Exporting services and zero rating
Kami ekspor jasa IT ke klien luar negeri. PPN-nya 0 persen?
The situation
Exports of certain services are zero rated if they are on the list and documented. Others may be treated as domestic supplies.
The law
- Art 7, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: VAT rate is 12 percent from 1 January 2025; exports are zero rated
- Art 13, Law 8/1983 on VAT and Luxury Goods Sales Tax (PPN Law), as last amended by Law 6/2023: A PKP must issue a tax invoice (faktur pajak) for every taxable supply, in electronic form
What it means for you
Check that your service is on the list of exportable services and keep contracts, invoices and payment proof. Zero rating lets you claim input VAT. Example: IT services IDR 500 million to a Singapore client: 0 percent VAT if eligible.
What to do
- Check the service is listed.
- Keep contracts and proof of payment.
- Report as export.
- Credit input VAT.
Unlisted services exported may still bear VAT.
We can do this for youMonthly VAT return and e-Faktur in Coretax: output and input VAT, the 11/12 base and payment: IDR 2.900.000