Government Regulation No. 74 Year 2015 dated October 1, 2015

VAT TREATMENT ON PARTICULAR PORT SERVICE DELIVERY FOR SEA TRANSPORT COMPANY WHICH CARRY OUT OVERSEAS SEA TRANSPORT

Particular port service delivery by port management corporation to sea transport company which carry out overseas sea transport will be exempted from VAT.

Such VAT exemption will be valid under following term and condition:

1. For ship operated by national sea transport company must not carry any passenger and/or goods from one harbor to another within Indonesia region.
2. For ship operated by foreign sea transport company must obey the following:
   1. Not allowed to carry any passenger and/or goods from one harbor to another within Indonesia region; and
   2. Country where this company is domiciled must give reciprocal treatment to Indonesian ship.

When this condition is not met VAT must be paid within one month starting from that date. When this period is overdue DGT will issue underpayment tax assessment letter plus sanction.
Particular exemption services are:

1. Ship services which are anchor service, pilot service, tug service, mooring service;
2. Goods service which are container loading and unloading services from ship to lot and/or vice versa.

Such VAT exemption will not require any statement of VAT dispensation.
VAT in paid by port management corporation for acquiring taxable goods and/or  services related to particular port services delivery which are exempted from VAT cannot be credited.

Taxable entrepreneur who conduct such particular port services must issue tax invoice with stamp or information describing such VAT exemption is under this regulation.

This regulation will be effective 30 days after its promulgation date.