Page 2 - Newsletter (The Revocation of Treasurer’s Taxpayer Identification Number and VAT Policy on Textbooks)

DDTC Newsletter Vol.03 | No.03 I February 2020 Page 2 of 5

The Revocation of Treasurer’s Taxpayer Identification
Number and VAT Policy on Textbooks

Annulment of the Treasurer’s administration functional officers in the local government
Taxpayer Identification Number work units. As for village governments, the registration
is carried out by the village head or the village financial
administration work units.
The Director General of Taxes will annul the Taxpayer
Identification Number (Nomor Pokok Wajib Pajak/
Upon registration, government agencies shall be given
NPWP) of the expenditure, revenue, and village treasurer.
an NPWP at their domicile. However, this regulation
Other than the NPWP annulment, the Director General of
stipulates the non-existence of branch NPWP for
Taxes will also revoke the revenue treasurer’s status as a
government agencies. The NPWP received may be
taxable person for VAT purposes (pengusaha kena pajak/
used by budget users, budget user proxies, payment
PKP).
instruction signing officer, expenditure treasurers,
revenue treasurers, and/or head of village government
The Director General of Taxes will, however, issue a financial administration to carry out the government
new NPWP -on behalf of the agency- ex officio for all agencies’ rights and obligations as tax withholders.
government agencies. Correspondingly, the appointment
of the PKP is to be conducted ex officio for government
Moreover, through this regulation, the Ministry of Finance
agencies of which the revenue treasurer has been
has revised the regulations on the collection, remittance,
confirmed as a PKP.
and reporting of value added tax (VAT) and sales tax
on luxury goods (SLTGs) by government agencies.
Further, the annulment of NPWP and revocation of PKP Under MoF Reg. No.231/2019, government agencies
shall be carried out upon the enactment of Minister of are appointed as VAT and SLTGs collectors. The party
Finance Regulation No.231/PMK.03/2019 concerning appointed as the collector under the previous regulation
the Procedures for the Registration and Annulment was the government treasurer.
of Taxpayer Identification Number, Appointment and
Revocation of Taxable Persons for VAT Purposes Status,
In addition to restipulating the parties appointed as
and the Withholding, Remittance, and Tax Reporting for
collectors, the Ministry of Finance has revised the
Government Agencies (MoF Reg. No.231/2019).
transactions on which the government agencies do
not collect VAT or SLTGs. In further detail, government
Promulgated on 31 December 2019, this regulation agencies do not collect VAT and SLTGs on 7 transactions.
will take effect 3 months thereafter. Its enactment will
concurrently revoke the Minister of Finance Decree
First, payment of a maximum Rp2 million, excluding VAT
No. 563/KMK.03/2003 concerning the Appointment of
or SLTGS, and is not a split payment. There has been an
the Treasurer and the Government Office of the State
increase in the ceiling compared to that set at Rp1 million
Treasury and Cash for Collecting, Depositing, and to
under KMK 563/2003.
Report Value Added Tax and Sales Tax on Luxury Goods
and Its Collecting, Remittance, Reporting Procedures
Second, payment for central government agencies’
(MoF Decree No.563/2003).
spending using government credit cards. The
previous regulation did not stipulate such a
This implies that the policy of revocating the treasurer’s
transaction. Third, payment for land acquisition. This
NPWP and PKP status is to be implemented as of 1 April
provision differs from the previous regulation which
2020. For this reason, under this regulation, the Ministry
exempted payment for land clearing rather than for land
of Finance also emphasizes the government agencies’ acquisition.
obligation to register for an NPWP at the Tax Office (Kantor
Pelayanan Pajak/KPP) or Tax Services, Dissemination, Fourth, payment for the supply of fuel oil and non-oil fuel
and Consultation Office (Kantor Pelayanan, Penyuluhan,
by PT. Pertamina (Persero). Fifth, payment for the supply
dan Konsultasi Perpajakan/KP2KP).
of telecommunications services by telecommunications
companies. Sixth, payment for air transportation services
The registration is carried out by the authorized party.
supplied by airlines. Seventh, payments for taxable goods
In further detail, this regulation outlines that for central
or taxable services entitled to the non-imposition of
government agencies, the parties authorized to register
exemption of VAT.
are the heads of the agencies, budget user proxies, or
financial administration functional officers.
The last four types of transactions were set forth in the
previous regulation and remained the same. Despite
In contrast, for regional governments, the registration
the fact that government agencies do not impose VAT/
is carried out by the heads of the agencies or financial