Changes in Application of Value Added Tax

Government Regulation number 44 year 2022 (referred as GR 44) is the implementing regulation of the Law Number 7 year 2021 concerning Harmonization of Tax Regulations (referred as HTR Law). Overall GR 44 of 2022 contains further provisions of the principles already regulated in the HTR Law, especially related to rates, methods of calculation, use of certain amounts in collecting and depositing Value Added Tax (referred as VAT), as well as appointing other parties to collect, deposit, and/or tax reporting. In addition, GR 44 also revokes and replaces Government Regulation number 1 year 2012 (referred as GR 1) which is no longer in accordance with HTR Law and the administrative needs of VAT and Sales Tax on Luxury Goods.