Export Services In Indonesia: Eligible For Zero-Rated VAT

On March 29, 2019, Indonesia's Ministry of Finance (MOF) issued regulation PMK-32 that expands the list of export services eligible for zero-rated value-added tax (VAT). PMK-32, which amends the previous PMK-70, 2011, aims to encourage greater development of the country's services sector and improve the competitiveness of domestic providers in the global market.

However, businesses that are eligible need to conduct some administrative work to obtain zero-rated VAT for their exported services.

Businesses that require guidance should seek to consult their advisors to understand whether their product is eligible and what they need to do to obtain the benefit. Meanwhile, service sector businesses that haven't invested in the country should consider whether their products are eligible.