Page 6 - Newsletter (Increased Housing Price Thresholds for VAT Exemptions)

DDTC Newsletter Vol.01 | No.08 I June 2019 Page 6 of 7

Increased Housing Price Thresholds for VAT Exemptions

Table 3 - General Provisions for Temporary Imports and Temporary Exports of Motor
Vehicles in Border Areas

TEMPORARY IMPORTS TEMPORARY EXPORTS

The main provisions for importers to import motor vehicles The provisions for exporters to export motor vehicles through
through Cross Border Control Posts into the customs area using Cross Border Control Posts to be used in foreign countries using the
the Temporary Import mechanism: Temporary Export mechanism:
1) The motor vehicles are registered in foreign countries set 1) The motor vehicles are registered in Indonesia; and
forth in MoF Regulation; 2) The motor vehicles are exported by an Indonesian citizen
2) The motor vehicles are owned by foreign nationals set forth registered as a resident in a Border Area or the province in
in the MoF Regulation; which there exist Cross-Border Control Posts for motor
3) The motor vehicles are imported and driven by motor vehicles.
vehicles owners or their proxies;
4) The motor vehicles have obtained export approval or the like
from the competent authorities in the foreign countries
stated in the MoF Regulation;
5) The motor vehicles have a minimum amount of fuel of three-
quarters of the normal fuel tank capacity during the import;
and
6) importers and/or motor vehicles do not have uncompleted
Vehicle Declaration.

Source: MoF Regulation 52/2019

the country of origin and/or destination country of the In addition, there exist several provisions for temporarily
motor vehicle are regulated, namely: imported and exported motor vehicles in order to apply
the procedures in this regulation as shown in Table 2.
1. Border areas in the provinces of West Kalimantan
and North Kalimantan to regulate motor vehicles This regulation, which has officially come into effect
from or to Malaysia and Brunei Darussalam; as of 7 June 2019, also shows collaboration between
2. Border area in East Nusa Tenggara province to the DGT and the Directorate General of Customs and
regulate motor vehicles from or to the Democratic Excise (DGCE). This is evident in their roles within this
Republic of East Timor; and MoF Regulation in safeguarding the three border areas.
3. Border areas in the province to regulate motor The DGT has a role in determining the various types of
vehicles from or to Papua New Guinea. application procedures, ranging from the procedures
for issuing approval to the completion of temporary
This regulation does not stipulate the mobilization of
imports and exports. On the other hand, the DGCE has a
motor vehicles permanently but for a certain period
role in establishing cross-border control posts to provide
of time. For temporary imports, the period is set for a
services.
maximum of thirty days as of the date of approval and
can be extended to six months in the period of one year.

Latest taxation news and regulations, visit:

news.ddtc.co.id & engine.ddtc.co.id