Indonesia VAT: Certain export services subject to 0% VAT
- Toll manufacturing services, provided the customer is a foreign taxpayer resident outside the Indonesian customs territory and does not have a permanent establishment in Indonesia; the specifications and materials are provided by the customer; the materials include raw materials, goods in process and/or auxiliary materials that will be processed to become taxable finished goods; the finished goods belong to the customer; and the toll manufacturing company delivers the goods produced outside the Indonesian customs area based on orders from the customer;
- Repair and maintenance services related to movable goods utilized outside the Indonesian customs territory; and
- Construction services related to immovable property located outside the Indonesian customs territory.
As in the case of exports of goods, VATable entrepreneurs carrying out the export of services must prepare an export declaration at the time of export. The declaration with an invoice attached will be treated as a tax invoice.
Exports of services carried out before 1 April 2022 (either in whole or in part) are subject to Regulation 70 if compensation is recorded or recognized as income on or after that date.