Government Regulation No. 69 Year 2015 dated September 16, 2015

IMPORT AND TRANSFER OF CERTAIN TRANSPORTATION EQUIPMENT AND ITS TAXABLE SERVICES WHICH ARE NOT COLLECTED FROM VALUE ADDED TAX

Article 1
Import on particular means of transportation which are not collected from VAT includes:

1. Water, underwater, air means of transportation and train including their spare parts imported by Defense Ministry, Nation Army, State police and other party appointed by them to do importation;
2. Sea, river, and lake vessels, ferry, fishing vessel, pilot boat, tug boat, barge and their spare parts, human and shipping safety equipment imported and utilized by national trade shipping company, national fishing company, national port service management company and national river, lake and ferry transportation services company, in accordance with their business line.
3. Airplane and its spare parts, human and air safety equipments, airplane repair and maintenance equipment imported by any party appointed by national commercial airline for repairing and maintaining their airplane; and
4. Train and its spare parts also its repair and maintenance equipments imported and utilized by public train operator and/or public train infrastructure operator, and components or materials imported by any party appointed by them for making their train, spare parts, repair and maintenance equipments and its infrastructures .

Article 2
Particular means of transportation which transfer are not collected from VAT include:

1. Water, underwater, air means of transportation and train including their spare parts which are transferred to Defense Ministry, Nation Army, State police;
2. Sea, river, and lake vessels, ferry, fishing vessel, pilot boat, tug boat, barge and their spare parts, human and shipping safety equipment which are transferred to and utilized by national trade shipping company, national fishing company, national port service management company and national river, lake and ferry transportation services company, in accordance with their business line.
3. Airplane and its spare parts, human and air safety equipments, airplane repair and maintenance equipment which are transferred to and utilized by national commercial airline and spare parts and repair and maintenance equipment acquired by any party appointed by national trade airline for repairing and maintaining their airplane; and
4. Train and its spare parts also its repair and maintenance equipments which are transferred to and utilized by public train operator and/or public train infrastructure operator, and components or materials transferred to any party appointed by them for making their train, spare parts, repair and maintenance equipments and its infrastructures.

Article 3
Taxable services related to particular means of transportation which are not collected from VAT include:

1. Services received by national trade shipping company, national fishing company, national port service management company and national river, lake and ferry transportation services company which cover:
   1. Ship rental services;
   2. Port services including pilot, tug, mooring and port services; and
   3. Ship repair and docking services;
2. Services received by national commercial airline including:
   1. Airplane rental services; and
   2. Airplane repair and maintenance services; and
3. Train repair and maintenance services received by public train operator.

Article 4

1. VAT in paid for obtaining taxable goods and/or services which on its transfer are not collected from VAT can be credited.
2. Such VAT in are valid from the effectiveness of this regulation.

Article 5

1. To any particular means of transportation which on its import and/or transfer are exempted from VAT as mentioned in article 1 letter b, c and d and article 2 letter b, c and d, should within 4 years from its import and/or acquisition:
   1. Are used not in accordance with its intended purposes; or
   2. Partially or wholly transfer to other party;

Such exempted VAT must be paid.

1. Payment on such VAT must be paid within 1 month since its transfer or switch its utilization.
2. Should up to end of one month period such VAT is not paid, DGT will issue underpayment tax assessment letter plus sanction in accordance with tax rule and regulation.
3. Such VAT cannot be credited.

Article 6
Further provision regarding:

1. Procedures for granting  VAT not-collected facility, and
2. Procedures for repayment of VAT as mentioned in article 5.

Will be set by Minister of Finance Regulation.

Article 7

1. Evaluation on this regulation will be conducted at longest 3 years after the effectiveness of this regulation.
2. Such evaluation will be conducted by monitoring team set by Minister of Finance Decision.

Article 8
At the effectiveness of this regulation, particular means of transportation which already exempted from VAT before the effective date of this regulation, and are used not in accordance with its intended purposes; or partially or wholly transfer to other party within 5 years since its import or acquisition, will obey the article 4A Government Regulation No. 146 Year 2000 which amended by Government Regulation No. 38 Year 2003.

At the effective date of these regulations:

1. Provisions under article 1 number 1;
2. Article 1 number 4, 5 and 6;
3. Article 2 number 2;
4. Article 2 number 5, 6 and 7; and
5. Article 3 number 1, 2 and 3

Government Regulation No. 146 Year 2000 which amended by Government Regulation No. 38 Year 2003, are void and no longer valid.

This regulation will be effective 30 days since its promulgation.