Is the Returnable Packaging of Merchandise Entered into a Bonded Zone Constitute as a Delivery of Taxable Goods?

TaxPrime Newsletter: Tax and Customs Compliance for Bonded Zone Entrepreneurs: Managing Returnable Packaging

The management of tax and customs documents is crucial for Entrepreneurs in Bonded Zone (‘PDKB’) in order to comply with regulations and benefit from facilities provided by applicable tax and customs provisions. According to the provisions of VAT and customs, the delivery of returnable packaging, such as containers or equipment used in the context of transporting and or moving merchandise, which is taxable goods, may not be considered as delivery of taxable goods if the transaction does not result in the transfer of ownership rights to the packaging. Therefore, the party that delivers the returnable packaging is not obliged to issue a Tax Invoice, as stated in PER-9 BC 2021 and other related provisions. However, the PDKB is still obliged to report and manage customs documents for the entry and/or exit of returnable packaging in order to comply with customs regulations in Indonesia.

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