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.
VAT registration becomes mandatory when a company’s annual turnover exceeds IDR 4.8 billion (US$300,000).
Foreign investors must use the e‑Faktur system; invoices must be generated and validated through it.
Companies must report VAT monthly, reconciling issued invoices, VAT figures, and accounting records.
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Indonesia Business Post · about 2 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.
BW Auto World · about 11 hours ago
The Supreme Court of India has admitted a petition by the Federation of Automobile Dealers Associations (FADA) concerning more than Rs 2,500 crore in blocked compensation cess credits that became unusable after the implementation of GST 2.0. The court has scheduled the next hearing for March 25 2026 and is considering a transitional mechanism to allow these credits to be offset against other GST liabilities. The case could set a precedent for handling legacy tax credits during indirect tax reforms.
BSS · 1 day ago
The National Board of Revenue (NBR) has extended the filing deadline for February 2026 Value Added Tax (VAT) returns to 29 March 2026. The extension was issued to address technical congestion and reduced processing speed in the E‑VAT system following public holidays. Taxpayers are now given additional time to submit their returns electronically.
China Briefing · 6 days ago
China’s new VAT Law took effect on 1 January 2026, prompting a coordinated overhaul of preferential policies and administrative rules. Import tax incentives for sectors such as pharmaceuticals, R&D, and energy were extended through 2030, while the Hainan Free Trade Port launched a zero‑tariff resident consumption regime. The State Taxation Administration also clarified SME income‑splitting rules, tightening compliance for small‑scale taxpayers.
The Invoicing Hub · 7 days ago
The Philippines will require structured e‑invoicing for large taxpayers and e‑commerce businesses from 1 January 2027, with the first phase of the mandate taking effect on 31 December 2026. The requirement is based on the TRAIN Law and BIR Revenue Regulation 011‑2025, but specific structured formats have yet to be defined. A second phase is expected later in 2027 to extend the mandate to all businesses and mandate transmission via a central platform.
VatCalc · 11 days ago
From 23 August 2026, non‑resident providers of digital services to Azerbaijani consumers must register with the tax administration and charge 18% VAT, replacing the previous withholding‑tax regime. The VAT registration threshold is AZN 17,000 per annum, and the current VAT rate of 18% applies to all domestically supplied digital services. Implementation guidance and FAQs are expected before the August deadline.
