lain, or 11/12 of the sales price.
For more information on PPN billing and to stay updated with the latest developments, visit DDTCNews for comprehensive resources on Indonesian tax regulations.
