Indonesia has introduced a VAT cut on domestic flights, exempting economy class tickets for purchases and flights within 60 days of the regulation's enactment. The measure, effective 25 April 2026, caps fare increases at 9‑13% and will make domestic airfares effectively VAT‑free from mid‑June. The policy aims to support the aviation sector amid rising fuel costs.
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Antara News · 5 days ago
Indonesia has introduced a regulation covering VAT on base fares and fuel surcharges for economy‑class domestic flights to help reduce airfares amid rising fuel costs. The measure applies for 60 days from 25 April 2026 and includes a fuel surcharge cap of 38% for both jet and propeller aircraft, while limiting fare increases to 9‑13%.
Indonesia Business Post · 3 months ago
Indonesia's Finance Minister Purbaya Yudhi Sadewa announced plans to inspect a Chinese‑owned steel company suspected of VAT evasion next week. The Ministry has identified 40 steel firms, with the two largest slated for inspection, and estimates that VAT avoidance could cost the state over Rp 4 trillion annually. The investigation will involve tracing tax reports, company registrations, ownership, and detaining tax‑related personnel.
ASEAN Briefing · 4 months ago
Foreign investors in Indonesia must register for VAT once their annual turnover exceeds IDR 4.8 billion (US$300,000). After registration, all VAT invoices must be issued and validated through the e‑Faktur system, with monthly reporting and reconciliation required. Non‑compliant invoices and inconsistencies between invoices, returns, and accounting records can trigger audits and penalties.
Basware · 10 days ago
Singapore’s GST InvoiceNow e‑invoicing mandate, effective November 2025, requires all GST‑registered businesses to transmit invoices through the national InvoiceNow network using structured XML standards such as SG Peppol BIS or PINT‑SG and to report invoice data to IRAS. The article outlines buyer and supplier responsibilities, handling of exceptions (PDF, cross‑border, inter‑company) and stresses the need for robust process controls and compliance confidence.
Shared Services Link · 16 days ago
Singapore has extended its e‑invoicing mandate to all new voluntary GST registrants from 1 April 2026, requiring them to use InvoiceNow and send structured invoice data via the Peppol network. Existing GST‑registered businesses are exempt for now, with a broader rollout planned through 2031. The move is part of the city‑state’s digital tax agenda to improve compliance and streamline processes.
VatCalc · 18 days ago
Vietnam's Ministry of Finance has issued a draft decree to streamline e-invoicing for e-commerce and low-value transactions, shifting invoice issuance to platform operators and allowing small businesses below thresholds to issue consolidated daily invoices. The Finance Ministry also proposed extending e-invoicing to businesses with sales above VND 1 billion on 10 December 2025, and Circular 32/2025 provides detailed guidelines on numbering, use cases, and service provider standards. A June 2024 directive urges the remaining non‑compliant businesses, especially retail outlets, to adopt e‑invoicing, following the successful Phase 2 rollout in 2022 that registered 92 % of obligated taxpayers.
The exemption takes effect on 25 April 2026, one day after the regulation was enacted.
The government limits domestic fare increases to between 9% and 13% during the mitigation period.
It applies to tickets purchased and flights taken within 60 days of the regulation's enactment.
Domestic airfares will become effectively VAT‑free from mid‑June 2026.
This summary was published on VATfaqs.com on 1 May 2026. It relates to VAT developments in Indonesia. The original source is The Bali Sun.
