12% VAT Officially Implemented: Which Goods & Services Are Exempt from VAT?
The new regulation regarding the 12% Value Added Tax (VAT) rate has officially been enforced since January 1, 2025. With this change, the public needs to understand which goods and services will remain exempt from VAT.
Here is a list of goods and services that are not subject to VAT:
- Food and beverages served at hotels, restaurants, dining establishments, food stalls, and similar venues
- Money, gold bullion for the purpose of foreign exchange reserves, and securities
- Religious services
- Arts and entertainment services
- Hotel services
- Services provided by the government in the course of carrying out its general duties
- Parking space services
- Catering or food services
For those who need more information about other affected goods and services, make sure to stay updated with official government announcements.
This article is based on the official regulation: UNDANG-UNDANG RI NOMOR 7 TAHUN 2021, DATED 29 OCTOBER 2021
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