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 · about 1 month 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 · 5 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 · 5 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.
Manila Bulletin · 6 days ago
Manila Bulletin reports that the Philippine BIR has clarified that bilateral tax treaties do not exempt foreign digital service providers from the country's 12% VAT. The new guidance, issued in RMC No. 59‑2026 on June 2, 2026, requires non‑resident providers to register and file VAT returns, and outlines reverse‑charge rules for cross‑border B2B services. It also details how online booking platforms and pre‑existing subscriptions are taxed.
The Manila Times · 7 days ago
The BIR expanded the VAT exemption list for essential medicines in April 2026, increasing the number of exempt chronic‑condition drugs to 2,263 from 2,242 in December 2025. This move aims to reduce out‑of‑pocket healthcare costs and boost demand for locally produced generic medicines. The commentary notes potential benefits for domestic manufacturers but highlights ongoing challenges such as high out‑of‑pocket spending and supply‑chain constraints.
Boardroom Limited · 8 days ago
Boardroom Singapore’s press release outlines common pitfalls in Singapore’s GST filing process and offers a practical checklist to improve accuracy. It stresses the importance of timely filing, proper documentation, and the use of the myTax Portal and IRAS’s Assisted Self‑help Kit to mitigate errors and penalties.
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Key Takeaways
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.
Primary source
Read the full article at The Bali SunThis summary was published on VATfaqs.com on 1 May 2026. It relates to VAT developments in Indonesia. The original source is The Bali Sun.
