In Indonesia, gold is still one of the most popular investment instruments for the majority of Indonesian people. Gold is considered relatively safe because its value is stable amidst the current economic uncertainty. This was proven when the economic level in Indonesia fell when the Covid pandemic hit, the value of gold actually increased and reached its highest value.
The government has issued Minister of Finance Regulation Number 48 of 2023 (PMK 48 of 2023) to simplify the provisions regarding Income Tax and Value Added Tax (VAT) on the sale or delivery of gold, both in the form of jewelry and bars, especially for people who are final consumer.
Aspects of Value Added Tax (VAT) on the delivery of Gold Jewelry by Gold Entrepreneurs to final consumers
- For delivery of gold jewelry from Gold Jewelry Manufacturers to end consumers
Based on Article 14 paragraph (3), gold jewelry manufacturers are required to collect Value Added Tax (VAT) at a certain amount, which is 15% of the VAT rate of 11%. Or 1.65% of the selling price for delivery to end consumers.
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VAT Certain Amount = 1.65% x Selling Price |
- For delivery of gold jewelry from Gold Jewelry Traders to end consumers
Based on Article 14 paragraph (4), gold jewelry traders are obliged to collect Value Added Tax (VAT) with a certain amount, which is 10% or 15% of the VAT rate of 11% of the selling price, depending on whether the gold jewelry trader has a Tax Invoice for the gold purchased.
If a Gold Jewelry Trader does not have a Tax Invoice for the purchase of gold jewelry sold to end consumers:
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VAT Certain Amount = 1.65% x Selling Price |
If a Gold Jewelry Trader has a Tax Invoice for the purchase of gold jewelry sold to end consumers:
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VAT Certain Amount = 1.1% x Selling Price |
TBrights is a tax consultant in Indonesia which currently is an integrated business service in Indonesia providing comprehensive tax and business services
By Tommy HO – Managing Partner TBrights
Reference:
Minister of Finance Regulation Number 48 of 2023 concerning Income Tax and/or Value Added Tax on the Sale/Delivery of Gold Jewelry, Gold Bars, Jewelry, Jewelry whose materials are not entirely made from Gold, Gemstones, and/or Other Stones Similar things, as well as services related to gold jewelry, gold bars, jewelry whose material is not entirely made of gold, and/or gemstones, and/or other similar stones, carried out by gold jewelry manufacturers, gold jewelry traders, and/or Gold Bar Entrepreneur.
