VAT and GST in Indonesia

VAT and Goods and Services Tax (GST) are applied to most goods and services in Indonesia. Imports are subject to VAT and GST, but most exports are not.

VAT and GST taxes are called Pertambahan Pajak Nilai or PPN. PPN is a ten percent, point-of-sale tax that extends to services supplied by foreign taxpayers outside Indonesia if these services benefit Indonesia. Provisions allow for certain items to be taxed as high as 20 percent with a cap of 35 percent.

PPnBM is the Sales Tax (GST) on luxury goods. It is levied in addition to PPN. It is imposed on luxury goods which are both manufactured in and imported into Indonesia. Rates range from 10 to 50 percent, with a few items taxed as high as 75 percent.

Modern and traditional retailers

As PPN applies to the sale of agricultural products, a difference is made between modern and traditional retailers. In deference to Indonesia’s traditional market economy in rural areas, cottage industries such as farmers’ markets and other small businesses are exempt from sales and service taxes.

Goods not subject to VAT

• Daily necessities basic to the public need
• Food and beverages served in hotels, restaurants, cafés, including both food and beverages consumed on and off the premises, and food and beverages delivered by a catering business
• Money, gold and securities
• Products of mining or drilling taken directly from source

The following services are not subject to VAT:

• Arts and entertainment
• Educational
• Financial
• Hotel
• Insurance
• Intra-government
• Labour
• Mail services requiring a stamp
• Medical health
• Non-commercial broadcasting
• Parking
• Public transport (land, water, and air)
• Religious
• Social

VAT refunds for tourists

A VAT rebate for luxury goods bought in Indonesia is available for tourists at international airports on the day of departure.

Eligibility is restricted to tourists who have stayed in Indonesia for no longer than two months. Foreign residents are excluded.

As this is a relatively recent programme, most participating retailers are limited to shopping malls in Jakarta and Bali.

Conditions:

• Goods must be bought at shops which display a “VAT Refund for Tourists” logo
• Tourists must ask for a VAT rebate (a tax invoice) which is called a faktur pajak
• Goods eligible for discount must total at least Rp500,000 and be listed on one tax invoice. Multiple invoices can be claimed, but each must have a minimum total of Rp500,000
• Excluded goods: food, beverages, tobacco, guns, and goods prohibited on an aircraft
• Goods must be purchased within one month of the day of departure from Indonesia
• Goods must be carried as accompanied baggage

Claims procedure:

• VAT rebates can only be claimed on the date of departure from Indonesia
• Declare goods at the Directorate of General Taxes at the airport’s tax desk
• Submit the original invoice along with the tax invoice prepared by the retailer
• Show an airline ticket and passport

The VAT rebate can be received in cash or through an electronic bank transfer

Opinion: The VAT is very useful to reduce the purchase of vehicles that do not happen to traditional Indonesia idi macatan .

sumber: http://indonesia.angloinfo.com/money/general-taxes/vat-gst/

• For further details on VAT refunds for tourists: Click here

Big Four Accounting Firms.

These firms provide an extensive range of accounting and auditing services including external audit, taxation services, management and business consultancy, and risk assessment and control.
They also provide massive employment and career development opportunities to accountants and auditors around the world.
The following are the members of this internationally renowned group.
1. Deloitte Touche Tohmatsu Limited
DeloitteDeloitte Touche Tohmatsu, popularly known as just “Deloitte”, is probably the biggest professional service organization in the world. The firm was founded by William Deloitte in 1845. It went through a series of mergers and reorganizations but kept its brand name along with its quality standards and company values. Now, it emerges as one of the most successful brands in the world.
In 2014, it earned $34.2 billion and had approximately 210,000 employees in more than 150 countries demonstrating excellence in providing audit, consulting, financial advisory, risk management, and tax services to clients worldwide. See Deloitte Website
2. PricewaterhouseCoopers (PwC)
With $34 billion revenues in 2014, PWCPwC is one of the world’s largest providers of accounting services. It employs more than 195,000 professionals in 157 countries around the world. The company was formed by the merger of two large accounting firms – Price Waterhouse, and Coopers & Lybrand. The two decided to merge in 1998 and dedicated themselves to provide services of value while establishing and maintaining good customer relations.
PwC firms operate locally in different countries around the world. These independently owned and managed firms, like other international companies, share common values and standards. PwC provides excellent assurance, consulting, and tax services. See PWC Website
3. Ernst & Young (E&Y)
Ernst & YoungErnst & Whinney merged with Arthur Young to create Ernst & Young in 1989. Ernst & Young is a global organization of member firms in more than 150 countries. It employs people equipped with professional skills and values of integrity, respect, teamwork, enthusiasm, and motivation. These form the core values of Ernst & Young.
The organization also values knowledge and skills development, helping around 190,000 employees achieve their potential through professional training and career growth programs. Ernst & Young offers assurance, advisory, tax, and specialty services. Ernst & Young earned $27.4 billion in 2014. See E&Y Website
4. Klynveld Peat Marwick Goerdeler (KPMG)
KPMGKPMG is a global network of accounting firms providing audit, tax, advisory, special interest and industry-specific services. It employs approximately 162,000 professionals working together to provide quality service in 155 countries around the world. KPMG earned $24.8 billion in 2014.
The organization was formed in 1987 through the merger of Peat Marwick International and Klynveld Main Goerdeler. Like other professional service organizations, KMPG places great value on its people and quality of service. See KPMG Website
Some Historical Facts
The Big 4 used to be known as Big 8 made up of (1) Arthur Andersen, (2) Arthur Young & Co., (3) Coopers & Lybrand, (4) Ernst & Whinney, (5) Deloitte, Haskins & Sells, (6) KPMG, (7) Touche Ross, and (8) Price Waterhouse. It was after a series of mergers and dissolutions that brought about the elite four.
In 1989, two huge mergers reduced the Big 8 into the Big 6. Ernst & Whinney merged with Arthur Young to form Ernst & Young; and Deloitte, Haskins & Sells with Touche Ross to form Deloitte Touche. Then in 1998, Price Waterhouse merged with Coopers & Lybrand to form PricewaterhouseCoopers, famously known as PwC. It further reduced the group into the Big 5.
In 2002, the five was cut by one due to the fall of Arthur Andersen after its involvement in the world-shocking Enron scandal. From then on, the four largest existing accounting firms have been known as the Big 4.
Next to the Big 4 are: BDO International, the 5th largest accounting firm with 60,000 employees in 151 countries and 2014 earnings of $7.02 billion; and Grant Thornton, placing in 6th with 38,500 employees in 125 countries and $4.5 billion revenues.

Sumber: http://www.accountingverse.com/articles/big-4-accounting-firms.html