VAT INVESTMENT ON SERVICES TRAVEL SERVICES VAT - 140
DIRECTOR GENERAL OF TAXES,
In the framework of implementation of Government Regulation No. 28/1988, especially those
concerning the problem the imposition of VAT on the Travel Company Services, then after taking into the advice and opinions in the meeting between ASITA (Associates of the Indonesian Tours & Travel Agencies) or the Association of Travel Companies Indonesia with Directorate General of Tax c.q. Directorate of Indirect Taxes on 11 and 18 April 1989 it is hereby given the following guidance:
1. According to Article 1 of Government Regulation No. 28/1988, Travel Company Services is
classified as Taxable Services. Therefore both the Public Travel Agency and the Travel Agent is a Taxable Employers. In accordance with the Announcement of the Director General of Tax No .: Peng-139 / PJ.63 / 1989 dated March 27, 1989 then at the latest 26 April 1989 they already has to report his business to be confirmed as a Taxable Employers for VAT purposes. 2. The business activities of the Travel Company can basically be grouped as follows: 2.1. Activities undertaken by the Public Travel Agency are as follows : a. Create and sell its own Public Travel Agency,s products in the form of Packages Tours, Components of the Tour Package consists of airfare, accommodation included meals, land transportation / sea, tour services (consisting of: pick up and drop off guest or meeting service, take care of re-export documents of goods or handling service, and escort service / guide or guide service as well spectacle or performance service); b. Sell other party products such as overseas Tour Package, plane ticket, boat and taking care of travel documents etc .; c. Organizing conferences or Professional Conference Organizer (PCO); 2.2. Travel Agent Activities that can be: a. Selling other party products such as selling Tour Packages within or outside the country, airline tickets, sea freight or train etc.; b. Take care of travel documents etc. 3. The Tax Basis on the handling of Taxable Services according to Article 1 letter p shall be substituted namely: Value in the form of money including all fees requested or should be required by the service giver due to the delivery of services, excluding taxes withheld according to the 1984 VAT regulation and the discounts listed in the Tax Invoice. Nevertheless considering the services this Travel Company has a special character which is sells products in the form of services excluded from VAT, services already subject to VAT or services to be consumed abroad then applying Article 1 letter p will literally cause injustice as well causing unhealthy competition that is contrary to the principle of neutrality adopted PPN. As known to the domestic air transport services have been subject to VAT over all ticket prices including commissions for Travel Agents, while hotel services, land / sea transport services are exempt from PPN. Meanwhile, overseas Tour Packages sold in Indonesia are basically those services will be consumed overseas. 4. In connection with it to eliminate doubt and to have uniformity within the calculation of the VAT owed and to avoid the imposition of double taxation and avoid the imposition of services that should not be payable VAT then set the arrangement as follows: 4.1. Tax base: 4.1.1. Basic Tax Imposition on Sale of Tour Packages either domestic or foreign, and sales of other party products such as air / sea and land transport services are set of 10% of the value of circulation or turnover (invoice value) does not include a turnover of sale of domestic air transport tickets. 4.1.2. Basic Tax Imposition for other activities such as document processing travel, organizing conference (PCO) is the whole value of circulation or turnover (invoice value) less the fees paid to the Agency Governments of magnitude in accordance with applicable regulations. The calculation of the above Tax Base has taken into account Input Tax which can be credited. Thus the Input Tax from the Public Travel Bureau nor such Travel Agent can not be credited anymore and therefore not allowed to be charged as company expenses. 4.2. The calculation of VAT payable and paid-in shall be as follows: 4.2.1. Top sales activities Tour Packages = 10% x 10% (invoice value - domestic air transport ticket) = Rp. X 4.2.2. On other activities such as PCO = 10% x (invoice value - Paid paid to Agency Government) Rp. Y
VAT to be paid = Rp. X + Y
5. Since the recipient of Travel Company Services is generally individual consumer then to This Shipping Company is allowed to create a Simple Tax Invoice that can be business invoice or receipt. 6. When the VAT is due at the time of collection or when the invoice is issued, which is at once serves as a Simple Tax Invoice. Therefore, when depositing VAT at the latest is the 15th of the following month after the publication of the invoice, while reporting the calculation of VAT with SPT VAT Period is no later than the 20th of the following month after the publication of the invoice.
So you are well informed and to be carried out as well as possible.
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